Somerville currently invests $1.2 million dollars in companies that supply military equipment and arms to Israel and an additional $250,000 in Israel Bonds through the city Retirement Board. Given Israel's continued violation of international law and Occupation of Palestine, this means our city is investing in companies engaged in human rights violations.

While talking to Somerville residents, SDP volunteers are frequently asked these questions:

What are Israel Bonds?

Israel Bonds are securities issued by Israel that are backed by the credit of the Government of Israel. According to a March 2005 report by the Congressional Research Service (CRS), "Israel is not economically self-sufficient, and relies on foreign assistance and borrowing to maintain its economy. Since 1976, Israel has been the largest annual recipient of U.S. foreign assistance, and is the largest cumulative recipient since World War II. In addition to U.S. assistance, it is estimated that Israel receives about $1 billion annually through philanthropy, an equal amount through short- and long- term commercial loans, and around $1 billion in Israel Bonds proceeds." Money raised through the sale of the Bonds goes directly into Israel's treasury.

Are Israel Bonds good investments?

Since none of the volunteers are economists, we can't answer that question. All we can do is point to the latest ratings by the World Bank, which led economists in Business Data Israel (BDI) to conclude that "Israel is considered one of the riskiest places in the Western world, with an unstable, inefficient regime, low accountability, a relatively high rate of state corruption and poor law enforcement". BDI economists noted that the low indices hamper foreign investment, raise risk premiums on financial markets and hurt resource allocation." However, whether good or bad investments, to us the point is socially responsible investing.

The following points emphasize why our city should join the international divestment movement and support human rights through socially responsible investing, and how this will in turn strength our own community.

A. Israel Bonds are connected to the expansion of illegal Israeli settlements on Palestinian land

B. The Israeli government subjects Palestinians living in Israel to life under an Apartheid system

The Growing Call for Divestment from the International Community:

Human rights networks, faith-based organizations, academic institutions and communities globally are organizing divestment initiatives in support of Palestinian rights. To name only a few of these groups:

The unified statement by 554 New England Methodist churches endorsing divestment states:

Let's Make Somerville A Community Model for Socially Responsible Investment!!