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.

Yesterday, I was talking to a client in Jerusalem, an expert in mobile and app development. We discussed the importance of the role of leadership – the motivation of teams – when considering the successful outfits he has been associated with.

I contrast this reflection with three pieces of news emanating from Israel this week.

First, the results of a Dan & Bradstreet survey were published. It revealed that there are  just over 300 international r&d centres operating in Israel, which employ around 71,000 people. This is the equivalent to about 25% of the high-tech community. A further 91 multinationals are considering a move into Israel. And there is a considerable positive knock on effect to the local economies, whereever these companies are located in the Holy Land.

A separate survey from the Bank of Israel analysed how:

Israel is the global leader in the proportion of people employed in high tech – 9%, more than double the medial in the OECD countries; in venture capital investments as a percentage of GDP; and in the ratio of the added value of the information technology sectors to GDP – both goods and services.

Around 60% of the high-tech sector, including those overseas corporations are located around Tel Aviv and the costal plain. The problem is that the other 90% or so of workers are employed in relatively low paid occupations.

The question is does this matter to the government? What can it do about the situation in terms of creating long term strategic plans?

For an answer, I refer – with disappointment, if not anger – to the third piece of news. On Monday, the government decided to capitulate to two demands of the ultraorthodox factions in the coalition. The result has caused a swift and wide rift with about a 50% of American Jewry and with the diaspora in general. This is something the country can ill-afford, but the decisions do help to sustain the unity of the government.

Meanwhile, the tragic comedy continues, featuring those children supposedly being treated for cancer in a Jerusalem hospital. Following a dispute between the management and the medical team, the latter have left their posts. The Minister of Health has dismally failed to bring the sides together. And the Prime Minister has shown no ability nor will to interfere, if only because his health minister is from an ultraorthodox party.

And that is called national leadership? And you then expect the government to help traditional sectors of the economy, where most people are employed? Thank goodness that Israeli high-tech is generally kept out of the hands of local politicians.

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