Against the backdrop of the difficulties being faced in restarting the peace process between Israel and the Palestinians, and the Obama administration's reluctance to pressure Israel regarding the Palestinian issue during the crucial time before the completion of a potential nuclear agreement with Iran, Washington is beginning to show interest in alternative processes of an economic nature. Interest is predominantly in initiatives that include cooperation between Israeli and Palestinians which are not dependent on the political whims of a Netanyahu government. MK Erel Margalit (Zionist Union), who is promoting a series of such ventures, sees a new position beginning to take shape in the administration, a window of opportunity. He is determined to take advantage of this window and keep it open despite, or perhaps because of, the stalemate in the political process.
The Background: According to a report in "Foreign Policy Magazine", the US is pressuring France and other allies to stop pushing the UN Security Council resolution that is designed to kick-start peace talks between Israel and the Palestinians. Americans are asking to delay the process until after the end of nuclear negotiations with Iran, and perhaps to wait even longer, until the government receives congressional support for the agreement. So far, the Americans have not put forth an exact date for when they will be ready to discuss the Israeli-Palestinian issue at the Security Council. "It's very vague," said a diplomat who is aware of the talks between the United States and France.
The American effort raises fear among non-Israeli diplomats that the US may decide to retract its plans to advance peace in the Middle East within the framework of the UN. There are those in Washington who estimate that the government will pull out of the peace process completely due to a fear that it is too much to swallow both at once, or one after the other, in the relatively short time Barack Obama has remaining in the White House: an agreement with Iran and a return to the '67 borders, underlying any agreement with the Palestinians.
Thus, a vacuum might be created between Israel and the Palestinians that Margalit aims to fill. He returned to Jerusalem last weekend after a visit to the US where he tried to interest government officials and executives from public and private businesses in a line of what he calls "economic development centers" along the State of Israel, from Megiddo - Jenin in the north to the area around Eilat south of Taba. Some of the projects are intended to include Jordanian and Egyptian participation. The project also promotes cooperation between Israel and Jordan. One large potential project would include water desalination in Jordanian territory and the use of the water for the development of agriculture in the desert.
"Americans say, 'give us projects," Margalit said in an interview with "Globes." "They are aware that they do not know what will happen with the peace process and in their opinion joint projects are confidence-building measures that can pave the way for an Israeli-Palestinian agreement in the more distant future. Americans are looking for concrete initiatives, in which they are likely to participate in various forms including the flow of funds via government agencies and perhaps even announcing a specific industrial project such as a free trade zone which could export its products to the United States duty-free or with reduced customs duties. Israel has experience in such areas. "
"Why do I attach such great importance to this? - Because we are taking about projects with a purpose. He adds, "People in Israel can be skeptical about the right of return, for example, or any other disputed points in a possible agreement with Palestinians. But when talking about a tangible economic project, many Israelis are ready to buy it. They see it as a logical step. Projects like this could take the game out of the demanding hands of politicians and put it in the hands of regional and business leaders. Such projects can be groundbreaking. "
Margalit met in Washington with State Department officials, including Hady Amr, the US Deputy Special Envoy for Israeli-Palestinian Negotiations for Economics and a key person for connecting to Gaza; with lawmakers on Capitol Hill, including Senator Chuck Schumer, who is said to become the Senate Minority Leader when the current leader retires in 2016; with the heads of the US Chamber of Commerce of the United States, which holds an office to promote economic ties between the US and Israel and other countries in the Middle East; and with academics at Harvard University. In each of these meetings, participants expressed interest in joint Israeli and Palestinian projects. He also met with groups of Israeli entrepreneurs in New York and Boston and called on them to participate in these initiatives.
Margalit says he has held talks with groups of Palestinian of investors who wish to participate in such projects, and is also aware of investors from the gulf regions who are interested. Margalit, founder of Jerusalem Venture Partners, promotes these projects as head of the Southern and Northern Caucus in the Knesset.
In his meeting in the US, Margalit presented five regions for joint cooperation between Israel and the Palestinians, Jordan and Egypt:
Megiddo/Gilboa/Afula-Nablus/Jenin: Jenin already has investors for a 250-acre industrial zone and Israel would seek investors for another 250 acres to create a economic development zone. Investors would include Israel, the PA, Jordan, other Arab partners, with international support for political risk insurance. Potential regional themes could include agra-tech or cleantech.
Jerusalem - Atarot: This project is planned in two segments 1. Atarot: Israel and the PA as partners in creating a free trade zone for Palestinians and Israelis in "basic industry". 2. Urban: Two to three hubs of tech and innovation combined with culture and finance in the heart of Jerusalem with Israel, the PA and international investors.
Western Negev/Nahal Oz - Egypt: Revival of the Erez and Nachal Oz industrial zones transformed into a trade and industry cooperative area with passage of goods, employment for the region and cooperation guaranteed by the international community, with Israel, the PA and Egypt as potential partners.
Jerusalem-Ramallah: Co-developing tech centers and partnering on joint development projects supported by multi-national companies.
Taba-Eilat/Ayalot-Aqaba: Israel, Jordan and Egypt as partners surrounding renewable energy, greentech, or marine agra.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015