[lbo-talk] Israel's Roaring Economy

Yoshie Furuhashi critical.montages at gmail.com
Thu Jun 21 16:42:40 PDT 2007


On 6/21/07, Doug Henwood <dhenwood at panix.com> wrote:
>
> On Jun 20, 2007, at 10:34 PM, Yoshie Furuhashi wrote:
>
> > Compare the paltry ten-year average Israeli per capita growth rate of
> > just 1% for 1996-2006 and the respectable 2004-2006 average of 5%, and
> > we can see that Hamas's unilateral 18-month ceasefire and entry into
> > electoral politics has done wonders for Israeli economy (in stark
> > contrast with the declining economy of the Al Aqsa Intifada years that
> > is shown in your graph
>
> Not sure if there's really a cause-effect here, but if there is, it
> would undermine Naomi Klein's claim that war is good for the Israeli
> economy.

Some wars turn out to be good for the ruling class of a nation, while others turn out to be disastrous.

The 1947-1948 war founded Israel, good for the Israeli ruling class, and the Six Day War, short and sweet, expanded the Jewish state from the sea to the river, while convincing Washington of the usefulness of Israel, the beginning of a beautiful friendship.

But the first and second Intifadas roughly coincide with Israel's economic downturns, according to Jonathan's graph (even taking his correction that the 2004-6 average, on per capita basis, was 3.2% rather than 5% into account): <http://bnarchives.yorku.ca/228/05/20070401_bn_the_rockefeller_boys_figure.jpg>.

Those who say that Israel cannot survive peace are mistaken. Peace at the expense of the Palestinians is very good for Israel's ruling class.

The same cannot be said for workers in Israel: Jonathan's graph charts a sharp rise in unemployment rate since about 1980. Rising unemployment, no doubt, is one of the reasons for Israeli workers' support for settlements in the West Bank: "the liquidation of the welfare state has turned the occupation of the Palestinian Territories and its byproducts -- in particular the settlements and the split of the Israeli labor market -- into a compensatory mechanism that has protected the Israeli lower classes from the detrimental impact of privatization," says Danny Gutwein ("Some Comments on the Class Foundations of the Occupation," News From Within 22.4, April 2006, <http://www.alternativenews.org/aic-publications/news-from-within/news-from-within-vol-xxii-no.4-april-2006-20060606.html#Danny%20Gutwein>).

The electoral Left in Israel will never abandon economic policy that will compel many Jewish Israeli workers to cling to settlements.

So far, the Israeli power elite have shown a remarkable ability to make and remake networks of collaborators among Palestinians and other Arabs inside and outside the Green Line: e.g., Yoav Di-Capua, "The Intimate History of Collaboration: Arab Citizens and the State of Israel," May 2007, <http://www.merip.org/mero/interventions/di-capua_interv.html>; Egypt* and Israel's Camp David Accords, 17 September 1978; and Fatah's subversion of the Hamas-led government.

The Palestinians in Gaza and the West Bank cannot win unless their brothers and sisters inside Israel rebel and Arabs in the region democratize their governments so as to make their policy truly reflect the majority opinion about Israel and the Palestinians.

* <http://www.guardian.co.uk/worldlatest/story/0,,-6726647,00.html> Egypt Calls Summit to Isolate Hamas Thursday June 21, 2007 10:01 PM AP Photo ASC101 By SALAH NASRAWI Associated Press Writer

CAIRO, Egypt (AP) - Egypt moved forcefully Thursday to isolate Hamas, calling a regional summit next week including the Israelis and Palestinians - and shunning contacts with the militant group after its takeover of Gaza.

More than seeking peace with Israel, Egypt and other U.S. Arab allies are seeking to prevent the new power of Islamic radicals in Gaza from strengthening fundamentalists on their own soil. They also fear Gaza will become a stronghold for Iranian influence on their doorsteps.

Egypt in particular has much to lose. A strong Hamas ruling Gaza, on Egypt's border, could encourage the Muslim Brotherhood, the most powerful and popular political challenger to Egyptian President Hosni Mubarak's government. It could also foment Islamic militants that Egypt has battled for decades to put down.

Monday's summit in the Egyptian Red Sea resort of Sharm el-Sheik aims to boost moderate Palestinian President Mahmoud Abbas by showing he can move ahead with the peace process with Israel despite the Hamas hold on Gaza. The summit will gather Abbas, Mubarak, Israeli Prime Minister Ehud Olmert and Jordan's King Abdullah II.

The following day, Mubarak will meet in Sharm with Saudi King Abdullah, seeking to unify an Arab front behind Abbas and against Hamas.

Abbas will call for a resumption of peace talks with Israel, arguing that only progress toward Palestinian statehood can serve as a true buffer against Hamas, said Palestinian negotiator Saeb Erekat.

``The most important thing to realize is that time is of the essence,'' Erekat said. ``We need to deliver the end of occupation, a Palestinian state. If we don't have hope, Hamas will export despair to the people.''

Egypt, Jordan and Saudi Arabia have said the sole legitimate Palestinian government is the West Bank-based Cabinet formed by Abbas, who dissolved the power-sharing government between his Fatah group and Hamas following Gaza's fall.

Egypt moved its embassy from Gaza to the West Bank, and Egyptian Foreign Minister Ahmed Aboul Gheit indicated Cairo was shunning Hamas officials.

``Egypt will always be in contact with the legitimate authority,'' Aboul Gheit told reporters on Wednesday, referring to Abbas, when asked if Cairo was in contact with Hamas.

The swift, shocking Hamas victory in Gaza wrecked Egypt's longtime attempts to mediate between Abbas and Hamas, the cornerstone of its Palestinian policy. Cairo has sought to moderate Hamas so the Palestinians can move ahead with peacemaking with Israel.

Now, Mubarak's government depicts Hamas as an enemy posing a direct threat to Egypt's security.

``Its not in Egypt's interests (to permit) the presence of a religious state on its borders, and it will do its best to end such a presence,'' said Ali Eldin Helal, a top ruling party official.

Aboul Gheit accused Iran, a top financer of Hamas, of being behind the upheaval.

``The Iranian moves have encouraged what Hamas has done in Gaza. This presents a threat to the Egyptian national security,'' he said this week. ``Gaza is only a stone's throw away from Egypt.''

Every night, commentators on state-run television lash out at Hamas and try to draw a parallel with the Brotherhood.

``Hamas is a religious faction and for them, religion comes first, not the home country,'' said Mustafa el-Fiqi, a senior ruling party lawmaker, on a popular prime time show Monday, echoing past government criticisms of the Brotherhood. ``Hamas is a time bomb and Egypt cannot simply keep silent.''

``The Taliban are on our border,'' proclaimed the pro-government weekly Rose El-Yousef magazine on its cover this week.

Egypt runs a risk if it takes too heavy a hand with Hamas and turns its back on Gaza. Gaza's eight-mile border with Egypt is its only land link to the Arab world, a boundary vital to the 1.4 million Palestinians living there. If the humanitarian situation in Gaza worsens, Egypt could be blamed, prompting a backlash at home, where sympathy for Palestinians is high.

But the border is also punctured by tunnels smuggling weapons and explosives in both directions. Egypt fears radicalism - and weapons - could spread from Gaza into its Sinai Peninsula, where suicide bombers have attacked three tourist resorts since 2004.

On the political front, if Hamas is successful in running Gaza, Egypt's Muslim Brotherhood could reap the benefits, a major worry for Mubarak's government, which has waged an all-out campaign the past two years to eliminate the movement as a rival. Hamas began as an offshoot of the Brotherhood and ties between the two groups remain strong.

The Brotherhood stunned the Egyptian government in 2005 parliament elections by winning more than a fifth of the legislature's seats, making it the biggest opposition bloc. Soon after, Mubarak put off scheduled local elections, fearing a strong Brotherhood showing.

Security forces have arrested more than 800 Brotherhood supporters this year.

In elections this month for parliament's upper house, the ruling party was accused by rights groups and other observers of widespread vote fraud aimed at ensuring its victory. Its candidates nearly swept the vote, and none of the 19 Brotherhood candidates won seats.

The Brotherhood denies it is working closely with Hamas.

``Whatever our relations with them, they are taking their own decisions independently,'' said Mohammed Habib, the Brotherhood's deputy leader.

<http://www.plenglish.com/article.asp?ID=%7B5C2A8372-EA66-4058-B621-DD41F1408D82%7D)&language=EN> Iran: New Palestine Govt Illegal

Teheran, Jun 21 (Prensa Latina) The Iranian Parliament called illegal the decision of Palestinian President Mamhoud Abbas to create an emergency government, and said it would worsen the situation.

A text signed by 200 of 290 Iranian deputies recognizes that the legal Executive of Gaza Strip and West Bank is the national unity government, and that differences should be resolved "within the political framework and through methods approved by the people."

The deputies document underlines that internal disagreements are part of a plot previously planned to overthrow the coalition cabinet and destroy the political power of the Islamic Resistance Movement (Hamas).

Hamas won the February 2006 elections by majority, and since then it has been subject to international pressures, including a monetary boycott which unleashed a financial and humanitarian crisis, chiefly in Gaza Strip.

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PL-22

<http://www.iht.com/articles/ap/2007/06/21/africa/ME-GEN-Syria-Palestinians.php> Syria says peace with Israel not possible within Fatah-Hamas split The Associated Press Published: June 21, 2007

DAMASCUS, Syria AP) — Syria warned Thursday that peace between Israel and the Palestinians would be impossible within the current split between the mainstream Palestinian Fatah faction and the more militant Hamas group.

"Fatah, even if it is supported by the international community, cannot marginalize Hamas... The accusations between the two sides must stop," Syrian Vice President Farouk al-Sharaa said.

His comments to Syrian journalists at a briefing in Damascus came as Egypt announced Thursday its call for a peace summit of Israeli, Palestinian and Jordanian leaders next week that aims to boost Palestinian President Mahmoud Abbas against Hamas after its takeover of Gaza.

The regional gathering to be held Monday in the Red Sea resort of Sharm el-Sheik will be the biggest show of support yet by Arab states for Abbas' Fatah party in his bitter showdown with the Islamic militants, who seized control of Gaza last week.

In the wake of the Gaza takeover, Abbas dissolved the national unity government with Hamas and set up an emergency cabinet of Fatah members.

Abbas aide Saeb Erekat said the Palestinian president would call for a resumption of peace talks with Israel, arguing that only progress toward Palestinian statehood can serve as a true buffer against Hamas.

But Syria's al-Sharaa, whose country hosts exiled Hamas leaders, said Syria encouraged dialogue between Fatah and Hamas. "It is vital even if it does not lead to direct results, but dialogue must start again," he said.

"No faction can cancel out the other," he added. -- Yoshie



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