'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

These business leaders reasoned that daily commerce, increased employment, and significant improvements in the standard of living would undermine the rejectionists. While there are risks involved in investing prior to a peace agreement, potential investors should not wait until every political issue is solved. In addition, early investors are most likely to do well in new areas like the West Bank and Gaza.

A theme raised by many of the Palestinian businessmen reflects the difficulties they feel they endure due to Israeli laws and regulations. Peres and other Israeli leaders indicated that this is a matter to be included in the diplomatic discussions.

Builders for Peace met with Palestinians eager to establish joint ventures with Americans. A synergy developed after most meetings as American businessmen established contacts with individual Palestinians to set the stage for future cooperation.

In fact, in the short time since the conclusion of the mission, a number of Americans have begun to work out the details that will lead to joint ventures in such fields as pharmaceuticals, bottling and handicrafts.

Palestinian entrepreneurs are obviously talented and resourceful. They have developed their business under difficult conditions and are poised to take advantage of the anticipated growth that would accompany peace. They speak highly of the available labor pool, although a number of the Palestinians commented that training facilities would be needed to prepare workers for potentially new careers.

In addition to foreign capital, Palestinian businesses hope to be able to improve their ability to market their products around the world. They have little export experience and when they develop this expertise, trade will become a major source of future growth. They will establish Palestinian chambers of commerce around the world to promote these objectives.

The economic sectors with whom Builders for Peace met included:

Tourism--A number of Palestinians have had good success running hotels, bus companies and tour agencies. They hope for a surge in tourism, especially Christian and Moslem visitors, after the peace agreement is signed. As a result, they stressed the need for additional hotels, buses and restaurants. Discussions were held on the potential of building tourist hotels on the beach in Gaza, which was viewed as a good concept that must await a peace agreement.

Financial institutions--There are relatively small financial and credit institutions operating in the Territories which must be expanded to assist development of all other industries.

Food--Representatives of Palestinian agricultural and food processing facilities expressed concerns relating to the labeling of their products and how their goods will be treated after a peace agreement is signed. This diplomatic issue is still being negotiated. These industries would benefit from newer technology to improve production.

Small manufacturing, textiles, leather goods, and handicrafts--Representatives from these sectors expressed the need to develop new and better products and to expand their marketing and distribution capabilities.