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The "capital of Arab culture" is supposed to promote Arab culture and heritage and encourage co-operation in the region.

The year-long cultural capital designation is an honor and prestige for Arab capitals. It rotates among Arab countries and it is usually a cause for celebration.

But this year's choice falls on a city that Israel says is its capital - Jerusalem.

And instead of festivities, the designation has been marked by arrests and confiscation of flags and banners associated with the event.

Police, internal security forces and undercover agents have been deployed in large numbers across occupied East Jerusalem to prevent any celebrations.

Festivities are supposed to get underway in Bethlehem, Jerusalem and Nazareth. But police have warned the mayor of Nazareth and its residents from carrying out any such celebrations.

Is the choice of Jerusalem as the "capital of Arab culture" for 2009 an embarrassment for Israel? What is the future of Jerusalem as a multi-religious and multi-cultural city? And what sort of indication is this for the year ahead?

Presenter Imran Garda is joined by Huda al Imam, the director of the Jerusalem studies centre at Al-Quds Open University; Arieh King, a campaigner for Jewish settlements in East Jerusalem; and Danny Seidemann, an Israeli lawyer and founder of Ir Amim, an organisation concerned with the future of Jerusalem.

This episode of Inside Story aired from Monday, March 23, 2009.