Palestinians have let it be known that they are open to negotiation on a proposed UN Security Council resolution that imposes a deadline for ending the Israeli occupation. They are right to seek further talks. It has been suggested that the US will threaten to veto the existing draft, as submitted by Jordan on behalf of the Palestinians. Such an eventuality wouldn’t benefit either side or the cause of peace. But a compromise is also strongly in the interests of the Americans.
In the absence of a viable political or diplomatic process for resolving the conflict and ending the occupation, the Palestinians are quite naturally frustrated. The Palestine Liberation Organisation (PLO) and Palestinian Authority (PA), in particular, need to find a way to demonstrate to their domestic constituency that their non-violent, diplomacy-led approach provides a viable framework for national liberation.
With the collapse of the peace talks earlier this year, and with Hamas having taken the battle to Israel last summer, the PA leadership is hard-pressed to demonstrate that its commitment to seeking a negotiated peace agreement with Israel remains viable. Hamas’s actions meant devastating results for Gaza but gave the undeniable impression of initiative.
The Palestinians have no doubt concluded that there is nothing left to lose in a return to the United Nations. The West and the United States cannot punish them by withdrawing from a helpful diplomatic process, because there isn’t one in place. And they may have calculated that the ability of the West and Israel to further constrict the PA budget in retaliation for UN initiatives can’t be taken very far. That would mortally hurt the PA and only benefit Hamas.
But they shouldn’t be overconfident. There is still a potentially serious price to be paid, even as there is a psychological and political benefit from driving the agenda at the UN.
The Palestinians have an unusual opportunity to negotiate something meaningful with the Americans, who are clearly exasperated with Israel over its intransigence on the peace process in general and settlement activity in particular. Some key Arab states have been counselling caution, for good reason. Brinkmanship that leads to a positive agreement with the Americans on language would be useful, but will require great skill.
The UN, after all, has been the scene of several recent quixotic diplomatic charges by the Palestinians, which have done more harm than good. Strained relations between Washington and Ramallah date back to a UN Security Council draft resolution on settlements in February 2011. Even though the language of that resolution was drawn largely from disparate statements made by Obama administration officials, and previous administrations, the US wasn’t willing to back the use of the word “illegal” to describe the status of Israeli settlement activity under international law. This was an accurate description but the US was only prepared to accept the term “illegitimate.” When the Palestinians insisted that settlement activity be deemed illegal, the American veto was used, to the great annoyance of both sides.
Relations were not improved with the subsequent Palestinian statehood initiatives, first at the UN Security Council at the end of 2011, and then at the General Assembly in 2012. The first was mitigated by the fact that it was a failure, and the Palestinians could not even muster sufficient Security Council votes to require the US to cast its veto. But the second initiative, at the General Assembly for upgraded status for the PLO mission to that of “non-member observer state,” produced a significant financial and diplomatic backlash.
The western and Israeli retaliation affected the PA’s budget and greatly disrupted governance in the occupied West Bank, ultimately leading to the ousting of former prime minister Salam Fayyad.
Fatah cadres at home put him under tremendous pressure to go, while US secretary of state John Kerry wanted him to stay in office. So when he finally resigned, there was a powerful sense in same quarters both in the US and Israel that a terrible mistake had been made. It had. But it was too late.
Since Mr Fayyad’s departure, the crucial state and institution building project that he led has atrophied, and the reforms he championed have, in several important sectors, frayed.
The experience has been extremely damaging for Palestinians, for American policy towards Israel and the Palestinians, and for US-Palestinian relations. Any repetition of such a mutually damaging confrontation isn’t in the interests of either party now.
It’s clear that an early UN vote on the draft Palestinian resolution isn’t likely in the coming days, and that the process will be drawn out at least until January.
All parties have a clear interest in reaching an agreement over a text that can advance the prospects for peace, and reiterate the international community’s commitment to a two-state outcome between Israel and the Palestinians, but without further pointless damage to US-Palestinian relations. It’s never too late to begin to learn the lessons of history.
Hussein Ibish is a senior fellow at the American Task Force on Palestine
On Twitter: @ibishblog
More from Rashmee Roshan Lall
The bio
Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.
Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.
Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.
Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.
MATCH INFO
Who: UAE v USA
What: first T20 international
When: Friday, 2pm
Where: ICC Academy in Dubai
UAE currency: the story behind the money in your pockets
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
UAE currency: the story behind the money in your pockets
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Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Simran
Director Hansal Mehta
Stars: Kangana Ranaut, Soham Shah, Esha Tiwari Pandey
Three stars