Lecture on the Camp David Accords

Camp David and Egyptian-Israeli Peace

1. why did Sadat go to Jerusalem?

2. Camp David

3. why no Arab state support for Camp David

4. consequences of Camp David

 

Through the 1970’s, Arab-Israeli negotiations continued to dominate the agenda of Middle East international politics (even though other important things were certainly happening).  The United States, seeing the effects that Arab-Israeli conflict could have on the world economy, pressed for some solution to the conflict.  Anwar Sadat needed some type of political arrangement with Israel to complete his strategy of alignment with the West and economic liberalization at home.  It was these two impetuses which pushed the peace process along through the numerous setbacks and sidetracks it experienced.

 

I am not going to go into much detail about the twists and turns on the road to Camp David and the Egyptian-Israeli peace treaty.  That information is important, but you can find it in the Quandt, and to a lesser extent Bickerton and Klausner, books. Rather, I want to concentrate today on some of the major questions and puzzles that emerge from the process, evaluating not so much the whens and the hows of this process, but the whys.

 

The first, most interesting, and in many ways the simplest question is:  why did Sadat go to Jerusalem in November 1977?  It was really that unprecedented act that opened up the possibility of real peace between Egypt and Israel. I would argue that the Jerusalem trip was part and parcel of an political-economic strategy that Sadat devised to make the Egyptian regime better able to provide the economic goods that were part of the social contract undertaken by the Nasser government in the 1950's and 1960's; a social contract upon which the stability of the regime rested.

 

It is indisputable that the Egyptian economy had by the end of the 1960's/beginning of the 1970's run up against the limits of the state-led growth, import substitution strategy of Nasser. US food aid through PL480 ended in 1965; revenue from the Suez Canal and the Sinai oil fields ended in 1967, as did much of the economic activity in the Canal cities; there was nothing left to nationalize after the nationalizations of the 1950's and 1960's. Capital sources were drying up, and the Soviets, while good at supplying military hardware and helping on big projects like Aswan, could not provide the capital necessary for food imports and other products.  Pricing policies on agricultural products that were meant to keep prices down and allow the state to skim off the rural surplus depressed the agricultural sector. 

 

Meanwhile, efficiency in state enterprises was decreasing, both as a result of capital shortages and the burden of extra labor forced on the concerns by the state commitment to full employment.  A growing population was increasing the burden of state services -- education, employment and subsidies.  This was not a regime that was going to balance the budget on the backs of the poor, or the middle class, for that matter.

 

On top of the crisis in Egypt's state-led, populist economic strategy came the extra military expenditures that the defeat in 1967 added to the state budget:  the cost of the War of Attrition, of Soviet arms, of military preparedness in general.  Sadat reported in his memoirs that on the eve of the 1973 War he told his advisors that the Egyptian economy had "fallen below zero."  He subsequently told an interviewer that "securing a loaf of bread in 1974 was not on the horizon" because of Egypt's inability to acquire hard currency.

 

One of the windfalls of Sadat's 1973 war decision was a vast increase in Arab aid, the result of the 1973 oil revolution, and new employment opportunities for Egyptians abroad.  While both were helpful, Sadat wanted to change the Egyptian economy in such a way that more of that oil money, as well as other foreign private capital, would come into the country, relieving the state of the burden of having to employ the growing population and creating export industries that would provide a steady source of hard currency.  The 1974 and 1977 investment laws were an effort to do just this.  However, the political costs of converting the Egyptian economy were substantial.  Foreign investors wanted guarantees about the repatriation of profits and tax holidays, along with political guarantees.  Most initial foreign investment went into the tourism sector, an important part of the Egyptian economy but not one that would generate an enormous number of jobs.  International lenders, both official and private, wanted a number of changes in Egyptian economic policy that were sure to hit the poor and the middle classes hard:  the gradual reduction of subsidies on consumer goods, devaluation of the exchange rate (importing inflation), reorganization of the inefficient public sector (cutting state employment).

 

Sadat moved slowly on these questions, fearing the consequences for political stability.  When in January 1977 he tried to institute reductions in bread subsidies, as urged by the international agencies, there were riots in Cairo that lasted three days.  Sadat felt forced to rescind the price increases.  By 1977 two things were clear:  1) while there were increases in foreign investment in Egypt, they had not met either Sadat's expectations or the needs of the economy; and 2) to maintain political stability while pursuing these changes in the economy, Sadat had to increase the amount of money coming directly to the Egyptian government, so it could continue to support, at least partially, the social contract that maintained political stability with the lower middle and urban poor classes.  To both these things, he needed the whole-hearted support of the United States -- to encourage Western investment and to receive foreign aid.  To get the whole-hearted support of the United States, he had to make peace with Israel.

 

Sadat knew this from at least 1974, when his formal relations with the United States were renewed.  But the pace of progress on the peace process was excrutiatingly slow, when he needed fast movement to deal with his domestic political economic agenda.  It was in this atmosphere that he announced his willingness to visit Jerusalem.

That particular tactic was of course not determined by the Egyptian political economy; it came out of the particulars of the diplomatic picture and Sadat's own personality.  But the decision for peace that underlay it was driven by economic strategy on which Sadat was basing regime security.

 

What was that diplomatic picture?  In the Arab-Israeli arena itself, the peace process had slowed to a halt.  The bitter and protracted negotiations that had led to the second Sinai disengagement agreement in September 1975 -- which after all involved secondary issues when compared to the big questions of peace treaties and complete territorial withdrawals -- were not an encouraging precedent.  The new US Administration of Jimmy Carter had decided to pursue a Middle East strategy based on formal negotiations at a Geneva conference.  Such a conference would put pressure on Sadat to coordinate his positions with the other Arab parties, thus giving the most intransigent participants (like Syria and PLO) an effective veto over Egyptian policy. From Sadat's point of view, the peace process, as it had come to be called, was heading in an unproductive and dangerous direction.

 

Moreover, domestic changes in Israel made the prospect of successful negotiations in a Geneva context less likely.  The coming to power of Menachem Begin and the Likud bloc in May 1977 meant that Sadat faced an Israeli government even more committed than its predecessors to holding on to the occupied territories.  Faced with Arab demands at Geneva, Begin would undoubtedly dig in his heels and appeal for US support, repolarizing the Middle East and cutting off Sadat's US option.  Just as Sadat needed to make an end-run around the other Arabs to get some freedom for maneuver, he needed to make an end-run around Begin and Likud direct to the Israeli public to loosen up solidified positions on the Israel side.

 

Given all these factors, then, why did I say that Sadat's decision to go to Jerusalem was in the end simple to explain?  Because, in the final analysis, Sadat had predicated his whole economic/political strategy, both in domestic and foreign policy, on peace with Israel.  He could have changed the strategy, but his other options were not very promising.  Once the strategic decision was made, the psychological bloc about dealing with Israel was removed, at least for him, opening up all sorts of new possibilities.  He did, personally, love the grand, dramatic gesture, so undoubtedly the trip appealed to him on that level, as well.  But the trip to Jerusalem, for all its drama and unpredictability, was a very natural and logical extension of Sadat's overall strategy.  [not to denigrate its importance by any means -- vision of the statesman and all that]

 

After many disappointments and setbacks, the path that Sadat had blazed to Jerusalem led to the top of a small mountain in Maryland, where US Presidents have a resort hideaway called Camp David [originally Shangri-La, but renamed by Ike after his grandson David].  For all three participants, Camp David was an enormous gamble.  Carter was faced with an increasing public perception that his presidency was a failure [this even before Iran].  He desperately wanted some kind of diplomatic success to revive his political fortunes, and to get something out of the enormous amount of time and political capital his administration had spent on the Middle East.  For Sadat, the domestic and inter-Arab pressures that had influenced his decision to go to Jerusalem were still operative.  Finally, Begin was also in a very difficult position.  If Begin was seen to have blocked the chance for Egyptian-Israeli peace, US-Israeli relations might be severely damaged.  Moreover, Begin was being pulled two ways by his own domestic coalition.  One part of it was adamant about hanging on to the occupied territories and feared a sell-out at Camp David; another saw an historic opportunity to neutralize the Egyptian threat to Israel through real peace, and would blame Begin if that opportunity was squandered.

 

In the end, it was Sadat who moved the most.  He got back all of Sinai in exchange for contractual peace with Israel, and cemented his close political, economic and military ties with the United States.  However, the price was agreeing to a decoupling of the Egyptian and Palestinian questions.  The framework for solving the Palestinian question agreed to at Camp David -- based on the principle of negotiations for Palestinian "autonomy" --  had no formal link to the separate Egyptian-Israeli peace treaty, and gave no guarantees of what the end result of Palestinian autonomy would be.  In effect, Sadat chose the path of separate peace and had to face the prospect of isolation within the Arab world and opposition at home [so many of his own staff resigned after the agreements]. 

 

Begin agreed to withdraw from Sinai, a move which alienated many of his hard-core supporters and led to the painful sight, for a triumphalist Zionist like Begin, of Israeli soldiers forcibly removing Israeli settlers from homes in Sinai.  He also agreed to an ambiguously phrased plan for West Bank autonomy that had to be unsettling to him and his supporters.  However, Begin had won the neutralization of Egypt without making any specific promises on the ultimate future of the West Bank, greatly freeing Israel's hand in the future.  Through his moves to increase Israeli settlements in the West Bank immediately after the signing of the peace treaty, Begin made it clear that he had no intention of giving up Israel sovereignty and control over the areas he called Judea and Samaria.  Carter won a spectacular political victory that achieved a long-standing goal of US policy -- a breakthrough peace agreement between Israel and its largest Arab neighbor.

 

The cost in terms of US political, military and financial commitments was very large.  The US committed itself to provide Egypt with between $2 billion and $2.5 billion in annual aid; and to increase the Israeli aid package to about $3.5 billion annually, with no end point set.  The agreement caused serious strains in US relations with Arab allies like Jordan and Saudi Arabia.  However, Camp David and the subsequent treaty dramatically changed the strategic picture of the Middle East, and by fundamentally altering the balance of power between Israel and the Arab states opened up the road that other Arab parties have subsequently traveled.

 

Despite the important changes in the strategic-diplomatic balance wrought by the Camp David accords, the other Arab states (including the PLO) did not rush to follow the Egyptian lead.  This is another interesting puzzle, particularly given the history of Egyptian leadership in Arab-Israeli matters and the detriment to Arab military power Egypt's separate deal with Israel caused.  To understand why, it is necessary for us to look at a number of factors:  objections raised by some Arabs to the terms of the agreements themselves, the domestic situations of the various Arab parties, and the changed nature of the inter-Arab political balance in early 1979.  All are very important for coming up with a satisfactory answer to this puzzle.

 

Let us start with Syria.  For Hafiz al-Asad, Camp David was confirmation of all the suspicions and doubts that he had harbored about Sadat and Egyptian policy since the end of the 1973 War.  Asad's rejection of the Camp David framework was not only because the Golan issue was never mentioned in any of the documents coming out of Camp David.  It reflected the fact that for Syria, return of the Golan was not the central issue in its confrontation with Israel.  Golan did not justify the sacrifices Syria had made, nor would return of this modest piece territory accord with the goals of Arab leadership which motivated Asad and his Bacth government.  A Syrian acceptance of peace would have to come in a framework that recognized Syrian predominance over the rest of the Arab East, including Lebanon and whatever Palestinian entity would emerge.  The fact that a Lebanese settlement was not part of the Camp David framework, and that Jordan was given the pre-eminent role in the proposed Palestinian autonomy negotiations, made Camp David a completely unacceptable basis for Syrian participation in negotiations.

 

To some extent Asad felt that he still had strategic options for confronting Israel and getting the deal he wanted, even with Egypt out of the picture.  He adopted a strategy of isolating Egypt in the Arab world, turning to the Soviets for military support, and (briefly) composing his differences with Iraq in efforts to form a united "Eastern Front" to make up for the loss of Egypt.  Asad did face domestic problems, of a different variety than Sadat's.  His problems were more political than economic.  The Syrian economy, buoyed by the oil boom and some efforts in the early 1970's to privatize agriculture and open up to Arab investment, was doing pretty well.  It was the political challenge of the Muslim Brotherhood to regime security that was top on Asad's list, and making peace with Israel is not going to help him there.

 

The PLO position on Camp David was also very negative.  The PLO had been engaged in essentially fruitless negotiations, through intermediaries, with the United States before Sadat's trip to Jerusalem about a basis for PLO participation in the Geneva Conference.  Arafat immediately condemned Sadat's trip to Israel, and offered no indication that he would be willing to follow a similar strategy.  With that in mind, the Camp David parties had assigned the primary role for Palestinian autonomy talks to Jordan, which further solidified PLO opposition to any peace process based on Camp David.  In an effort to sabotage the process, PLO forces in southern Lebanon increased their forays into Israel, eventually provoking the Israeli military incursion into southern Lebanon in March 1978.

 

It is the Jordanian and Saudi cases that are the most puzzling.  Both these states were and still are very close to the United States, both in political and in military-strategic terms.  Riyad especially had benefitted from Sadat's rule in Egypt, and was thought to be in step with Sadat on almost all issues.  Everyone had always said that while Jordan could not be the first country to sign a peace treaty with Israel, it would certainly be the second, because of King Hussein’s pro-Western orientation and what he stood to gain, in terms of return of West Bank territory, from peace.  President Carter was reportedly so confident of his ability to bring them both along on the Camp David initiative that he told Sadat not to worry about either Jordan or Saudi Arabia; that he would handle them.  To explain their refusal to accept the Camp David frameworks as a basis for peace talks, it is necessary to look not only at their domestic situations, but also at the increasingly important strategic role Iraq was playing in Arab politics at the time.

 

To fully appreciate Iraq's strategic role, it is necessary to recall that the Iranian revolution began to gain momentum at about the same time that the Camp David negotiations were occurring; and that by the time that the Egyptian-Israeli peace treaty was signed (March 1979) Khomeini had come to power in Teheran.  Iran was in chaos, and it appeared to outside observers that it would be a long time before it could reassert its political-military dominance in the Gulf area.  The Revolution opened up a window of opportunity for Iraq, which now appeared to the Saudis and the other Gulf Arabs to be the dominant regional power in the Gulf.  The Iraqis moved quickly to exploit the void left in Arab politics by Egypt's peace treaty by organizing an Arab front opposed to Camp David.  Syria, in need of a new strategic partner with Egypt out of the picture, even agreed to a unity plan with Iraq [despite many years of hostility].  Given what appeared to be Iraq's new, major role in both the Gulf and in the Arab East, both Saudi Arabia and Jordan had to give considerable weight to Iraqi reactions in their policy decisions.

 

In this new strategic context, neither Saudi Arabia nor Jordan were willing to risk the certain wrath of the Syrian-PLO-Iraqi alignment for the uncertainties of US-sponsored negotiations.  The Saudis were already upset at what they saw as American unwillingness to consider their delicate position, and uncertain about American assurances in light of Washington's inability to save its major Persian Gulf client, the Shah.  Saudi strategic vulnerability at this time was further heightened by the outbreak of border clashes between the two Yemens, in which the Marxist South Yemenis had the upper hand.  The Yemen conflict ended in the March 1979 with an agreement on unity, something that the Saudis seek to avoid.  While the US, in an effort to demonstrate the value of its strategic tie to the Saudis, rushed to provide North Yemen with military aid, it was Arab League intervention, led by Syria and Iraq, which actually brought the fighting to an end.  Given all these facts, the Saudis temporized [domestic splits in the Family], but in the end opted to go with the anti-Sadat Arab bloc.  At the Baghdad summit in March 1979, Saudi Arabia agreed with the other Arab states to break diplomatic and economic relations with Egypt.  The risk of alienating Egypt and the US was seen as a lesser evil than standing against the Iraqi-Syrian alignment. 

 

In the case of Jordan, King Husayn faced the same strategic situation -- a Syrian-Iraqi-PLO alignment that could do him real harm, and the prospects of negotiations with Israel the end result of which he did not know.  Adnan Abu Odeh said that it was the Syrian position that was the most important in the final deliberations in Jordan.  Like the Saudis, the King opted for caution rather than daring [not everybody is Sadat].

 

So what were the consequences of the Camp David agreements and the Egyptian-Israeli peace treaty?  First, lets look at what did not happen.  Camp David did not become the basis for a comprehensive settlement of the Arab-Israeli conflict.  This failure is partially attributable to the agreement itself [Palestinian issue, Syrian role], but was also the result of the particular Arab and Gulf political configuration that emerged in early 1979.  Upheaval in the Gulf and the emergence of Iraq as a major Arab player in both the Gulf and Arab-Israeli arenas made those Arab states who might have supported Camp David hold back. 

 

What Camp David did do, and this was its most important consequence, was to radically alter the strategic balance in the Arab-Israeli conflict.  With the most powerful Arab state removed from the military equation, the credibility of an Arab war option against Israel radically decreased.  Syria attempted to redress this imbalance first through alliance with Iraq, then through a commitment to achieve "strategic parity" with Israel on its own, through the Soviet alliance.  Neither strategy had proven successful. 

 

What is true of the strategic problems for the other Arab states associated with Egypt's peace with Israel is also true for Israel, but in reverse.  As the credibility of an Arab war option decreased, Israeli freedom of movement increased.  With Egypt out of the war picture, Israeli governments in the 1980’s did not feel constrained to alter their policies on the West Bank.  Moreover, in the early 1980's the Likud government felt free to conduct a very aggressive military policy in Lebanon, since Israel's southern flank was secured.  So the strategic consequences of Camp David have a certain ironic twist to them.  Just when some Arab parties are coming around to the realization that there is no credible Arab military option, and that negotiation is the only practical path, the incentives for Israel to come to terms have been reduced. 

 

Camp David had important consequences in the other arenas of Middle Eastern politics.  It led directly to Egypt's ostracism from Arab politics, even if only for a few years.  But those were crucial years – Iranian Revolution.  In terms of the superpowers, Camp David cemented the US-Egyptian strategic relationship and basically isolated the Soviet Union within the Middle East.  Moscow and Syria were pushed closer together, each needing the other and having nowhere else to turn.  US-Israeli relations were also strengthened by the agreements.  The US made a number of commitments to Israel in the negotiations, and the negative reaction of other Arab states to Camp David served to unite the US and Israel in pursuit of that policy line.

 

It is harder to say what the domestic implications of Camp David were.  That Anwar Sadat was assassinated by a group opposed to Camp David is true, but one cannot say from that that Camp David led to Sadat's death.  The political circumstances in Egypt at the time of the assassination were much more complicated than that simple assertion comprehends.  Camp David might have helped to solidify the new strength of Likud in the Israeli electoral picture, but it seems to me that the balance between Likud and Labour had been reached with the 1977 election, before Camp David.