The Costs of Occupation

1.6 million Israelis live below the poverty line.

The Israeli left often talks of the moral cost of the ongoing Israeli occupation of Palestinian land. The argument put forward is that, given the discrimination and persecution that Jews have suffered over millennia, they cannot now play the role of the persecutor by confining Palestinians to ghettos and, in so doing, violate the principles of their Jewish faith as well as their history.

Compelling as this argument is, morality holds little traction in the rough and tumble world of politics. In the world of politics, Prime Minister Netanyahu can ignore the Road Map and the demands from Washington that all settlement activity cease as he desperately hangs on to his right-wing coalition (and his own position) by continuing to meet the escalating demands of the Israeli settlers.

However, there are indications that the economic, as opposed to moral, costs of the occupation may increasingly occupy centre-stage, and that this might well compel Israel to make the compromises necessary for a durable peace with the Palestinians. Consider the following:

  • Israeli national GDP fell 3.6 percent in the first quarter of 2009.
  • Israeli exports fell 6.4 percent and trade and service income fell by 8.4 percent compared with 2008.
  • Unemployment is expected to reach 10 percent by the end of this year.
  • Tourism dropped by 24.7 percent from January to August 2009.

    In this harsh fiscal climate, the economic costs of the occupation are increasingly becoming prohibitive. Israel currently spends $9.3 billion per annum on the occupation. Moreover, according to Peter Small, the cost of the occupation of Palestinian Territories and East Jerusalem is expected to reach 50 percent of the total state budget by 2030!

    Clearly this is unsustainable.

    There are other social costs related to the occupation that are eroding the Israeli welfare state. While settlers enjoy a subsidized standard of living, other Israelis are paying for it in various forms: from a delay in promised minimum wage payments to a cut in welfare payments of child benefits. This, in turn, is causing resentment towards the settlers from the rest of Israeli society.

    These social tensions might well be played out politically, where settler-supporting political parties start losing progressively larger numbers of votes outside of their core constituency. This, in turn, would work to strengthen those political parties to the left of the spectrum who are willing to make the necessary compromises to ensure the promised two-state solution, as captured in the Road Map.

    Given the spiralling economic costs of the occupation, Israel is increasingly being faced with a stark choice – maintain the occupation which is bleeding the state dry, or create an economically sustainable state more or less on the 1967 borders. That the latter is the morally correct choice is an added bonus.

    The views reflected in this paper are those of the author and do not necessarily reflect the views of IIIS. The International Institute of Islamic Studies (IIIS) aims to provide insight and solutions to issues associated with the Islamic world.

  • Hot this week

    Did David Wineland and Serge Haroche Steal Idea For The Nobel Physics Prize?

    Dr. Omerbashich says the Royal Swedish Academy is a Crime Scene and he has the proof that Nobel laureates stole his discovery.

    New Approaches to Disaster Relief Challenges

    Disaster relief has always been a challenge. NASA, Google,...

    3 Legitimate Money Making Methods to Supplement Your Income

    In a perfect world, when your landlord raises your...

    2016 Predictions by World Renowned Medium and Psychic Lindy Baker

    World renowned medium and psychic Lindy Baker is interviewed by The Hollywood Sentinel, discussing psychic power, the spirit world, life after death, areas of concern in 2016, and much more.

    Digital Coupon Customers Spending More Than Double At Stores

    A new study shows that customers who use digital coupons go shopping more for groceries and other household goods more often and spend more on their shopping trips.

    A Peptide Can Have Different Names on the Purchase Order and Lab Report: The Documentation Gap That Can Mislead Research Teams Copy headline

    A laboratory can order one peptide, receive a vial bearing a second name, and open a certificate of analysis that uses a third. None of those differences automatically means the material is wrong. A development code, a common research name

    How Mourning Is Changing, One Keepsake at a Time

    Grief has shed its uniform. The dark suits, the rented hall, the script read from a pulpit by someone who never met the person in the box — all of that still exists, but it no longer sets the terms. Families are writing their own ceremonies

    The Holiday Host’s Wine Plan: Thanksgiving Through New Year’s Eve

    How much to buy, what to pour with each holiday meal, and which serving tools earn their place on the table this season.

    Flooring Contractor SEO Agencies With No Long-Term Contracts

    Quick Summary: Footbridge Media is the best overall pick among flooring contractor SEO agencies with no long-term contracts, pairing a $249 all-in program with a 90-day money-back guarantee. Blue Corona suits companies that want deep call t

    SEBI Just Opened Algo Trading to Retail Investors. Should You Let a Bot Trade for You?

    Algorithmic trading no longer belongs only to institutional desks...

    Plastic Surgery: Yes or No? Key Factors to Help You Decide

    Thinking about plastic surgery can be tough. Many people face insecurities and wonder if surgery is the right choice. Keep reading to make a smart decision! Understanding Plastic Surgery Plastic surgery changes how a person looks or fixes b

    Related Articles

    Popular Categories