America Has Lost a Trusted Ally in the Middle East

The resignation of Salem Fayyad as Palestinian prime minister bodes ill for the well-being of Palestinians and hopes for a two-state political solution.

Former Palestinian Prime Minister Salem Fayyad.
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There were two explosions at the end of April in the Middle East, one military, one political, and neither got the attention it deserved.

The first was Grad rocket fire from Gaza that sent civilians rushing to shelter in southern Israel. Since the peace agreement last November, cross-border attacks have diminished. Hamas blames the now-sporadic attacks on an extremist group of Salafists, and that may be so, but Hamas runs Gaza and must take responsibility. Start counting how long it takes for any of the usual critics of Israel to rebuke Hamas for risking the fragile peace.

No one was injured by the Grads. That was pure luck. The intention was to kill and maim. But the shock waves from the second explosion, the resignation of Salem Fayyad as Palestinian prime minister, will persist. That bodes ill for the well-being of the Palestinian people and lingering hopes for a two-state political solution, just as the new Secretary of State John Kerry's three-day visit to Israel and the West Bank raises hopes of revived peace talks. Fayyad has been prime minister for six years, after five years as finance minister. He has made a huge difference on the West Bank. He is a member of the third party, independent of Fatah, and an internationally respected economist. By the time he became finance minister, the donor countries – the U.S., the Arab League and the European Union – were fed up with how much of their contributions was being siphoned off into the private pockets of many of the leaders of the Palestinian Authority. He inherited a Ministry of Finance that was not in control of the Palestinian Authority's receipts. There was a profusion of spending centers. Those with an eye on enrichment and building personal power stole so much that the entire P.A. was on the edge of collapse.

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Fayyad, as finance minister and then prime minister, conducted a relatively honest government that didn't waste the money given to it. In fact, Fayyad's embrace of economic transparency was critical to attracting increased international aid. He put the P.A. budget on the Internet. It was a symbol of his reforming zeal, sound administration, and intolerance of corruption. He brought a Western notion of efficiency, productivity and clean government. He made the prospects of a two-state solution brighter. He resisted the folly of Palestinian Authority President Mahmoud Abbas, who grand-standed his P.A. bid for U.N. recognition at the General Assembly last November. Fayyad reasoned correctly that theatrics would impede Palestinian progress, and he was so right. Congress further delayed U.S. aid. Israel stopped the monthly transfers of tax rebates it collects on the P.A.'s behalf. And for what? For a resolution that accomplished nothing!

Fayyad pressed hard for contributions to be restored, since without foreign aid the West Bank is not viable: Foreign aid accounts for some 14 percent of GDP. Yet Fayyad has a vision for a prosperous, independent Palestinian state, a self-sustaining entity, built on private enterprise and innovation of the kind that has made its neighbor so renowned for being, in Bill Gates's words, "by many measures, the country, relative to its population, that's done the most to contribute to the technology revolution." (Those achievements are recorded in the new book "Tiny Dynamo" by Marcella Rosen). Fayyad appreciates the real potential in Palestine if peace can be achieved and security restrictions relaxed: His vision for the future state, he has said, is not that of "a beggar nation, dependent on the world to feed our people."

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On the contrary, Fayyad was dedicated to building state institutions, including effective and responsible security forces – security cooperation with Israel became the norm, and enabled Israel to lift many of its West Bank checkpoints – not to mention hundreds of community development programs, schools and health facilities. By the end of 2011, public support for his government was at 53 percent, way ahead of the Hamas government in Gaza, according to Khalil Shikaki's Palestinian Center for Policy and Survey Research.