As the United States and Cuba rebuild formal relations, certain challenging topics remain to be addressed. Among these are outstanding U.S. property claims in Cuba. In this report, Richard E. Feinberg argues that it is in both countries’ interests to tackle this thorny issue expeditiously, and that the trauma of property seizures in the twentieth century could be transformed into an economic opportunity now.

The report looks closely at the nearly 6,000 certified U.S. claims, disaggregating them by corporate and individual, large and small. To settle the U.S. claims, Feinberg suggests a hybrid formula, whereby smaller claimants receive financial compensation while larger corporate claimants can select an “opt-out” option whereby they pursue their claims directly with Cuban authorities, perhaps facilitated by an umbrella bilateral claims resolution committee. In this scenario, the larger corporate claimants (which account for nearly $1.7 billion of the $1.9 billion in total U.S. claims, excluding interest) could select from a menu of business development rights, including vouchers applicable to tax liabilities or equity investments, and preferred acquisition rights. Participating U.S. firms could also agree to inject additional capital and modern technology, to ensure benefits to the Cuban economy.

Though it is often argued that Cuba is too poor to pay some $2 billion of claims, the paper finds that Cuba can in fact manage payments if they are stretched out over a reasonable period of time and exclude interest. The paper also suggests a number of mechanisms whereby the Cuban government could secure funds to pay compensation, including revenues on normalization-related activities.

The Cuban government does not dispute the principle of compensation for properties nationalized in the public interest; the two governments agree on this. Cuba also asserts a set of counter-claim that allege damages from the embargo and other punitive actions against it. But a grand bargain with claims settlement as the centerpiece would require important changes in U.S. sanctions laws and regulations that restrict U.S. investments in Cuba. The United States could also offer to work with Cuba and other creditors to renegotiate Cuba’s outstanding official and commercial debts, taking into account Cuba’s capacity to pay, and allow Cuba to enter the international financial institutions.

Feinberg ultimately argues that both nations should make claims resolution the centerpiece of a grand bargain that would advance the resolution of a number of other remaining points of tension between the two nations. This paves the way for Cuba to embrace an ambitious-forward-looking development strategy and for real, notable progress in normalizing relations with the United States.

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Seven months have passed since Israel officially apologized to Turkey for the Mavi Marmara incident of May 2010, in which nine Turks were killed by Israeli fire. What seemed, at the time, to be a diplomatic breakthrough, capable of setting into motion a reconciliation process between America’s two greatest allies in the region, has been frustrated by a series of spiteful interactions.

The Turkish-Israeli alliance of the 1990s and first decade of the 2000s was viewed by senior U.S. officials as an anchor of stability in a changing region. The relationship between Ankara and Jerusalem served vital U.S. interests in the Eastern Mediterranean and the Middle East, and so it was therefore a U.S. priority to restore dialogue between the two former allies-turned-rivals. The Obama administration, throughout both terms, has made a continuous effort to rebuild the relationship and was ultimately successful in setting the stage for the Israeli apology and the Turkish acceptance of that apology. The U.S. was not the only party that stood to gain from reconciliation; both Turkey and Israel have many incentives for normalizing relations. For Turkey, the reestablishment of a dialogue with Israel has four main potential benefits: It would allow for greater involvement in the Israeli-Palestinian peace negotiations, it would provide greater opportunity for information sharing on the developments of the Syrian civil war allowing Turkey to have a more comprehensive perspective, it would also provide more economic opportunities for Turkey especially with regard to cooperation in the field of natural gas (following Israel's High Court of Justice recent ruling that paves the way toward exports of natural gas), and finally it would remove an irritant from Turkey's relations with the United States. In turn, Israel would benefit from the reestablishment of dialogue in three major ways: the rebuilding of relations between senior Turkish and Israeli officials would facilitate intelligence sharing and help to gain a more complete picture of the Syrian crisis, Israel would have the opportunity to contain delegitimization efforts in the Muslim and Arab worlds, and Israel may be able to rejoin NATO related activities and maneuvers.

Despite these enticements, in recent weeks a series of news stories and revelations have put the Turkish-Israeli relationship, yet again, in the international spotlight, raising doubts whether reconciliation between the two countries is at all possible at this time. As the Obama administration struggles to deal with the fallout of allegations that the NSA has tapped the office and cellular phones of Western European leaders and as it focuses on more pressing issues in the Middle East, namely the P5+1 negotiations with Iran, the Syrian crisis, Egypt and negotiations between Israel and the Palestinians, it finds itself with little time to chaperone the Turkish-Israeli reconciliation process. Nevertheless, despite tensions, direct talks are reportedly being held between senior Turkish and Israeli officials in an effort to reach a compensation agreement in the near future.

The Israeli apology and Turkish acceptance, orchestrated by Barack Obama during his trip to the region in March 2013, was an essential first step in a long process of reconciliation, aimed at normalizing relations between the two countries after a four year hiatus in their relationship. The next step was an agreement between the two sides in which Israel was to pay compensation to the families of the victims of the Mavi Marmara. Several rounds of talks between senior Turkish and Israeli representatives were reportedly held during the spring of 2013 in Ankara, Jerusalem and Washington, but to no avail. Disagreements over the amount of compensation to be paid by Israel were reported, but later, in July, Turkish Deputy Prime Minister Arinc clarified that money was not the issue. He stated that the problem lay in Israel’s refusal to acknowledge that the payment was a result of its “wrongful act.” Arinc added that another point of contention was Turkey's demand that Israel cooperate in improving the living conditions of the Palestinians in the Occupied Territories. Arinc emphasized that only when these two conditions were met could the countries move forward to discuss the specific amount of compensation.

The shadow cast over negotiations by Arinc’s comments was darkened by a string of comments made by Turkish Prime Minister Erdogan against Israel. First, he blamed the “interests lobby” – perhaps a reference to the so-called “Israel Lobby” -- for the large protests that took place against him and his government in Istanbul’s Taksim square and across Turkey in June. Then, in August, Erdogan accused Israel of backing the military coup in Egypt, citing comments made in 2011 by the French Jewish philosopher Bernard Henri-Levy, as proof of a long standing Israeli-Jewish plot to deny the Muslim Brotherhood power in Egypt. This drew sharp Israeli criticism, notably from former Israeli Foreign Minister, Avigdor Lieberman, who compared Erdogan to the Nazi Minister of Propaganda, Joseph Goebbels.

Despite these setbacks, bilateral trade between Turkey and Israel has expanded since the official apology and the number of Israeli tourists returning to visit Turkey has risen dramatically. Yet it is clear that with such harsh rhetoric it will be difficult to effectively advance a reconciliation process. Among American, Turkish and Israeli experts, the prevailing view is that Erdogan and the AKP government, mainly due to domestic political considerations, are not interested in normalizing relations with Israel, and that the only reason Erdogan accepted Israeli Prime Minister Netanyahu’s apology was to gain favor with U.S. President Obama.

At the end of August, as the plan for a U.S. military strike in Syria gained momentum, relative calm prevailed in the relations between Ankara and Jerusalem, both focusing on preparations and plans to address the fallout of such an attack. Yet, just when it seemed that tensions were reducing, and Turkish President Gul stated that negotiations "are getting on track," in a September interview with the Washington Post, a series of news stories and revelations injected a poisonous dimension to the already-strained ties.

In early October another round of Turkish-Israeli verbal attacks and counter-attacks was sparked by a Wall Street Journal profile of the Turkish Head of Intelligence, Hakan Fidan, which included a quote from an anonymous Israeli official stating, "It is clear he (Fidan) is not an enemy of Iran." Shortly after came the revelation by David Ignatius in the Washington Post that quoted reliable sources that pointed to Fidan as allegedly passing the names of 10 Iranians working for the Israeli Mossad on to the Iranian intelligence in early 2012. These ten people were later arrested by the Iranian authorities. Senior Turkish officials blamed Israel for leaking the story to Ignatius and the Turkish daily, Hurriyet, reported that Fidan was considering severing ties between Turkish and Israeli intelligence agencies. Reactions in Turkey and Israel to the Ignatius story were harsh and emotional. Turkish officials denied the report while Israeli officials refrained from any public comments. The Friday edition of Yediot's front page headline read, “Turkish Betrayal,” and former Foreign Minister Lieberman voiced his opposition to the apology made in March; he expressed his opinion that it weakened Israel’s stance and image in the region, and he attacked Erdogan for not being interested in a rapprochement.

In recent days Prime Minister Erdogan struck a more conciliatory tone, saying that if Israel is denying involvement in the leak then Turkey must accept it. Israeli media outlets reported over the weekend that Israeli and Turkish negotiators are again trying to reach a compensation agreement. Israeli experts, quoted in these reports, view November 6 as a possible target date to end negotiations over this agreement. The logic behind this being that former Israeli Foreign Minister Lieberman’s verdict is expected that day. If acquitted of corruption charges Mr. Lieberman will return to the Foreign Minister’s job and will likely try and block any attempt to reach an agreement. Turkish experts however assess that Turkey is simply not ready to move forward at this time due to domestic political constraints, as Prime Minister Erdogan and the AKP are bracing for Presidential and local elections in 2014.

Notwithstanding, the next few weeks will be crucial in determining whether Turkey and Israel can move forward and finally put the Marmara incident behind them. Turkey and Israel both have separate disagreements with the U.S. - Turkey over Syria, Egypt and the Turkish decision to build a missile defense system with a Chinese firm under U.S. sanctions; Israel over the Iran nuclear issue. However, the lingering Syrian crisis and reported progress on the Israeli-Palestinian track, in addition to economic considerations such as trade, tourism and above all potential cooperation on natural gas may entice both sides to proceed. Undoubtedly, a final deal will require strong U.S. support.

       

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Two of the United States' closest traditional allies in the Middle East, Israel and Turkey, have a tumultuous relationship. Once-strong relations soured in the last decade, with the Mavi Marmara flotilla incident in 2010 marking its nadir. Repeated attempts by the United States to mediate have helped move the parties closer together, but the gap is still wide, hindering regional security and impacting U.S. interests. Questions remain about whether the ties between the two former allies be mended and what role the United States can play in managing the relationship.

On March 23, in conjunction with the Friedrich Ebert Foundation, the Center for Middle East Policy (CMEP) at Brookings hosted a discussion examining the relationship between Israel and Turkey. The discussion built on an ongoing dialogue between the Israeli think tank Mitvim, and the Turkish Global Political Trends Center, sponsored by the Friedrich Ebert Foundation, as well as ongoing work by Brookings experts.

Join the conversation on Twitter using #IsraelTurkey

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The narratives on U.S. development aid to Pakistan—as well as Pakistan’s own development policy discussion—frequently invoke the conventional wisdom that more education and better economic opportunities result in lower extremism. In the debate surrounding the Kerry-Lugar-Berman bill in 2009, for instance, the late Ambassador Richard Holbrooke urged Congress to “target the economic and social roots of extremism in western Pakistan with more economic aid.”

But evidence across various contexts, including in Pakistan, has not supported this notion (see Alan Kreuger’s What Makes a Terrorist for a good overview of this evidence). We know that many terrorists are educated. And lack of education and economic opportunities do not appear to drive support for terrorism and terrorist groups. I have argued that we need to focus on the quality and content of the educational curricula—in Pakistan’s case, they are rife with biases and intolerance, and designed to foster an exclusionary identity—to understand the relationship between education and attitudes toward extremism.

My latest analysis with data from the March 2013 Pew Global Attitudes poll conducted in Pakistan sheds new light on the relationship between years of education and Pakistanis’ views of the Taliban, and lends supports to the conventional wisdom. The survey sampled 1,201 respondents throughout Pakistan, except the most insecure areas of Khyber Pakhtunkhwa and Baluchistan. This was a time of mounting terror attacks by the Pakistani Taliban (a few months after their attack on Malala), and came at the tail end of the Pakistan People's Party’s term in power, before the May 2013 general elections.

On attitudes toward the Pakistani Taliban, or Tehrik-e-Taliban Pakistan (TTP), 3 percent of respondents to the Pew poll said they had a very favorable view, 13 percent reported somewhat favorable views, while nearly 17 percent and 39 percent answered that they had somewhat unfavorable and very unfavorable views, respectively. A large percentage of respondents (28 percent) chose not to answer the question or said they did not know their views. This is typical with a sensitive survey question such as this one, in a context as insecure as Pakistan.

So overall levels of support for the TTP are low, and the majority of respondents report having unfavorable views. The non-responses could reflect those who have unfavorable views but choose not to respond because of fear, or those who may simply not have an opinion on the Pakistani Taliban.

The first part of my analysis cross-tabulates attitudes toward the TTP with education and income respectively. I look at the distribution of attitudes for each education and income category (with very and somewhat favorable views lumped together as favorable; similarly for unfavorable attitudes).

Figure 1. Pakistani views on the Pakistani Taliban, by education level, 2013

Figure 1 shows that an increasing percentage of respondents report unfavorable views of the Taliban as education levels rise; and there is a decreasing percentage of non-responses at higher education levels (suggesting that more educated people have more confidence in their views, stronger views, or less fear). However, the percentage of respondents with favorable views of the Taliban, hovering between 10-20 percent, is not that different across education levels, and does not vary monotonically with education. 

Figure 2. Pakistani views on the Pakistani Taliban, by income level, 2013

Figure 2 shows views on the Pakistani Taliban by income level. While the percentage of non-responses is highest for the lowest income category, the percentages responding favorably and unfavorably do not change monotonically with income. We see broadly similar distributions of attitudes across the four income levels.

But these cross-tabulations do not account for other factors that may affect attitudes: age, gender, and geographical location. Regressions (not shown here) accounting for these factors in addition to income and education show interesting results: relative to no education, higher education levels are associated with less favorable opinions of the Pakistani Taliban; these results are strongest for those with some university education, which is heartening. This confirms findings from focus groups I conducted with university students in Pakistan in May 2015. Students at public universities engaged in wide ranging political and social debates with each other on Pakistan and its identity, quoted Rousseau and Chomsky, and had more nuanced views on terrorism and the rest of the world relative to high school students I interviewed. This must at least partly be a result of the superior curriculum and variety of materials to which they are exposed at the college level.

My regressions also show that older people have more unfavorable opinions toward the Taliban, relative to younger people; this is concerning and is consistent with the trend toward rising extremist views in Pakistan’s younger population. The problems in Pakistan’s curriculum that began in the 1980s are likely to be at least partly responsible for this trend. Urban respondents seem to have more favorable opinions toward the Taliban than rural respondents; respondents from Punjab and Baluchistan have more favorable opinions toward the Taliban relative to those from Khyber Pakhtunkhwa, which as a province has had a closer and more direct experience with terror. The regression shows no relationship of income with attitudes, as was suggested by Figure 2.

Overall, the Pew 2013 data show evidence of a positive relationship between more education and lack of support for the Taliban, suggesting that the persisting but increasingly discredited conventional wisdom on these issues may hold some truth after all. These results should be complemented with additional years of data. That is what I will work on next.