Fund allocation reflects Arab-Israeli conflict

StandWithUs video about the conflict’s refugees

 After 1948, the US invested funds in a mini-Marshall plan for the Middle East. But while Israel spent the money on housing projects and infrastructure to rehabilitate the Jewish refugees from Arab lands, the Arab states allocated it to UNRWA or just kept it for themselves. The 2008 US Congress resolution to recognise the rights of Jewish refugees squares the circle, argues Kobby Barda in Mida.

Yeshayahu (Si) Kennan was the spokesman for the Israeli delegation to
the UN during the Marshall Plan. Kennan’s boss, Ambassador Abba Eban,
rejected his proposal to demand from the American administration a
parallel plan in the Middle East, arguing that the Arabs would use the
money they received against Israel. Kennan then joined the American
Zionist Council (AZC) and in this framework began to lobby for the
implementation of a similar program in the Middle East. At that time
there were about 1.6 million refugees and displaced persons in the
Middle East – half of them Jews and half Arabs. Kennan’s desire was for
the countries to use grants to rehabilitate the refugees in the
countries they came to after the war.

Jewish refugees from Yemen arriving in Israel (Wikipedia)

Encouraged by the success of the Marshall Plan in Europe, the
Americans sought to rehabilitate the Middle East by the same means. The
Truman administration’s support for the establishment of the State of
Israel ( contrary to Marshall’s position) created a sense of
responsibility among the administration for the consequences of the
declaration of independence and the War of Independence.

Against
this backdrop, Kennan’s initiative found a sympathetic ear in Congress
and the State Department. 164 members of Congress signed a proposal to
carry out the initiative, and in response the Arab countries began to
exert counter-pressure. Kennan then harnessed leading economists to
persuade Congress that aid to Israel was good not only for Israel but
also for the United States.

In September 1951, nearly two years
after the establishment of UNRWA, Kennan’s efforts bore fruit: Congress
approved $160 million in aid to rehabilitate the region: $68 million was
granted to Israel, and the rest were distributed between Lebanon,
Syria, Iraq, Egypt and Jordan.

The Story of the Whole Conflict

The
manner in which these funds were distributed is one of those specific
cases that in miniature, tell the story of the entire Arab-Israeli
conflict: The young State of Israel invested these funds, which came
several years ahead of reparations from Germany, in housing development
and infrastructure, and in the tremendous effort to absorb the Jews who
were escaping en-masse from Arab countries. In this way, Israel acted
similarly to the European countries’ handling of the American aid funds
that came from the Marshall Plan.

On the other hand, the Arab
states allowed these funds to be swallowed up within UNRWA’s overall
budget, or perhaps just kept it for themselves. Schwartz and Wilf’s book
describes the mechanism used by the Arabs against the American
administration: they allowed UNRWA to provide humanitarian aid to
refugees and agreed in principle to huge projects for infrastructure
construction that would advance their countries alongside the
rehabilitation of the Palestinian refugees. In practice, the Arab
governments were dragging their feet and preventing reconstruction from
happening. The motive was to leverage the plight of the refugees as a
means of delegitimizing the State of Israel. In retrospect, then, it
appears that Abba Eban was right in opposing the plan.

The UNRWA
monster has become a petri dish in which anomalies have multiplied as
far as the treatment of refugees goes: Palestinian refugee status is
inherited, UNRWA itself is not working to rehabilitate the refugees but
only involved in humanitarian aid, and a large majority of its workers
are Palestinians themselves. UNRWA has become a decisive factor in
perpetuating the Arab-Israeli conflict, rather than in solving it.

In
April 2008, a month before Israel’s 60th Independence Day, there were
first signs of an American awakening: in the face of the “unquestionable
rights” of the Palestinians, Congress decided to grant identical rights
to the Jewish refugees who fled Arab countries. Congress instructed the
president to determine that the rehabilitation of the refugees in their
places is the way to solve the problem of the conflict in the Middle
East, and the “refugees” refers to people who fled all Middle Eastern
countries during the 1948 war.

The Trump administration’s decision
to cease funding for UNRWA looks like closing a circle. Time will tell
whether the move will succeed, but if this is indeed the case, it can be
assumed that this is a significant step towards quelling the end of the
Israeli-Arab conflict.

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