The current debate over the campaign urging colleges to sell their investments in Israel further proves how much the Middle East conflict divides people. But divesting will not achieve anyone’s hopes for the region or help the situation improve.
Although a similar campaign gained momentum in response to apartheid in South Africa during the 1980s, the same tactic should not be applied in Israel. The Israeli-Palestinian conflict has far more sides and elements to it, and withdrawing investment will not affect the situation in any positive way.
Money has great influence in politics, but divesting will have an effect similar to economic sanctions. Governments are usually the last to suffer from sanctions, and then only if the whole world follows them. This case is no exception it will only hurt Israeli businesses and citizens and create more anger in the region. Meanwhile, reducing American economic investment will do nothing to encourage the Israeli government to improve their treatment of Palestinian-controlled territories when the U.S. government gives massive amounts of military aid to Israel.
Especially now, reducing investments is simply a bad idea. The possible war with Iraq only creates more tension in the region that could explode any time now. The United States will need allies in the region if it goes to war, and causing more economic hardship would only intensify problems and jeopardize chances for success.
Divesting would make a shocking, powerful statement, but there are plenty of ways to make statements without hurting normal citizens. Economically, giving money toward Palestinian state-building could send the same message and help people at the same time. Educational ventures or programs to promote development are positive ways to promote stability in the region.
Diplomacy has yet to succeed in the Middle East, but it must be pursued because it is the only possible option. For negotiations to have any success, people must feel more secure and willing to bargain before they come to the table. Divestment will not accomplish anything but hurting people with no decision-making power and making them unwilling to listen to other arguments.