'Builders for Peace' lets American business contribute to the Middle East peace process - program to promote US business investment in the Middle East

Business America, Feb, 1994

The euphoria resulting from the signing of the Middle East peace initiative on the White House Lawn on September 13 led President Clinton and Vice President Gore to conclude that American investment could enhance the peace process. They helped initiate the Builders for Peace program in the hope that American private sector investment would improve economic conditions in the region, leading to a reduction in cultural barriers and an end to longstanding animosities.

Builders for Peace recently concluded its first mission to the Middle East. Co-Presidents Mel Levine and Jim Zogby led a number of American businessmen to explore potential private sector investments in the West Bank and Gaza. The trip underscored both the opportunities and the problems associated with investing in the West Bank and Gaza.

The trip coincided with a trade mission to the region by Secretary of Commerce Ronald H. Brown, who was accompanied by officials from the Departments of Commerce and State, and the Overseas Private Investment Corporation (OPIC). Visiting the region at this time conveyed the commitment of both the Clinton/Gore Administration and the American private sector to assist economic development as a means to promote peace and prosperity.

Secretary Brown inaugurated the first Builders for Peace project when he turned on a water purification system contributed by the Culligan company to the Bethlehem Arab Society for Rehabilitation. Once the system was activated, Secretary Brown, joined by Culligan CEO Steve Green, Levine, Zogby, and officials of the Rehabilitation Society, drank the first glasses of purified water produced at the site.

After the ceremony, Secretary Brown chaired a jointly-sponsored roundtable discussion at Bethlehem University on the economic potential of the Territories. He commented on the opportunities for growth, stressing that "the talent, energy and vision is there--if we remove the obstacles, it will flourish."

Builders for Peace met with Yasir Arafat in Tunis. The PLO chairman expressed his frustration at the current gridlock in the peace talks and the slow pace of international financial support for infrastructure projects in the Territories.

Arafat cited many problems, including unemployment, the poor condition of roads, housing and waste removal, and the need for a better financial system. He expressed the belief that these problems will be overcome when peace is achieved. He stated that the West Bank and Gaza have great potential for economic growth and agreed with Levine and Zogby that providing economic opportunities for Palestinians would increase support for the peace process.

Arafat also expressed his appreciation to Vice President Gore for taking the lead to establish Builders for Peace.

Builders for Peace also met with Tunisian Foreign Minister Habib Ben Yahia and leaders of the business communities in Tunis. The Foreign Minister and the business leaders were supportive of bringing in new private investment to the West Bank and Gaza. The Tunisians also mentioned discussions with Moroccan businessmen willing to invest in the Territories and were very open to the concept of participating with Americans in such ventures.

The next stop on the trip was Amman, Jordan, where business leaders expressed an eagerness to participate in regional economic development, but stated their hesitancy to begin such ventures until after the Declaration of Principles is implemented. They stressed their personal connections in the West Bank and emphasized their willingness to form joint ventures with American partners in the West Bank and Gaza, particularly through Builders for Peace.

The delegation met with Israeli Prime Minister Yitzhak Rabin and Minister of Trade Micha Harish, who endorsed Builders for Peace in the belief that investment in the Territories could help break negative cycles of mistrust, violence, and instability by promoting the Palestinian private sector.

Shortly after the trip, a delegation from Builders for Peace had a private meeting in New York with Israeli Foreign Minister Shimon Peres, who pledged his backing for the goals of the new organization.

Builders for Peace also had extensive meetings with over 100 Palestinian businessmen. Many expressed frustration and impatience at the slow pace of both international and private sector investment since the September 13 agreement, but still emphasized their faith in the economic potential of the West Bank and Gaza.

A central issue raised at nearly every meeting focused upon whether investment should precede or follow a peace agreement.

Businessmen are hesitant to invest in areas marked by sporadic violence and inadequate infrastructure, commercial laws, tax codes, and financial institutions. Thus far, no political officials are available to sign agreements and provide protection to foreign investors. Some of the Palestinian business leaders stated that these problems will only be solved after a peace agreement is signed and investors should wait.

Others also saw the need for progress on the political front, but stated that foreign investment could be a catalyst for peace and the political agreements will follow economic development. They hoped that the lack of political agreements would not delay economic development.