Cairo Summit: David Levy's Chance

Hussein Foreign Minister David Levy knows the Arab world regards Israel as peace's sole beneficiary. He also knows how to resolve this problem. It remains to be seen whether he wishes to do so.

A stable, lasting peace - this has been the defined goal of all Israeli governments, since Menachem Begin and Egyptian President Anwar Sadat signed the Camp David accord.

There is nobody who does not know and understand that the only way to ensure that the goal of a stable and lasting peace is attained, is through regional economic and business co-operation. Policy shapers and major company heads have no quarrel as to the fact that nothing but economic development, the creation of hundreds of thousands of new jobs and a rising standard of living, are an essential, even if not a sufficient, guarantee for attaining that lasting and long-desired peace.

The "New Middle East" of which former Foreign Minister and Prime Minister MK Shimon Peres dreamed, was an economic vision, designed to ensure that peace would pay the inhabitants of the region an economic dividend. The purpose of the Casablanca and Amman economic conferences, and of the one due to be inaugurated next week in Cairo, was to translate that sublime vision into concrete, practical terms.

Both Rafi Benvenisti and Yossi Vardi were given the title of "special adviser to the Minister of Finance", a title they continue to bear even though a new government is now in place in Israel. They drew up the regional projects handbook for the Cairo Summit. The 20-project portfolio is valued at some $26 billion. Meanwhile, however, nothing has come of all the splendid ideas.

The vision remains on paper only, and this is not necessarily due to the change of government in Israel. The frustration and disillusionment initially kept simmering below the surface among our nearest and more remote neighbours, are suddenly fulminating and creating that negative atmosphere that awaits Cairo Summit delegates.

The Palestinian Manufacturers Association this week released a statement expressly to the effect that the only ones profiting from the peace process are the Israelis, while the Arabs, and especially the Palestinians, remain in precisely the same position as on the eve of the Oslo accords. The Palestinians moreover maintain that their situation is actually worse than it was on the eve of the peace accords, primarily because of the ongoing closure of the territories.

On the Israeli side, unsurprisingly, Minister of National Infrastructures Ariel Sharon has announced that neither he nor members of his staff will be going to Cairo. They are staying away out of considerations of honour; national honour, needless to say. Promptly taking his lead from Sharon came businessman Shaul Eisenberg, who announced that he won't be coming either, because "the situation that has been created is not conducive to business".

Most fascinating of all is what is taking place in the Ministry for Foreign Affairs, chief sponsor of the Cairo Summit.

David Levy's domain is home to three different approaches. One of them, the nay-saying approach, found vociferous expression in the Voice of Israel broadcasting station on Tuesday, when it was stated that the Ministry was having second thoughts about taking part in the Summit. This is certainly an extreme position which, in combination with Minister Sharon's down-turned thumb, is liable to generate strong and forceful opposition within the government to the entire peace process.

The second approach, heritage of former Foreign minister Shimon Peres, favours taking part in the Cairo Summit but adheres to the sublime vision of the New Middle East. In other words, it opts to promote large- scale international projects. The third school of thought, prevailing in Foreign Minister Levy's immediate orbit, favours aggressive and vigorous support for the peace process, but is critical of the major projects approach.

Not that the proponents of this school of thought would recommend cancelling them. That, they believe, would be politically inadmissible. They propose rounding out the major, long-term projects with immediate, short- term plans and joint ventures. In their opinion, the Achilles heel of the "New Middle East" is the fact that, to this day, there has been no economic or social improvement in the Arabs' condition. Jordanians, Palestinians, Egyptians, Moroccans and all other Arabs party to the Casablanca and Amman conferences, are convinced that Israel alone has profited from the peace process. It is a fact that in Israel alone the standard of living has risen for the past five successive years. Only in Israel has product increased almost 50% in the five year period. Only in Israel has unemployment decreased from 12% in 1992 to 6% in 1996. The historic truth of the matter is that the principal, if not the sole cause of all this is the big wave of immigration from the former Soviet Union, which was marginally helped by the peace process, as creating an accommodating atmosphere. But the Arabs do not see it that way. In their view, the prosperity and growth being experienced by Israel are a direct result of the peace process, while the Arabs remain in the very spot where they stood prior to September 13, 1993.

Whispering into the Foreign Minister's left ear are ever more insistent advisers, urging that he lose no time in adopting concrete plans that will enable the Arabs, especially the Palestinians, the Jordanians, and the Egyptians, to harvest the fruits of peace in the short term, to savour it and bite into it even now, and not in some shining, distant future that will arrive who knows when.

These voices maintain that the projects must be restructured and brought down to eye level for our neighbours. Every effort must be made, they urge, to prevent a situation in which these people become hewers of wood and drawers of water for Israel or in which they witness an Israeli take-over of their businesses.

The general idea being urged upon Foreign Minister David Levy is that the economic process must be depoliticised, by means of secondary conferences on sectarian matters such as food, textiles, chemicals, tourism and so forth, co-opting as many private, civilian, concerns as possible.

A new idea making the rounds of the Foreign Ministry is that of creating a regional capital market, and even a regional stock exchange, to channel inflows of capital from Europe, Japan and the United States to the private market. The object is to pull the vision down onto the terra firma of reality, and recast the grandiose plans in concrete, human dimensions.

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