Palestinian official criticizes Romney's comments as 'racist'

Updated 11:09 AM Eastern Time

(CBS News) A top aide to the Palestinian president on Monday called comments Mitt Romney made extolling Israeli culture "racist," the Associated Press reported.

Romney, at a donor event in Israel Monday, mused on why some countries were more successful than others, and at one point appeared to connect Israeli culture with economic progress and gross domestic product and made a comparison to less prosperous areas controlled by the Palestinian Authority.

"And you look at Israel and you say you have a hard time suggesting that all of the natural resources on the land could account for all the accomplishment of the people here," Romney said.

"... If you can learn anything from the economic history of the world, it's this: Culture makes all the difference," he said, adding that his thinking was influenced by his reading of the book The Wealth and Poverty of Nations. "And as I come here and I look out over this city and consider the accomplishments of the people of this nation, I recognize the power of at least culture and a few other things," he said.

Saeb Erekat, a senior aide to Palestinian President Mahmoud Abbas, rebuked Romney. "It is a racist statement and this man doesn't realize that the Palestinian economy cannot reach its potential because there is an Israeli occupation," he told AP.

"It seems to me this man (Romney) lacks information, knowledge, vision and understanding of this region and its people," Erekat said, adding, "He also lacks knowledge about the Israelis themselves. I have not heard any Israeli official speak about cultural superiority."

Romney sampaign spokeswoman Andrea Saul said in a statement to the AP, "His comments were grossly mischaracterized."

The campaign contends Romney's comparison of income disparities among neighboring countries was broader that just Israel and Palestine. In a transcript of his remarks, Romney indeed mentions the United States and Mexico, and Chile and Ecuador. He said that when he was in business as the head of Bain Capital, "I would travel to different countries to understand why there were such enormous disparities in the economic success of various countries."

Here is the transcript, as provided by the Romney campaign:

"I was thinking this morning as I prepared to come into this room of a discussion I had across the country in the United States about my perceptions about differences between countries. And as you come here and you see the GDP per capita for instance in Israel which is about 21,000 dollars and you compare that with the GDP per capita just across the areas managed by the Palestinian Authority which is more like 10,000 dollars per capita you notice a dramatic, stark difference in economic vitality. And that is also between other countries that are near or next to each other. Chile and Ecuador, Mexico and the United States. I noted that part of my interest when I used to be in the world of business is I would travel to different countries was to understand why there were such enormous disparities in the economic success of various countries. I read a number of books on the topic. One, that is widely acclaimed, is by someone named Jared Diamond called 'Guns, Germs and Steel,' which basically says the physical characteristics of the land account for the differences in the success of the people that live there. There is iron ore on the land and so forth. And you look at Israel and you say you have a hard time suggesting that all of the natural resources on the land could account for all the accomplishment of the people here. And likewise other nations that are next door to each other have very similar, in some cases, geographic elements. But then there was a book written by a former Harvard professor named 'The Wealth and Poverty of Nations.' And in this book Dr. Landes describes differences that have existed--particularly among the great civilizations that grew and why they grew and why they became great and those that declined and why they declined. And after about 500 pages of this lifelong analysis--this had been his study for his entire life--and he's in his early 70s at this point, he says this, he says, if you could learn anything from the economic history of the world it's this: culture makes all the difference. Culture makes all the difference. And as I come here and I look out over this city and consider the accomplishments of the people of this nation, I recognize the power of at least culture and a few other things. One, I recognize the hand of providence in selecting this place. I'm told in a Sunday school class I attended-- I think my son Tagg was teaching the class. He's not here. I look around to see. Of course he's not here. He was in London. He taught a class in which he was describing the concern on the part of some of the Jews that left Egypt to come to the promised land, that in the promised land was down the River Nile, that would provide the essential water they had enjoyed in Egypt. They came here recognizing that they must be relied upon, themselves and the arm of God to provide rain from the sky. And this therefore represented a sign of faith and a show of faith to come here. That this is a people that has long recognized the purpose in this place and in their lives that is greater than themselves and their own particular interests, but a purpose of accomplishment and caring and building and serving. There's also something very unusual about the people of this place. And Dan Senor-- And Dan, I saw him this morning, I don't know where he is, he's probably out twisting someone's arm--There's Dan Senor, co-author of 'Start-up Nation,' described-- If you haven't read the book, you really should-- Described why it is Israel is the leading nation for start-ups in the world. And why businesses one after the other tend to start up in this place. And he goes through some of the cultural elements that have led Israel to become a nation that has begun so many businesses and so many enterprises and that is becomes so successful."