Key Moments

Economist and former Prime Minister of Palestine Mohammed Shtayyeh Interview at the Oxford Union

Oxford UnionOxford Union
News & Politics9 min read52 min video
Mar 24, 2026|951 views|34|8
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TL;DR

The Palestinian Authority, created as an interim solution, faces overwhelming Israeli control, with the goal now being to fragment occupation through economic empowerment and internationalization.

Key Insights

1

Palestinians import 85% of their goods from Israel and have significantly less water per person (75L vs. 120L WHO standard) due to Israeli control.

2

The Palestinian Authority, established in 1993, was intended as an interim self-governing authority and was meant to become a fully independent state by May 4, 1999.

3

Reconciliation attempts between Fatah and Hamas have failed four times, with Hamas reportedly not ready and a threat of sanctions against the PA if reconciliation occurred.

4

The Israeli government under Netanyahu, according to Shmaya, killed the peace process, which has been stalled since 2014 due to a lack of a willing partner on the Israeli side.

5

As of the interview, 159 countries have recognized Palestine, with an expectation that more, including Switzerland, Germany, and Japan, will follow. This recognition is framed as a right to self-determination, not a punishment for Israel.

6

The current US proposal for Gaza (GITA) is viewed as a disastrous interim arrangement that disconnects Gaza from the West Bank and sidelines Palestinian legitimate representation, with Palestinians seeking significant changes.

Formative experiences under occupation shape Palestinian identity

Living under Israeli occupation has created an "unusual" existence for Palestinians, characterized by barriers, checkpoints, and the arbitrary detention of children, contrasting sharply with the norm of freedom. Muhammad Shmaya's personal journey from Tel to Sussex University for his PhD in economic development was marked by a deep engagement with his community to amplify the "voice of Palestine" when it was often disregarded or criminalized. He emphasizes that Palestinians were "designed" to be resilient, deeply loving their homeland despite the ongoing hardships, including the statelessness of refugees and the confiscation of land. This lived experience forged a collective determination to pursue freedom, with the establishment of the Palestinian Authority serving as a crucial, albeit in-progress, step towards an independent state. Shmaya maintains a firm belief in the eventual liberation of Palestine, irrespective of the timeline, through peaceful means and popular resistance against occupation.

Breaking economic dependency imposed by Israeli control

Shmaya highlights how Israel's occupation since 1967 has created a colonial dependency, using economic mechanisms to control Palestinian territories. This dependency is evident in trade, where 85% of Palestinian imports originate from Israel, with limited exports. Labor market control is another tactic, with Palestinians historically serving as cheap labor in Israel after land confiscation. Water resources are also heavily controlled, with Israel consuming a disproportionately large share, leaving Palestinians below international standards. Israel's infrastructure development has further served to annex Palestinian land. As Prime Minister, Shmaya aimed to dismantle this "colonial dependency" by strengthening the Palestinian economy to create jobs and income, thereby enhancing the "resilient steadfastness" of Palestinians. Diversifying trade partners beyond Israel was a key strategy, seeking imports from Europe, Japan, and Arab countries, while navigating Israeli restrictions on Palestinian relations with nations having diplomatic ties with Israel.

The Palestinian Authority as an interim step towards statehood

The Palestinian Authority (PA) was established as an "interim arrangement" towards an independent Palestinian state, a status that was intended to last no more than five years, concluding by May 1999 as per the Oslo Accords. Shmaya laments that this interim period has persisted to this day. He argues that while political negotiations have failed to end the occupation, a strategy of "fragmenting" and undermining the occupation from the "bottom to top" through economic policies, passive resistance, and popular engagement is necessary. Internationalizing the Palestinian struggle is also a crucial element of this strategy. "Steadfastness" is presented as the core principle for the Palestinian people in navigating this prolonged interim phase.

The challenge of Palestinian unity and reconciliation

Shmaya underscores the critical need for Palestinian unity, stating that "divided people don't gain victory." He recounts four failed attempts at reconciliation between Fatah and Hamas, with additional attempts in Algeria and China also proving unsuccessful. A key obstacle identified is Hamas's alleged unreadiness for reconciliation and the threat of international sanctions against the PA if it were to reconcile with Hamas. Despite this, Shmaya emphasizes that unity is imperative and should be based on shared goals: ending the occupation and agreeing on the "tools to achieve the goal." He proposes that Hamas should accept the Palestine Liberation Organization (PLO) as the sole legitimate representative of the Palestinian people, a two-state solution on the 1967 borders with Jerusalem as its capital, and adherence to UN resolutions and international law. He extends an offer for Hamas to dismantle as a militia and integrate into the legitimate Palestinian national structure, stressing that unity is essential to defeat occupation and realize a Palestinian state.

The stalled peace process and shifting dynamics

Reflecting on the 34-year peace process initiated in 1991, Shmaya notes that while some steps were taken, the ultimate goal of ending occupation remains elusive. He recounts that the peace process was undermined by radical right-wing elements in Israel, with the assassination of Yitzhak Rabin being a pivotal moment. Since 2014, there have been no direct talks with Israelis due to a perceived lack of a "partner." Shmaya criticizes the normalization agreements between some Arab nations and Israel, arguing they have yielded no tangible benefits and have shifted the paradigm from "land for peace" to "peace for peace" without addressing the core Palestinian issue. He advocates for conditional normalization, where concessions from Israel are secured in return. The current situation in Gaza, following October 7th, is described as a "disaster" for Palestinians, with immense loss of life and destruction, leaving them caught between a failed peace process and unproductive resistance.

The strategy of resilient steadfastness and international recognition

In the face of a failed peace process and costly resistance, Shmaya advocates for Palestinian "resilient steadfastness" – remaining on their land and resisting forced transfer. He notes that plans for the forced transfer of Palestinians from Gaza and the West Bank have failed. The strategy involves waiting for a shift in the balance of power or the emergence of new realities, potentially with third-party intervention from the UN or Europe. Shmaya expresses gratitude for the recognition of Palestine by 159 countries, viewing it as a crucial step towards self-determination. He distinguishes between recognizing Palestine and boycotting Israel, emphasizing that the former is a right, not a punishment for Israel. He hopes for an end to the occupation, likening Palestine to the "last colony on earth," and calls for global unity to achieve this.

Critique of normalization with Israel and the role of the Muslim world

Shmaya is deeply dissatisfied with the response from the Muslim world regarding the situation in Gaza. He argues that normalization with Israel, pursued under pressure from the United States, has yielded nothing for the normalizing countries, who have failed to secure concessions for the Palestinians. He draws an analogy of the "black bull" being eaten because the "white bull" was not defended, implying that by failing to support Palestine, other Arab nations and Muslim countries are ultimately jeopardizing their own security. He commends Saudi Arabia's stance of not normalizing without a resolution to the Palestinian question. Shmaya believes that while individual nations may seek technological or security benefits from normalization, these are outweighed by the lack of progress on the core issue and the risk of becoming subservient to American interests rather than defending national interests.

US foreign policy and the evolving perception of the conflict

Shmaya observes that for decades, US foreign policy has appeared "anti-Palestinian," despite Palestinians being victims of a conflict they sought to resolve through peace. He attributes this bias to internal US dynamics, including Christian Zionism, evangelical influence, and pro-Israel lobbying, which have distorted the Palestinian cause. However, he notes a significant shift, with a majority of the American public now leaning towards supporting Palestine. This change is particularly evident among the younger generation and within the Democratic Party. Shmaya argues that "Israel has lost its soft power and Israel is losing its narrative," no longer being perceived as the victim, a role now assumed by Palestinians. He highlights the accusations against Israel at the ICC and ICJ as evidence of this changing perception. He credits social media and technology for circumventing traditional media censorship and empowering the younger generation, whom he sees as key to driving change for Palestine and other oppressed groups.

Demographic shifts and the choice between two states or apartheid

Shmaya presents a compelling demographic argument: for the first time since 1948, Palestinians within historical Palestine (West Bank, Gaza, and inside Israel) outnumber Israelis by approximately 200,000 people. This demographic reality, he suggests, underlies Israel's actions, such as the forceful transfer plans for Gaza and the high casualty rates. He warns that if the current situation persists, the conflict could devolve into an apartheid regime, similar to South Africa, where a minority of Israelis control a majority of Palestinians. This would shift the struggle from national liberation to a fight for equal rights. Israel, he contends, faces a choice: either a two-state solution today or an apartheid regime tomorrow covering all of historic Palestine. Shmaya states his readiness for either outcome but asserts he will never accept living under Israeli occupation or accepting the status quo, vowing to "break the status quo" with the support of international allies and the public.

Critique of Trump's Gaza proposal and the demand for genuine reform

Shmaya fiercely criticizes the US proposal for a Gaza International Transition Authority (GITA), calling it a "disaster" that creates an interim arrangement disconnected from the rest of Palestine, sidelining Palestinian legitimate representatives and leadership. He asserts that the US is a "biased broker" due to its strategic relationship with Israel, and criticizes the proposal's framing of Gaza as "real estate" rather than homeland. He stresses the need for significant changes to ensure connectivity between the West Bank and Gaza, empower Palestinian leadership, and provide a political horizon beyond Israeli occupation. Regarding the PA's reform, Shmaya argues that self-determination should not be conditional on reforms. He views Israeli demands for recognizing Israel as a "Jewish state" or withdrawing from the ICC as political preconditions, not genuine reforms. He insists the PA will not become a "security agent for the Israelis" but will represent national aspirations. He calls for sanctions against Israel, similar to those that dismantled apartheid in South Africa, to make occupation costly and bring it to an end, emphasizing that international conditionality on recognition, while appreciated, should not be used by the US to avoid acting on Palestinian self-determination.

Palestinian-Israeli Population Numbers (Estimated)

Data extracted from this episode

EntityPopulationTimeframe
Palestinians (West Bank, Gaza, inside Israel, Jerusalem)7.4 millionCurrent
Israelis7.2 millionCurrent

Common Questions

Shtayyeh explains that living under occupation, with its restrictions and constant presence of military forces, instilled a deep love for his homeland and a desire for freedom, shaping his commitment to political and economic strategies aimed at ending occupation.

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