Paul Pillar

The False Impasse Over Aid to Israel

With most stalemated international negotiations, the reasons for both the impasse and the continuation of talks are easy to understand. A range of possible agreed outcomes exists, with some more favorable to one party and some more favorable to the other, and with each side naturally trying to get as good a deal as it can. For each party, there is at least some possible agreement that would be better than no agreement at all. The parties keep bargaining because each would lose something if they failed to reach an agreement. If that were not the case, then one or the other of the parties would have no reason to bargain in the first place and there would be no negotiation at all.

It thus is hard to explain, or rather to justify, what is described as a negotiating impasse between the United States and Israel over the size of a new package of U.S. aid to Israel. The situation is reported as if this were one more example of a typical stalemated international negotiation, but it is not. This is not a situation in which each country would have something to lose if no agreement is reached. Instead it is entirely a one-sided arrangement: a gift of money from the United States to Israel. There is nothing in any such aid package that carries a benefit for the United States and that the United States would not be getting in the absence of an agreement.

It is not as if the absence of an agreement about an aid package would entail some consequence in the Middle East detrimental to U.S. interests as well as Israeli interests, such as giving rise to a destabilizing military threat by some other state in the region against Israel. This is not the case first of all because of Israel's overwhelming military superiority in the region, which still would be overwhelming even without any further U.S.-funded enhancements. It also is not the case because even if enhancements were required to maintain the superiority, Israel—which is among the richest 15 percent of countries in the world as measured by GDP per capita—is quite capable of paying for them itself.

The U.S. aid is a subsidy for Israeli taxpayers, paid for by American taxpayers. American taxpayers have been very generous in this regard (or made to be so by American politicians), with the annual aid package to Israel exceeding $3 billion in each of the last several years and with total U.S. aid to Israel, even by the most conservative tallies, topping $120 billion. With the Israeli government budget at around $75 billion, the annual gift from American taxpayers is equivalent to about a four percent rebate to Israeli taxpayers.

Or one can look at equivalence in terms of the spending end rather than the revenue end. The gifted funds involve that much less money available for programs benefiting Americans and that much more money for the Israeli government to spend on whatever it wants to spend it on. Shekels, like dollars, being fungible, what the money gets spent on need not have anything to do with the defense or security of Israel. The money that is no longer available for repair of America's crumbling roads and bridges, for example, can get spent by Israel on other roads and bridges—including the roads in the West Bank that are used only by Israelis and especially settlers and that the Palestinians who live in the West Bank are prohibited from using, or even crossing except on foot.

Of course, we all know what goes through the minds of American politicians when they are dealing with a subject involving Israel and why this question of the aid package is being treated as if it really were like other international negotiations in which each side has something to lose. The feared loss is the domestic political consequence of being targeted as someone whose love for Israel is less fervent than that of a political opponent and of being outspent by, and losing to, that opponent in the next election. In the case of President Obama, the New York Times article on this subject describes his objective as being “to burnish his legacy” with “the largest package of military aid ever provided by the United States to another nation” and to “cement his claim to have done more than any other president to support Israel's security.” Let us at least be honest about the objectives if those objectives involve individual politicians' re-election prospects or the legacies of politicians not running for re-election. Such objectives are quite different from the interests of the United States or of American taxpayers. They are even different from the security and well-being of Israel.