US embassy cable - 05TELAVIV4948

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 004948 
 
SIPDIS 
 
E.O. 12958: DECL: 08/11/2015 
TAGS: ECON, PGOV, PREL, IS, ECONOMY AND FINANCE, ISRAELI SOCIETY 
SUBJECT: ROADS LEADING TO NEGEV DEVELOPMENT 
 
 
Classified By: Deputy Chief of Mission Gene A. Cretz for reasons 1.4 (b 
) and (d). 
 
1. (C) SUMMARY:  Public sector, NGO and academic leaders 
indicate that success of the GOI's economic development 
initiative for the Negev is contingent upon a fair, inclusive 
and robust plan.  In their view, that plan should address, 
among other things, the historical land dispute between the 
state and the Bedouin, creating the conditions necessary for 
employment growth, and finally, revival of the education 
system to meet national standards for Israeli Jews, Bedouin 
and other residents of the Negev.  Embassy contacts stress 
that this is a critical time, in light of development 
opportunities associated with the disengagement plan, and 
that this opportunity should not be lost.  END SUMMARY. 
 
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Rifman: Marketing the Negev 
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2. (C) Deputy econcouns met with Shmuel Rifman, who serves as 
mayor of the Negev Regional Council, Chairman of the 
Association of Negev Development, and Chairman of the 
Association of Regional Councils of Israel, on July 20. 
Rifman works closely with Vice Premier Shimon Peres's office 
on Negev development.  Rifman said that planning and 
coordination efforts with Peres's Negev development committee 
aim to make the Negev an attractive residential location, not 
just for new immigrants, but also for Israelis. 
 
3. (C) Rifman noted that employment in the Negev is a key 
concern for both Jewish and Bedouin residents of the Negev 
and that a solution needs to be found to keep young Jewish 
residents in the Negev.  He noted that 16,000 students study 
at Ben Gurion University.  According to Rifman, those who 
graduate have a difficult time finding employment locally 
because there are not enough jobs, and salaries are not 
competitive with those in the Tel Aviv area.  He did not 
elaborate on Bedouin employment. 
 
4. (C) Regarding the Bedouin sector, Rifman stressed that 
upgrades in public education for Bedouin youth are necessary. 
 If solutions are not found to address the problems facing 
the 150,000 Bedouin in the Negev, he said, the region cannot 
be developed.  He also indicated the need for the Bedouin to 
change their mindset, to forge a path for a better life. 
 
5. (C) Rifman also noted the recent discussions about USG 
assistance for Negev development, and cited projects such as 
extension of Highway Six, railway lines between Tel Aviv and 
Be'er Sheva, and power stations fueled by natural gas, that 
could provide needed infrastructure for economic development. 
 
6. (C) Rifman touched on the socio-political relationship 
between the state and the Bedouin, noting the historical land 
dispute between the two sides.  Rifman said a compromise is 
needed between the GOI's plan to establish seven new 
townships for the Bedouin and the Bedouin's demand that the 
GOI recognize some 45 existing Bedouin villages. 
 
7. (U) In a related story, the Prime Minister's office has 
announced a comprehensive development plan for the Abu Basma 
regional council in the south, which has 25,000 Bedouin 
residents.  This plan was approved by the Ministerial 
Committee on the Non-Jewish Sector, chaired by PM Sharon, on 
July 18.  It is estimated to cost approximately NIS 470 
million (USD 104 million) and includes investment in 
education, transportation, infrastructure, employment, 
construction, housing, health, social affairs, and 
agriculture. 
 
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CBI: Getting the GOI and Bedouin To Talk 
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8. (C) Michele Ferenz, a senior associate in the Consensus 
Building Institute (CBI), a non-profit organization dealing 
with conflict resolution, met with econoff July 24.  Ferenz 
said that the CBI has been involved in conflict resolution 
between the GOI and the Bedouin over land use and ownership 
since 2003.  Ferenz is the project director and works with 
CBI President Lawrence Susskind and another associate to 
ensure that CBI is aware of what is happening in the Bedouin 
community on governance and land use issues. 
 
9. (C) Ferenz said the CBI has a unique approach regarding 
the historical land dispute between the GOI and the Bedouin 
because CBI is not involved in Negev development, and has no 
monetary interests.  Ferenz commmented that the consulting 
firms of Daroma and McKinsey, both contracted by the GOI to 
work on Negev development, indirectly address the GOI-Bedouin 
conflict, but are not involved in conflict resolution efforts. 
 
10. (C) Ferenz discussed how CBI carries out various stages 
of conflict assessment.  First, she said, CBI seeks approval 
from the main parties involved for a CBI-led intervention. 
Both the GOI and Bedouin leadership have already given CBI 
their approval to carry out this process.  At the moment, the 
organization is on the ground working with the Bedouin 
villages of Kseifeh and Um Bitin, Ferenz said, where 
interviews and discussions will identify key areas of 
agreement and disagreement between the GOI and the Bedouin. 
In September, CBI will present preliminary findings to the 
GOI and Bedouin.  CBI plans to present a complete analysis 
and set of recommendations on dispute resolution by February, 
2006. 
 
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BGU President: Must Seize The Moment 
------------------------------------ 
11. (C) Econoff met with Professor Avishai Braverman, 
President of Ben Gurion University (BGU), on July 25. 
Braverman said the next ten years will determine the future 
of the state of Israel, and Negev development is directly 
linked to that future.  For his part, Braverman plans to 
bring the "best and the brightest" to Be'er Sheva to make BGU 
a powerhouse.  BGU would serve as the regional center in high 
technology, engineering, medicine, nanotechnology, and 
biotech, said Braverman. 
 
12. (C) Braverman took econoff on a tour of BGU.  He 
discussed the possibility of creating a high-tech park in a 
200 acre area within the campus.  Braverman said both Israeli 
investment and foreign capital were needed to make this 
high-tech park come to life.  The Negev has not seen huge 
government investment or spending, he said.  Out of the USD 
four billion invested in Israel in the 1990's, said 
Braverman, only 0.3 percent was invested in the Be'er Sheva 
area.  His vision, he said, is for an industrial science park 
to be built on the BGU campus with U.S., and possibly 
European, help. 
 
13. (C) Braverman noted that addressing the needs of the 
Bedouin population makes any Negev plan more difficult.  He 
said there has never been enough investment in the Bedouin 
sector.  He referred to the need for some sort of 
international fund made up of private and public money for 
the education and vocational training of the Bedouin. 
 
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