Salam Fayyad (; born 12 April 1952) is a Palestinian politician and economist who served as the first
prime minister of Palestine from January 2013 until his resigned in July of that same year. He was previously the fourth
prime minister of the Palestinian Authority from 2007 until the post was replaced. He was
Finance Minister
A ministry of finance is a ministry or other government agency in charge of government finance, fiscal policy, and financial regulation. It is headed by a finance minister, an executive or cabinet position .
A ministry of finance's portfoli ...
from June to 2005 and from March 2007 to May 2012.
Fayyad resigned from the cabinet in November 2005 to run as founder and leader of the new
Third Way party for the legislative elections of 2006. The party was not successful, and Fayyad returned as Finance Minister in the
March 2007 Unity Government. Fayyad's first appointment as Prime Minister
on 15 June 2007, which was justified by Palestinian president
Mahmoud Abbas
Mahmoud Abbas (; born 15 November 1935), also known by the Kunya (Arabic), kunya Abu Mazen (, ), is a Palestinian politician who has been serving as the second president of Palestine and the President of the Palestinian National Authority, P ...
on the basis of "national emergency", was not confirmed by the
Palestinian Legislative Council
The Palestinian Legislative Council (PLC) is the Unicameralism, unicameral legislature of the Palestinian National Authority, Palestinian Authority, elected by the Palestinians, Palestinian residents of the Palestinian territories of the Wes ...
.
His successor,
Rami Hamdallah
Rami Hamdallah (; born 10 August 1958) is a Palestinian politician and academic. He served as Prime Minister of the State of Palestine from 2013 to 2019 and was previously the president of An-Najah National University in Nablus from 1998 to 2 ...
, was named on 2 June 2013.
Fayyad is a visiting senior scholar and the Daniella Lipper Coules '95 Distinguished Visitor in Foreign Affairs at the
Princeton School of Public and International Affairs at
Princeton University
Princeton University is a private university, private Ivy League research university in Princeton, New Jersey, United States. Founded in 1746 in Elizabeth, New Jersey, Elizabeth as the College of New Jersey, Princeton is the List of Colonial ...
. He is widely known for introducing various reforms that improved the Palestinian economy.
Early life and education
Salam Fayyad was born in
Nablus
Nablus ( ; , ) is a State of Palestine, Palestinian city in the West Bank, located approximately north of Jerusalem, with a population of 156,906. Located between Mount Ebal and Mount Gerizim, it is the capital of the Nablus Governorate and a ...
or
Deir al-Ghusun
Deir al-Ghusun () is a Palestinian people, Palestinian town in the Tulkarm Governorate, located eight kilometers northeast of the city of Tulkarm in the northern West Bank, Palestine. The town is near the Green Line (Israel), Green Line (border be ...
in northern
West Bank
The West Bank is located on the western bank of the Jordan River and is the larger of the two Palestinian territories (the other being the Gaza Strip) that make up the State of Palestine. A landlocked territory near the coast of the Mediter ...
on 12 April 1952
(according to some sources in 1951
). He graduated from the
American University of Beirut
The American University of Beirut (AUB; ) is a private, non-sectarian, and independent university chartered in New York with its main campus in Beirut, Lebanon. AUB is governed by a private, autonomous board of trustees and offers programs le ...
in 1975 and received his
MBA
A Master of Business Administration (MBA) is a professional degree focused on business administration. The core courses in an MBA program cover various areas of business administration; elective courses may allow further study in a particular a ...
from
St. Edward's University in 1980. Fayyad has a PhD in economics, which he received from the
University of Texas at Austin
The University of Texas at Austin (UT Austin, UT, or Texas) is a public university, public research university in Austin, Texas, United States. Founded in 1883, it is the flagship institution of the University of Texas System. With 53,082 stud ...
, where he was a student of
William Barnett and did early research on the American
Divisia Monetary Aggregates, which he continued on the staff of the
Federal Reserve Bank of St. Louis
The Federal Reserve Bank of St. Louis is one of 12 Federal Reserve System, regional Reserve Banks that, along with the Board of Governors in Washington, D.C., make up the United States' central bank. Missouri is the only state to have two main ...
.
Career
Fayyad began his teaching career at
Yarmouk University in
Jordan
Jordan, officially the Hashemite Kingdom of Jordan, is a country in the Southern Levant region of West Asia. Jordan is bordered by Syria to the north, Iraq to the east, Saudi Arabia to the south, and Israel and the occupied Palestinian ter ...
. He then worked at the
International Monetary Fund
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 191 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of las ...
in Washington from 1987 to 1995 and from 1996 to 2001 as the International Monetary Fund's representative to Palestine based in Jerusalem.
Fayyad served as the regional manager of the Arab Bank in the West Bank and Gaza until he accepted an offer to become Yasser Arafat's
Finance Minister
A ministry of finance is a ministry or other government agency in charge of government finance, fiscal policy, and financial regulation. It is headed by a finance minister, an executive or cabinet position .
A ministry of finance's portfoli ...
in the
Palestinian Authority Government of June 2002. He held this post until November 2005, when he resigned from the cabinet to run as founder and leader of the new
Third Way
The Third Way is a predominantly centrist political position that attempts to reconcile centre-right and centre-left politics by advocating a varying synthesis of Right-wing economics, right-wing economic and Left-wing politics, left-wing so ...
party in the
legislative elections of 2006 alongside
Hanan Ashrawi
Hanan Daoud Mikhael Ashrawi (; born 8 October 1946) is a Palestinian politician, activist, and scholar.
Ashrawi began her career at Birzeit University. Beginning in the 1990s, Ashrawi was a member of the PLO's Leadership Committee, serving as t ...
and
Yasser Abd Rabbo. Fayyad and Ashrawi won their seats with only 2.41% of the popular vote. On 17 March 2007, Fayyad was again appointed Finance Minister, this time in the
Fatah-Hamas unity government.
Prime Minister (2007–2013)
On 15 June 2007, following
Hamas' takeover of Gaza, Fayyad was appointed Prime Minister of a disputed
emergency government, appointed by President Abbas. It was a government without any Fatah or Hamas members, supported by Fatah, Israel and the
West
West is one of the four cardinal directions or points of the compass. It is the opposite direction from east and is the direction in which the Sun sets on the Earth.
Etymology
The word "west" is a Germanic word passed into some Romance langu ...
. This appointment was challenged as illegal, because it was not approved by the
Legislative Council
A legislative council is the legislature, or one of the legislative chambers, of a nation, colony, or subnational division such as a province or state. It was commonly used to label unicameral or upper house legislative bodies in the Brit ...
as required by the Palestinian Basic Law.
End February 2009, Hamas and Fatah
started a new round of talks in Cairo. On 7 March 2009, Salam Fayyad submitted his resignation to pave the way for the formation of a national unity government. Eventually, the negotiations broke down. On 19 May 2009, Fayyad was reappointed PM in
a new government without Hamas.
On 14 February 2011, Fayyad tendered his government's resignation, two days after PLO negotiator
Saeb Erekat
Saeb Muhammad Salih Erekat ( ''Ṣāʼib ʻUrayqāt''; also ''ʻRēqāt, Erikat, Erakat, Arekat''; 28 April 195510 November 2020) was a Palestinian politician and diplomat who was the secretary general of the executive committee of the PLO from ...
had resigned over the leakage of the
Palestine Papers, and one day after Abbas had unilaterally called for elections before September, without approval by Hamas. Abbas immediately asked Fayyad to form a new cabinet. Both Fatah and Hamas declared themselves against the plan of Fayyad to form a unity government. On 4 May, however, Abbas and
Khaled Mashal
Khaled Mashal (, ; born 28 May 1956) is a Palestinian politician who served as the second chairman of the Hamas Political Bureau from 1996 until May 2017, when he was succeeded by Ismail Haniyeh. He has also covered duties as the acting lea ...
signed the
Cairo agreement to form a transitional government of technocrats to prepare for legislative and presidential elections. In June, the negotiations were postponed indefinitely and Abbas changed the focus on a bid for UN recognition for Palestinian statehood in September 2011, instead of forming a unity government. Abbas expressed his concern over a government with any Hamas involvement because of the international opposition to such a government. Pending further Fatah–Hamas negotiations, Fayyad remained PM of the caretaker government.
Following the
February 2012 Doha agreement and the successive May 2012 Cairo accord, which also failed to be implemented, Mahmoud Abbas asked Fayyad to form a new Cabinet, without Hamas' involvement. On 16 May 2012, a reshuffled Cabinet saw the light.
Fayyad gave up his post as Finance Minister in favour of
Nabeel Kassis. The PA faced an estimated financing gap of about $500 million. Eight new ministers were added to the new 21-member cabinet, with two ministers specifically replaced due to corruption.
[
On 3 March 2013, Finance Minister Kassis resigned amid deepening economic malaise in the West Bank. The PA faced a huge budget deficit due to insufficient donor funds and financial sanctions regularly imposed by Israel to punish them, and salary payments for some 150,000 PA employees were delayed. Kassis also questioned the state-building agenda adopted by the PA under Fayyad's leadership.
]
''Fayyadism'': Reform plans
Between 2007 and 2013, Fayyad introduced national reform plans sometimes referred to as "''Fayyadism''". In 2008, he launched his "Palestinian Reform and Development Plan 2008–2010" (PRDP), a West Bank First strategy, aimed to isolate and weaken Hamas in Gaza by developing the West Bank over Gaza, in compliance with American and Israeli desires. It was based on firm control by the PA security and a market-based economic agenda. In 2009, he presented a reform and development plan called "Palestine: Ending the Occupation, Establishing the State." In 2011, he introduced a national development plan for 2011–2013 entitled "Establishing the State, Building our Future."
A major component of Fayyad's plans was modernizing and professionalizing of the Palestinian Security Services under the banner of "One Homeland, One Flag, and One Law".
2009–2010 reform plans
On 23 August 2009, Fayyad came out with a plan to reform the fundamental infrastructure of a Palestinian State, called "Palestine: Ending the Occupation, Establishing the State". He detailed a two-year working plan for reinforcing the institutions of the future Palestinian State. This included, among other elements, a separation of powers
The separation of powers principle functionally differentiates several types of state (polity), state power (usually Legislature#Legislation, law-making, adjudication, and Executive (government)#Function, execution) and requires these operat ...
, a free market
In economics, a free market is an economic market (economics), system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of ...
, the development of existing infrastructure, and the building of new infrastructure such as government offices, a stock market, and an airport, all with the purpose of establishing a "de facto Palestinian State," based on the premise that the peace talks with Israel were faltering.
In October 2010, ''The New York Review of Books
''The New York Review of Books'' (or ''NYREV'' or ''NYRB'') is a semi-monthly magazine with articles on literature, culture, economics, science and current affairs. Published in New York City, it is inspired by the idea that the discussion of ...
'' published an article by Nathan Thrall on Fayyad's security strategy. At the center are "special battalions" of the National Security Forces (NSF), referred to by Hamas as "the Dayton forces". The officer in charge of the vetting, training, equipping, and strategic planning of these special battalions was Lieutenant General Keith Dayton, the United States security coordinator (USSC) for Israel and the Palestinian Authority. Security cooperation between Israel and Palestine reached unprecedented levels in the West Bank
The West Bank is located on the western bank of the Jordan River and is the larger of the two Palestinian territories (the other being the Gaza Strip) that make up the State of Palestine. A landlocked territory near the coast of the Mediter ...
. Together they have largely disbanded Fatah's al-Aqsa Martyrs Brigades, attacked Islamic Jihad groups, and all but eliminated Hamas's social institutions, financial arrangements, and military activities in the West Bank.
Post resignation (2013–present)
On 13 April 2013, PM Fayyad resigned again. Abbas accepted his resignation but asked him to remain as interim prime minister of the Palestinian Authority until a new government could be formed. He resigned because of political differences with Abbas over economic policy. On 6 June 2013, Fayyad was replaced by Rami Hamdallah
Rami Hamdallah (; born 10 August 1958) is a Palestinian politician and academic. He served as Prime Minister of the State of Palestine from 2013 to 2019 and was previously the president of An-Najah National University in Nablus from 1998 to 2 ...
, who became PM of the Palestinian Authority Governments of 2013.
In September 2017, The Middle East Initiative (MEI) at Harvard Kennedy School's Belfer Center for Science and International Affairs announced that Salam Fayyad, former prime minister of the Palestinian Authority, will join the Harvard Kennedy School (HKS) community as a Senior Fellow that academic year. As a Senior Fellow, Fayyad would deliver several public and closed addresses, engage with Harvard Kennedy School students, faculty, and affiliates, and participate in various events and activities at MEI, HKS and the broader Harvard campus.
Since 2017, Fayyad has been visiting senior scholar in the School of Public and International Affairs (SIPA) at Princeton University
Princeton University is a private university, private Ivy League research university in Princeton, New Jersey, United States. Founded in 1746 in Elizabeth, New Jersey, Elizabeth as the College of New Jersey, Princeton is the List of Colonial ...
.
Political views
Fayyad has rejected calls for a binational state and unilateral declaration of statehood. In 2012, he said: " tatehoodis not something that is going to happen to the Israelis, nor something that is going to happen for the Palestinians.... is something that will grow on both sides as a reality... creating a belief that this was inevitable through the process, a convergence of two paths, the political and the process, from the bottom up and the top down."
On 29 June 2011, in contravention of the Palestinian Authority's official position, and that of president Mahmoud Abbas
Mahmoud Abbas (; born 15 November 1935), also known by the Kunya (Arabic), kunya Abu Mazen (, ), is a Palestinian politician who has been serving as the second president of Palestine and the President of the Palestinian National Authority, P ...
, Fayyad expressed skepticism about its approach to the United Nations
The United Nations (UN) is the Earth, global intergovernmental organization established by the signing of the Charter of the United Nations, UN Charter on 26 June 1945 with the stated purpose of maintaining international peace and internationa ...
for a vote on statehood, saying it would be only a symbolic victory. In 2007, Fayyad was quoted by ''Forbes'': "It's the responsibility of men of religion to ... present religion as a way of tolerance, not as a cover for bloodshed."
He has condemned violence against Israel as detrimental to Palestinian national aspirations, stated that Palestinian refugees could be resettled not in Israel but in a future Palestinian state, and suggested that this state would offer citizenship to Jews. Fayyad condemned the 2023 Hamas invasion of Israel, expressing grief for the hundreds of Israeli civilians killed. He also expressed grief for civilians in Gaza killed by Israeli airstrikes.
Public views
Fayyad won international and domestic approval for his management of the West Bank. The World Bank credited him with making substantial improvements in Palestinian state institutions.
Thomas Friedman
Thomas Loren Friedman ( ; born July 20, 1953) is an American political commentator and author. He is a three-time Pulitzer Prize winner who is a weekly columnist for ''The New York Times''. He has written extensively on foreign affairs, global ...
, an American columnist, praised Fayyad for trying to build functioning institutions of a Palestinian state, and not focusing on Israel. Unlike Yasser Arafat
Yasser Arafat (4 or 24 August 1929 – 11 November 2004), also popularly known by his Kunya (Arabic), kunya Abu Ammar, was a Palestinian political leader. He was chairman of the Palestine Liberation Organization (PLO) from 1969 to 2004, Presid ...
, Fayyad "calls for the opposite—for a nonviolent struggle, for building non-corrupt transparent institutions and effective police and paramilitary units, which even the Israeli Army says are doing a good job; and then, once they are all up and running, declare a Palestinian state in the West Bank by 2011."
See also
* Divisia monetary aggregates index
Notes
References
External links
Building a Thriving Economy and a Strong Democracy
Lecture by Fayyad at Palestine Center in Washington, DC, April 2007
Palestinian Basic Law
selection of links and news
Articles
''Haaretz
''Haaretz'' (; originally ''Ḥadshot Haaretz'' – , , ) is an List of newspapers in Israel, Israeli newspaper. It was founded in 1918, making it the longest running newspaper currently in print in Israel. The paper is published in Hebrew lan ...
'', 1 April 2007
Green Shoots in Palestine by Thomas Friedman
The New York Times, 4 August 2009
Palestine Ending the Occupation, Establishing the State
''Ynet
Ynet (stylized in all lowercase) is an Israeli news and general-content website, and the online outlet for the '' Yedioth Ahronoth'' newspaper.
History
Ynet launched on June 6, 2000, in Hebrew, following other Hebrew outlet's website launches ...
'', 25 August 2009
How Salam Fayyad Will Save Palestine--Or Not
Kevin Peraino, Newsweek, 4 September 2009
{{DEFAULTSORT:Fayyad, Salam
1951 births
1952 births
Living people
St. Edward's University alumni
University of Texas at Austin College of Liberal Arts alumni
People from Deir al-Ghusun
People from Nablus
Palestinian Muslims
Academic staff of Yarmouk University
Third Way (Palestinian political party) politicians
Government ministers of the Palestinian National Authority
Prime ministers of the Palestinian National Authority
Foreign ministers of the Palestinian National Authority
Finance ministers of the Palestinian National Authority
Prime ministers of Palestine
Members of the 2006 Palestinian Legislative Council