Wednesday, December 20, 2023

What Will Gaza Look Like One Year From Now?

Foreign Policy Editors
Mon, December 18, 2023 



LONG READ

This article was originally featured in Foreign Policy, the magazine of global politics and ideas. 

The war between Israel and Hamas has made talk of peace processes and hopes for final-status agreements seem more remote than ever. But the brief pause in fighting and the successful hostage exchange brokered with the assistance of Qatar—along with Egypt and the United States—suggested that there is space for diplomacy even amid a brutal war.

Rather than seeking blueprints for a permanent peace deal, which seems far-fetched given the current Israeli and Palestinian political leadership, Foreign Policy asked a range of experts two narrower questions:

1. What will Gaza look like one year from now?

2. What single policy could any actor in this conflict pursue that would make it less likely that this war will end like so many others, with the same security threats remaining and key political grievances unresolved?

—FP Editors

Ehud Olmert

Zaha Hassan

Daniel C. Kurtzer

Elliott Abrams

Omar M. Dajani

Eugene Kontorovich

Diana Buttu

Peter R. Mansoor

Daniel Levy

By Ehud Olmert, former prime minister of Israel

1. Israel’s campaign in Gaza will continue until Hamas’ military capabilities are eliminated. It’s hard to guess how long it will take, but if we are to be honest, it will take longer than Western societies are prepared to accept, longer than what their leaders, and above all U.S. President Joe Biden, a close friend of Israel, are willing to tolerate.

2. Exactly for this reason, it is imperative that Israel already provide, at this stage, a picture of what comes next after the army has completed its work. It should be based on the following principles and assumptions:

Israel has no intention, desire, or ability to stay in Gaza at the end of the military campaign. When the war is over, Israel must withdraw all the way to the border. No force connected to the Palestinian Authority or the Arab states will be willing to enter Gaza when the IDF withdraws. All moderate Arab countries wish to see the destruction of Hamas, which is a destabilizing force for their own regimes. The brutal killings perpetrated by the group on Oct. 7 were, by the standards of these countries, a disgrace to Islam and its values. But none of these countries want to be seen as lending a hand to Israel’s military campaign.

Therefore, if the United States and other allies of Israel are unwilling to allow Israeli forces to remain in Gaza, there is no alternative but an international force from NATO states, under the auspices of Chapter VII of the U.N. Charter, through which the Security Council will rebuild the civilian authorities and governing systems in the Gaza Strip for a period of approximately 18 months. Then, and only then, is there a possibility that the security apparatus of the Palestinian Authority can replace the international force in Gaza.

In parallel with this effort—and starting now—Israel must offer a political horizon for the end of the military campaign. The state of Israel must announce that immediately after the cessation of the military campaign, talks will begin with the Palestinian Authority based on a two-state solution—which is the only political horizon that can offer stability, cooperation between Israelis and Palestinians, and cooperation between Israel and the moderate Arab states within the framework of the Arab League peace initiative.

There is no doubt that the Netanyahu government is unwilling, unable, and unprepared to make such a bold move. For this reason and others, the government needs to step aside immediately.

By Zaha Hassan, a fellow at the Carnegie Endowment for International Peace

1. Israel’s war on Hamas—and its parallel campaign against the Palestinian civilian population of Gaza—will continue for many months as Israel attempts to degrade the military capabilities of Hamas and pursue an apparent plan to drive Palestinians into smaller enclaves to the south. This would effectively be an annexation more extensive than the previously existing “access-restricted zones” around Gaza’s land border with Israel and its maritime area—which comprise approximately 24 square miles.

Before this war, Palestinians had been totally or partially denied access to approximately 35 percent of Gaza’s cultivable land and 85 percent of the coastal waters used for fishing. In the minds of many in Israel, shrinking Gaza will facilitate the “New Middle East” that the Israeli prime minister spoke about at the U.N. General Assembly in September—one in which Palestinians and their national aspirations apparently don’t exist.

Expanding and deepening normalization between Israel and Arab governments, however, will be challenged by the devastation and killing wrought by Israel’s bombardment and blocking of supplies necessary to sustain Palestinian life in Gaza. Israel, unfazed by international outrage, will also likely move to consolidate control over the West Bank and create conditions there to encourage the flight of the population into the crowded urban enclaves or outside of the occupied territories altogether.

In the short to medium term, the apartheid reality in which Palestinians live will worsen as it becomes married to conditions aimed at permanent Palestinian displacement. Though Israel may be counting on the Arab Gulf states, Egypt, and the U.N. to put what remains of Gaza back together again—as was the case after past Israel-Hamas fighting—this is unlikely without a Palestinian governing body willing to take over governance of the Gaza Strip.

The Palestinian Authority needs a pathway to a political solution to take on Gaza, but for now, no conceivable Israeli coalition will countenance meaningful Palestinian sovereignty.

2. No single party holds the cards to change the path that Israelis and Palestinians are currently on. It will require sustained and concerted collective action on the part of the international community.

First, the U.N. Security Council—the five permanent members in particular—must be willing to take on its duty to preserve and protect international peace and security and to impose sanctions on Israel for its gross violations of the rights of Palestinians, including their right to self-determination as confirmed by U.N. General Assembly resolutions and the International Court of Justice in its 2004 advisory opinion on the wall of separation inside the occupied West Bank.

The international community could move to strictly enforce U.N. Security Council Resolution 2334 (adopted in 2016), which called on all states to not recognize Israel’s changes to the pre-June 1967 green line separating Israel from the occupied Palestinian territory, including Israel’s illegal annexation of Jerusalem in an effort to distinguish between Israel and the occupied Palestinian territory. This would intensify and accelerate international and regional efforts aimed at ending Israel’s occupation and realizing a political solution based on international legitimacy.

This kind of international engagement will take years before it bears fruit—but it is the only way to change the dynamic between Israel and the Palestinians.

By Daniel C. Kurtzer, a former U.S. ambassador to Egypt and Israel

1. A war without a political goal is a war defined by anger and vengeance. While Israel’s bombing campaign has been directed at locating and destroying Hamas tunnels, hideouts, and arms depots, the effect of that campaign on civilians has been brutal. Before talking about how the war ends, the bombing should end, and Israel should pursue an alternative strategy against Hamas.

Israel should also stop promising that it will destroy Hamas. This empty declaration puts Israel in a position where it either must back off a stated goal and look weak as a result, or else it must maintain an unending presence in Gaza in search of the elusive last Hamas fighter. Substantially degrading Hamas’ ability to operate from Gaza is a more realistic military objective than declaring an intention to eradicate the organization altogether.

The critical corollary to this military goal is the political horizon that needs to follow the end of the war. At some point, the Israeli major ground offensive will end, and Gaza will be left with hundreds of thousands of homeless, hungry, sick, and injured civilians who will be living under no government and with no internal security. They will also be living with no hope, ready to be recruited into violent resistance movements, including Hamas 2.0 or worse.

2. There are, thus, at least two necessary ingredients for the political horizon after the fighting stops, and both Israel and the international community should start planning for these immediately.

First, a process and timeline should be developed that addresses immediate postwar requirements related to de-escalation, stabilization, and interim governance. Who will be responsible for security? Who will govern on an interim basis to provide basic services and to manage the humanitarian crisis? Who will pay and be responsible for reconstruction? And how will these essential tasks help militate against a repeat of the wars we have seen in Gaza since 2006?

The second ingredient for postwar planning is to develop a political process aimed at securing an end of the Israeli occupation and the ability of Palestinians to choose their future through self-determination. If the Palestinian people choose to establish an independent Palestinian state in the territory occupied by Israel since 1967, then an accelerated process of peacemaking must be launched.

The problem is that neither Israel nor the Palestinians are in a frame of mind to pursue these intertwined goals. Not only is Israel still absorbing the shock of Oct. 7, but its ruling coalition is also too extreme and too invested in expanding Israeli control over the territories. The Palestinians in Gaza are shellshocked and battered by the Israeli response to Oct. 7 and unable to focus on anything but that. And the Palestinian Authority is challenged to govern even the West Bank, let alone take responsibility for Gaza while promoting a political endgame.

This means that the onus will fall on outside parties, foremost among them the United States. The United States must secure Israel’s commitment to stop—and reverse—its settlement activities and onerous occupation practices, and it must secure the Palestinian Authority’s commitment to clamp down on violence while reforming itself. The United States should also articulate terms of reference for future negotiations that narrow the differences between the parties’ positions to a point where bridging solutions are possible.

By Elliott Abrams, a senior fellow for Middle Eastern studies at the Council on Foreign Relations

1. It is impossible at this point to see a multinational formula that will protect Israeli security and prevent the reestablishment of Hamas military power in Gaza. Coalitions of the willing will lack willing participants; Egypt will not take responsibility; no Israeli would trust a U.N. force, and rightly so (see, for example, UNIFIL in Lebanon).

I therefore expect that a year from now, Israel will be playing the central security role. It will not be occupying Gaza and policing every street, but it will, from outside, intervene often to hit Hamas and prevent its efforts to rebuild. Everyone will complain—but no one will take on that responsibility except Israel.

2. Palestinians have been cursed by their leadership since the British chose Haj Amin al-Husseini as the grand mufti in 1921 and more recently since the Oslo Accords handed Palestinian society to Yasser Arafat. There is no Palestinian state today because Arafat turned down each opportunity to get one, just as Palestinian Authority President Mahmoud Abbas has.

Arafat refused or was unable to change himself from a guerrilla and terrorist into a serious, sober national leader in the way that South Africa’s Nelson Mandela did; Abbas has lacked the legitimacy and the courage.

Only once has any serious effort been made to reform Palestinian politics, and that was the effort by former U.S. President George W. Bush starting in 2002. That was when efforts were made to sideline Arafat, he was forced to take on a prime minister, an empowered finance minister (Salam Fayyad) was pushed in, and Fayyad became prime minister under Abbas. Simultaneously, work began (under a U.S. general) to build a professional and reliable Palestinian security force.

Those who wish the Palestinians well, whether in an independent and sovereign state, in a future entity of some sort linked to Israel or Jordan, or in their current situation, must wish them a decent, honest, and competent government. But in recent years, there have been no efforts to build one—not by Israel, the Arab states, or the United States.

No kind of progress toward peace and prosperity for Palestinians is possible unless such a government is built. It isn’t a magic wand that will solve all problems, nor will it be quick or easy. But it’s a prerequisite for any sort of improvement in Palestinian life and Israeli-Palestinian relations, so it should return to the top of the agenda.

There is no point in restarting a peace process, continuing a public embrace of a so-called two-state solution, or hoping that this war will end better than previous ones did unless one has a serious plan for governance and security in the Palestinian territories.

By Omar M. Dajani, a former legal adviser to the Palestinian negotiating team and a professor of law at the University of the Pacific

1. One year from now, hundreds of thousands of Palestinians will still be living in tents as a second winter approaches, mired in the gap between the international community’s good intentions and the courage it lacks to confront Israel. This predicament will feel familiar to Palestinians—and not just because the conditions resemble those suffered by their great-grandparents during the Nakba of 1948–49.

A pattern has emerged over the past 20 years: Following Israel’s punishing assault on West Bank cities in 2002 and its increasingly devastating wars on Gaza in 2008–09, 2014, and 2021, international donors pledged billions of dollars for reconstruction, but failed repeatedly to follow through on their promises, allowing Gazans to sink deeper into poverty and despair. The issue each time was not just financial. Again and again, two deeper problems crippled efforts to rebuild.

Severe Israeli restrictions on movement and trade between the West Bank and Gaza Strip and across their international borders prevented Palestinians from obtaining necessary building materials and stymied attempts to revitalize their economy. These restrictions, which Israel began to impose well before Hamas assumed power in Gaza, are driven only partially by security concerns. As the Israeli human rights organization Gisha points out, the policy of separating Palestinians in the West Bank and Gaza Strip from one another is also motivated by Israel’s effort to annex West Bank territory, along with a desire to maintain a Jewish majority in the areas that Israel sees as coming under its sovereignty.

Even if Israel succeeds in forcibly ousting Hamas from power in the Gaza Strip, the annexationist agenda of its far-right leaders—and the separation policy through which it is being advanced—are unlikely to be abandoned absent the kind of sustained international pressure that has so far been wanting.

Past efforts to rebuild Gaza have also faltered because they have been disconnected from a credible political horizon. Gaza is part of Palestine. It can only succeed if it is reintegrated, economically and politically, with the West Bank. The profound legitimacy crisis that has hobbled the Palestinian Authority—and perpetuated the schism between Fatah and Hamas—is in part a crisis of hope: Palestinians have lost confidence in their leaders’ ability to deliver freedom, dignity, and equality.

2. If the Palestinian Authority is somehow to assume the helm of government in the Gaza Strip pending a peace settlement, as Biden has advocated, it can do so only if its legitimacy has been buoyed by an internationally mediated peace process that Palestinians can believe in. The international community’s weak-kneed attempts over the past decade to persuade Israel to embrace the values necessary to sustain such a process—such as equal partnership and mutual self-determination—provide little cause for optimism in the year ahead.

But if Biden’s commitment to securing “equal measures of freedom, opportunity, and dignity” for Palestinians and Israelis is more than cruel rhetoric, there are ways that the United States can signal that it is serious about doing things differently this time. Perhaps none is more consequential, symbolically and practically, than how it uses its veto in the United Nations Security Council. Undoubtedly, attempts will be made in the coming months to use the Security Council to press for a permanent cease-fire, for Israeli action to bring a halt to escalatory actions such as settler violence, for an end to movement restrictions, and even for the deployment of an international peacebuilding and stabilization mission on the ground.

Biden, who has established extraordinary credibility among Israelis, is uniquely positioned to communicate to them—and their leaders—that there are lines that may not be crossed. Withholding the veto, and explaining why, would be a powerful first step.

By Eugene Kontorovich, the director of the Center for the Middle East and International Law at George Mason University’s Antonin Scalia Law School

1. How the war will end depends in part on who wins. Israel, of course, has the power to win militarily if left to its own devices. But Hamas has learned to turn Israel’s strengths into weaknesses, and to turn its own weaknesses—such as a total disregard for the lives of its own civilian population—into diplomatic pressure on Israel. Hamas’ strategy is based on martyring the people of Gaza so that Israel’s allies compel it to end the war while the Hamas leadership is still intact. If that happens, Hamas will be seen as having won a great victory, and both it and other Islamist groups will be encouraged to launch medieval pogroms against Israel, leading to larger and more destructive confrontations.

If, however, Israel succeeds in defeating the organization, it clearly will not allow any other force or faction to maintain security in Gaza. United Nations peacekeeping and international security presences have a dismal record of failure in the region, as UNIFIL’s failure to disarm Hezbollah in Lebanon reminds Israel on a daily basis. Nor will Israel allow the implantation of a regime led by Fatah, the other major Palestinian faction, which has power in the West Bank.

Thus, in a year, Gaza will likely be experiencing a period of “de-Hamasification”—identifying terror perpetrators and supporters to determine who is suitable to participate in the future governances of the territory.

Hamas has had four significant and countless lesser campaigns against Israel since it took control of Gaza in 2007, after Israel’s withdrawal in 2005. The Israeli disengagement in 2005 and false doctrines of international law have given Hamas an insurance policy: No matter the degree of its atrocities against Israel, it will come out of any conflict with no less territory in Gaza than before. Yes, Gazans pay a significant price, but Hamas does not see that as a cost. Hamas may lose men, but it gains honor, and it is guaranteed at least a territorial draw.

2. To change the calculus—and this is true for groups such as Hezbollah that also threaten Israel’s existence—there must be a permanent price for initiating aggression and committing mass atrocities, as Hamas did, and has been doing since Oct 7. Hamas went to war to push Jews out of their territory. Its members must see that losing their war of aggression has a permanent territorial cost.

Thus, Israel should permanently annex a narrow Gazan buffer zone—such as the largely uninhabited strip right along the northern border with Israel, from which Hamas has constantly fired rockets at Israeli cities. Israel’s annexation of the largely unpopulated Golan Heights from Syria’s genocidal Bashar al-Assad regime provides a precedent.

This is not the kind of solution that the international community favors. But Oct. 7 shows the failure of the assumptions of international diplomacy.

By Diana Buttu, a lawyer and analyst based in Haifa and former legal advisor to the PLO

1. Israel’s brutal bombing of the Gaza Strip has revealed the futility of international legal norms. Since the start of the war, Israeli officials have made clear in public statements that they would condone war crimes as they re-invaded the besieged Gaza Strip. These statements have been matched by action: In the span of seven weeks, Israel has killed more than 15,000 Palestinians according to the Gaza Health Ministry, most of them civilians; it has decimated the entire infrastructure of the Gaza Strip, and it has even attacked hospitals—all illegal under international law.

Given the tepid international response, I expect that, in a year’s time, Israeli forces will remain in the Gaza Strip as statements of so-called grave concern and disingenuous calls for a two-state solution continue emanating from international capitals.

2. At the end of this war, the leaders of the world must finally take tangible action to end Israel’s brutal occupation. Israel has been coddled for decades as it continues to flout international law. Instead of using the international system to support Palestinians, world leaders (and the United States in particular) have allowed Israel to crush Palestinians.

Let me be clear: Palestinians engaged in negotiations only to find that Israel expanded settlements and stole more land, all with the U.S. government looking on or telling us to agree. We engaged in a process seeking recognition for Palestine’s statehood only to find Washington threatening to cut its funding to U.N. agencies that recognize Palestine.

We engaged in a grassroots boycott, divestment, and sanctions (BDS) effort to hold Israel accountable, only to find countries around the world passing laws to block those boycotts. We tried peaceful protest, particularly in Gaza, where they saw that the weekly protests were met with brutal Israeli military force and the world doing nothing whatsoever to stop the onslaught. We have tried using the U.N. Security Council only to find the United States exercising its veto to protect Israel and its brazen misdeeds (in fact, Washington has exercised its veto more often for Israel than for any other issue).

In short, the world appears to have hoped that Palestinians would simply accept living under a repressive and violent system of military rule as our land is stolen, with new Israeli settlements built, our children imprisoned, and with many of us caged into cantons. Obviously, that does not work and will not work in future.

Israel must face stern consequences for its flagrant and ongoing war crimes. Short of that caliber of policy change, the world will find itself in this same position yet again. At the end of this war, Biden and other world leaders must finally take tangible action to end Israel’s brutal occupation.

By Peter R. Mansoor, a professor of military history at the Ohio State University

1. The war in Gaza will take several months to play out, and during this period, Israeli air and artillery strikes will pound Palestinian buildings and the tunnel systems underneath them. Provided that the Israel Defense Forces achieve their goal of destroying Hamas, they will be compelled to undertake a challenging counterinsurgency operation to subdue the remnants of Palestinian militant organizations amid a sullen and uncooperative population.

A year from now, the IDF will still be enmeshed in Gaza, ferreting out Hamas operatives while the Israeli government attempts to find willing partners—the United Nations? Neighboring Arab states?—to take over security responsibilities in the Gaza Strip.

2. The broader world community will assist in providing humanitarian support to the Palestinian people, but more robust reconstruction aid will not be forthcoming without progress on an Israeli-Palestinian peace treaty, which would require Israel to agree to the creation of a Palestinian state and for the Palestinian people to agree to the existence of Israel and forgo the right of return of Palestinian refugees to their pre-1948 homes.

Regrettably, neither prerequisite seems to be in the cards. In the meantime, Gaza City and other urban centers in the Gaza Strip will look much like other cities that have witnessed the horrors of war—bombed-out buildings, rubble-strewn streets, and battered infrastructure will litter the cityscapes. Hundreds of thousands of Palestinian refugees will eke out an existence wherever they can find shelter. The world community will rage against Israel, the attacks of Oct. 7 all but forgotten amid the destruction and death.

Israeli Prime Minister Benjamin Netanyahu (or his successor) needs to seek out willing partners for peace among the Palestinian people and negotiate a final peace accord on the basis of a two-state solution, ceding East Jerusalem to become the capital of a Palestinian state and offering compensation in lieu of the right of return of Palestinian refugees to their pre-1948 homes in Israel.

The chances of the Israeli government adopting such a plan are admittedly slim, but any other conceivable policy will merely delay the next onset of hostilities. By destroying Hamas, military operations in Gaza can create the conditions for a peace settlement, but only if that settlement provides the Palestinians with political sovereignty and hope for a brighter future.

By Daniel Levy, the president of the U.S./Middle East Project and a former Israeli negotiator

1. Gaza will be reeling and recovering from Israel’s devastating destruction long beyond one year from now, and that’s if Israel is unsuccessful in efforts to ethnically cleanse large numbers of Palestinians from Gaza permanently. Governance is likely to be weak as well as heavily dependent on and led by U.N. agencies and aid groups. A residual Israeli military presence and attendant Palestinian resistance is very plausible.

The marches of return undertaken by Palestinians in Gaza from 2018–2019 along the border fence could be repeated, and even if not, the sentiment will likely not only prevail, but also intensify as newly displaced Palestinians look beyond their destroyed refugee dwellings in the Gaza Strip to their original pre-1948 family homes inside what is now Israel.

2. There is no silver bullet. Change is necessary in Israel and is unlikely to be exclusively self-generated. Absent external pressure—and being held accountable and forced to face real choices—Israeli politics will remain stuck or worse. External levers of pressure will need to move beyond the U.S.-led Western monopoly—exposed in all its inadequacy and complicity during this current devastation.

Palestinian politics is crying out for renewal, too—to unify and represent its people with greater authenticity, urgency, and effectiveness in challenging the permanent denial of their rights. The Palestinian Authority conspicuously fails to do that.

What’s needed is a new international architecture and new ideas. Arab and regional states have a role to play, albeit with internal divisions that complicate that reality. So a third vector needs to emerge. This cannot be BRICS itself (the bloc consisting of Brazil, Russia, India, China, South Africa, and six new members), but should come from within some of those BRICS-plus countries. The Arab League and Organization of Islamic Cooperation countries have formed a seven-state follow-up group addressing the immediate crisis—who have already visited the capitals and met with leaders from the five permanent members of the U.N. Security Council—that points a way forward.

The Israeli political and public arena has to feel that decisions on its position toward the Palestinians cannot be indefinitely postponed and subject to the whims of the latest ascendant domestic extremists. That, in turn, requires a new incentive and disincentive structure, creating costs and consequences for the entrenching of apartheid rule and a gradual erosion of Israeli impunity.

The situation requires a timetable for decisions to be made, for consequences to be imposed, and for choices to be clearly framed: either two-state parameters on the 1967 lines (genuine sovereignty without residual occupation and Bantustan components) or an acknowledgement that an Israeli created one-state reality requires equal political rights—thereby moving beyond partition.

There is a need to create an international architecture that is capable of carrying forward this new approach. That will involve Washington and the West, the Arab states, and should also include the broader global south, led for instance by the incoming G20 chair Brazil along with other weighty actors, such as Indonesia and South Africa. Rather than being excluded, China should play a central role.

The first major peace process, launched in Madrid in 1991, was co-chaired by the United States and the Russian Federation, a power then in decline. While difficult to choreograph, a new process should be co-chaired by the United States and China, the latter having demonstrated diplomatic appetite and receipts in the Middle East, given its role on the Iranian-Saudi front.

The Palestinian-Israeli conflict is now a global crisis; its resolution requires a global architecture.

WAR PROFITEERING

Israeli Stocks Recoup Their Multi-Billion Dollar War Losses


Paul Wallace
Mon, December 18, 2023 


(Bloomberg) -- Israeli stocks recouped all their losses from the war against Hamas, with investors optimistic about the economy’s resilience as fears of the conflict spreading into the wider Middle East haven’t materialized.

The Tel Aviv Stock Exchange 35 Index rose 0.9% to 1,834.26 points as of 11:15 a.m. local time. It’s now above its closing level on Oct. 5, the last day of trading before Hamas’ devastating attack on southern Israel.

Israeli assets dived when the war erupted. The shekel slumped to its weakest since 2012, bond yields soared and the equity market fell around 15%, with almost $25 billion of value being wiped out.

Those assets have recovered since late October, even as the war continues to rage in the Gaza Strip. That’s down to the central bank creating a $45 billion support package for the currency and signals that Iran-backed militant groups such as Hezbollah will refrain from all-out attacks on Israel.

Israeli markets have also been boosted by a broad rally in global stocks and bonds since the start of November, after the US Federal Reserve gave further indications it was done with raising interest rates.

Stocks in Israel remain cheap relative to those in most other markets. The TA-35’s forward-looking price-to-earnings ratio is far below those of the S&P 500 or MSCI Inc.’s emerging-markets equity index.

There are still plenty of risks for traders in Israeli assets. The fighting in Gaza is far from over, even as pressure on Israel to wind down its ground operations escalates. Houthi rebels based in Yemen have attacked several ships in and around the Red Sea in recent weeks, leading the US to consider military action against the group.

The conflict continues to exact a high financial toll on Israel. The Bank of Israel estimates the cost — mostly in the form of higher defense expenditure — will amount to $53 billion. Many businesses are struggling with hundreds of thousands of workers called up for military duty.

Hamas, designated a terrorist group by the US and European Union, killed 1,200 people and abducted 240 with its Oct. 7 incursion, according to Israeli authorities. More than 18,000 Palestinians have been killed in Gaza since Israel retaliated with airstrikes and the ground assault, according to the health ministry in the Hamas-run enclave.

 Bloomberg Businessweek


First Israel-Focused Bond ETF Launches


Lucy Brewster
Mon, December 18, 2023 

Israel

Defiance ETFs, a thematic-focused exchange-traded fund firm with $1.2 billion in eight ETFs, launched the first Israel-focused bond fund this week as conflict rages in the region.

The Defiance Israel Bond ETF (CHAI) tracks the Midgal Capital Markets BlueStar Israel Bond Index and launched on Dec. 13. The index provides exposure to Israeli shekel and U.S. dollar debt issued by the Israeli government or companies. The fund’s bonds have an average of 8.3 years to maturity and an average yield to maturity of 5.73%. The fund pays interest every month.

The top holdings of the fund include the Israel Discount Bank Ltd. 2.68%, which matures in 2030, and the Mizrahi Tefahot Issuing Co. Ltd. 2.98%, which matures in 2025.

The launch marks the fifth U.S.-traded ETF focused specifically on Israel. It comes on the heels of Israeli ETFs tumbling in the aftermath of Hamas's Oct. 7 attack on Israel, and Israel's subsequent invasion of Gaza in an effort to topple the governing body that's been labeled a terrorist organization by the U.S. The largest Israel-focused ETF, the $126.35 million iShares MSCI Israel ETF (EIS)fell 7% on Oct. 9, before recovering in the next days. The fund is up 10% in the past month despite continuing battle.

Fixed-Income Opportunities

With just a couple of weeks left in 2023, analysts have warned investors to get off the sidelines and pursue growth opportunities in both equities and fixed income.

“2024 will be a year to pick your spots in fixed income,” Gargi Pal Chaudhuri, head of iShares Investment Strategy Americas at BlackRock, wrote in the firm’s 2024 report with other investment strategists at the company.

Defiance’s largest fund is the Defiance Next Gen Connectivity ETF (FIVG) with $568 million under management.

Contact Lucy Brewster at lucy.brewster@etf.com.


Thousands rally across Slovakia to protest the government's plan to amend the penal code

By The Associated Press
Tuesday, December 19, 2023

BRATISLAVA, Slovakia (AP) — Thousands returned to the streets of major cities across Slovakia on Tuesday to continue their protests against a plan by the new government of populist Prime Minister Robert Fico to amend the country’s penal code.

The changes proposed by the coalition government include a proposal to abolish the special prosecutors’ office, which handles serious crimes such as graft, organized crime and extremism by mid-January.

According to the proposal, those cases will now be taken over by prosecutors in regional offices, which haven’t dealt with such crimes for 20 years.

Michal Simecka, head of the liberal Progressive Slovakia, the strongest opposition party, said the changes “would result in amnesty for mafia and corrupt people.”

“We have to show them that we’ll defend justice,” Simecka said.

Meanwhile in the streets people repeatedly chanted "We’ve had enough of Fico.”

The legislation approved by Fico’s government needs parliamentary and presidential approval. The three-party coalition has a majority in parliament.

Fico returned to power for the fourth time after his scandal-tainted leftist party won Slovakia’s Sept. 30 parliamentary election on a pro-Russia and anti-American platform.

His critics worry that his return could lead Slovakia to abandon its pro-Western course and instead follow the direction of Hungary under Prime Minister Viktor Orbán.

Since Fico’s government came to power, some elite investigators and police officials who deal with top corruption cases have been dismissed or furloughed. The planned changes in the legal system also include a reduction in punishments for corruption.

Under the previous government, which came to power in 2020 after campaigning on an anti-corruption ticket, dozens of senior officials, police officers, judges, prosecutors, politicians and businesspeople linked to Fico’s party have been charged and convicted of corruption and other crimes.

The protests have been gaining steam since Dec. 7, when people took to the streets of Bratislava.

Organizers said Tuesday that rallies took place in Kosice, Presov, Poprad, Banska Bystrica, Zilina, Nitra, Trnava, Trencin, Spisska Nova Ves, Liptovsky Mikulas and Povazska Bystrica.


Azerbaijan: Prominent Opposition Figure Arrested

Tofig Yagublu Is Latest Government Critic Targeted


Tofig Yagublu, in Baku, Azerbaijan, December 1, 2023. 
 © 2023 Ulviyya Ali


(Berlin, December 19, 2023) – Azerbaijani authorities have arrested a prominent opposition leader and unrelenting government critic, Tofig Yagublu, on bogus forgery and fraud charges, Human Rights Watch said today. Yagublu’s arrest is the latest in a series of arrests in Azerbaijan targeting journalists and other government critics.

Police arrested Yagublu, 62, a former journalist who is an outspoken critic of the government, on December 14, 2023, as he was exiting the metro in central Baku. He is a member of the opposition Musavat Party and a senior politician in the National Council of Democratic Forces, a coalition of opposition parties and activists in Azerbaijan.

“Azerbaijani authorities are continuing their assault on government opponents, journalists and other critics,” said Giorgi Gogia, associate Europe and Central Asia director at Human Rights Watch. “Tofig Yagublu’s arrest falls into the pattern of silencing the country’s critical voices.”

On December 15, the Narimanov District Court of Baku ordered four months in pretrial custody for Yagublu, pending investigation on forgery and fraud charges. The prosecutor’s office had requested pretrial detention, contending that Yagublu would abscond or interfere with the investigation without producing any information to substantiate this claim. The court also referenced the nature and gravity of the offense allegedly committed by Yagublu when granting the pretrial detention.

The decision to send Yagublu for pretrial detention on unsubstantiated pro forma grounds violates standards against arbitrary detention required by the European Convention of Human Rights, Human Rights Watch said.

On December 14, police searched Yagublu’s home, where they claim to have found in his bed €5,000 (US$5,465), 2,500 Azerbaijani manat (US$1,500) and an unspecified amount in US dollars. The authorities allege that Yagublu conspired with someone else to provide fake documents to a third party to supposedly help him build an asylum claim. The alleged co-conspirator has been implicated in other politically motivated cases, Human Rights Watch said.

Yagublu rejects all accusations and says that he has been targeted because of his political activism.

Yagublu's wife, Maya Yagublu, was home alone when about 20 policemen appeared at their door. A group of officers told her to follow them upstairs, while others stayed on the first floor. After finishing the search upstairs, they went downstairs to the bedroom she shares with her husband, told her to lift the pillows on the bed, and then claimed to “discover” the cash. “My mom was shocked to see so much cash,” their daughter, Nigar Hezi, told Human Rights Watch. “A day before, she had to borrow money from our neighbor because she did not have enough to complete her dental treatment.”

During the search, police confiscated the Wi-Fi router, Maya Yagublu’s phone, and an old laptop. They also took the notebook that she kept for all outstanding debts as well as an address and telephone notebook. None of the confiscated items have been returned.

In December 2022, police installed three security cameras across the street from Yagublu’s home, most likely tracking all movement around his private residence.

This is not Yagublu’s first arrest. Azerbaijani authorities have periodically arrested Yagublu, subjected him to ill-treatment, and warned him to stop his political activism and criticism of the government. Yagublu previously spent three years behind bars on spurious incitement charges between 2013 and 2016. In 2020, a court sentenced him to four years and three months on hooliganism charges. In September 2020, the authorities granted him an early release.

Yagublu’s arrest is the latest in a series of at least 12 arrests targeting opponents, journalists, and other government critics since November 20. The authorities charged them with various criminal offenses, including smuggling, illegal entrepreneurship, and hooliganism. Courts have sent at least 11 of them to pretrial custody for up to four months after perfunctory hearings.

“The Azerbaijani government’s witch hunt against critics is one manifestation of its contempt for free speech and human rights protections,” Gogia said. “The authorities should immediately free Yagublu and end the crackdown on critical journalists and opposition activists.”
Hundreds rally in fresh protest over Serbia vote results

By AFP
Published December 19, 2023

Protestors with signs saying 'How much longer?' outside Serbia's Electoral Commission in Belgrade on Tuesday 
- Copyright GETTY IMAGES/AFP Tom Brenner

Una SABLJAKOVIC

Hundreds of people demonstrated against alleged voter fraud in the Serbian capital of Belgrade Tuesday, following calls by the main opposition camp to protest the weekend’s election results that have been marred by reports of “irregularities”.

The protest came a day after thousands rallied in front of Serbia’s election commission following the vote that saw President Aleksandar Vucic claim a commanding victory in parliamentary and local elections.

The crowd on Tuesday was smaller than the previous protest, with demonstrators, including a large number of students, chanting anti-government slogans and hoisting signs targeting Vucic.

“I am here tonight because I am very angry because of the voter fraud, not only in Belgrade but in all of Serbia,” Marko Radicevic, 29, told AFP.

Opposition leader Marinika Tepic indicated that protests would continue, saying more rallies would be needed to pressure the government.

“We caught them committing voter fraud, and we can’t accept that,” Tepic said.

Among the demands from the protestors, Tepic said opposition leaders were hoping to appear on a major state broadcaster, where coverage of the rallies and alleged fraud has not been shown.

Earlier in the day, the country’s leading opposition coalition called on people from across the political spectrum to join the demonstration.

“We invite all opposition parties and movements, citizens and civil society to join us,” said Miroslav Aleksic, a leader from the Serbia Against Violence (SPN) movement, at a press conference in Belgrade.

– ‘Concerns’ –

Criticism of the elections mounted after a team of international observers, including representatives from the Organization for Security and Co-operation in Europe (OSCE), denounced a string of “irregularities” including “vote buying” and “ballot box stuffing”.

Germany later labelled the reported allegations “unacceptable” for a country hoping to join the European Union, while the United States called on Belgrade to address the “concerns” of the election monitors.

“Claims of irregularities reported both by OSCE and other election observation teams should be investigated, and violence directed at election authorities, journalists, accredited observers — of which we have seen reports — is unacceptable,” US State Department spokesman Matthew Miller said.

The EU also joined the chorus of criticism, saying Serbia’s “electoral process requires tangible improvement and further reform”.

Even though Vucic was not personally on the ballot for the parliamentary and local elections over the weekend, the contest was largely seen as a referendum on his government.

Vucic’s right-wing Serbian Progressive Party (SNS) earned roughly 46 percent of votes in the parliamentary elections, while the leading opposition coalition secured 23.5 percent of ballots, according to official results.

The SNS also said it won in municipal elections in the capital Belgrade, where the party faced their stiffest challenge from a loose coalition of opposition parties and candidates running under the SPN banner.

The SPN movement was formed in the wake of back-to-back mass shootings earlier this year, which spurred hundreds of thousands to take to the streets in rallies that morphed into anti-government protests over several months.

Opposition groups have cast doubts over the validity of the contest following accusations that the government allowed unregistered voters from neighbouring Bosnia to cast ballots illegally in the capital.

Serbian opposition protest election fraud

Several thousand people took to the streets to rally against what they called a rigged election.


Aleksandar Vučić will have to navigate new concerns he is undermining the country’s democracy | Andrej Cukic/EFE via EPA

BY UNA HAJDARI
DECEMBER 19, 2023

BELGRADE ― Opponents of Serbia’s illiberal President Aleksandar Vučić, who claimed a win in Sunday’s elections amid allegations of major irregularities and voter fraud, have declared a hunger strike and have set up camp inside the central election commission building.

Since the vote, opposition parties and independent election observers have claimed that electoral fraud occurred despite claims by Vučić, the former head of the ruling Serbian Progressive Party (SNS), to have won the snap ballots, especially in Belgrade, the country’s capital.

“We cannot and must not recognize the stolen Belgrade elections,” Marinika Tepić from the opposition Serbia Against Violence party announced Monday night before joining the protest inside the building. Several thousand Serbs rallied in the center of the city and blocked one of its main thoroughfares

The ruling SNS clinched about 47 percent support on the national stage, giving the party a commanding majority in parliament that ensures they can extend their decade-long reign. Yet in the pivotal battleground of Belgrade, where an opposition win seemed imminent, the margin tightened significantly, with the SNS securing about 39 percent while Serbia Against Violence edged over 34 percent of the vote.

The central election commission is still processing the final results of Sunday’s elections, as well as the complaints.

Vučić balances a relationship with both the West and the Kremlin, but now will have to navigate new concerns he is undermining the country’s democracy.

Traditionally, EU and Western leaders would have extended their congratulations to Vučić’s ruling SNS after elections. This time, only figures like Hungarian Prime Minister Viktor Orbán, Russian President Vladimir Putin’s spokesman Dmitry Peskov, and the Chinese Foreign Ministry have offered kudos.

While accusations of irregularities have plagued past elections in Serbia, the December 17 national and local elections were deemed more irregular than usual. Local independent election monitor CRTA declared that “the Belgrade election results fail to mirror the genuine will of the residents who cast their votes.”

In the past, election observers including the OSCE and EU representatives largely rubber-stamped the voting process, brushing aside minor irregularities.

These elections, however, mark a stark departure as monitors express grave concerns. In their report the OSCE declared the ballot was held under “unjust conditions,” citing a landscape marred by harsh rhetoric, media bias, pressure on public sector employees, and misuse of public resources.

The report also flagged instances of violence, vote-buying, the stuffing of ballot boxes, and frequent allegations of “organizing and busing voters to support the ruling party in local elections.”

“We have come to present the evidence we have so far, we have more, we have hundreds and hundreds of objections,” Tepić said.

“We have come to present the evidence we have so far, we have more, we have hundreds and hundreds of objections,” Marinika Tepić said 
| Andrej Cukic/EFE via EPA

Protesters gathered in front of the central election commission on Monday and Tuesday, blowing whistles and vowing to persist until the elections are overturned.

“I’m protesting because the elections were absolutely rigged and the current results do not reflect the will of the people,” said Ana Mandinić, a 28-year-old political scientist who joined the protests in central Belgrade. “We will all take to the streets because we want normal elections at least once in our lives.”

Serbia’s ruling populists say weekend elections were fair despite international criticism and protests



By —Jovana Gec, Associated Press
Dec 19, 2023 3:59 PM EST

BELGRADE, Serbia (AP) — Serbia’s ruling populists insisted on Tuesday that weekend snap elections were free and fair despite criticism from international observers who noted multiple irregularities during the vote in the Balkan nation that is a candidate for European Union membership.

Protesters in Belgrade chanted “thieves, thieves” in front of the state election commission headquarters for the second day Tuesday. Some opposition politicians spent a night in the building after lodging formal complaints against what they say was “a robbery” by the ruling populists on Sunday’s vote.

READ MORE: Serbia’s ruling populist party claims sweeping victory in tense parliamentary election

Demonstrators pelted the electoral headquarters with eggs and demanded election officials to address the crowd and explain what happened. They are demanding that the vote be annulled and that new elections be held. The ruling populists have rejected the calls.

Political tensions in Serbia soared over the parliamentary and local elections on Sunday. Several thousand people also rallied on Monday to protest alleged fraud at the ballot for municipal authorities in Belgrade, the capital.

Early results showed victory for President Aleksandar Vucic’s Serbian Progressive Party in both ballots. But its main opponents, the Serbia Against Violence alliance, said they were robbed of a win in Belgrade.

Opposition leaders, who accuse Vucic of stifling democratic freedoms contrary to assertions in the government’s EU bid, said they will not recognize the result in Belgrade.

“We are very happy how the election day went,” Milos Vucevic, leader of the right-wing Serbian Progressive Party, said on pro-government TV Prva. “It (the election) can set an example for many other countries.”

In a preliminary statement Monday, a mission made up of representatives of international rights watchdogs said the Serbia vote was “marred by harsh rhetoric, bias in the media, pressure on public sector employees and misuse of public resources.”

Serious irregularities included cases of vote-buying and ballot box stuffing, according to the joint conclusions by the OSCE Office for Democratic Institutions and Human Rights, the OSCE Parliamentary Assembly, the Parliamentary Assembly of the Council of Europe and the European Parliament.

On Tuesday, EU Commission officials said they “conclude with concern that the electoral process requires tangible improvement and further reform, as the proper functioning of Serbia’s democratic institutions is at the core of Serbia’s EU accession process.”

“We also expect that credible reports of irregularities are followed up in a transparent manner by the competent national authorities,” High Representative Josep Borrell and Commissioner for Neighborhood and Enlargement Olivér Várhelyi said.

Germany’s Foreign Ministry in a post Monday on X, formerly Twitter, noted that “the OSCE … is reporting abuse of public funds, intimidation of voters and cases of vote-buying.” The statement called that “unacceptable for a country with EU candidate status.”

But the Kremlin congratulated Vucic on the election victory, calling Serbia a “brotherly” and “friendly” nation. China applauded the “undisturbed” holding of the vote in a statement shared by Vucic’s office.

Vucic, who has been in power since 2012, has dismissed criticism that his government curbs democratic freedoms while allowing corruption and organized crime to run rampant.

Under Vucic, Serbia became a candidate for EU membership, but the opposition accuses the bloc of turning a blind eye to democratic shortcomings in return for stability in the Balkan region, still troubled after the wars of the 1990s.

Serbia Against Violence includes parties that were behind months of street protests this year triggered by back-to-back mass shootings in May. The group has charged that some 40,000 people were bused in from neighboring Bosnia to vote in Belgrade and tilt the outcome in favor of the populists.

Associated Press writers Dusan Stojanovic in Belgrade and Geir Moulson in Berlin contributed to this report.

Activists hope pope’s approval of same-sex blessings could ease anti-LGBTQ+ bias and repression

Vicar Wolfgang Rothe, left, blesses the couple Christine Walter, center, and Almut Muenster, right, during a Catholic service with the blessing of same-sex couples in St Benedict’s Church in Munich, on May 9, 2021. 
(Felix Hoerhager/dpa via AP, File)

By ASSOCIATED PRESS | ap@dfmdev.com
PUBLISHED: December 19, 2023 a
By NICOLE WINFIELD

ROME — Pope Francis’ green light for Catholic priests to offer blessings to same-sex couples is in many ways a recognition of what has been happening in some European parishes for years. But his decision to officially spell out his approval could send a message of tolerance to places where gay rights are far more restricted.

From Uganda to the United States, laws that discriminate against LGBTQ+ people or even criminalize homosexuality have increased in recent years, leaving communities feeling under attack. Pastors in some conservative Christian denominations, and the Catholic Church in particular, have sometimes supported such measures as consistent with biblical teaching about homosexuality.

In Zimbabwe, a country with a history of state harassment of LGBTQ+ people and a constitutional ban on same-sex marriage, news of Francis’ approval was met with cautious optimism among activists.

But Chesterfield Samba, director of Zimbabwe’s GALZ association, which represents LGBTQ+ people, said same-sex unions would likely remain taboo regardless of the pope’s stance.









 Same-sex couples take part in a public blessing ceremony in front of the Cologne Cathedral in Cologne, Germany, on Sept. 20, 2023. (AP Photo/Martin Meissner, File)

“Christians here are of the view that they are devoid of sin and cannot be aligned with LGBTQ+ people,” Samba told The Associated Press.

By contrast, a Catholic priest in the United States — Alex Santora of Hoboken, New Jersey — was elated by the pope’s declaration, hoping it would clear the path for him to bless a same-sex couple who had been part of the parish throughout his 19-year tenure there.

The Vatican says gays should be treated with dignity and respect but that homosexual acts are “intrinsically disordered.” Francis hasn’t changed that teaching, but he has spent much of his 10-year pontificate offering a more welcoming attitude to LGBTQ+ Catholics.

The Vatican statement Monday marked a new step in Francis’ campaign, explicitly authorizing priests to offer non-sacramental blessings to same-sex couples. The blessings must in no way resemble a wedding, which the church teaches can only happen between a man and woman.

The Rev. Wolfgang Rothe, a German priest who participated in open worship services blessing same-sex couples in May 2021, said Tuesday that the approval essentially validated what he and other priests in Germany have been doing for years. But he suggested it would make life easier for homosexual couples in more conservative societies.

“In my church, such blessings always take place when anyone has the need,” Rothe said.

But “in many countries around the world there are opposing moves to maintain homophobia in the church,” he added. “For homosexual couples living there, the document will be a huge relief.”

In Nigeria, authorities arrested dozens of gay people in October in a crackdown that human rights groups said relied on a same-sex prohibition law.

Nigeria is among 30 of Africa’s 54 countries where homosexuality is criminalized with broad public support, though its constitution guarantees freedom from discrimination.

Uganda’s president this year signed into law anti-gay legislation that prescribes the death penalty for “aggravated homosexuality,” which is defined as sexual relations involving people infected with HIV, as well as with minors and other vulnerable people.

In the United States, the Human Rights Campaign has identified an “unprecedented and dangerous” spike in discriminatory laws sweeping statehouses this year, with more than 525 anti-LGBTQ+ bills introduced.

“Given the homophobic and transphobic climate created by many bishops in the United States, the average same-sex couple likely still won’t feel comfortable presenting themselves to their local bishop or priest to ask for a blessing,” said Jamie Manson, a lesbian and president of Catholics for Choice.

Starting from his famous “Who am I to judge” comment in 2013 about a purportedly gay priest, Francis has evolved his position to increasingly make clear that everyone is a child of God, is loved by God and welcome in the church.

In January, Francis told The Associated Press: “Being homosexual is not a crime.”

Raul Pena, a spokesman for Crismhom, Madrid’s main Catholic LGBTQ+ association, said small-town, conservative dioceses in rural Spain could benefit from Francis’ message.

“If the priest from your town talks about gays being the devil in his sermons each Sunday, which some priests do, now you have the pope signing a document saying that homosexuals who live as a couple can be blessed,” he said. “It’s a fundamental step for those hierarchies and for those people who are in places where being LGBT is difficult.”

Santora, pastor of the Church of Our Lady of Grace in New Jersey, said the pope’s declaration would be welcome in a parish that celebrates an annual Pride Mass and has many LGBTQ+ parishioners.

“This is a very important step, people realizing the church is finally recognizing the goodness of their lives,” he said.

Santora wants to set a date soon to bless a same-sex couple that has been part of the church for many years. Santora recently learned that they had yearned for his blessing but feared getting him in trouble.

“So this comes at the right time,” the priest said. “It’s a new way to set a date.”

Santora worries, though, that some gay and lesbian Catholic couples in the U.S. won’t be so fortunate.

“There are priests, many of them young, who are behind the times — they won’t do this,” he said. “It’s going to cause more hurt in some communities.”

Gary Stavella, a 70-year-old retiree, helps lead the LGBTQ+ outreach ministry at Our Lady of Grace.

He said he was happy about the pope’s declaration, particularly on behalf of LGBTQ+ Catholics in countries where homosexuality is criminalized.

“There are a lot of anti-LGBTQ cardinals in those countries, and in ours,” Stavella said. “For their boss to say, ’You can’t condemn them, you should bless them’ is a sea change. It can save lives.”

Antonella Allaria, who lives in New York City with her wife, Amanda and their six-month-old son, said the pope’s decision is a positive step for her family and the church as a whole.

“I’m gay and it’s OK to be a person and to be gay. Where before yesterday, in the Catholic Church, it was not that OK,” she said. “I feel things are getting normalized. And it’s about time.”

Kimo Jung of Pittsburgh, a lifelong Catholic, met his future husband 34 years ago when they both attended a New York parish. Jung, 60, sees the Vatican declaration as monumental for the church, but less so for himself and his husband, whom he married in a civil ceremony in 2016.

“I would certainly ask my friends who are priests to convey such a blessing, but I wouldn’t approach any other church official to demand a rite to be blessed, because I already know God has blessed my relationship.”

Associated Press reporters David Crary and Luis Andres Henao in New York; Peter Smith in Pittsburgh, Pennsylvania; Farai Mutsaka in Harare, Zimbabwe; Kirsten Grieshaber in Berlin; and Ciaran Giles in Madrid contributed.



Brazil sues meatpackers over Amazon deforestation

The companies are accused of buying direct from illegal cattle operations



A river borders an area that has been illegally deforested by land-grabbers and cattle farmers in an extractive reserve in Jaci-Parana, Rondonia state, Brazil, Tuesday, July 11, 2023. Meat processing giant JBS SA and three other slaughterhouses are facing lawsuits seeking millions of dollars in environmental damages for allegedly purchasing cattle raised illegally in the area. (AP Photo/Andre Penner)

By THE ASSOCIATED PRESS
PUBLISHED: December 19, 2023
By Fabiano Maisonnave | Associated Press
Rubens Valenta | Agencia Publica

JACI-PARANA, Brazil — Meat processing giant JBS SA and three other slaughterhouses are facing lawsuits seeking millions of dollars in environmental damages for allegedly purchasing cattle raised illegally in a protected area in the Brazilian Amazon.

The lawsuits, filed December 5 to 12 by the western Brazilian state of Rondonia, target the exploitation of a protected area known as Jaci-Parana, once rainforest but now mostly transformed into grassland by decades of misuse by land-grabbers, loggers and cattle ranchers. Despite a law forbidding commercial cattle in the reserve, some 216,000 head now graze on pasture there, according to the state animal division.

The lawsuits contain a type of evidence that is getting the attention of deforestation experts and veterans of Brazil’s illegal cattle trade: transfer documents showing cows going straight to the slaughterhouse from protected areas, with the information apparently provided by the illegal ranchers themselves.

“In two decades fighting illegal cattle-raising in the Amazon, I had never encountered a transit permit with the name of a conservation unit on it,” said Jair Schmitt, chief of environmental protection at Brazil’s federal environmental agency, Ibama.

This article was produced as part of a collaboration between Brazilian news organization Agencia Publica and The Associated Press.

Of the 17 lawsuits, three name JBS, along with farmers, who allegedly sold 227 cattle raised in Jaci-Parana. The suits seek some $3.4 million for “invading, occupying, exploiting, causing environmental damage, preventing natural regeneration, and/or taking economic advantage” of the protected lands.JBS declined to answer questions from The Associated Press, saying it “has not been summoned by the court, which makes it impossible to conduct any analysis yet.”

Three smaller meatpacking companies are also accused of causing environmental harm by buying cattle from the reserve. Frigon, Distriboi and Tangara did not respond to questions.

Frigon has ties to influential people in Rondonia politics and is accused of buying the largest number of cattle — almost 1,400 head from eight illicit ranches. The state’s attorney is seeking $17.2 million from Frigon and those farmers.

Both Frigon and the two JBS plants allegedly involved have exported meat to the U.S., as well as to China, the largest buyer of Brazilian beef, Hong Kong, Russia, Egypt, Morocco, Spain, Turkey, United Arab Emirates, Saudi Arabia, and others, according to data from Panjiva, a company that uses customs records to track international trade.

The lawsuits aim to put a price on the destruction of old-growth rainforest, a difficult task given that it is virtually irreplaceable except over decades. A court filing pegs damages in the reserve at some $1 billion. It is unclear whether the hundreds of other invaders in Jaci-Parana will also be sued for compensation.

“The invaders and their main business partners – loggers and meatpacking companies – make the profits their own while passing on to society the costs of environmental damage,” the lawsuits say.

In one indication of the potential seriousness of the new lawsuits, a court officer trying to serve an eviction notice to one of the illegal farmers in the reserve said he was threatened with death.

Deforestation is a major concern in the Amazon rainforest, where many seek to profit from its vast resources through mining, timber harvesting, agriculture and more. Besides harming a critical biosphere, the development pressure also threatens a critical carbon sink for a planet that’s warming dangerously from climate change. Two-thirds of Amazon deforestation results from conversion to pasture, according to the government.

Rondonia, on the border with Bolivia, is the most badly deforested state in the Brazilian Amazon.

The creation of Jaci-Parana Reserve and other state conservation areas was funded by the World Bank in the 1990s as a kind of atonement, the bank says. Years before, it had financed the construction of highway BR-364, a road that brought thousands of settlers into the forest from southern Brazil. In five decades, about 40% of it was gone, according to Mapbiomas, a Brazilian consortium of nonprofits, universities and technology startups.

Other conservation units were also invaded by land-grabbers, with little objection from authorities. Some Brazilian administrations even encouraged it. In 2010, President Luiz Inácio Lula da Silva, in his second term, reduced the Bom Futuro National Forest, adjacent to Jaci-Parana, by two-thirds. Land grabbers eventually gained title to what was supposed to be protected forest.

In 2019, far-right Jair Bolsonaro was elected president, as was his ally Marcos Rocha as governor of Rondonia, on campaigns promising to legalize illegal land holders. Land-grabbers plowed onto conservation lands.

With the political promises, 778 land invaders were induced to come forward and register the property they were occupying as well as their cattle for health inspection.

“It reveals the contradiction between public agencies, with the animal health agency validating cattle that are illegally raised,” said Paulo Barreto, a senior researcher with Imazon, a non-profit that monitors cattle in the region. “It also reveals the fragility of JBS’ control system.”

The potential money to be made was irresistible. Privatization of Jaci-Parana would have meant adding swaths of public land to the real estate market. The 151,000 hectares (583 square miles) converted to grassland would be worth around $453 million, according to geographer Amanda Michalski, a researcher at Rondonia Federal University. And the new owners would have gotten that land for free.

In its statement, JBS declined to comment on its operations in Rondonia but said in the Amazon as a whole, 94% of purchases are of legal cattle, quoting an audit published in October by Brazil´s Federal Prosecution Service, which regularly scrutinizes cattle sales to counter deforestation caused by the meat trade.

Yet the same audit found that 12% of cattle purchased by JBS in Rondonia came from illegally deforested areas.

And those audits only examine direct purchases. They don’t track the vast trade in cattle laundering in Brazil, transferring cows from an illegal area to a legal farm before selling to slaughterhouses, deliberately muddying traceability.

In November, a report by Imazon called JBS the company most likely to purchase cattle from illegally deforested areas based on a variety of factors, including where slaughterhouses are located and their buying areas.

“Companies must boycott cattle areas at high risk for illegal activity and lack of enforcement,” Barreto, co-author of the study, said. “By purchasing cattle from these areas, companies endorse predatory and illegal behavior and strengthen the political power of these actors.”

Last July, AP journalists visited Jaci-Parana and saw on the ground what satellite imagery detected from space: the only forested areas left were along two rivers. With almost 80% destroyed, it’s the most ravaged conservation unit in the Brazilian Amazon.

Jaci-Parana is designated an extractive reserve, a type of protection in which forest communities are allowed to live their traditional ways without logging, protected from land-grabbing and cattle-ranching.

But the opposite happened. Dozens of families who once made their living by tapping rubber trees inside the reserve and harvesting Brazil nuts have been expelled by force. The few remaining live along the riverbanks — most afraid to be interviewed for fear of being attacked.

Lincoln Fernandes de Lima, 45, whose family has lived in the area for three generations, described land-grabbers who “remove all the timber and Brazil nuts trees. They get to the water source, already having cut down the trees around it, and keep cutting, cutting,” he said in an interview in July. “When the residents leave their houses to do something in the forest, they shoot up the pots and pans. And many, many times the houses are cut down with a chainsaw.”

In September, two men carrying guns paid a visit to de Lima, claiming their boss had acquired the area. They gave him 24 hours to leave. He took it as a death threat and complied — the third time he had been forced out of the reserve.

Five days later, his neighbor, rubber tapper Efigenio Mota da Silva, had his home burned down.

They fled to Jaci-Parana village, where scores of families of expelled subsistence gatherers have sought shelter. The village has also been the home of Rosa Maria Lopes. She was born 1952 in a rubber grove inside the reserve. Her family lived in the same area for over a century, but was also driven out by cattle farmers. Where she grew up is now pasture.

“There’s nothing left there,” she told the AP on the porch of her daughter’s home. “No one talks about Brazil nuts, copaiba oil trees or rubber anymore. There’s no talk about corn, pumpkin, or whatever is served on the table. It’s only cattle, farms, and pasture. Are we only going to eat grass?”

Valente reports for Agencia Publica. Maisonnave is the Associated Press correspondent for the Amazon basin. AP journalist Camille Fassett in Seattle contributed to this report.
Turning Concern into Action: Understanding Climate Change Attitudes in Pakistan

JUAN D. BARÓN
SAHER ASAD|
WORLD BANK
DECEMBER 19, 2023

Photo credit: Curt Carnemark / World Bank

Pakistan is grappling with the profound impacts of climate change, such as shifting weather patterns and catastrophic floods (Baron et all, 2022). Unfortunately, these impacts are projected to escalate, with forecasts suggesting that climate-related events, environmental degradation, and air pollution may cause Pakistan's GDP to shrink by 18-20% by 2050. This alarming statistic underscores the need to address climate change and mitigate its effects on people and their livelihoods. Even though developing countries like Pakistan may not be the primary contributors to climate change, acknowledging and confronting its fallout is indispensable, especially for combatting pressing local issues like air pollution and smog.

The necessity to adapt and the implications of actions for local issues make it essential to understand people's prioritization of addressing climate change, their trusted sources of information, and the motivating factors behind their actions. To answer these questions, we conducted a phone survey of a random sample of 2,000 parents in Pakistan who have access to a cell phone and have school-aged children using random digit dialing. The key findings have been released in a recent policy note.

The results of the survey show that most people, regardless of gender or education level, are highly concerned about the impact of climate change on children, with over 80 percent expressing concern. The survey shows that although people are worried about climate change and its effects, it is not always their top priority. When asked to choose the top three issues facing Pakistan, less than a quarter of participants chose climate change. This suggests that while people are worried about climate change, it may not be their priority issue.

In the survey, when a random subset of people were presented with economic issues first, there was a 4-percentage point (statistically significant) rise in the likelihood of individuals considering climate change among top three issues of Pakistan, compared to when social issues were presented first. This prioritization of climate change when seen as an economic issue is more pronounced among individuals with higher educational attainment (see Figure 1).
Figure 1: People give higher priority to climate change as a top issue when economic issues are ordered first

How knowledgeable are people about climate information and whom do they trust?

The survey looked at people's knowledge of and trust in different sources of information about climate change. Those with higher levels of education are more informed about climate change. For example, only 47 percent of illiterate people believe that the earth is getting warmer due to human activity, compared to 60 percent of those with higher education or above. Findings also show significant distrust overall in traditional sources of information, with the least educated being the most likely to distrust these sources. Among these sources, news media leads as the most important source of information while less than 1/5 trust scientists. This highlights the lack of trust in traditional climate change leadership, including the possibility of misinformation from the media. This poses a significant challenge to educating people about climate change.
Figure 2: Traditional sources of information about climate change are least trusted

How are people addressing climate change in Pakistan?

Families want their children to learn about climate change, but they are relying on the schools to fulfill this role. Almost all households in the survey said they support education about climate in schools. However, less than half talk about it at home. This shows that schools could play a role in promoting conversations and educating families about climate change.

The survey reveals that, despite frequently adopting money-saving measures such as turning off lights (76%) to combat climate change, people exhibit less enthusiasm for endorsing more impactful actions like using public transport (36%) or cutting down on meat consumption. Reducing the disconnect between concern and action requires understanding people's beliefs e.g. education and awareness campaigns highlighting practical benefits, like savings or health improvements.

Three crucial insights emerge from the survey findings for policymakers. Firstly, economic aspects drive people's concern about climate change. Secondly, skepticism exists, especially among less educated individuals relying on traditional information sources. Lastly, even concerned individuals might not act due to inconvenience or lifestyle changes. Policymakers should focus on removing barriers and offering economic incentives to encourage active participation in climate action.

Authors
Juan D. Barón
Senior Economist, Education Global Practice, World Bank Group
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Saher Asad
Economist, South Asia
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