Afternoon Tea in Jerusalem Blog

In addition to my work as a business coach, one of my interests is blogging about life in Israel. This is a country full of contrasts – over eight million citizens living in an area the size of Wales. You can see snow and the lowest place on the globe in the same day. Although surrounded by geopolitical extremes, Israel has achieved a decade of high economic growth. My work brings me in contact with an array of new companies, exciting technologies and dynamic characters. Sitting back with a relaxing cup of strong tea (with milk), you realise just how much there is to appreciate in the Holyland. Large or small operations, private sector or non profit, my clients provide experiences from which others can learn and benefit.

I am writing this a few hours after former President Shimon Peres was laid to rest. Two American presidents, an English Prince, a King and regal cavalcade of world leaders personally came to pay their last respects to him in central Jerusalem.

And why? Peres did not just understand history. It was not just the fact that he was part of the Middle East political scene for decades. Peres created historical moments, usually with the emphasis on the word “peace”.

Few can emulate the role that Peres had on the world stage. However, in Israel people are gradually beginning to consider that arguably his greatest achievement was in a totally different sphere. To put it bluntly, by 1985 Israel suffered from hyperinflation and a recession. One year later, Peres was the architect of a plan that reversed the debacle. He froze wages and prices, and received the near unique backing of employers and workers.

The Israeli newspaper “Yediot Ahronot” asked four leading commentators what they saw as the greatest contribution of Peres to the Israeli economy. Aside from the 1985 ‘turnaround’, they came up with fascinating responses: –

  •  The continuous emphasis on making new technologies available to all
  • The need to harness basic human creativity
  • A recovery that tried to include as many different facets of the economy as possible
  • The premise that nothing needs to be impossible

Since 1985, the country has enjoyed near continuous growth. Gone is an economy based on protective tariffs and old industries. Israel has become the ‘start up nation’ of the Middle East, powered by the high-tech revolution. Britain, France and many others are in the throngs of trying to copy this model.

Hidden in another section of the newspaper, there is a small report referring to the fact that the about-to-be-launched iPhone 8 will be totally different from its predecessors. In fact, it turns out that at least two new key features of the phone have been developed by Apple in Herzylia, Israel.

You have to ask: Without Peres and his recovery programme, would Apple ever have come to Israel? Would it then have invested millions in buy up several companies and establishing an r&d centre in a country known to be a political nightmare? Would it be responsible for the wages of over 1,000 software engineers et al between Herzylia and Haifa?

For sure, since Peres changed the nature and direction of the Israeli economy, others have added their vision. However, it was Shimon Peres who made it possible. And somewhere amongst the notepads, wind turbine farms, satellites and mobile phones is a little piece of Peres himself, the man who so desperately sought peace on behalf of all of us.

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