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Ben S. Cohen

Ben S. Cohen

Posted: November 19, 2010 04:12 PM

When I read this report on the Electronic Intifada website claiming that the largest pension fund in The Netherlands had divested from the Israeli companies in its portfolio, it struck me that the campaign to subject Israel to a regime of Boycotts, Divestment and Sanctions - BDS for short - had hit a milestone. No longer, I said to myself, is this a matter of campus gesture politics. The long-awaited South Africa effect is finally manifesting.

Then it occurred to me that the story might not be true. I contacted the fund's managers, the Dutch company PGGM, and they confirmed my suspicions.

Back in May, Israel's economic vibrancy secured its admission into the Organization for Economic Cooperation and Development (OECD,) which gathers together the world's developed countries. As a result, funds focused upon emerging markets were obliged to withdraw their investments from Israeli companies, who'd moved to the different benchmark for developed markets. Bottom line: this had absolutely nothing to do with politically-motivated divestment.

If you read the Electronic Intifada piece closely, you'll notice the giveaway line "...divested from almost all the Israeli companies in its portfolio," begging the question of why, if you've embraced the BDS gospel, would you not divest from every single one? Again, the answer is that the Dutch fund didn't divest in the first place. That is why, in its portfolios that deal with developed markets, you will find two Israeli companies - the software developer Checkpoint (now there's a line for all you budding comedians) and the supermarket chain SuperSol.

This isn't the first time that BDS advocates have clumsily spun purely financial decisions as divestment. As Jon Haber, a particularly tenacious critic of the BDS movement, has observed, a pattern of hoaxes is clearly visible. In February 2009, Hampshire College officially denied the claim of a pro-Palestinian student group that it had divested from Israel. Up next was Blackrock, the UK investment firm, whose Vice President informed pro-BDS activists that its decisions regarding investments in Israel had nothing to do with political considerations. Then it was the turn of academic retirement fund TIAA-CREF to depress the mood at the BDS party by denying that it, too, had divested.

We're not done yet. There was the Motorola hoax. And perhaps most famously, Harvard University, which found itself thrust into the public eye as the latest champion of BDS this past summer. "The University has not divested from Israel," a spokesman calmly explained. "Israel was moved from the MSCI, our benchmark in emerging markets, to the EAFE index in May due to its successful growth. Our emerging markets holdings were rebalanced accordingly."

Harvard worked with the same set of considerations which informed the Dutch pension fund's decision - maybe, when the BDS campaigners failed to co-opt the jewel in the Ivy League's crown, they resolved to try their luck in Holland.

To anyone encountering the BDS issue for the first time, it must seem odd that a campaign that touts its moral integrity resorts to willful dishonesty as a strategy. If anything, the BDS movement's reliance on lying is a reflection of its manifest failure. Over a year ago, Jon Haber reached a conclusion which is just as insightful now:

Having failed to get a single college or university to divest in the Jewish state, having lost their few attempts to win a divestment victory with municipalities and unions, and now having lost the support of the Mainline Protestant community (once the flagship for the BDS enterprise), "Team Divestment" has been reduced to manufacturing pretend victories where none exist. The strategy seems to be to anticipate likely financial decisions (such as companies trying to get rid of their Israel-Africa shares as fast as possible, given the company's huge losses and exposure in the real estate markets), send out press releases claiming that these normal business transactions actually represent political choices on the part of large institutions, and hope someone in the media takes the bait.

But no one is taking the bait. In part, that's because the lies are so downright amateurish. Yet a no less important factor is the widespread understanding that BDS is not merely a tactical choice, but a tangible expression of an ideology which holds that Israel must be quarantined until it ceases to exist. And as anyone with the slightest shred of moral intelligence understands, such a ghastly outcome will be arrived at not through a peace process, but through a genocidal war.

Expect, therefore, more spectacular BDS failures in the coming months.

 

Follow Ben S. Cohen on Twitter: www.twitter.com/BenCohenOpinion

 
 
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BcemXAHA
אני כלום בלעדיהם
07:15 AM on 11/22/2010
The BDS movement is not about peace, it's a campaign to delegitimize Israel, this is why it's tanking, while the boycott against SA was successful. Another reason why it's tanking is precisely because no one with any serious reputation is representing this group of blood lusters. It's a fact jack, since it's inception the BDS movement is at a standstill. And good, because the average supporter of BDS doesn't understand what it would do to the Palestinians if this call for Israel's delegitimization would succeed.
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lbsaltzman
Permaculture and Sustainability
09:42 AM on 11/22/2010
The BDS movement no more "delegitimizes" Israel than a similar movement "delegitimized" South Africa. Both movements were a response to the specific immoral and criminal actions of the country in question. It ws both South Africa and Israel that delegitimized themselves.
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StCuthbert
Anytime the mods are ready...
10:05 AM on 11/22/2010
So you think Israel's very existence is delegitimate?
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06:28 AM on 11/22/2010
"...but a tangible expression of an ideology which holds that Israel must be quarantined until it ceases to exist. And as anyone with the slightest shred of moral intelligence understands, such a ghastly outcome will be arrived at not through a peace process, but through a genocidal war."

More high school drama from the AJC. Does this mean Europe's largest SWF is hoping Israel will "cease to exist" ? :))

Norway's state pension fund, one of the world's largest sovereign wealth funds, has excluded two Israeli companies for "unethical activity" linked to settlement building in the Palestinian territories, the Norwegian government said Monday.

According to the finance ministry, the so-called oil fund, which contains nearly all state revenues from the country's booming oil and gas industry, has sold its holdings in Africa Israel Investments, which is the largest shareholder of Danya Cebus, which the fund says is involved "in developing settlements in occupied Palestinian territory."

"Several United Nations Security Council resolutions and an International Court of Justice advisory opinion have concluded that the construction of Israeli settlements in occupied Palestinian territory is prohibited under (the Geneva) Convention," Finance Minister Sigbjørn Johnsen said in a statement.

"I have therefore accepted the recommendation of the Council on Ethics and am excluding Africa Israel Investments and Danya Cebus from the fund's investment portfolio," he said.
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realitytrumpsbull
Two 'alves of coconut!
09:53 PM on 11/21/2010
I think the divestment issue comes to this, people in other countries also read newspapers, and a chronic millstone around Israel's neck is the issue of how they interact with the Palestinians, and also the simple fact that one of the things that Israel builds are the tools of war. Neither issue exactly endears Israel to the world, and much criticism has been heaped on their country, as a result. Israel's another country that was kind of born in the crucible of war, no sooner was the ink dry on the paper charter that created Israel, than the bullets started flying, and it's kind of been that way to greater or lesser degree, ever since. Question is, how can Israel become a better country that is better liked by all concerned? Answer: By listening to our critics, sometimes we gain the opportunity to learn more about ourselves, even if those learnings are not to our liking. Ultimately, though, for any person, or country, to fail to take at least cursory heed of their critics is to become discommodated by the larger community, and society. When the wiser heads of the region can finally reason out better relations and a lasting peace between their peoples, and the swords start getting beaten into plowshares(someday), then maybe more countries will start supporting Israel again. 

Insofar as people looking to invest their retirements, well, maybe that's a financial practice that's coming due to be abolished in and of itself, separate of anything to do with Israel. But, as long as people do that kind of thing, and do the reading necessary to invest intelligently, companies and countries that deal in things like arms will always have to be leery of their reputations.
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Jon Jony
05:16 AM on 11/22/2010
The main problem Israel has is taking people like you seriously (which they should not bother trying to do).
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Amryxx
politeness rules, but with sharpened edges
06:22 PM on 11/21/2010
I sincerely doubt that grassroots BDS will make any sort of impact on Israel. Worst comes to worse, I'm quiet sure Uncle Sam will always be willing to expand the credit line.
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lbsaltzman
Permaculture and Sustainability
06:35 PM on 11/21/2010
This battle will be fought more in Europe than America. Most Israeli exports end up in Europe and there is more will to fight Israel in Europe than here.
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BcemXAHA
אני כלום בלעדיהם
07:16 PM on 11/21/2010
BDS is a failing disgrace, and those who support it are even more disgraceful.
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Freenation
09:26 AM on 11/22/2010
Not sure about the supporters but seeing the comments of opposers makes you think: yeah it is the right thing...
05:31 PM on 11/21/2010
Amazing! While my posts have not yet been approved, they have apprently already been flagged without publication! Happens all the time. How do I know? Lost another fan. Oh, well, I am not here to collect fans, but to post my opinion, for what it is worth.Let us be practical, all that posturing, and for sixty plus years, has not made Palestinians wealthy. On the contrary. One must work, be realistic, take risk, and...cut one's losses if there is no life in a business any longer. Sitting on one's hands, refusing to cooperate with others, even one's own, digging in one's heels, and not speaking, never leads to a business deal, or a government, let alone a country of one's own. That is just how I see matters, and others are free to continue blaming OTHERS. It takes honesty and integrity, and at least one should not lie to oneself. Analysis of business always starts with looking at the numbers, and productivity in one's own business, then productivity, are there profits or losses? Can something be improved? If you do not do that, you can destroy the competition all you wish, but it will not make your own business (country, government) viable, let alone prosperous.
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06:12 PM on 11/21/2010
This is not a business: it is a crime scene. Justice is sought.
10:37 PM on 11/21/2010
Many, many people, you may be surprised to learn, are victims of crimes, and seek justice. Such as the victims of random attack, and even small things, like civil rights being denied or trampled on. One can get a judgement, sometimes, if one can afford the lawyer, and he actually does some work for you. A judgement does, however, not mean that you can collect, or will ever collect. Life is about the business of living. Economy is about business. Government is about the business of governing. Even a household is a business. If you do not tend the garden, but scold the seed that it will not sprout and yield a harvest, you will not eat.
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lbsaltzman
Permaculture and Sustainability
07:08 PM on 11/21/2010
I wish Israel and her supporters had the honesty and integrity to not lie to themselves about the savagery of the occupation. Palestinians are very aware of what is being done to them and have few if any illusions.
10:30 PM on 11/21/2010
Yeah, yeah, yeah, Salty. War is never gentle and sweet. I have seen it up close, very close. But the Palestinians are continuing to declare war and demanding that others hand them the victory on a platter, a silver one, with gold edging, preferably. Life is tough. I hope Palestinians are aware of what is being done to them. The Arab League is not doing them any favors. Occupation occurs and has occurred forever. Not one human being gets to live a charmed life without setbacks, problems and often savagery. Holding on to setbacks and bad situations, is like holding on to a burning piece of coal. Holding that in your hands, hugging it at your chest, does not improve a thing. Palestinians are adults, and they do not have to sit on their hands, letting others determine their lives. They should get the basics, civil rights where they are situated, build their lives and their futures. No one gives you what you want. You have to earn it. If you declare war, you get war. During war nothing is being planted, nurtured or built. Life is not about illusions. It is about reality and hard work.
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Wozzeck
Pearl Bay, Australia
11:53 AM on 11/21/2010
Speaking truth to power (Netanyahu):

"Several minutes later, Israeli activist Matan Cohen stood up on his chair to unfurl yet another banner while shouting, “The siege on Gaza delegitimizes Israel!" Matan is the founder of Anarchists Against the Wall in Israel and has been a prominent organizer at Hampshire College. Cohen explained his reasoning for demonstrating: “Right now, the choice for those of us who care about the future of Israel and Palestine is between the status quo--which includes continued settlement expansion, the siege of Gaza, and the racist Israeli Foreign Minister Avigdor Lieberman--or Boycotts, Divestment and Sanctions. Given that choice, Boycotts, Divestment and Sanctions will win every time.”"

http://mondoweiss.net/2010/11/jewish-values-vs-israeli-policies-why-five-young-jews-disrupted-pm-netanyahu-in-new-orleans.html
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Nwo2012
Sue me, I boycott products from the settlements
10:15 AM on 11/21/2010
["You know what it is - American Jews are divesting from Israel."

This is what I was to see in Los Angeles, San Francisco, Marin County, Portland and Seattle. It's not that they're getting involved in significant numbers in the divestment movement. It's that American Jews are divesting emotionally. They are quietly – but in terms of impact, dramatically – withdrawing altogether.

Not just Jews. Americans. And the younger they are, that is, the more crucial they are to Israel's future, the more likely they are to divest.]

http://www.haaretz.com/blogs/a-special-place-in-hell/bibi-tom-friedman-and-u-s-jews-divesting-from-israel-1.323586
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Vlady
Better Late
08:31 PM on 11/21/2010
>>American Jews are divesting from Israel

The more they divest the more strongly American Jews and Americans support Israel. This is based on factual statistical pools not the bogus wishful thinking
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HUFFPOST SUPER USER
StCuthbert
Anytime the mods are ready...
08:52 AM on 11/21/2010
Israel jumps up from #41 to #30 on the Country Brand Index of 2010. http://www.futurebrand.com/think/reports-studies/cbi/2010/overview/ "Israel (#30 +11) received significant marketing investment for tourist destinations. Israel moves in the right direction in 2010 – particularly in Tourism metrics like Authenticity and History, which align very well with campaigns promoting heritage and culture." http://www.prnewswire.com/news-releases/canada-claims-top-spot-in-futurebrands-2010-country-brand-index-107296573.html
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RubalKhali
Philosophy is the stray camel of the faithful
09:17 AM on 11/21/2010
Still behind the UAE then. This survey only had a 13 country selection and would fail Statistics 101 for a poor sample size as well as a biased sample group.
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StCuthbert
Anytime the mods are ready...
09:30 AM on 11/21/2010
Denial ain't just a river in Egypt, huh Khali?
This comment has been removed due to violations of our [Guidelines]
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RubalKhali
Philosophy is the stray camel of the faithful
05:03 AM on 11/21/2010
Norway's withdrawl of funds followed a letter sent bythe Coalition of Women for Peace,
May 14, 2009

The Council on Ethics Norwegian Government Pension Fund Government of Norway

Dear Members of the Council on Ethics,

We, Israeli organizations, comprised of Jewish and Palestinian women and men and dedicated to building a just peace and to promoting human rights and equal civil rights in Israel/Palestine, Call upon the Norwegian people to join us in our efforts and to stop investing in the Israeli occupation of Palestinian territory.

It has come to our attention that the Norwegian governmental Pension Fund, as of December 31st 2008, is heavily invested in corporations whose activities continuously support and maintain the Israeli occupation, in violation of international human rights and humanitarian law. These companies, both Israeli and international, build illegal Israeli settlements in the occupied Palestinian territory or provide vital services to them; provide specifically designed equipment for the surveillance and repression of Palestinian population through restrictions of movement and collective punishments; or take part in the illegal exploitation of Palestinian nonrenewable natural resources for the needs of the Israeli market.

Join these brave Israeli and Palestinian women of conscience and BOYCTT, DIVEST and call on your government to impose SANCTIONS.
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messy
artist, writer, adventurer
04:09 PM on 11/21/2010
Quite clearly, these ladies don't want peace.
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07:02 PM on 11/21/2010
lame...try some logical points if you can....
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RubalKhali
Philosophy is the stray camel of the faithful
04:57 AM on 11/21/2010
Far from being a hoax,PGGM has pulled most of its funds from Israel following the lead of Norway,
Norway's state pension fund, one of the world's largest sovereign wealth funds, has excluded two Israeli companies for "unethical activity" linked to settlement building in the Palestinian territories, the Norwegian government said Monday.

According to the finance ministry, the so-called oil fund, which contains nearly all state revenues from the country's booming oil and gas industry, has sold its holdings in Africa Israel Investments, which is the largest shareholder of Danya Cebus, which the fund says is involved "in developing settlements in occupied Palestinian territory."

"Several United Nations Security Council resolutions and an International Court of Justice advisory opinion have concluded that the construction of Israeli settlements in occupied Palestinian territory is prohibited under (the Geneva) Convention," Finance Minister Sigbjørn Johnsen said in a statement.

http://www.swedishwire.com/nordic/5882-norway-fund-kicks-out-more-israeli-companies-