15 Mich. J. Int'l L. 405 (1993-1994)
Incentives for Peace and Profits: Federal Legislation to Encourage U.S. Enterprises to Invest in Arab-Israeli Joint Ventures

handle is hein.journals/mjil15 and id is 417 raw text is: INCENTIVES FOR PEACE AND PROFITS:
FEDERAL LEGISLATION TO ENCOURAGE
U.S. ENTERPRISES TO INVEST IN ARAB-
ISRAELI JOINT VENTURES
Daniel Lubetzky*
INTRODUCTION    .................................................  406
I. THE RATIONALE: WHY ENACT SUCH LEGISLATION? ....... 407
A. Recent Developments in the Middle East .............. 408
B. Using, Economics to Advance Peace ................... 409
C. The Role of the United States ......................... 411
D. Advantages of Investing in the Middle East ............ 413
E. Advantages of Investment Incentives as
Foreign  Policy  Tools  .................................  417
II. THE MECHANICS: How WOULD THE INCENTIVES WORK?.. 419
A .  Tax  Incentives  ........................................  419
B. Government Investment Guarantees and Government
Investm ent  Grants  ....................................  427
C. Government Investment Insurance .................... 429
D. Middle East Investment Agency ....................... 431
E .  E ligibility  ............................................  433
F.  Safety  M echanisms  ...................................  433
III. THE CONTEXT: WHERE DOES THE ENACTMENT FIT
WITHIN THE U.S. LEGISLATIVE SCHEME? ................. 436
A .  Existing  Legislation  ..................................  438
B. Ways to Enact the New Legislation ................... 441
IV. THE DISTINCTIONS: How DOES THIS PROPOSAL
DIFFER FROM RECENT AID COMMITMENTS? ............... 442
V. THE POLITICAL CLIMATE: WHEN SHOULD
PASSAGE BE URGED9 ....................... 449
CONCLUSION ................................................454
* Visiting Fellow, Begin-Sadat Center for Strategic Studies. Stanford Law School, J.D.
(1993). This article was originally written in the spring of 1993 with the guidance of Profes-
sor Byron D. Sher. I thank him, Professor Barbara Fried, and my friend Nabil Istafanous for
their comments. I also thank the Haas-Koshland Foundation for its support.
Since this piece was first written, the author has established the Middle East Trade and
Investment Center (METIC, Inc.) together with a team of consultants in the private sector.
The scope of the Center is similar to, although not as broad as, the scope of the investment
agency envisioned in this article.

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