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July 28, 1989 - Image 37

Resource type:
Text
Publication:
The Detroit Jewish News, 1989-07-28

Disclaimer: Computer generated plain text may have errors. Read more about this.

Renee Horowitz, M.D.

prisons and detention centers
at a cost of some $35 a day per
prisoner.
Significantly, at the very
moment that Israeli workers
were staging their national
strike and Finance Minister
Shimon Peres was unveiling
a fresh austerity program, he
announced an additional
grant of $75 million to the ar-
my to finance the military
operation in the territories.
At the same time, the
civilian sector is expected to
have suffered an even greater
blow in terms of lost produc-
tivity of Israeli workers, who
are required to complete their
statutory two months a year
of reserve duty, and of Palesti-

The number of
visitors arriving in
Israel declined by
a devastating 25
percent.

nian workers, who stay home
because of strikes and
curfews. Losses to the private
sector have been exacerbated
by Palestinian boycotts of
Israeli goods and services.
In the tourism industry, the
impact of the uprising was
reflected in figures for the se-
cond half of 1988, when the
number of visitors arriving in
Israel declined by a
devastating 25 percent corn-
pared with the previous year
— this at a time when the in-
dustry had projected an in-
crease of up to 10 percent.
Significantly, too, - the
number of nights tourists
spent in Israel declined by 32
percent.
The nominal income from
tourism during 1988 remain-
ed at the 1987 level — $1.3
billion — but taken together
with the sharp drop in the
value of the dollar last year,
"this should be viewed as a
significant decrease," accor-
ding to Dr Ephraim Ahiram,
an economist at the Hebrew
University of Jerusalem.
For their part, the Palesti-
nians, too, have suffered the
economic effects of their
revolt. However, these have, to
some degree, at least, been
offset by the enormous
psychological gains they have
won and by the infusion of
Palestine Liberation
Organization funds from
abroad which the Israeli
authorities have been unable
to halt.
Israeli officials believe that
while they do succeed in

blocking some of the funds
entering Israel, up to $8
million a month reaches
Palestinians in the territories
from PLO and other foreign
sources.
They draw a distinction,
however, between Hamas, the
Islamic fundamentalist move-
ment which has been the
source of much of the intifada-
related activity in Gaza, and
the Unified National Leader-
ship, which is more secular
and nationalist in
complexion.
According to the officials,
Hamas — which is competing
with the PLO for hearts and
minds — is largely self-
funding through contribu-
tions from local Palestinian
businessmen. The Unified
National Leadership, while
also exacting "taxes" from
Palestinian businessmen,
relies more heavily on exter-
nal funding.
The sources believe that
tourists and humanitarian
agencies, particularly United
States and Scandinavian
organizations, which operate
in the territories are impor-
tant vehicles for transferring
funds to Palestinians from
abroad.
Other
conduits
are
established institutions, such
as religious organizations and
Arab governments abroad
which have traditionally
funded the building of mos-
ques in Israel and the ter-
ritories and which are
understood to have massively
increased the scope of their
largess.

Israeli officials are unable
to describe just how the funds
are disbursed, but it is believ-
ed that the principal
beneficiaries are those who
have been directly affected by
the uprising — Palestinians
who have been injured and
the families of those who have
been detained and killed.
In addition, compensation
is paid to Palestinian
businessmen who have suf-
fered as a result of the in-
tifada, and, it is believed,
substantial sums from abroad
are applied to the creation
and development of "national
institutions."
It is a cruel irony that
Shimon Peres, leader of the
Labor Party, luckless finance
minister and strenuous ad-
vocate of territorial com-
promise, is most likely to pay
the political price of Israel's
current economic im-
broglio. ❑

M1-

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THE DETROIT JEWISH NEWS

37

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