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Corruption in the Palestinian Authority: Neo-Patrimonialism, the Peace Process and the Absence of State-Hood

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Corruption in the Palestinian Authority: Neo-Patrimonialism, the Peace Process and the Absence of State-Hood Durham E-Theses CORRUPTION IN THE PALESTINIAN AUTHORITY: NEO-PATRIMONIALISM, THE PEACE PROCESS AND THE ABSENCE OF STATE-HOOD FANGALUA, LUCIANE,FUEFUE-O-LAKEPA How to cite: FANGALUA, LUCIANE,FUEFUE-O-LAKEPA (2012) CORRUPTION IN THE PALESTINIAN AUTHORITY: NEO-PATRIMONIALISM, THE PEACE PROCESS AND THE ABSENCE OF STATE-HOOD, Durham theses, Durham University. Available at Durham E-Theses Online: http://etheses.dur.ac.uk/3615/ Use policy The full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that: • a full bibliographic reference is made to the original source • a link is made to the metadata record in Durham E-Theses • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders. Please consult the full Durham E-Theses policy for further details. Academic Support Oce, Durham University, University Oce, Old Elvet, Durham DH1 3HP e-mail: [email protected] Tel: +44 0191 334 6107 http://etheses.dur.ac.uk 2 CORRUPTION IN THE PALESTINIAN AUTHORITY: NEO-PATRIMONIALISM, THE PEACE PROCESS AND THE ABSENCE OF STATE-HOOD Luciane Fuefue-‘o-Lakepa Fangalua THESIS SUBMITTED FOR THE DEGREE OF DOCTOR OF PHILOSOPHY UNIVERSITY OF DURHAM SCHOOL OF GOVERNMENT AND INTERNATIONAL AFFAIRS 2012 CORRUPTION IN THE PALESTINIAN AUTHORITY: NEO-PATRIMONIALISM, THE PEACE PROCESS AND THE ABSENCE OF STATE-HOOD ABSTRACT The thesis examines the practice of corruption in the Palestinian Authority (PA) from the period of its establishment until the death of Arafat. Palestinian elite formation from the late Ottoman period until the establishment of the PA was assessed in order to identify the elites that came into power in the PA and the political cultures they came to espouse. The two primary elite groups’ (Outsider elites and Insider counter-elites) conflicting political cultures were assessed in how they influenced the decision making process, the construction, and exhibited institutional behaviour of the PA. With the signing of the Declaration of Principles on Interim Self-Government Arrangements (Oslo Accords) on the 13th of September, 1993 between the Palestine Liberation Organisation (PLO) and the Government of Israel it established the Palestinian Authority as the government in transition for the Palestinians. The agreements conferred the governing power and leadership role to the PLO Outsider elites (under Arafat). Due to the secret nature and asymmetrical power relation by which the negotiations and agreements were conducted and signed between the PLO Outsider leadership and the Government of Israel, which excluded inputs from Palestinian Insider elites, the culminating PA structure came to exhibit institutional weakness with certain neo-patrimonial behaviour. The political framework by which the Oslo Accords constructed the PA and influenced by international actors warranted institutional-weakness. Moreover, as external actors’ demands for the PA to deal with the declining Peace Process, and address political and security issues increased, PA corruption behaviour became more apparent and proliferated which became indicative of its fundamental problem in that it lacked statehood, lacked authority and legitimacy, and thus resorted to neo-patrimonial and repressive methods to govern. This neo- patrimonial political culture of Arafat and his governing Outsider elites used corruption as a PA political tool for survival thus suppressing a nascent democratic political culture of the Insiders and consequently led to an institutionalisation of corruption in the PA. i | P a g e TABLE OF CONTENTS LIST OF ABBREVIATIONS iv DECLARATION vi STATEMENT OF COPYRIGHT vi ACKNOWLEDGMENTS vii DEDICATION Viii INTRODUCTION AND METHODOLOGY INTRODUCTION 1 THEORETICAL FRAMEWORK 2 METHODOLOGY 3 CHAPTER I: CORRUPTION IN POST-COLONIAL STATES INTRODUCTION 14 WHAT CONSTITUTES CORRUPTION? 15 THE BASIC CHARACTERISTICS OF A PATRIARCHAL SYSTEM 24 PATRON-CLIENT RELATIONS 29 PATRIMONIALISM 31 SYSTEMS OF NEO-PATRIMONIALISM AND NEO-PATRIARCHY 34 POST-COLONIAL STATES AND WEAK STATES 38 POLITICS OF SURVIVAL 43 ELITES: KEY AGENTS IN CORRUPTION 51 THE EXISTENCE OF CORE ELITES 54 RECRUITMENT TO THE CORE ELITE STRUCTURE 58 ELITE IN POST-COLONIAL STATES 66 THE CONCEPT OF POLITICAL CULTURE 73 FUSION AND (IN)CONGRUENCY OF POLITICAL CULTURES 76 POLITICAL CULTURE AND SOCIALISATION 77 CONCLUDING REMARKS 80 CHAPTER II: PALESTINIAN ELITE FORMATION AND DIVERGENT POLITICAL CULTURE INTRODUCTION 83 ELITES DURING THE OTTOMAN AND BRITISH MANDATORY ERAS 84 PALESTINIAN ELITES 1948-1967 92 THE ‘PLO’ AS AN OUTSIDE FORCE 104 PALESTINIAN ELITES 1967-1993 110 1970s THE RISE OF RADICAL LEADERS 115 THE 1980s AND STRUCTURAL CHANGE 117 THE INTIFADA 121 THE GOVERNING COMMITTEE 125 AGRICULTURAL COMMITTEES 132 MEDICAL RELIEF COMMITTEES 136 VILLAGE RESISTANCE COMMITTEES 138 THE ISLAMIST CHALLENGE 143 OSLO ACCORDS 149 CONCLUDING REMARKS 154 CHAPTER III: THE PALESTINIAN AUTHORITY—A WEAK STATE INTRODUCTION 157 OSLO ACCORDS THE MAKING OF A WEAK-STATE 158 ii | P a g e AGREEMENT ON THE GAZA STRIP AND THE JERICHO AREA 162 THE INTERIM AGREEMENT ON THE WEST BANK AND GAZA 167 STRIP THE ARRANGEMENT OF AREAS A, B AND C 169 PALESTINIAN COUNCIL 171 EXECUTIVE AUTHORITY 173 LEGISLATIVE 174 JUDICIARY 175 THE STRUCTURE OF SECURITY FORCES—DIVIDE AND RULE TACTICS 178 THE FUNDAMENTALLY WEAK PA INSTITUTIONS 188 FLEDGLING PA LEGITIMACY 192 PARTIES AND ELECTIONS 195 THE ELECTION RESULTS 200 CONCLUDING REMARKS 205 CHAPTER IV: OUTSIDER-INSIDER ELITES STRUGGLE FOR PRIMACY— IMPACT ON THE POLITICAL CULTURE OF THE PALESTINIAN AUTHORITY INTRODUCTION 207 THE PALESTINIAN ELITES 209 EARLY ALIGNMENTS OF TH E PA’S OUTSIDER AND INSIDER 211 ELITES THE PA UNDER CONSTRUCTION 214 THE PALESTINIAN LEGISLATIVE COUNCIL 224 THE BASIC LAW 227 THE 1997 CORRUPTION REPORT 239 THE NON-GOVERNMENTAL CHALLENGE 248 THE ISLAMIC DETACHMENT 258 CONCLUDING REMARKS 268 CHAPTER V: CORRUPTION IN THE PALESTINIAN AUTHORITY INTRODUCTION 273 RUMOURS AND ALLEGATIONS OF CORRUPTION 274 MONOPOLIES, TAXES, JOBS AND KICKBACKS 281 LEGAL EVASIONS 297 PATRONAGE/NEO-PATRIMONIALISM 301 AN INFORMAL PARALLEL SYSTEM OF RULE 306 U.S. AND ISRAEL’S ENDORSEMENT AND RESTRICTIONS 310 POLITICAL RENT 316 CONCLUDING REMARKS 323 SUMMARY AND CONCLUSION INTRODUCTION 326 THEORETICAL FRAMEWORK 327 FINDINGS 332 THE LIMITATIONS OF THE STUDY 334 FURTHER RESEARCH 335 POLICY RECOMMENDATIONS 335 BIBLIOGRAPHY 337 INTERVIEWS 365 APPENDICES 367 DECLARTION OF PRINCIPLES ON INTERIM SELF-GOVERMENT 368 ARRANGEMENTS PALESTINE LIBERATION ORGANIZATION NEGOTIATIONS AFFAIRS DEPT. 381 MAP: ISRAELI-PALESTINIAN SECURITY CONTROL AREAS iii | P a g e LIST OF ABBREVIATIONS AHLC Ad Hoc Liaison Committee CAC Joint Civil Affairs Coordination and Cooperation Committee CIDA Canadian International Development Agency DOP Declaration of Principles on Interim Self-Government Arrangements DFLP Democratic Front for the Liberation of Palestine EU European Union (EU) GAO U.S. General Accounting Office GCO General Control Office GIS General Intelligence Service GSS General Security Services GUPS General Union of Palestinian Students GUPW General Union of Palestinian Women GUPWo General Union of Palestinian Workers IDF Israel Defense Forces IDRC International Development Research Centre IMF International Monetary Fund JMCC Jerusalem Media and Communications Centre MEPP Middle East Peace Process NGO Non-Governmental Organisation OPT Occupied Palestinian Territories PASC Palestinian Armed Struggle Command PA Palestinian Authority (also known as Palestinian National Authority) PARC Palestinian Agricultural Relief Committee PASC Palestine Armed Struggle Command PCC Palestinian Central Council PCP Palestine Communist Party PCSC Palestinian Commercial Service Company iv | P a g e PECDAR Palestinian Economic Council for Development and Reconstruction PFLP Popular Front for the Liberation of Palestine PIF Palestinian Investment Fund PLA Palestine Liberation Army PLC Palestinian Legislative Council PLO Palestinian Liberation Organization PLOEC Palestinian Liberation Organization Executive Committee PLOCC Palestinian Liberation Organization Central Committee PMRS Palestinian Medical Relief Society PNC Palestinian National Council PNF Palestinian National Front PNF Palestine National Fund PRCS Palestine Red Crescent Society PSF Preventive Security Force (al-Amn al-Wiqa'i) PSS Preventive Security Services SAMED Social Affairs and Welfare for the Families of Martyrs and Prisoners SCNS Supreme Council for National Security SSF Special Security Force TCAS Technical Center for Agricultural Services UNLU Unified National Leadership of the Uprising UN United Nations UNC Unified National Command of the Uprising UPMRC Union of Palestinian Medical Relief Committees UNRWA United Nations Relief and Work Agency VAT Value Added Tax v | P a g e DECLARATION I hereby declare that the content of this thesis is my original work. I further declare that the materials contained in this thesis have not been previously submitted by me for a degree in this or any other university. Luciane Fuefue-‘o-Lakepa Fangalua 2011 STATEMENT OF COPYRIGHT The copyright of this thesis rests with the author. No quotation from it should be published without their written consent, and information derived from it should be acknowledged. Luciane Fuefue-‘o-Lakepa Fangalua vi | P a g e ACKNOWLEDGMENTS I would like to thank those who have helped me along the way throughout
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