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OPT: Economic Prison Zones

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Sam Bahour

November 19, 2010

(Sam Bahour is a Palestinian business management consultant living in Ramallah. This essay was made possible with partial support from the Rosa Luxemburg Foundation.)

When a project mixes the feel-good words of jobs, economic development and Israeli-Palestinian cooperation, how can anyone complain? These things are some of what the international community has been promising to deliver through the construction of industrial free trade zones in the Occupied Palestinian Territories. The free trade zone model has been promoted locally and globally by powerful third parties like the United States, France, Germany, Turkey and Japan for two decades, but none has much to show for the enormous efforts and amounts of money spent to bring these zones to life. Nonetheless, the project's proponents expect the zones to constitute the economic foundation for a future Palestinian state. They hope that, by bolstering Palestine's economy, the zones will make Palestinians less prone to social upheaval, less insistent on their national rights and more amenable to the status quo. The idea is that a peace agreement with Israel will ensue.

While this expectation is unlikely to be realized -- at least not in the way that the projects' advocates anticipate -- these mega-employment projects present a serious challenge to those who strive to build an independent and viable economic foundation for a future Palestinian state. Because the zones will depend on Israeli cooperation to function, and because they will exist within an Israeli-designed economic system that ensures Palestinian dependence on Israel, they cannot form the basis of a sovereign economy. Relying on them will perpetuate the status quo of dependency.