The Political Economy of Israel's Occupation: Repression Beyond Exploitation

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The Israeli occupation of the Palestinian territories since 1967 has many important economic aspects that are often overlooked. In this highly original book, Shir Hever shows that understanding the economic dimensions of the occupation is crucial to unravelling the Israeli-Palestinian conflict. Hever rejects the premise that Israel keeps control over Palestinian territories for material gain, and also the premise that Israel is merely defending itself from Palestinian aggression. Instead, he argues that the occupation has reached an impasse, with the Palestinian resistance making exploitation of the Palestinians by Israeli business interests difficult, but the Israeli authorities reluctant to give up control. With traditional economic analysis failing to explain this turn of events, this book will be invaluable for students, activists and journalists struggling to make sense of the complex issues surrounding Israel's occupation. Title Page Copyright Contents List of figures, tables, and maps List of abbreviations Preface Acknowledgments Introduction 1 Background on the Palestinian economy Dependency The Oslo Process Corruption in the Palestinian Authority Part I Selected topics in the economy of the occupation 2 International aid Aid efforts to the Palestinian Territories: historical overview Foreign aid and humanitarian aid Is aid really needed? Current foreign aid to the OPT Comparison with Israel Sources of foreign aid Beneficiaries of foreign aid The Palestinian population The Palestinian Authority Arab and Muslim donors International NGO workers International donors Israeli workers Israeli companies The Israeli government Benefits to Israel Conclusion: effects of foreign aid 3 Inflation in the OPT Inflation in Israel and in the OPT Why is Palestinian inflation so high? Who benefits from Palestinian inflation? The occupation’s effect on Israel’s currency 4 Economic cost of the occupation to Israel Economic discourse on the cost of occupation Growing awareness of the cost Breaking down the costs The hidden facts Careful calculation The calculation Interest Income Settlement subsidies Security costs Summing the cost Security implications Comparisons of totals Compensations Who actually pays these costs? Profits of the occupation Conclusion 5 Trends in the Israeli economy Reports on the Israeli economy The Economist report Adva Center report Why does Israel appear strong? Growth Unemployment Exports Strong currency Foreign currency reserves Comparison of growth rate The Israeli educational system in decline The Israeli political crisis: cause or symptom? Not a democracy Demographics – the socioeconomic standing of non-Jews The true face of the labor market Israel’s foreign trade balance Israeli economic discourse of bliss Conclusion 6 Case study: the Wall in Jerusalem Introduction East Jerusalem before the Wall Jewish Israelis Palestinian citizens of Israel Jerusalem residents Green ID and Orange ID card Palestinians The reverse magnet The Wall’s history The characteristics of the Wall The everyday effects of the Wall The Wall in Israeli discourse Land confiscation Privatization “Security need” The making of the working class in East Jerusalem Gaps in the educational system Gaps in occupational status Movement of labor in Jerusalem and the quality of life Deteriorating healthcare services Areas of special interest Difficulties in obtaining goods Arrested trade Diminished income in East Jerusalem Implementation of the welfare reform program Housing shortages Severed families Bedouin tribes Growing pessimism and discontent Importance of Jerusalem employment to the Palestinian economy Binational reality Conclusion: the economic damage of the Wall Part II Implications of the economy of the occupation 7 Beyond exploitation “Conspicuous consumption” “Sabotage” Marxist discourse on the Israeli occupation of the OPT The Israeli anomaly Exploitation Filling the gaps Outlines of Bourdieu’s theory Distinction, symbolic capital, and habitus Bourdieu’s theory and the occupation Shortcomings of Bourdieu’s theory Outlines of Amartya Sen’s theory Sen’s theory and the occupation Drawbacks of Sen’s theory Sen and Veblen – entitlement and sabotage Outlines of institutional theory Veblen and institutional theory Capital beyond means of production Veblen and the occupation Institutional theory and the occupation The theory of Shimshon Bichler and Jonathan Nitzan Drawbacks of Bichler’s and Nitzan’s theory 8 Theoretical analysis and binationalism International involvement and Israeli marketing Negotiations at a standstill The two-state solution The one-state solution Scenarios of conflict Concluding remarks Bibliography Index