Ramallah, from Oslo to Doha
Palestine, Essay, 8/9/1997

The director of a financial institution based in Abu Dabi, Found Bseior, reported that "remittance from Palestinians abroad plunged to $300 million in 1996 from $898 million in 1992," and that the Palestinian economy is showing signs of going into a crisis that coincides with the major crisis the Middle East peace process is going through.

US President Bill Clinton took credit for any progress in the peace process, even if this had been achieved outside both the scope and knowledge of American diplomacy. A case in point was his insistance on having the Oslo accords signed at the White House, although they had been negotiated and concluded in secret in no way under his exclusive patronage.

The Clinton administration's hands-on-approach to the Middle East peace process changed drastically after his reelection to a second term. The shuttle diplomacy which brought former secretary of state Warren Christopher to the region whenever the peace process was faced with a crisis, however minor, has been completely abandoned by Madeleine Albright, even through the process is now facing a crisis of unprecedented gravity.

Finally, Clinton's administration announced that Albright will head the American delegation to the economic conference scheduled to be held in Doha Qatar, next November with the participation of an important Israeli delegation.

But that's only for Israeli economy. In the meantime, the economic future in Ramallah and other Palestinian territories is insecure.

Before the Oslo peace deal paved the way for Israeli withdrawl from parts of the occupied territories, there was virtually no public life in Ramallah. Shops did not stay open after noon, there were few restaurants, no one strolled in the streets on hot summer nights. No cinema, youth club or playground was open. Evening attendances at mosques fell off.

Today9on the surface at least9a new era seems to have begun. Ramallah is a thriving commercial center. Its customers are accustomed to American products. During the years of occupation, many locals fled to the United States; now, they have returned to become local vendors and consumers.

Other new immigrants are inquisitive about how to use their savings to set up shops, buy land or build houses. Most of the city¹s new office buildings are covered by American Palestinians.

The other boon to the city is the Palestinian Authority itself. Palestinian Leader Yasser Arafat resides in Gaza, but many administrative offices are located in and around Ramallah along with aid agencies.

Much of the foreign aid money intended for development is being used up by the mighty government and military presence that Arafat has created. The prosperity around Ramallah is not a sign that housing has been constructed by PA for the tens of thousands Palestinians still living in refugee camps. Most of the construction is from private investors and this was done during the first years after Oslo. Now, it is not continuing.

The director of the financial institution's view is also supported by the plummeting of the Palestinian national income, which had dropped around 25 percent in the last year. The majority of Palestinian people have reached the poverty level, estimated at $625 per year.

This is dwarfed by the average Israeli annual income of $16,900.

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