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The Political Economy of Israel's Occupation

The Political Economy of Israel's Occupation

Shir Hever

(2010)

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Book Details

Abstract

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.
'Shir Hever has emerged as one of the most incisive analysts of the critical Israeli Left'
Jeff Halper, Director, The Israeli Committee Against House Demolitions (ICAHD)

Table of Contents

Section Title Page Action Price
COVER Cover
CONTENTS v
FIGURES, TABLES, AND MAPS viii
ABBREVIATIONS ix
PREFACE xi
ACKNOWLEDGMENTS xiii
INTRODUCTION 1
1 - BACKGROUND ON THE PALESTINIAN ECONOMY 8
DEPENDENCY 8
THE OSLO PROCESS 11
CORRUPTION IN THE PALESTINIAN AUTHORITY 14
PART I : SELECTED TOPICS IN THE ECONOMY OF THE OCCUPATION 19
2 - INTERNATIONAL AID 21
AID EFFORTS TO THE PALESTINIAN TERRITORIES: HISTORICAL OVERVIEW 21
FOREIGN AID AND HUMANITARIAN AID 23
IS AID REALLY NEEDED? 25
CURRENT FOREIGN AID TO THE OPT 28
COMPARISON WITH ISRAEL 32
SOURCES OF FOREIGN AID 34
BENEFICIARIES OF FOREIGN AID 35
BENEFITS TO ISRAEL 38
CONCLUSION: EFFECTS OF FOREIGN AID 40
3 - INFLATION IN THE OPT 42
INFLATION IN ISRAEL AND IN THE OPT 43
WHY IS PALESTINIAN INFLATION SO HIGH? 45
WHO BENEFITS FROM PALESTINIAN INFLATION? 47
THE OCCUPATION’S EFFECT ON ISRAEL’S CURRENCY 49
4 - ECONOMIC COST OF THE OCCUPATION TO ISRAEL 51
ECONOMIC DISCOURSE ON THE COST OF OCCUPATION 53
GROWING AWARENESS OF THE COST 55
BREAKING DOWN THE COSTS 56
THE HIDDEN FACTS 57
CAREFUL CALCULATION 58
THE CALCULATION 60
SUMMING THE COST 68
SECURITY IMPLICATIONS 68
COMPARISONS OF TOTALS 70
COMPENSATIONS 71
WHO ACTUALLY PAYS THESE COSTS? 72
PROFITS OF THE OCCUPATION 73
CONCLUSION 75
5 - TRENDS IN THE ISRAELI ECONOMY 76
REPORTS ON THE ISRAELI ECONOMY 77
WHY DOES ISRAEL APPEAR STRONG? 78
COMPARISON OF GROWTH RATE 81
THE ISRAELI EDUCATIONAL SYSTEM IN DECLINE 85
THE ISRAELI POLITICAL CRISIS: CAUSE OR SYMPTOM? 87
NOT A DEMOCRACY 89
DEMOGRAPHICS – THE SOCIOECONOMICSTANDING OF NON-JEWS 91
THE TRUE FACE OF THE LABOR MARKET 93
ISRAEL’S FOREIGN TRADE BALANCE 95
ISRAELI ECONOMIC DISCOURSE OF BLISS 98
CONCLUSION 100
6 - CASE STUDY: THE WALLIN JERUSALEM 103
INTRODUCTION 103
EAST JERUSALEM BEFORE THE WALL 106
THE WALL’S HISTORY 111
THE CHARACTERISTICS OF THE WALL 113
THE EVERYDAY EFFECTS OF THE WALL 114
THE WALL IN ISRAELI DISCOURSE 115
LAND CONFISCATION 116
PRIVATIZATION 118
“SECURITY NEED” 119
THE MAKING OF THE WORKING CLASS IN EAST JERUSALEM 119
GAPS IN THE EDUCATIONAL SYSTEM 120
GAPS IN OCCUPATIONAL STATUS 121
MOVEMENT OF LABOR IN JERUSALEM AND THE QUALITY OF LIFE 121
DETERIORATING HEALTHCARE SERVICES 122
AREAS OF SPECIAL INTEREST 123
DIFFICULTIES IN OBTAINING GOODS 124
ARRESTED TRADE 125
DIMINISHED INCOME IN EAST JERUSALEM 126
IMPLEMENTATION OF THE WELFARE REFORM PROGRAM 127
HOUSING SHORTAGES 129
SEVERED FAMILIES 129
BEDOUIN TRIBES 130
GROWING PESSIMISM AND DISCONTENT 130
IMPORTANCE OF JERUSALEM EMPLOYMENT TO THE PALESTINIAN ECONOMY 132
BINATIONAL REALITY 134
CONCLUSION: THE ECONOMIC DAMAGE OF THE WALL 135
PART II: IMPLICATIONS OF THE ECONOMY OF THE OCCUPATION 137
7 - BEYOND EXPLOITATION 139
“CONSPICUOUS CONSUMPTION” 140
MARXIST DISCOURSE ON THE ISRAELI OCCUPATION OF THE OPT 146
THE ISRAELI ANOMALY 149
EXPLOITATION 152
FILLING THE GAPS 154
OUTLINES OF BOURDIEU’S THEORY 155
DISTINCTION, SYMBOLIC CAPITAL, AND HABITUS 158
BOURDIEU’S THEORY AND THE OCCUPATION 160
SHORTCOMINGS OF BOURDIEU’S THEORY 164
OUTLINES OF AMARTYA SEN’S THEORY 165
SEN’S THEORY AND THE OCCUPATION 167
DRAWBACKS OF SEN’S THEORY 170
SEN AND VEBLEN – ENTITLEMENT AND SABOTAGE 171
OUTLINES OF INSTITUTIONAL THEORY 171
VEBLEN AND INSTITUTIONAL THEORY 173
CAPITAL BEYOND MEANS OF PRODUCTION 174
VEBLEN AND THE OCCUPATION 175
INSTITUTIONAL THEORY AND THE OCCUPATION 176
THE THEORY OF SHIMSHON BICHLER AND JONATHAN NITZAN 179
DRAWBACKS OF BICHLER’S AND NITZAN’S THEORY 186
“SABOTAGE” 142
8 - THEORETICAL ANALYSIS AND BINATIONALISM 188
INTERNATIONAL INVOLVEMENT AND ISRAELI MARKETING 188
THE TWO-STATE SOLUTION 193
THE ONE-STATE SOLUTION 196
SCENARIOS OF CONFLICT 197
CONCLUDING REMARKS 200
NEGOTIATIONS AT A STANDSTILL 192
BIBLIOGRAPHY 202
INDEX 221