May 22, 2014

POSITIVE INVESTMENT IN PALESTINE

Presbyterian mission context

The call for positive investment

Investment process

Initial Investments

Next Steps

WELCOME

PRESBYTERIAN MISSION CONTEXT

Middle East since 1823

Education, health, peace, justice and interfaith

Israel Palestine since 1948-1949

Refugee relief and resettlement, vocation and self development, education, peace and justice

PC(USA) MISSION CONTEXT

Israel has right to exist as sovereign state within secure, internationally recognized borders

Right of Palestinians to self-determination, including right to establishment of neighboring independent, sovereign state

Establishing a just and durable peace – and an end of occupation is essential to peace

CONSISTENT PC(USA) POSITION

In recognition of desperate situation caused by occupation

2004 – phased selective process of corporate engagement,

including possibility of divestment as last resort

2006 – investments only in peaceful pursuits – Directed Mission Agency to identify alternative investment

2008, 2010, 2012 – refined instructions regarding investments

CORPORATE ENGAGEMENT

THE CALL FOR POSITIVE

INVESTMENT

PC(USA) action will:

make a diff erence in the lives of those most vulnerable  

preserve an eff ective witness to peace in the entire region

CALL FOR POSITIVE INVESTMENT

support collaboration

develop viable infrastructure

engage West Bank Christians

be invested in the West Bank

not include Israeli products

be duly vetted

result in sustainable economic development

be sponsored by Palestinians or

jointly by Palestinians and Israelis

INVESTMENT PROJECTS WILL...

be identified by joint delegation

confine business activity to peaceful pursuits

refrain from supporting or facilitating violence

against civilians, construction of settlements or

Israeli-only roads, the military occupation, and

construction of the Separation Barrier as it extends

beyond the 1967 “Green Line” into Palestinian

territories

promote respect for human rights, peace-building,

and equal employment opportunity

INVESTMENT PROJECTS WILL...

INVESTMENT PROCESS

Guided by General Assembly directives

Directed by the voice of congregations

Consulted with Cambridge Associates

Engaged consultants recommended by Cambridge with offi ces in Tel Aviv and Ramallah

Dozens of calls and two site visits

INVESTMENT PROCESS

INVESTMENT PROCESS

Sectors investigated:

Education

Micro-finance

Infrastructure

Renewable energy

Agriculture

Information Technology

Tourism/Hospitality

INVESTMENT PROCESS

Criteria:

Investment in West Bank owned/sponsored initiatives or companies

Economic development

Job creation

Peaceful pursuits

Palestinian investments must minimize or eliminate dependence on Israel or others

Transparency of use and impact

Direct engagement

INITIAL INVESTMENTS

Continuous Education Center Dar al-Kalima University College, Bethlehem

Construction loan for new building

Job-skills training in culinary arts and tour guiding

Two restaurants and state-of-the-art commercial training kitchen

Classrooms and offi ces

Conference center

$750,000 invested so far

INVESTMENT 1: EDUCATION

Microfinance Loan Facility The National Bank, Ramallah

Loans to start and grow small

businesses

Primarily women borrowers

Addresses high unemployment

$250,000 invested, leveraged to

$500,000

INVESTMENT 2: MICROFINANCE

Solar Energy Plant Arab Development Society, Jericho

More reliable energy source

Reduce energy expense

R&D and manufacturing facilities

$300,000 initial investment

INVESTMENT 3: RENEWABLE ENERGY

NEXT STEPS

Report progress to General Assembly

Open program to additional institutional investments

Explore possibility of Phase II investments

Connect Presbyterians with expertise to Palestinian businesses

NEXT STEPS

DISCUSSION / QUESTIONS