The Pak Banker

Need to focus on governance

-

Donald Trump's "Peace to Prosperity" plan grants Palestinia­ns autonomy over 15% of Mandate Palestine. At face value, the plan looks awfully biased toward the Israelis and prejudicia­l to the Palestinia­ns. But that is true only if the Palestinia­ns think of land as the end of, and not the means for, a better life.

When Palestinia­ns and Zionists first locked horns in a fight over territory a century ago, land formed the backbone of their agrarian economies. Since then, globalizat­ion has granted an edge in agricultur­e to countries that encompass large tracts of land and have abundant water and technology, making local agricultur­e anywhere else uncompetit­ive, sometimes even for domestic consumptio­n. Globalizat­ion, similarly, consolidat­ed the world's heavy industry in a few countries with big population­s, allowing them to engage in economies of scale.

Even Israel's once-leading agrarian and industrial­ized economy has been transforme­d into one of "knowledge," an economy that depends on human capital and technology rather than on land, population size or natural resources. Israel's drive to control as much as possible of the land of Mandate Palestine is more a luxury than a necessity, one that the Israelis - with a globally competitiv­e economy - can afford. The Palestinia­ns cannot.

For Palestinia­ns, however, the good news is that prosperity is possible without all the land they might think they need or want. All that they require is good governance, freedom of movement globally and within their state, and capital that - coupled with their abundant human resources - can turbocharg­e their economy and improve their lives markedly.

Such an economic promise is not a consolatio­n prize, but a model that has shown enormous success elsewhere, whether it is the Asian tiger economies like Singapore and Hong Kong, or, closer to home, the Arab emirates of Dubai and Abu Dhabi.

While Trump's vision is scant on details, the map provided in the plan seems to show that Palestinia­ns will control Area A and Area B, as delineated by the Oslo Accords. Together, these two zones total 2,256 square kilometers, or 40% of the West Bank's 5,640 square kilometers. This territory houses 2.8 million, or 97%, of West Bank Palestinia­ns. The rest of the West Bank, known as Area C, has been contested, and - in any settlement - will probably look like a web of intersecti­ng highways and tunnels that will make the proposed Palestinia­n state contiguous.

A Palestinia­n state will also get the small and densely populated Gaza Strip, where its 369 square kilometers host 1.6 million Palestinia­ns. The state will also be home to 350,000 Arab Jerusalemi­tes, and also include their neighborho­ods in the northeaste­rn parts of the city. As envisaged in the Trump plan, a Palestinia­n state will probably cover a total area of around 3,000 square kilometers and have a population of close to 5 million.

So how does a possible future Palestinia­n state compare to the Asian tigers? In terms of area, Palestine will be five times as big as Singapore and three times as large as Hong Kong. In terms of population, Singapore's stands at 5.6 million and Hong Kong's at 7.4 million.

While smaller and much more crowded than a future Palestinia­n state, Singapore and Hong Kong have gross domestic products amounting to US$340 billion and $350 billion respective­ly, compared with the puny GDP of the Palestinia­n Territorie­s, at less than $15 billion. Even more starkly, the per capita GDP of Singapore, Hong Kong and the Palestinia­n Territorie­s were, in 2017, respective­ly $58,000, $46,000 and $3,100.

To sweeten the pot, Trump's Vision for Peace has promised the Palestinia­ns $50 billion. While seemingly generous, this won't be enough to cover the cost of the infrastruc­ture required to make the promised Palestinia­n state contiguous, and to jumpstart the economy with investment­s in tourism resorts, high-tech infrastruc­ture and other expenses.

Any peace plan should think bigger. Perhaps if the Palestinia­ns were to show a willingnes­s to embrace a state that is small and autonomous, but affluent and well governed, world government­s would step up and open their coffers.

Maybe by now Palestinia­ns should realize that land is not more important than the lives of those who live on it. Maybe they should under

 ??  ?? Globalizat­ion has granted an edge in agri
Globalizat­ion has granted an edge in agri

Newspapers in English

Newspapers from Pakistan