Investing in the Future

Pie in the sky politics has not yielded peace in Palestine. Perhaps common sense economics will.

At least, that is the hope of the Affordable Mortgage and Loan Company. It is backed by the Palestinian Investment Fund, the International Finance Corporation of the World Bank, the Bank of Palestine, and the British government (all of whom combined are providing half the capital- $250 million) and the U.S. based Overseas Private Investment Corporation (providing the other $250 million). The mortgage company will provide the money necessary for the construction of 10 new neighborhoods in the West Bank. The West Bank is controlled by the Fatah government and its president, Mahmoud Abbas.

In an earlier post, the Palestinian Authority's apparent fondness for anti-American regimes was revealed. While that observation is valid, I must point out that however much Abbas and his government leave to be desired, they are still infinitely more pro-Western than rival Hamas in the Gaza Strip. We can only work with what we've got, and in the choice between the lesser of two evils, Abbas wins.

The population of the West Bank is exploding, and at the same time families are having a difficult time finding either jobs or adequate housing. The purpose of the new Affordable Mortgage and Loan Company is to meet both needs. They will help build 30,000 new apartments in a 5-year period and at the same time stimulate the economy by creating thousands of jobs in construction and real estate. This plan, negotiated and set into motion outside the traditional realm of politics, comes a year after a similar plan to spend $230 million on new small businesses in the West Bank.

Politically, this is a wonderful turn of events for two reasons. First of all, it will boost the popularity of Mahmoud Abbas among his people. Hey, who cares if it wasn't his idea- he'll still get credit for being the one in power when it happened. And as a more popular leader, he'll have more credibility when trying to talk to both Israel and the United States. Second, it makes Hamas look bad. While the citizens of Gaza face dire conditions and international isolation, those in the West Bank will be enjoying a higher standard of living and benefiting from an influx of international support. In a recent speech, Mahmoud Abbas said that he regretted that the same benefits could not apply to those in Gaza, but that Hamas' coup in 2006 made it impossible. That is one arrow that will not only find its mark in the hearts and minds of the people of Gaza, but it will sting.

Traditional methods of seeking peace in the conflict between Israel and Palestine have failed. The U.S. government keeps trying, but all efforts have produced alot of talk, worthless documents, and no action. Every attempt to orchestrate peace with a top-down strategy has stalled.

Before the region can have true and lasting peace, the people of Palestine have to want peace. They have to be willing to let go of past hurts and grievances, and be willing to compromise for the sake of the future. They will want peace when their families no longer live in squalor, when their children are no longer hungry, and when their men are too busy working and prospering to have time or inclination to fight.

This latest development is a step in the right direction. It doesn't solve all the problems, and it doesn't even completely fix this one problem. But it helps. And it doesn't waste time talking- it jumps in and does something. More of this, and we just might witness a peace that the older generation has only dreamed of.




Source Article
(New Home-Buying Plan May Bolster Abbas by Ethan Bronner)
http://www.nytimes.com/2008/04/15/world/middleeast/15mideast.html?ref=middleeast