The IMF contributes to the oppression of the Palestinians

The International Monetary Fund has issued a press release following its latest visit to East Jerusalem and Ramallah, during which the economic decline in both Gaza and the West Bank were assessed. Since Israel’s Operation Protective Edge, both areas have suffered through massive destruction and punitive measures, as well as the bureaucratic process hindering Gaza’s reconstruction. According to the IMF, repercussions from political discord will hinder economic growth in 2015, stemming in particular from Israel’s refusal to transfer tax revenues to the Palestinian Authority.

The press release also highlights the humanitarian concerns with regard to Gaza from an economic perspective, where GDP has fallen by 15 per cent. Unemployment is also estimated to have reached 41 per cent across the Gaza Strip. Discussion about the coastal enclave is framed within the discourse on the repercussions of Israel’s colonial massacres over the years. “Gaza reconstruction after the war is proceeding more slowly than expected,” says the IMF, “reflecting insufficient progress on national reconciliation and unfulfilled donor pledges.”

In this volatile environment, the statement continues, safeguarding financial stability will remain a priority. What the IMF fails to mention is that it actually thrives on turmoil; countries struggling economically which accept financial advice and assistance are then generally subservient to the capitalist system in perpetuity.

While the international body is unable to provide financial support to the West Bank and Gaza, it has acted as a policy advisor, mandated to discuss issues with the PA since the Oslo Accords. As an oppressive, global institution, the IMF is fulfilling a role in the occupied Palestinian territories similar to that which it has in other countries: ensuring the economic exploitation of people under the guise of providing financial advice. The tactic resembles the propaganda employed by Netanyahu and Israel’s allies when they claim that Palestinian cities are on a par with other cities around the world.

Settler-colonialism in Palestine has deprived Palestinians of their agricultural tradition through the theft of land and water, thus coercing the indigenous population into economic activity dictated by Israel and Palestinian leaders. The development of cities, therefore, is a direct contradiction of free economic development, resulting in the continuous exploitation of Palestinian workers while allowing a select, elitist group to conspire with Israel and the PA in urban development. The trend reflects parameters that extend beyond Israel’s settler-colonialism; it is a reflection of global capitalist exploitation that reduces resistance against Israel into a small section of a much wider framework.

Any “advice” offered by the IMF to Palestine, therefore, needs to be considered within the context of the exploitative policies dictated by global capitalism. This seeks to enforce the alleged benefits for countries which seek international assistance while diverting attention from debt and the funding of corporations. The same process has been seen in Africa and was denounced by Ghana’s Kwame Nkrumah when he said that neo-colonialism would provide the final state of imperialism across the continent.

The lack of financial aid to speed Gaza’s reconstruction will undoubtedly add to Palestine’s economic woes. However, the fact remains that the IMF, together with other international organisations and states, continue to view the Palestinian narrative through the lens of the oppressor. They provide nothing substantive to counter the effects of a dwindling economy characterised by dependency upon Israel’s settler-colonialism.

The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Monitor.