Letter from Gaza

Death and destruction have been visited on Gaza, but the real target is stronger than ever. Hamas ha

On the morning after his inauguration, President Obama made his first international telephone call to a world leader at 8am Washington time - to the Palestinian president, Mahmoud Abbas. This was a clear signal that the new president was serious in getting down to business in the region. Obama assured Abbas of his support for a sustained ceasefire between Israel and Hamas and his backing of the decision made by European leaders at the Egyptian resort of Sharm El Sheikh last week to get tough on weapons smuggling. Telephone calls to other leaders in the region followed. This demonstrates a change in priorities from his predecessors, for whom the Palestinian-Israeli conflict appeared well down the agenda, to be dealt with at a later stage in their presidency.

The importance Obama seems to be placing on tackling the conflict was borne out by his swift appointment of George Mitchell as special envoy to the region. Mitchell, an Arab-American and former senator, is a familiar and well-respected face in the Middle East. With barely a week in the post, he has been despatched to meet Israeli and Palestinian leaders to agree a modus operandi to revive the stagnant peace process.

The word on the ground is that that the talks that began in Cairo on 25 January will need nothing short of a miracle to reconcile Hamas and Fatah. Mahmoud Abbas's Palestinian Authority (nominally the government of all the Palestinian territories, but whose writ only runs in the Fatah-dominated West Bank) looks the weakest among the parties involved in the conflict. To revive his standing, Abbas has invited Hamas to join in an internal Palestinian dialogue, but Hamas is sceptical. It believes that the PA may try to make political capital out of the current situation in Gaza, whose destruction is on a scale which its inhabitants have never experienced even in their bloody history.

In Al Zaytoun, a neighbourhood east of Gaza City, 23 members of the Dayeh family were killed when the four-storey building they shared was bombed at dawn on 6 January. When Mohammed, Rida and Amer, the survivors, tried to locate their relatives among the debris, they made the grim discovery of four children in one apartment who had died alongside their mother, and the body of one of their brothers.

Abdul Rahman Jarrah, a Palestinian student from Jabaliya camp north east of Gaza City, put on his uniform and picked his way through the wreckage to Al Fakoura UN Relief and Works Agency school last Saturday. This was the first time that Abdul, along with half a million of Gaza's schoolchildren, was able to attend school after an almost month-long closure forced by the hostilities. When Abdul took his usual place, he found three empty seats beside him. One was at the desk he used to share with his best friend Isam - who lost his life when an Israeli tank fired a shell at his house.

In this period of fragile truce between Israel and Hamas, what prospects lie ahead for the Palestinians? Both in the West Bank and in Gaza, they are anxiously awaiting the outcome of the talks. Also on the agenda is for Hamas and Israel to agree a prolonged ceasefire of at least a year to give the international community and the fledgling administration in Washington space to restart the stalled peace process.

Walk anywhere in Gaza and the impression one gets is that the Hamas government is still a force to be reckoned with. It shows no signs of losing its grip on this tiny 25-mile by 6-mile strip of land. The Hamas infrastructure that the Israeli army claims to have destroyed was, for the large part, government buildings belonging to the Palestinian Authority - the majority of which were rebuilt in 2002 with European taxpayers' money as infrastructure for the future Palestinian state, for which even an airport was built in the optimistic days of the late 1990s.

At the time of the ceasefire, Hamas indicated it would use every means at its disposal to ensure a constant flow of weapons. The international community is equally determined they will not succeed. An armada of ­European ships has been sent to police the local coastlines, as the Red and Mediterranean seas are obvious smuggling routes from Iran, a long-term backer of Hamas. An American naval vessel has already intercepted one ship bearing a cargo of Iranian weapons. On land, an underground network of tunnels provide what Israel believes is Hamas's primary weapons smuggling route.

B­ut Hamas will never lack either the means or the ingenuity to acquire weapons. Even Israeli army storage facilities are a source. Members of the Israel Defence Forces have been charged with stealing weapons and selling them to middle men who then pass them to Palestinians. This “co-operation” became increasingly audacious during the intifada – Israeli criminals would use fork-lift trucks to lift stolen cars over the security fence that surrounds Gaza, and then claim insurance money for the “stolen” cars.

Commanders of Hamas's military wing, the Ezzedine al-Qassam brigades, insist that even if smuggling routes are blocked they are now ­capable of manufacturing weapons themselves, as large numbers of their personnel have been trained in arms technology abroad, particularly in Iran, since they took control of Gaza in June 2007. Presently, Hamas's missiles have a range of 10-50km, but the group's leaders believe it is only a matter of time before their rockets will be able to reach the Israeli capital, Tel Aviv.

Thus far Hamas has succeeded in glueing the movement together, although its opponents are pinning their hopes on the possibility of a rift between the Gaza leadership and that based in Damascus, led by Khaled Mishal. The large numbers of uniformed police who returned to Gaza's streets following the Israeli withdrawal signalled that the movement has preserved its ­essential units, which are currently run from makeshift offices in tents and vehicles near the destroyed government buildings. (Despite the large numbers of Gazans killed, the military wing spokesperson Abu Obeida claims only 48 Hamas fighters were lost in action, partly due to their tactics of working in small units of just two or three fighters.) Critics argue that the confrontation with Israel failed to match the rhetoric of Hamas leaders who promised to turn Gaza's backstreets into a graveyard for Israeli forces. But it is clear that Hamas has been strengthened as a movement, and it is also enjoying unequivocal support from the influential Muslim Brotherhood, whose wings are active throughout the Middle East and Muslim Africa.

The international community does not recognise it as the government in Gaza and so will not support it financially. With the tightening of Gaza's border with Egypt (to prevent weapons smuggling), and the possibility of another Israeli attack if Hamas rockets continue to rain down on its southern towns and cities, the group could find itself starved of funds. Rebuilding the destroyed infrastructure and homes will cost around $2bn. Any delay in this reconstruction will generate anger among the demoralised Palestinians of Gaza, but the Hamas purse-strings may not stretch to cover so high a figure. Furthermore, although Palestinian wrath is largely aimed at Israel in the wake of the incursion into Gaza, there are some who have had enough of Hamas, whose actions since taking over the government have not brought peace or prosperity to its people.

H­amas cannot turn back to championing a military struggle and encouraging suicide bombings. Acceptance of a ceasefire would give the movement breathing space to assess what is going on in the wider region. Its large and influential neighbour to the south, Egypt, does not recognise the Hamas-led government. Apart from the fact that it has a treaty with Israel, Egypt has long had internal problems with the Muslim Brotherhood – from which Hamas sprang. But it has good relationships with Syria and Iran, neither of which recognise Israel, and it is now looking northwards.

Warm relations exist between Hamas and Turkey's government, led by Prime Minster Recep Tayyip Erdogan. He has managed to maintain his country's membership of Nato and its aim to become part of the European Union, while still espousing Islamic values. An "Erdoganisation" of Hamas could soften its standing in the eyes of the international community. Erdogan's party is, after all, aligned with the Muslim Brotherhood, but he enjoys a healthy relationship with Israel.

What will Hamas's future hold? It may elect to remain as a resistance movement and, therefore, as a pariah in the eyes of western capitals. Or it may agree to be more flexible to aid a future political settlement. It will certainly be pressured to change its ways to become more in step with the international community. But the west, Israel and Barack Obama also need to change their thinking when it comes to dealing with Hamas. As long as the Islamic movement represents a large part of the Palestinian people at the ballot box, the west and Israel will have to accept it, for whatever it is. Hamas is not going to melt into the background, and nor will any future Israeli military action succeed in eradicating it. That is one thing of which we can be sure.

Zaki Chehab's book "Inside Hamas: the Untold Story of Militants, Martyrs and Spies" is published by I B?Taurus (£17.99)

This article first appeared in the 02 February 2009 issue of the New Statesman, Interview: Alistair Darling

Jeremy Corbyn. Photo: Getty
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Lexit: the EU is a neoliberal project, so let's do something different when we leave it

Brexit affords the British left a historic opportunity for a decisive break with EU market liberalism.

The Brexit vote to leave the European Union has many parents, but "Lexit" – the argument for exiting the EU from the left – remains an orphan. A third of Labour voters backed Leave, but they did so without any significant leadership from the Labour Party. Left-of-centre votes proved decisive in determining the outcome of a referendum that was otherwise framed, shaped, and presented almost exclusively by the right. A proper left discussion of the issues has been, if not entirely absent, then decidedly marginal – part of a more general malaise when it comes to developing left alternatives that has begun to be corrected only recently, under Jeremy Corbyn and John McDonnell.

Ceding Brexit to the right was very nearly the most serious strategic mistake by the British left since the ‘70s. Under successive leaders Labour became so incorporated into the ideology of Europeanism as to preclude any clear-eyed critical analysis of the actually existing EU as a regulatory and trade regime pursuing deep economic integration. The same political journey that carried Labour into its technocratic embrace of the EU also resulted in the abandonment of any form of distinctive economics separate from the orthodoxies of market liberalism.

It’s been astounding to witness so many left-wingers, in meltdown over Brexit, resort to parroting liberal economics. Thus we hear that factor mobility isn’t about labour arbitrage, that public services aren’t under pressure, that we must prioritise foreign direct investment and trade. It’s little wonder Labour became so detached from its base. Such claims do not match the lived experience of ordinary people in regions of the country devastated by deindustrialisation and disinvestment.

Nor should concerns about wage stagnation and bargaining power be met with finger-wagging accusations of racism, as if the manner in which capitalism pits workers against each other hasn’t long been understood. Instead, we should be offering real solutions – including a willingness to rethink capital mobility and trade. This places us in direct conflict with the constitutionalised neoliberalism of the EU.

Only the political savvy of the leadership has enabled Labour to recover from its disastrous positioning post-referendum. Incredibly, what seemed an unbeatable electoral bloc around Theresa May has been deftly prized apart in the course of an extraordinary General Election campaign. To consolidate the political project they have initiated, Corbyn and McDonnell must now follow through with a truly radical economic programme. The place to look for inspiration is precisely the range of instruments and policy options discouraged or outright forbidden by the EU.

A neoliberal project

The fact that right-wing arguments for Leave predominated during the referendum says far more about today’s left than it does about the European Union. There has been a great deal of myth-making concerning the latter –much of it funded, directly or indirectly, by the EU itself.

From its inception, the EU has been a top-down project driven by political and administrative elites, "a protected sphere", in the judgment of the late Peter Mair, "in which policy-making can evade the constraints imposed by representative democracy". To complain about the EU’s "democratic deficit" is to have misunderstood its purpose. The main thrust of European economic policy has been to extend and deepen the market through liberalisation, privatisation, and flexiblisation, subordinating employment and social protection to goals of low inflation, debt reduction, and increased competitiveness.

Prospects for Keynesian reflationary policies, or even for pan-European economic planning – never great – soon gave way to more Hayekian conceptions. Hayek’s original insight, in The Economic Conditions of Interstate Federalism, was that free movement of capital, goods, and labour – a "single market" – among a federation of nations would severely and necessarily restrict the economic policy space available to individual members. Pro-European socialists, whose aim had been to acquire new supranational options for the regulation of capital, found themselves surrendering the tools they already possessed at home. The national road to socialism, or even to social democracy, was closed.

The direction of travel has been singular and unrelenting. To take one example, workers’ rights – a supposed EU strength – are steadily being eroded, as can be seen in landmark judgments by the European Court of Justice (ECJ) in the Viking and Laval cases, among others. In both instances, workers attempting to strike in protest at plans to replace workers from one EU country with lower-wage workers from another, were told their right to strike could not infringe upon the "four freedoms" – free movement of capital, labour, goods, and services – established by the treaties.

More broadly, on trade, financial regulation, state aid, government purchasing, public service delivery, and more, any attempt to create a different kind of economy from inside the EU has largely been forestalled by competition policy or single market regulation.

A new political economy

Given that the UK will soon be escaping the EU, what opportunities might this afford? Three policy directions immediately stand out: public ownership, industrial strategy, and procurement. In each case, EU regulation previously stood in the way of promising left strategies. In each case, the political and economic returns from bold departures from neoliberal orthodoxy after Brexit could be substantial.

While not banned outright by EU law, public ownership is severely discouraged and disadvantaged by it. ECJ interpretation of Article 106 of the Treaty on the Functioning of the European Union (TFEU) has steadily eroded public ownership options. "The ECJ", argues law professor Danny Nicol, "appears to have constructed a one-way street in favour of private-sector provision: nationalised services are prima facie suspect and must be analysed for their necessity". Sure enough, the EU has been a significant driver of privatisation, functioning like a ratchet. It’s much easier for a member state to pursue the liberalisation of sectors than to secure their (re)nationalisation. Article 59 (TFEU) specifically allows the European Council and Parliament to liberalise services. Since the ‘80s, there have been single market programmes in energy, transport, postal services, telecommunications, education, and health.

Britain has long been an extreme outlier on privatisation, responsible for 40 per cent of the total assets privatised across the OECD between 1980 and 1996. Today, however, increasing inequality, poverty, environmental degradation and the general sense of an impoverished public sphere are leading to growing calls for renewed public ownership (albeit in new, more democratic forms). Soon to be free of EU constraints, it’s time to explore an expanded and fundamentally reimagined UK public sector.

Next, Britain’s industrial production has been virtually flat since the late 1990s, with a yawning trade deficit in industrial goods. Any serious industrial strategy to address the structural weaknesses of UK manufacturing will rely on "state aid" – the nurturing of a next generation of companies through grants, interest and tax relief, guarantees, government holdings, and the provision of goods and services on a preferential basis.

Article 107 TFEU allows for state aid only if it is compatible with the internal market and does not distort competition, laying out the specific circumstances in which it could be lawful. Whether or not state aid meets these criteria is at the sole discretion of the Commission – and courts in member states are obligated to enforce the commission’s decisions. The Commission has adopted an approach that considers, among other things, the existence of market failure, the effectiveness of other options, and the impact on the market and competition, thereby allowing state aid only in exceptional circumstances.

For many parts of the UK, the challenges of industrial decline remain starkly present – entire communities are thrown on the scrap heap, with all the associated capital and carbon costs and wasted lives. It’s high time the left returned to the possibilities inherent in a proactive industrial strategy. A true community-sustaining industrial strategy would consist of the deliberate direction of capital to sectors, localities, and regions, so as to balance out market trends and prevent communities from falling into decay, while also ensuring the investment in research and development necessary to maintain a highly productive economy. Policy, in this vision, would function to re-deploy infrastructure, production facilities, and workers left unemployed because of a shutdown or increased automation.

In some cases, this might mean assistance to workers or localities to buy up facilities and keep them running under worker or community ownership. In other cases it might involve re-training workers for new skills and re-fitting facilities. A regional approach might help launch new enterprises that would eventually be spun off as worker or local community-owned firms, supporting the development of strong and vibrant network economies, perhaps on the basis of a Green New Deal. All of this will be possible post-Brexit, under a Corbyn government.

Lastly, there is procurement. Under EU law, explicitly linking public procurement to local entities or social needs is difficult. The ECJ has ruled that, even if there is no specific legislation, procurement activity must "comply with the fundamental rules of the Treaty, in particular the principle of non-discrimination on grounds of nationality". This means that all procurement contracts must be open to all bidders across the EU, and public authorities must advertise contracts widely in other EU countries. In 2004, the European Parliament and Council issued two directives establishing the criteria governing such contracts: "lowest price only" and "most economically advantageous tender".

Unleashed from EU constraints, there are major opportunities for targeting large-scale public procurement to rebuild and transform communities, cities, and regions. The vision behind the celebrated Preston Model of community wealth building – inspired by the work of our own organisation, The Democracy Collaborative, in Cleveland, Ohio – leverages public procurement and the stabilising power of place-based anchor institutions (governments, hospitals, universities) to support rooted, participatory, democratic local economies built around multipliers. In this way, public funds can be made to do "double duty"; anchoring jobs and building community wealth, reversing long-term economic decline. This suggests the viability of a very different economic approach and potential for a winning political coalition, building support for a new socialist economics from the ground up.

With the prospect of a Corbyn government now tantalisingly close, it’s imperative that Labour reconciles its policy objectives in the Brexit negotiations with its plans for a radical economic transformation and redistribution of power and wealth. Only by pursuing strategies capable of re-establishing broad control over the national economy can Labour hope to manage the coming period of pain and dislocation following Brexit. Based on new institutions and approaches and the centrality of ownership and control, democracy, and participation, we should be busy assembling the tools and strategies that will allow departure from the EU to open up new political-economic horizons in Britain and bring about the profound transformation the country so desperately wants and needs.

Joe Guinan is executive director of the Next System Project at The Democracy Collaborative. Thomas M. Hanna is research director at The Democracy Collaborative.

This is an extract from a longer essay which appears in the inaugural edition of the IPPR Progressive Review.

 

 

This article first appeared in the 02 February 2009 issue of the New Statesman, Interview: Alistair Darling