PALESTINE - The Challenge Of Globalisation - Part 13.

The issue of globalisation is the last thing on the minds of the Palestinian leadership at present, in view of the uncertainties facing their strategy for statehood. These uncertainties have been exacerbated, on the one hand by Israeli Prime Minister Ariel Sharon's unwillingness to return to the Middle East peace process as envisaged in the Declaration of Principles of Sept. 13, 1993, and on the other by Palestinian President Yasser Arafat's inability or unwillingness to fully grasp the better opportunities that have come his way in recent years. Yet globalisation, from the socio-economic and geo-political perspectives, is affecting the way the Palestinian cause is perceived by the major powers and by public opinion worldwide.

Therefore, in the current global environment of the war against terrorism, the Arab-Israeli conflict is seen through the lens of suicide bombings and retaliations. The idea of "historic justice", which is what the Palestinians are seeking, does not get much attention. On the Israeli side, this provides a good opportunity for the tough measures that have resulted in the crippling of the Palestinian economy as well as its society to a great extent. For its part, the Palestinian Authority (PA) seems unable to decide between whether it should negotiate for whatever it can get, and whether it should keep hoping that the suicide bombings may help extract a few more concessions from the Israelis.

The net result is that Sharon now virtually has a free hand to implement harsh measures against the Palestinian-controlled areas (see following pages), while the PA and its Palestinian opponents are reduced to negotiating between themselves on bringing down the level of violence. Both Hamas and Islamic Jihad have announced a suspension of strikes. President Bush has, in a first for a US president, referred to "Palestine" and to a capital in Jerusalem for a "viable Palestinian state" - but this has been more a function of the Sept. 11, 2001 attacks on the World Trade Centre and the Pentagon, than a consequence of suicide bombings by the Hamas and Islamic Jihad.

Indeed, for the time being, the focus in the Israeli-Palestinian conflict is merely on the cycle of violence, not on the final status of the Palestinians. The latest American envoy to come to the region, former US Marine Corps Gen. Anthony Zinni, is to concentrate mainly on establishing a sustainable ceasefire and on the implementation of the Mitchell Plan - which was drawn up by the previous US envoy to the region.

As for the Palestinian economy, the main emphasis at the moment is on day-to-day survival rather than the longer-term issues of integrating with a globalised world. Since the "Al Aqsa Intifada" began in September 2000, the economy has been continually poised on the brink of collapse - saved only by last minute infusions of cash from various donors ranging from the rich oil states of the Persian Gulf to the European Union. According to a Palestinian Ministry of Labor survey of 2,915 households, with 2,394 responding, 81% of households have reduced expenditures, 55.4% delayed payments on bills and 41.6% used their savings for basic household needs. In addition, the survey reported that 35.9% were forced to borrow money to cover expenditure and 18.2% had to sell family jewels to sustain household consumption. The survey was conducted from Oct. 3, 2000 to May 5, 2001.