It takes a village league

In the early 80’s Menachem Begin appointed an academic, Menachem Milson to be the administrator of the disputed areas. Begin made the appointment after reading an article by Milson in Commentary arguing that Israel should deal with the indigenous populations of Judea, Samaria and Gaza and not with the PLO. Milson attempted to establish “village leagues” who would represent the interests of the inhabitants to the Israel government. This was hoped to undermine the influence of Fatah, which was growing in the territories.

Mislon left his position a short time later, after Israel invaded Lebanon in 1982. But not much happened. Milson and his efforts were villified because he rejected the notion that the PLO were the sole legitimate representatives of the Palestinian people. Though this formula was determined by the Arab countries who sought Israel’s destruction, the UN and the world accepted it and Israel was expected to also.

Milson’s effort was unsuccessful. (Some people believe that the village leagues evolved into Hamas.)

It’s a pity.

I have been reading The Israel Test by George Gilder. The best chapter in the book has been the one on the Palestinian economy. The Palestinian economy enjoyed rapid growth from 1967 until 1993 when the PLO arrived to help. Since then (until recently) the Palesitnian economy has stagnated.

The effect the importation of the PLO has had on the Palestinians and Israel has been negative. Not only has it failed to create a state or even the political infrastructure of a state, the PLO has launched a terror war against Israel. And it has greatly damaged the prosperity of the Palestinians.

I bring this up because Amb. Michael Oren wrote West Bank Success Story in today’s Wall Street Journal. Ambassador Oren paints a rosy picture of life for the Palestinians in Judea and Samaria.

According to the International Monetary Fund (IMF), the West Bank economy is flourishing. Devastated by the violence and corruption fomented by its former leadership, the West Bank has rebounded and today represents a most promising success story. Among the improvements of the last year cited by the IMF and other financial observers are an 18% increase in the local stock exchange, a 94% growth of tourism to Bethlehem—generating 6,000 new jobs—and an 82% rise in trade with Israel.

Since 2008, more than 2,000 new companies have been registered with the Palestinian Authority in the West Bank. Where heavy fighting once raged, there are now state-of-the-art shopping malls.

Much of this revival is due to Palestinian initiative and to the responsible fiscal policies of West Bank leaders—such as Prime Minister Salaam Fayyad—many of whom are American-educated. But few of these improvements could have happened without a vastly improved security environment.

I understand that Oren is drawing a distinction between Judea and Samaria where the Palestinians have started creating a civil society and Gaza, which is still under the thumb of Hamas.

The last quoted sentence, however, is a major qualification. As Barry Rubin recently observed:

Now it’s true that the merchants are pragmatic people and may not think this way. But they have no choice. When the gunmen say “jump,” or more likely, close down and be on strike; boycott Israel; hand over money; and things like that, the middle class will do so. The shutters close down, unemployment goes back up.

And that’s the problem.The merchants aren’t in charge, but the corrupt, imported leadership of Fatah that recently accused Israel of murdering Arafat and effectively declared war on Israel. The PLO and its main constituent group, Fatah have been forces for instability and terror, not for peace.

What if the world had listened to Israel and kept the PLO away from the Middle East?

Crossposted on Soccer Dad.