Middle East

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29 April 2008
Palestine Investment Conference Set for May 21-23

By Merle D. Kellerhals Jr.
Staff Writer

Washington -- In May, the Palestinian Authority is convening the Palestine Investment Conference, in an effort to improve economic and social conditions in the territories, which is a critical component of the broader Middle East peace process.

Walter Isaacson, chairman of the U.S.-Palestinian Partnership and president of the Aspen Institute, says partnership members will attend the May 21-23 business conference in the West Bank city of Bethlehem with the aim of increasing investment in the Palestinian economy.

The joint effort by the U.S. government, private businesses, civic leaders and the Palestinian Authority to help create jobs and educational opportunities for Palestinians was announced December 3, 2007, by President Bush. The investment component is part of an intensive diplomatic initiative, begun at the November 2007 Annapolis Middle East peace conference, that is intended to lead to Palestinian statehood.

Secretary of State Condoleezza Rice said at an April 29 briefing that the Annapolis conference envisioned developing the Middle East peace process on a number of tracks. One track is to bring about establishment of a Palestinian state living side by side with Israel, she said.

"There is also a very strong commitment to do something about the economic prospects for the Palestinian people," she said. "That effort, with [the Quartet’s special envoy] former [British] Prime Minister Tony Blair and our contribution to the international effort, the U.S.-Palestinian Partnership, is well under way."

Isaacson said that the public-private partnership has made a number of advances on the business development component, including developing a call center that would work in the east part of Jerusalem, where there has been substantial unemployment but where there is also a well-educated population. The call center would provide a much-needed link with global businesses to reach Arab markets, he said.

"We also had a good exchange this morning on trying to set up some concept for a venture fund where people can invest in the West Bank," Isaacson said after the partnership met with Rice. "This would complement something that's already been launched, which is the Middle East Investment Initiative {MEII], which supplies small business loans for ... $50,000 to almost up to $500,000 now for businesses operating in the West Bank."

The MEII is a public-private partnership between the Aspen Institute, the U.S. Overseas Private Investment Corporation and the Palestinian Investment Fund that provides a $228 million loan guarantee program. Isaacson said that six Palestinian banks are working with the loan program as partners. There are 11 additional projects being developed and there has been $1.6 million in loans made to support them, he said.

"In order to have a political settlement, you also have to have stability. You have to have economic opportunity," Isaacson said.

He said that Rice tasked the partnership with developing three components -- youth leadership, business development and support for the May business investment conference. "They're all intended to support the political work that Secretary Rice and others are doing for the peace process," he said.

The partnership's first focus is working to expand youth resource and development centers in partnership with the U.S. Agency for International Development and the Palestinian Authority's Ministry of Youth and Sports. These centers will provide training in information technology skills, English language, athletics and leadership and life skills.

Isaacson said the partnership began with five major youth centers in the West Bank, but will develop 50 centers.

The partnership is headed by Isaacson and co-chaired by Sandy Weill, former chairman of Citigroup; Lester Crown, chairman of Material Service Corporation; Ziad Asali, president of the American Task Force on Palestine; and Jean Case, chief executive of the Case Foundation.

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