Exclusive: White House's Kushner unveils economic portion of Middle East peace plan

By Matt Spetalnick and Steve Holland

 

White House senior adviser Jared Kushner speaks during an interview with Reuters at the Eisenhower Executive Office Building in Washington, U.S., June 20, 2019. Picture taken June 20, 2019. REUTERS/Kevin Lamarque

 

WASHINGTON (Reuters) - The White House on Saturday outlined a $50 billion Middle East economic plan that would create a global investment fund to lift the Palestinian and neighbouring Arab state economies, and fund a $5 billion(3.92 billion pounds) transportation corridor to connect the West Bank and Gaza.

 

The "peace to prosperity" plan, set to be presented by White House senior adviser Jared Kushner at an international conference in Bahrain next week, includes 179 infrastructure and business projects, according to details of the plan and interviews with U.S. officials. The approach towards reviving the moribund Israeli-Palestinian peace process was criticised by the Palestinians on Saturday.

 

The ambitious economic revival plan, the product of two years of work by Kushner and other aides, would take place only if a political solution to the region's long-running problems is reached.

 

More than half of the $50 billion would be spent in the economically troubled Palestinian territories over 10 years while the rest would be split between Egypt, Lebanon and Jordan. Some of the projects would be in Egypt's Sinai peninsula, where investments could benefit Palestinians living in adjacent Gaza, a crowded and impoverished coastal enclave.

 

The plan also proposes nearly a billion dollars to build up the Palestinians' tourism sector, a seemingly impractical notion for now given the frequent flareups between Israeli forces and militants from Hamas-ruled Gaza, and the tenuous security in the occupied West Bank.

 

The Trump administration hopes that wealthy Gulf states and nations in Europe and Asia, along with private investors, would foot much of the bill, Kushner told Reuters.

 

"The whole notion here is that we want people to agree on the plan and then we'll have a discussion with people to see who is interested in potentially doing what," Kushner told Reuters Television.

 

The unveiling of the economic blueprint follows two years of deliberations and delays in rolling out a broader peace plan between Israelis and Palestinians. The Palestinians, who are boycotting the event, have refused to talk to the Trump administration since it recognised Jerusalem as the Israeli capital in late 2017.

 

Veteran Palestinian negotiator Hanan Ashrawi dismissed the proposals on Saturday, saying: "These are all intentions, these are all abstract promises" and said only a political solution would solve the conflict.

 

Kushner made clear in two interviews with Reuters that he sees his detailed formula as a game-changer, despite the view of many Middle East experts that he has little chance of success where decades of U.S.-backed peace efforts have failed.

 

"I laugh when they attack this as the 'Deal of the Century'," Kushner said of Palestinian leaders who have dismissed his plan as an attempt to buy off their aspirations for statehood. "This is going to be the 'Opportunity of the Century' if they have the courage to pursue it."

 

Kushner said some Palestinian business executives have confirmed their participation in the conference, but he declined to identify them. The overwhelming majority of the Palestinian business community will not attend, businessmen in the West Bank city of Ramallah told Reuters.

 

Several Gulf Arab states, including Saudi Arabia, will also participate in the June 25-26 U.S.-led gathering in Bahrain's capital, Manama, for Kushner's rollout of the first phase of the Trump peace plan. Their presence, some U.S. officials say privately, appears intended in part to curry favour with Trump as he takes a hard line against Iran, those countries' regional arch-foe.

 

The White House said it decided against inviting the Israeli government because the Palestinian Authority would not be there, making do instead with a small Israeli business delegation.

 

POLITICAL DISPUTES REMAIN

 

There are strong doubts whether potential donor governments would be willing to open their checkbooks anytime soon, as long as the thorny political disputes at the heart of the decades-old Palestinian conflict remain unresolved.

 

The 38-year-old Kushner - who like his father-in-law came to government steeped in the world of New York real estate deal-making - seems to be treating peacemaking in some ways like a business transaction, analysts and former U.S. officials say.

 

Palestinian officials reject the overall U.S.-led peace effort as heavily tilted in favour of Israel and likely to deny them a fully sovereign state of their own.

 

Kushner's attempt to decide economic priorities first while initially sidestepping politics ignores the realities of the conflict, say many experts.

 

"This is completely out of sequence because the Israeli-Palestinian issue is primarily driven by historical wounds and overlapping claims to land and sacred space," said Aaron David Miller, a former Middle East negotiator for Republican and Democratic administrations.

 

Kushner acknowledges that "you can't push the economic plan forward without resolving the political issues as well."

The administration, he said, will "address that at a later time," referring to the second stage of the peace plan's rollout now expected no earlier than November.

 

Kushner says his approach is aimed at laying out economic incentives to show the Palestinians the potential for a prosperous future if they return to the table to negotiate a peace deal.

 

Kushner stressed that governments would not be expected to make financial pledges on the spot.

 

"It is a small victory that they are all showing up to listen and partake. In the old days, the Palestinian leaders would have spoken and nobody would have disobeyed," he said.

 

TRAVEL CORRIDOR

 

Kushner's proposed new investment fund for the Palestinians and neighbouring states would be administered by a "multilateral development bank." Global financial lenders including the International Monetary Fund and World Bank plan to be present at the meeting.

 

The fund would include "accountability, transparency, anti-corruption, and conditionality safeguards" to protect investments.

 

A signature project would be to construct a travel corridor for Palestinian use that would cross Israel to link the West Bank and Gaza. It could include a highway and possibly a rail line. The narrowest distance between the territories, whose populations have long been divided by Israeli travel restrictions, is about 40 km (25 miles).

 

Kushner said that if executed the plan would create a million jobs in the West Bank and Gaza, reduce Palestinian poverty by half and double the Palestinians' GDP.

 

But most foreign investors will likely stay clear for the moment, not only because of security and corruption concerns but also because of the drag on the Palestinian economy from Israel's West Bank occupation that obstructs the flow of people, goods and services, experts say.

 

Kushner sees his economic approach as resembling the Marshall Plan, which Washington introduced in 1948 to rebuild Western Europe from the devastation of World War Two. Unlike the U.S.-funded Marshall Plan, however, the latest initiative would put much of the financial burden on other countries.

 

President Donald Trump would "consider making a big investment in it" if there is a good governance mechanism, Kushner said. But he was non-committal about how much the president, who has often proved himself averse to foreign aid, might contribute.

 

Economic programs have been tried before in the long line of U.S.-led peace efforts, only to fail for lack of political progress. Kushner's approach, however, may be the most detailed so far, presented in two pamphlets of 40 and 96 pages each that are filled with financial tables and economic projections.

 

In Manama, the yet-to-released political part of the plan will not be up for discussion, Kushner said.

 

The economic documents offer no development projects in predominantly Arab east Jerusalem, which Palestinians want as the capital of their future state.

 

What Kushner hopes, however, is that the Saudis and other Gulf delegates will like what they hear enough to urge Palestinian President Mahmoud Abbas to consider the plan.

 

The message Kushner wants them to take to Ramallah: "We'd like to see you go to the table and negotiate and try to make a deal to better the lives of the Palestinian people."

 

(Reporting By Matt Spetalnick and Steve Holland; Additional reporting by Rami Ayyub in Ramallah; Editing by Ross Colvin and Chizu Nomiyama)

 

-- © Copyright Reuters 2019-06-23

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I don’t think they will trust anything to have to do with Donald they can see his history of scams and rip offs don’t think folks will fall for it

You can educate them...give them jobs...help startup businesses, and promote tourism...they will gladly take the money...it will help them plot their next terrorist offensive...they will NEVER stop hating Jews, Christians, and the US...

 

It is not about economic opportunity...it is an all or none ideology...their goal is all Muslim...none Christian Jews left in the world...

 

Good Luck with this program...

20 minutes ago, Puchaiyank said:

You can educate them...give them jobs...help startup businesses, and promote tourism...they will gladly take the money...it will help them plot their next terrorist offensive...they will NEVER stop hating Jews, Christians, and the US...

 

It is not about economic opportunity...it is an all or none ideology...their goal is all Muslim...none Christian Jews left in the world...

 

Good Luck with this program...

 

A major problem with this argument is that said parties aren't really ready and willing. On the whole, the plan and offers included were rejected.

This will only be resolved when a major portion of world powers sanction the hell out of the Israeli apartheid regime like was done to its twin South Africa. The two state, so called solution ship, has long sailed. One democratic country, like present day South Africa, is the only viable worthwhile outcome now. Trump putting his radical Zionist son in law in charge is a joke with a less than zero chance of working.

Behold idiot son-in-law Jared Kushner—the man now in charge of brokering Middle East peace, Uberizing the federal government, reforming the entire criminal justice system, and keeping Donald Trump’s hands off his wife.

He knows nothing about politics; nothing about policy; nothing about  security; and has no apparent skills aside from being married to Ivanka Trump. I guess that makes him a pretty good fit for the Trump White House.

Edited June 23, 20197 yr by porphyry

Kushner's plan should be called "Prosperity for Your Sovereignty" Plan.

His plan is not about Making Palestine Great Again but about making Palestinians economic stateless servants of Israel.

What  joke! Trump proposes an amazing plan to be financed by others!

????

DOA

2 hours ago, porphyry said:

Behold idiot son-in-law Jared Kushner—the man now in charge of brokering Middle East peace, Uberizing the federal government, reforming the entire criminal justice system, and keeping Donald Trump’s hands off his wife.

He knows nothing about politics; nothing about policy; nothing about  security; and has no apparent skills aside from being married to Ivanka Trump. I guess that makes him a pretty good fit for the Trump White House.

what are his credentials?  oh i forgot he is Donalds son in law.

It seems Trump tries to apply the same model as for his real estate scams: put only his name on a project which is likely to fail, and get others to finance it and bear the risks.

https://www.newyorker.com/news/swamp-chronicles/is-fraud-part-of-the-trump-organizations-business-model

4 hours ago, pegman said:

This will only be resolved when a major portion of world powers sanction the hell out of the Israeli apartheid regime like was done to its twin South Africa. The two state, so called solution ship, has long sailed. One democratic country, like present day South Africa, is the only viable worthwhile outcome now. Trump putting his radical Zionist son in law in charge is a joke with a less than zero chance of working.

 

South Africa's previous system was Israel's "twin" only if one is ignorant of facts, or bent on misrepresenting them to suit his politics.

 

Strong announcements about the two-state solution no longer being viable do not usually rely on facts either, and the same goes for unreserved supportive views regarding one-state solution. The same applies - either one is misinformed, or intentionally misrepresents things so that they fit a narrative.

It already being laughed out of existence as being "all abstract promises." Mmmmmm now that's Trumps haulmark in a nutshell.

2 hours ago, Srikcir said:

Kushner's plan should be called "Prosperity for Your Sovereignty" Plan.

His plan is not about Making Palestine Great Again but about making Palestinians economic stateless servants of Israel.

 

Whereas now they have neither prosperity nor sovereignty.

 

To add - I don't think there are viable solutions which do not involve the economic gap between the two societies being retained for years to come. The same applies with regard to economic ties in general between Israel and the Palestinians.

 

 

Edited June 23, 20197 yr by Morch

2 hours ago, candide said:

It seems Trump tries to apply the same model as for his real estate scams: put only his name on a project which is likely to fail, and get others to finance it and bear the risks.

https://www.newyorker.com/news/swamp-chronicles/is-fraud-part-of-the-trump-organizations-business-model

BINGO!!!!!!!!!!

2 hours ago, malibukid said:

what are his credentials?  oh i forgot he is Donalds son in law.

and that qualifies him for what- molestation, corruption, bribery, etc etc etc

 

4 hours ago, pegman said:

This will only be resolved when a major portion of world powers sanction the hell out of the Israeli apartheid regime like was done to its twin South Africa. The two state, so called solution ship, has long sailed. One democratic country, like present day South Africa, is the only viable worthwhile outcome now. Trump putting his radical Zionist son in law in charge is a joke with a less than zero chance of working.

Er, not sure South Africa, with a struggling economy and a society mired in crime and corruption 25 years after the Communist-aligned ANC takeover, represents a "viable, worthwhile" democracy.

17 minutes ago, Krataiboy said:

Er, not sure South Africa, with a struggling economy and a society mired in crime and corruption 25 years after the Communist-aligned ANC takeover, represents a "viable, worthwhile" democracy.

I think the 77% of South Africans who are black are pretty damned sure about it.

5 hours ago, porphyry said:

Behold idiot son-in-law Jared Kushner—the man now in charge of brokering Middle East peace, Uberizing the federal government, reforming the entire criminal justice system, and keeping Donald Trump’s hands off his wife.

 

Good luck with that last goal, Jared!

 

28 minutes ago, bristolboy said:

I think the 77% of South Africans who are black are pretty damned sure about it.

Do a Google search and you'll find a lot who are not. And the reasons why.

Just now, Krataiboy said:

Do a Google search and you'll find a lot who are not. And the reasons why.

I did and couldn't. But why not share your results? Makes me dubious you actually have any credible links to offer.

4 hours ago, malibukid said:

what are his credentials?  oh i forgot he is Donalds son in law.

His credentials are nepotism.

1 hour ago, Krataiboy said:

Do a Google search and you'll find a lot who are not. And the reasons why.

There certainly are reasons that South Africans are not happy with the ANC for economic & anti-corruption failures.

But there are few, if any, indications that the black majority want to return to Apartheid.

Plus the Palestinians can only dream of their own imperfect democracy, free from their racist rulers.

Edited June 23, 20197 yr by khunken

29 minutes ago, khunken said:

There certainly are reasons that South Africans are not happy with the ANC for economic & anti-corruption failures.

But there are few, if any, indications that the black majority want to return to Apartheid.

Plus the Palestinians can only dream of their own imperfect democracy, free from their racist rulers.

Democracy is sometimes better as a "dream" than a reality. Like Churchill said, it is the best of the worst of systems. He should know. He not only lived one, but ran one.

1 hour ago, khunken said:

There certainly are reasons that South Africans are not happy with the ANC for economic & anti-corruption failures.

But there are few, if any, indications that the black majority want to return to Apartheid.

Plus the Palestinians can only dream of their own imperfect democracy, free from their racist rulers.

 

"....the Palestinians can only dream of their own imperfect democracy,...."

 

I guess you're going to blame Israel for the Palestinians apparent inability to maintain even the measure of democracy they have at this time. Those not completely blinkered or invested in propaganda efforts would note that the last general elections were held 13-14 years ago.

 

If the Palestinians would have been "free" today, unlikely there would be much democracy about. More like factions either butchering each other or twisting the system to further their respective interests.

Edited June 23, 20197 yr by Morch

Let’s see.....If I were a Palestinian, inculcated from birth with the fact that ‘the jews’ stole my homeland and possessing all the rage and desires that sort of thought processing brings about, I would place all my hopes for a workable solution to the existing impasse in the hands of an American Jew, whose father in law just moved an embassy into a hotly disputed (over ownership) city and who seems to think money can solve emotional stresses. How many times can the US wander into foreign situations with no clucking fue about cultural differences and make a complete dog’s breakfast of it before they (even start to) learn? Is this not one definition of insanity - repeating mistakes and hoping for a different outcome?

7 minutes ago, Morch said:

 

"....the Palestinians can only dream of their own imperfect democracy,...."

 

I guess you're going to blame Israel for the Palestinians apparent inability to maintain even the measure of democracy they have at this time. Those not completely blinkered or invested in propaganda efforts would note that the last general elections were held 13-14 years ago.

 

If the Palestinians would have been "free" today, unlikely there would be much democracy about. More like factions either butchering each other or twisting the system to further their respective interests.

As usual the Morch victim blaming when anyone criticises his racist friends.

Yes, both the US & Israel have ensured that there has been no elections in Palestine for years. That was because Hamas won the last election and we can't have them allowed to win another.

Yes, maybe the factions would have been killing each other but it's hard to see that being any worse than Israel slaughtering them.

3 minutes ago, khunken said:

As usual the Morch victim blaming when anyone criticises his racist friends.

Yes, both the US & Israel have ensured that there has been no elections in Palestine for years. That was because Hamas won the last election and we can't have them allowed to win another.

Yes, maybe the factions would have been killing each other but it's hard to see that being any worse than Israel slaughtering them.

 

I'm not blaming anyone. I'm stating a fact, which you find hard to deal with or even acknowledge.

 

As expected, blame every Palestinian failure on Israel (and for good measure, the USA). Because for some posters, Palestinians are not accountable, nor responsible for anything whatsoever. It could be argued that such a trait wouldn't go hand in hand with a democratic society, but eh.

 

How would Palestinians killing Palestinians be better? And does is the supposed "slaughter" by Israel apply all around? Nothing to do with Palestinian actions and policies either?

6 minutes ago, Morch said:

 

I'm not blaming anyone. I'm stating a fact, which you find hard to deal with or even acknowledge.

 

As expected, blame every Palestinian failure on Israel (and for good measure, the USA). Because for some posters, Palestinians are not accountable, nor responsible for anything whatsoever. It could be argued that such a trait wouldn't go hand in hand with a democratic society, but eh.

 

How would Palestinians killing Palestinians be better? And does is the supposed "slaughter" by Israel apply all around? Nothing to do with Palestinian actions and policies either?

Your denial about not blaming anyone is a iie. You are also not posting 'facts' - just your biased opinion.

Palestinians are only accountable insofar as they are allowed by their 'masters'. Without being given the necessary cooperation from Israel & the US (as happened in the last election), the Palestinians have no capability to organise an election.

I din't say that Palestinians killing would be better - why do you always twist what others write? - I said 'any worse' (i.e. much the same). I will say again that hypothetical killing is definitely no worse that the actual numbers slaughtered by Israel.

 

 

2 hours ago, khunken said:

Your denial about not blaming anyone is a iie. You are also not posting 'facts' - just your biased opinion.

Palestinians are only accountable insofar as they are allowed by their 'masters'. Without being given the necessary cooperation from Israel & the US (as happened in the last election), the Palestinians have no capability to organise an election.

I din't say that Palestinians killing would be better - why do you always twist what others write? - I said 'any worse' (i.e. much the same). I will say again that hypothetical killing is definitely no worse that the actual numbers slaughtered by Israel.

 

 

 

How is it a "lie"? I mean other than you saying so. It is a fact that the last general elections were held more than a decade ago. It is also a fact that neither Palestinian faction exhibits much by way of acting democratically. You don't like reality? Tough.

 

I don't even know what "accountable insofar as they are allowed by their 'masters'" bit is supposed to imply. What "necessary cooperation" from Israel and the USA is needed in order for the Palestinians to carry out elections? Are you quite aware of the times elections were in the works, when either faction would bring the whole thing down to serve political ends?

 

As for the the rest - your say potato. Whatever. Hypothetical? I'll refer you to post-elections violence. People thrown off balconies etc. And things haven't  improved much as it comes to relations between the Palestinian factions either.

 

 

 

I guess you're going to blame Israel for the Palestinians apparent inability to maintain even the measure of democracy they have at this time. Those not completely blinkered or invested in propaganda efforts would note that the last general elections were held 13-14 years ago.

 

If the Palestinians would have been "free" today, unlikely there would be much democracy about. More like factions either butchering each other or twisting the system to further their respective interests.