[News] To end the occupation, cripple Israeli banks
Anti-Imperialist News
news at freedomarchives.org
Wed Jun 30 20:02:36 EDT 2010
To end the occupation, cripple Israeli banks
http://electronicintifada.net/v2/article11362.shtml
Terry Crawford-Browne, The Electronic Intifada, 30 June 2010
The international banking sanctions campaign in New York against
apartheid South Africa during the 1980s is regarded as the most
effective strategy in bringing about a nonviolent end to the
country's apartheid system. The campaign culminated in President FW
de Klerk's announcement in February 1990, releasing Nelson Mandela
and other political prisoners, and the beginning of constitutional
negotiations towards a non-racial and democratic society.
If international civil society is serious about urgently ending
Israel's violations of Palestinian rights, including ending the
occupation, then suspension of SWIFT transactions to and from Israeli
banks offers an instrument to help bring about a peaceful resolution
of an intractable conflict. With computerization, international
banking technology has advanced dramatically in the subsequent 20
years since the South African anti-apartheid campaign.
Although access to New York banks remains essential for foreign
exchange transactions because of the role of the dollar, interbank
transfer instructions are conducted through the Society for Worldwide
Interbank Financial Telecommunication (SWIFT), which is based in
Belgium. So, instead of New York -- as in the period when sanctions
were applied on South Africa-- Belgium is now the pressure point.
SWIFT links 8,740 financial institutions in 209 countries. Without
access to SWIFT and its interbank payment network, countries are
unable either to pay for imports or to receive payment for exports.
In short, no payment -- no trade. Should it come to a point where
trade sanctions are imposed on Israel, it may be able to evade them.
Instead of chasing trade sanctions-busters and plugging loopholes, it
is both faster and much more effective to suspend the payment system.
The Israeli government may consider itself to be militarily and
diplomatically invincible, given support from the United States, and
other governments, but Israel's economy is exceptionally dependent
upon international trade. It is thus very vulnerable to financial
retaliation. South Africa's apartheid government had also believed
itself to be immune from foreign pressure.
Without SWIFT, Israel's access to the international banking system
would be crippled. Banking is the lifeblood of any economy. Without
payment for imports or exports, the Israeli economy would quickly
collapse. The matter has gained additional urgency with the bill now
before the Knesset, Israel's parliament, to penalize any person who
promotes the imposition of boycotts against Israel. Another important
political factor is that SWIFT is not only outside American
jurisdiction, it is also beyond the reach of Israeli military retaliation.
Israel has long experience in sanctions-busting since the 1948 Arab
boycotts. Apartheid South Africa was also well experienced in
sanctions-busting -- breaking oil embargoes was almost a "national
sport." Trade sanctions are invariably full of loopholes.
Profiteering opportunities abound, as illustrated by Iraq, Cuba and
numerous countries against which for many years the United States
unsuccessfully has applied trade sanctions. Iran conducts its trade
through Dubai, which happily profits from the political impasse.
Suspension of bank payments plugs such loopholes, and also alters the
balance of power so that meaningful negotiations between Israelis and
Palestinians become even possible. This is because banking sanctions
impact quickly upon financial elites who have the clout to pressure
governments to concede political change. Trade sanctions, by
contrast, impact hardest on the poor or lower-paid workers, who have
virtually no political influence.
SWIFT will, however, only take action against Israeli banks if
ordered to do so by a Belgian court, and then only in very
exceptional circumstances. Such very exceptional circumstances are
now well-documented by the UN-commissioned Goldstone report into
Israel's winter 2008-09 invasion and massacre in Gaza and by the
attack on the Gaza Freedom Flotilla on 31 May 2010. There is also a
huge body of literature from Amnesty International, Human Rights
Watch and other organizations detailing Israeli war crimes and
violations of humanitarian law.
The Israeli government, like that of apartheid South Africa, has
become a menace to the international community. Corruption and abuses
of human rights are invariably interconnected. Israel's long military
occupation of the West Bank and Gaza Strip, for example, has
corrupted almost every aspect of Israeli society, most especially its
economy. The Organization For Economic Cooperation and Development
(OECD) reported in December 2009 that the Israeli government lacks
commitment in tackling international corruption and money laundering.
The international financial system is exceedingly sensitive about
allegations of money laundering, but also to any associations with
human rights abuses. Organized crime and money laundering are major
international security threats, as illustrated by the United States
subpoena after the 11 September 2001 attacks of SWIFT data to track
terrorist financing. The website Who Profits?
(<http://www.whoprofits.org/>www.whoprofits.org) lists hundreds of
international and Israeli companies that illegally profiteer from the
occupation.
Their operations range from construction of the "apartheid wall" and
settlements to agricultural produce grown on confiscated Palestinian
land. As examples, Caterpillar, Volvo and Hyundai supply bulldozing
equipment to demolish Palestinian homes. British supermarkets sell
fresh produce grown in the West Bank, but illegally labelled as
Israeli. Ahava markets Dead Sea mud and cosmetics.
The notorious Lev Leviev claims in Dubai that Leviev diamonds are of
African origin, and are cut and polished in the United States rather
than Israel. They are sourced from Angola, Namibia and also allegedly
Zimbabwe, and can rightly be described as "blood diamonds." Israeli
diamond exports in 2008 were worth $19.4 billion, and accounted for
almost 35 percent of Israeli exports. Industrial grade diamonds are
essential to Israel's armaments industry, and its provision of
surveillance equipment to the world's most unsavory dictatorships.
Such profiteering depends on foreign exchange and access to the
international payments system. Hence interbank transfers are
essential, and SWIFT -- willingly or unwillingly -- has become
complicit, as were the New York banks with apartheid South Africa.
Accordingly, a credible civil society organization amongst the
Palestinian diaspora should lead the SWIFT sanctions campaign against
Israeli banks. And, per the South African experience, it should be
led by civil society rather than rely on governments.
Each bank has an eight letter SWIFT code that identifies both the
bank and its country of domicile. "IL" are the fifth and sixth
letters in SWIFT codes that identify Israel. The four major Israeli
banks and their SWIFT codes are Israel Discount Bank (IDBILIT), Bank
Hapoalim (POALILIT), Bank Leumi (LUMIILIT) and Bank of Israel (ISRAILIJ).
Such a suspension would not affect domestic banking transactions
within Israel and the occupied West Bank and Gaza Strip -- or
international transfers to Palestinian banks that have separate "PS"
identities. The campaign can be reversed as soon as the objectives
have been achieved, and without long-term economic damage.
What is required is an urgent application in a Belgian court ordering
SWIFT to reprogram its computers to suspend all transactions to and
from Israeli banks until the Israeli government agrees to end the
occupation of the West Bank including East Jerusalem, and that it
will dismantle the "apartheid wall;" the Israeli government
recognizes the fundamental rights of Palestinian citizens of Israel
to full equality; and Israel recognizes, respects and promotes the
rights of Palestinian refugees.
The writer is a retired banker, who advised the South African Council
of Churches on the banking sanctions campaign against apartheid South
Africa. He spent October 2009 to January 2010 in East Jerusalem
monitoring checkpoints, house demolitions and evictions, and liaising
with Israeli peace groups. He lives in Cape Town.
Freedom Archives
522 Valencia Street
San Francisco, CA 94110
415 863-9977
www.Freedomarchives.org
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://freedomarchives.org/pipermail/news_freedomarchives.org/attachments/20100630/635f3ace/attachment.htm>
More information about the News
mailing list