What the Latest West Bank Investments Really Mean

Earlier this week, the world celebrated the twentieth anniversary of Nelson Mandela’s release from South African prison. Though Apartheid wouldn’t officially end for another four years, Mandela’s release – more than anything else – heralded the racist institution’s imminent demise. As Umkhonto weSizwe leader Kebby Maphatsoe would later remark, “on that day we knew that we had managed to win the struggle.”

Thabo Mbeki
Thabo Mbeki

But it wasn’t until four years later, after much negotiation (and, in the townships, bloodshed) that FW de Klerk’s National Party turned over control of the government to the African National Congress, led by Nelson Mandela. During these years, delegations from both the NP and the ANC worked together to map out the direction of a South Africa under popular rule. In these meetings, the ANC was led by the Western-educated Thabo Mbeki, son of famed freedom fighter Govan Mbeki and, by all accounts, a champion of the free market as espoused by economist Milton Friedman. In short, he was the NP’s ideal opponent (though calling him an opponent, and not, say, a willing accomplice, is a bit of a stretch).

Now, fast-forward to April 27, 1994. In a landslide victory in which the ANC took nearly 63% of the vote, Nelson Mandela became the country’s first democratically-elected president. Yet, as a result of the Mbeki team’s economic concessions, conditions didn’t improve for the nation’s blacks and coloureds.* In fact, unemployment rates in those groups have grown steadily since the fall of Apartheid. True, Apartheid as government policy ended, but it did nothing to improve the conditions of South Africa’s everyman. What was a racial divide, in 1994, under black rule, became an economic divide. And today, the country is the world’s most unequal, its palatial homes and their sophisticated security systems mere minutes from dirt roads and teeming slums.

Now, what does this have to do with Israel? In the estimation of this writer, having studied the South African situation extensively, the Jewish state appears to be headed down a very similar path. Security fence or no, most agree that the situation here can not persist; the first and second intifadas are proof enough of just that. And Netanyahu, strategist that he is, is certainly well aware.

Which is why, in my opinion, he’s pumped so much time and money into the West Bank (Gaza’s another story…). As Gil Hoffman, chief political correspondent for the Jerusalem Post, told our group this past week, the West Bank’s economy is up 7% over the last year. Further, news came out this week that there would be some $100 million invested in a West Bank power grid.

Benjamin Bibi Netanyahu
Benjamin 'Bibi' Netanyahu

Not to rain on anyone’s parade, but humanitarian reasons were at best tertiary considerations in this venture. Just as in South Africa, Israel’s aim appears to be fostering a business-friendly environment, presumably at the expense of the common man. For a better idea of this, think Mexico’s economic subjugation to the United States, particularly the absurdly low labor costs in the former. In the event of a two-state solution, Palestinian impoverishment would persist, though the blame would, in Netanyahu’s perfect world, no longer lie with Israel. Alas, that’s a lot of variables, and we’ll see what happens at the endgame (if indeed there is one).

Regardless, when peace does come (excuse the relentless optimism), it won’t be cut-and-dry. As the situation in South Africa has shown, there are just too many economic factors to consider. And for Israelis and Palestinians to one day live in concert, it will take more than empty treaties and hollow promises; it’s going to need economic and social legislation that truly guarantees equal opportunity for all, thereby mitigating the influence of extremism and creating a culture of self-determination, dignity, and most importantly, mutual respect.

Sam Melamed is a MASA participant, participating in Career Israel, one of MASA Israel‘s 160 programs.

*The term ‘coloured’ is NOT derogatory. In South Africa, it refers to those of mixed-race descent and has absolutely no correlation to the American connotation, which is, of course, extremely offensive. For more information, go here.
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