The Art of Negotiation and Learning from Failures

Negotiation has been defined in a variety of ways like the ‘art of resolving conflict’ or a ‘conversation to reach an agreement’ or a cliched term called as ‘win-win for both the parties’. Four major negotiation agreements are discussed which are:

  1. Budapest Agreement signed in 1994 between Russia and Ukraine
  2. Oslo Accords between Israel and Palestine 1993-95
  3. Camp David Accord between Egypt and Israel in 1978 &
  4. The Treaty of Versailles between Germany and the Allied Powers after the First World War – 1919

1.Budapest Agreement between Russia & Ukraine: 1994

Ukraine during the erstwhile USSR had nuclear warheads. It was expected by the US, UK and Russia that Ukraine signs up the Nuclear Non-Proliferation Treaty (NPT) and give up the nuclear arsenal. Bill Clinton, Boris Yeltsin and Kravchuk, the president of Ukraine were the signatories of the Trilateral agreement signed on 14th January 1994 in Moscow. Ukraine demanded security guarantee in exchange of denuclearization. What did Ukraine receive apart from the compensation for the Uranium that was returned? Maintaining nuclear equipment was also difficult after the Chernobyl disaster and the economic hardship the country was going through.  

The terms of the agreement were: . 1.Respect the independence and the sovereignty of the signatories within the existing boundaries. 2. Refrain from threat or use of force against the territorial integrity or political independence of the signatories.

With Russia’s attack on Ukraine in February 2024, Boris Tarayuk the lead negotiator of the Budapest agreement said , “not only did Russia violate its commitment as the guarantor of Ukraine’s national security but other signatories like US and the UK failed to fulfil their commitment under this agreement.” (1) Four years and no end in sight Ukraine is on the verge of collapse as it is used as a pawn by all other nations.

2. Oslo Accords between Israel and Palestine: 1993-95

The Oslo Accord was signed in December 1993 at Washington DC between Israel and Palestine Liberation Organization (PLO) represented by Yitzhak Rabin and Yasser Arafat and brokered by Bill Clinton. It included limited self-governance for the Palestinians in West Bank and Gaza strip by creating the Palestinian Authority(PA). It included the following clauses:

  1. Israel’s right to exist.
  2. PLO as the representative of the Palestinians
  3. Transfer of Authority to PA for education, health, social welfare, taxation and tourism. However the issue of Jerusalem was not resolved

Oslo II accord was signed in Taba, Egypt in 1995

Yitzak Rabin, Shimon Peres and Yasser Arafat were the stakeholders in the Oslo 2 accord. The negotiation focussed on issues like Jerusalem refugees, settlement and border and was to be implemented  latest by May 1996. However, in November 1995, Yitzak Rabin was assassinated by a Jewish extremist and Benjamin Netanyahu came to power. Even though discussion went on, there was distrust and tension between the two parties. The issue became complicated by Ariel Sharon who made a provocative visit to Temple mount which led to anger among the Palestinians. (2)

3. Camp David Accord between Egypt and Israel : 1978

Camp David Accord was signed between Anwar Sadat of Egypt and Menachem Begin of Israel in 1978 and the deal was brokered by Jimmy Carter. The award failed because it was perceived as a unilateral peace initiative and  did not include the interest of the establishment of Palestine.  The Arab interests were also not given due respect. The negotiation lasted for 13 days from 5th to 17th September 1978.

4. The Treaty of Versailles: 1919

The first World War was fought between the Central Powers represented by Germany and the Ottoman Empire  and the Allied Powers which included France, Britain and Russia.

The Istanbul Agreement allowed Russia the control of Istanbul, France got the control of Syria and Great Britain with Cyprus, Egypt, Haifa and Acre. Palestine came under the British regime. Palestine is a place considered sacred by Jews, Muslims and Christians.

Treaty of Versailles was a peace document signed at the end of World War I by the Allied and associated powers and by Germany in the Hall of Mirrors in the Palace of Versailles, France, on June 28, 1919; it took force on January 10, 1920.

The conference was dominated by the national leaders known as the “Big Four”—David Lloyd George, the prime minister of the United Kingdom; Georges Clemenceau, the prime minister of France; Woodrow Wilson, the president of the United States and Vittorio Orlando, the prime minister of Italy. None of the defeated nations had any say in shaping the treaty, and even the associated Allied powers played only a minor role. Some of the conditions were:

  • Territory of Germany to be reduced by 10%
  • Compensation by Germany for all damages done to the civilian population of the allies and their property by the aggressors ( Germany) by Land, Sea and Air
  • War Guilt Clause
  • Losses estimated to be $33 Billion
  • German army reduced to 100,000
  • Manufacturing of armoured cars, Submarines and aeroplanes was forbidden (3)

The German delegates were presented with a fait accompli. They were shocked at the severity of the terms and protested the contradictions between the assurances made when the armistice was negotiated and the actual treaty. Accepting the “war guilt” clause and the reparation terms was especially odious to them.

What was the outcome of such a harsh and unilateral impositions of clauses? Did the execution happen as per the agreement? Harsh Treaty and Lax enforcement paved the way for German Militarism. When Hitler militarized Rhineland, the Allies did nothing. To a greater extent the rise of Hitler and the seeds of the second world war were sowed in the Treaty of Versailles marked by harsh unilateral negotiation and poor execution.  

The negotiators included eminent leaders like Clinton, Carter, Wilson, Yeltsin, Anwar Sadat  among others. Even then, why did the negotiations fail? Was it the lack of positive intent  among the parties, the trust deficit or force majeure conditions? Roger Fisher and William Ury from the Harvard Business School say that in integrative negotiation, ‘people should focus on interest and not position’. Easier said than done.

Neil Rackham has made an interesting observation about the characteristics of a  Skillful Negotiator who:

  1. Is rated effective by both the parties
  2. Has a track record of significant success.
  3. Has a low incidence of implementation failures. (4)

Most of the leaders discussed above have passed into oblivion. If they were to think of leaving a legacy behind; of the long-term consequences taking precedence over the short-term glory, would the history be different?  Dr. Manmohan Singh made a prophetic statement after the incessant criticism of him during the final years of his prime ministerial tenure, “history will be kinder to me.”

I am reminded of the concluding couplet from Alexander Pope’s satirical masterpiece, the Dunciad.

Thy hand great anarch, lets the curtain fall, universal darkness buries all.

Ref: 1. Through a Diplomat’s Lens – Capturing Momentous Times:  Sudhir T. Devare

2.  Encyclopaedia Britannica 

3. Wikipedia

4. Behaviour of Successful Negotiators – Neil Rackham

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