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1851. Palestinian Economic Dependence on Israel

Author:
Elizabeth Young
Publication Date:
03-2006
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
As the international donor community struggles to determine its stance on aid to the Palestinians under the Hamas government, it is important to remember the extent to which the Palestinian economy is dependent upon Israeli decisions. Last year the international community gave the Palestinians $1.4 billion in aid; Israel has the potential to affect at least that sum through its policies on trade, Palestinian workers in Israel, and the tax revenue it collects.
Topic:
International Relations, Economics, and Government
Political Geography:
Middle East, Israel, and Palestine

1852. The Shape of Israel's Election Race

Author:
David Makovsky
Publication Date:
03-2006
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
In a surprise move prior to Israel's March 28 election, Acting Prime Minister Ehud Olmert unveiled a proposal that Israeli settlers be consolidated into West Bank settlement blocs largely adjacent to the Green Line. A week after the announcement, Israeli public reaction suggests his gamble seems to have paid off. According to a Yediot Ahronot poll released on March 17, Israelis favor Olmert's unilateralist proposal by a margin of 52 percent to 45 percent. Moreover, Olmert's poll standing was not negatively impacted by the proposal, despite the fact that it could mean the removal of an estimated 60,000 settlers from dozens of settlements scattered across the larger part of the West Bank outside Israel's security barrier. (Inside the Israeli security barrier, there are approximately 193,000 settlers, mostly in blocs, in the 8 percent of the West Bank largely adjacent to the pre-1967 boundaries. By comparison, President Clinton's final proposal in 2000 involved Israel keeping 5 percent of the land.) An Olmert security advisor and former Shin Bet head, Avi Dichter, says the Israel Defense Forces (IDF) will not be withdrawn from the West Bank. Olmert was able to use his commanding lead to answer critics who say that the new party leader lacks Ariel Sharon's track record and therefore the authority to ask the public to trust his decisions. In the March 17 poll, Olmert's Kadima stood to win 39 seats in the 120-seat Knesset; Labor was polling at 19 seats and Likud, 15 seats. Olmert's standing was undoubtedly assisted by Israel's March 15 operation to seize from a Jericho prison the assassins of Israeli cabinet minister Rehavam Zeevi. Olmert hopes the operation will burnish his security credentials and undercut Netanyahu's argument that he is uniquely tough enough to challenge Hamas. (Olmert needs to be concerned about the 22 percent of Israelis who are undecided—the equivalent of twenty-five Knesset seats.)
Topic:
International Relations, Government, and Politics
Political Geography:
Middle East and Israel

1853. Can al-Qaeda's Lebanese Expansion Be Stopped?

Author:
Emily Hunt
Publication Date:
02-2006
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
As Israelis assess the implications of Hamas's victory in January elections to the Palestinian Legislative Council, a new threat may be developing in Lebanon. Al-Qaeda–linked terrorists have been present in Lebanon for a decade, but recent statements by Ayman al-Zawahiri and Abu Musab al-Zarqawi suggest that the dual objectives of destabilizing Arab regimes and targeting Israel proper are becoming top al-Qaeda priorities. Al-Zarqawi–linked terrorists in Lebanon have already engaged in low-level targeting of Israeli and Lebanese interests, yet several obstacles may hinder their ability to launch significant attacks in or from Lebanon. The Lebanese government, although weak, has a clear interest in preventing both internally and externally directed al-Qaeda activity. The dynamic among Hizballah, the Palestinians, and al-Qaeda remains more ambiguous, but early signs suggest potential antagonism among the groups. Together, Israel and the United States may be able to help Lebanon contain this emerging threat.
Topic:
International Relations, Government, and Regional Cooperation
Political Geography:
United States, Middle East, Israel, and Lebanon

1854. Kuwait's Parliament Decides Who Rules

Author:
Simon Henderson
Publication Date:
01-2006
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
At a time when attention is focused on the problems democracy has brought in one part of the Middle East, such as the Palestinian territories, it has been easy to overlook how democratic processes were key to resolving a crisis in another Middle Eastern country: Kuwait. The January 15 death of Kuwait's emir, or ruler, Sheikh Jaber brought to power the physically and mentally incapacitated Sheikh Saad al-Abdullah al-Sabah. But the crisis engendered by his ill health and his refusal to abdicate was resolved quickly through democratic processes. On January 24, the parliament of the oil-rich Persian Gulf state of Kuwait exercised a previously unused constitutional power and voted to oust Sheikh Saad. The new emir, Sheikh Sabah al-Ahmed al-Sabah, is expected to be confirmed by parliament on January 29, and is now under pressure from some members of parliament to choose a prime minister from outside the ranks of the ruling al-Sabah family.
Topic:
Democratization, Development, and Government
Political Geography:
Middle East and Kuwait

1855. A Tale of Two Countries: Defining Post-Syria Lebanon

Author:
Michael Young
Publication Date:
01-2006
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
When Shiite ministers recently “suspended” their participation in the Lebanese cabinet, though without resigning, it highlighted an increasingly apparent reality in post-Syria Lebanon: Two powerful camps coexist today. One, led by Hizballah, in alliance with the Amal movement, sits atop a Shiite community generally, though not unanimously, supporting their positions. The other reflects a cross-communal parliamentary majority, the cornerstone of which is the Sunni-led Future Movement of Saad Hariri, son of the murdered former Lebanese prime minister Rafiq Hariri.
Topic:
International Relations, Government, and Religion
Political Geography:
Middle East, Lebanon, and Syria

1856. Khaddam's Revelations: Is the Asad Regime Unraveling?

Author:
Robert Rabil
Publication Date:
01-2006
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Abdul Halim Khaddam, who was vice-president of Syria from 1984 to June 2005, gave an explosive interview to the Dubai-based al-Arabia TV on December 30 implicating the Syrian leadership, including President Bashar al-Asad, in the assassination of former Lebanese prime minister Rafiq Hariri. Khaddam's action widened irrevocably the crack in Syria's political system.
Topic:
International Relations, Government, and United Nations
Political Geography:
Middle East

1857. On the Eve of Palestinian Elections: Israel and Palestinians Enter a New Era

Author:
David Makovsky and Khalil Shikaki
Publication Date:
01-2006
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
On the eve of the Palestinian legislative elections, Fatah maintains only the slightest of leads over Hamas, a scenario which would have been unimaginable one year ago. Since Yasser Arafat's death in November 2004, Hamas has increased its strength by 40 percent, while in the same period Fatah has only increased its support by 10 percent.
Topic:
Government, Peace Studies, and Politics
Political Geography:
Middle East, Israel, and Palestine

1858. Reconstruction from Breakdown in Northeastern India: Building State Capability

Author:
M. Sajjad Hassan
Publication Date:
07-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The northeast region of India remains fraught with severe violence, poor growth and acute frustration among its youth. Success of policies to resolve the region's crisis has proved less than encouraging. What could be the way out of the violence–poor growth trap? This paper argues that a key determinant of the instability in the region is the absence of the effective role of the state: to provide security and opportunities for social and economic wellbeing equitably to all sections of society; and to uphold the rule of law. For reconstruction to work the state must act to provide key political goods to all its citizens, and restore its legitimate authority by implementing policies and enforcing laws cleanly and transparently. Political leaders can contribute to this endeavour by organizing politics inclusively.
Topic:
Conflict Resolution, Development, and Government
Political Geography:
India and Asia

1859. Corporate Governance, Innovative Enterprise, and Economic Development

Author:
William Lazonick
Publication Date:
07-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The notion that good corporate governance means maximizing shareholder value derives from the neoclassical theory of the market economy. I explain why this perspective is highly problematic for understanding the operation and performance of the business corporation and hence the institutions that, for the sake of economic development, should govern it. The main problem is that the market-economy perspective cannot comprehend the process of innovation, including the role of the business corporation. I construct a theory of the innovating firm that, when embedded in comparative-historical analysis, provides a basis for analyzing the relation between corporate governance institutions and economic development.
Topic:
Development, Economics, Government, and Markets

1860. Development of Financial Intermediation and the Dynamics of Rural-Urban Inequality: China, 1978-98

Author:
Qi Zhang, Mingxing Liu, and Yiu Por Chen
Publication Date:
06-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Using China as a test case, this paper empirically investigates how the development of financial intermediation affects rural-urban income disparity (RUID). Using 20-year province level panel data, we find that the level of financial development is positively correlated with RUID. Examining two subperiods, 1978-88 and 1989-98, we test several competing hypotheses that may affect RUID. We find that the increase of RUID may be explained by fiscal policy during the first period and financial intermediates during the second period. In addition, we show that the direction of the Kuznets effect on RUID is sensitive to changes in government development policies. The rural development policies during the first period may have enhanced the rural development and reduced RUID. However, the financial intermediary policy during the second period focused on urban development and increased both urban growth and intra-urban inequalities, thus leading to an increase in RUID. Finally, we show that RUID is insensitive to the provincial industrial structure (the share of primary industry in GDP). These results are consistent with the traditional urban-bias hypothesis and are robust to the inclusion of controls for endogeneity issues. This study adds to the economic inequality literature by clarifying the effects of government policies on the underlying dynamics on convergent and divergent effects on rural-urban inequality.
Topic:
Development, Economics, and Government
Political Geography:
China and Asia