Israel is fighting this sad war for two reasons; to protect its society and to recreate a platform for peace destroyed by Hamas.

Internally, Hamas has violated the basic human rights of large parts of the Gazan community. There is overwhelming video evidence, showing its continuous cruelty to Palestinian opponents. The small Christian community in Gaza suffers from consistent harassment. Hilary Clinton and David Miliband, the latter no close friend of Israel, have censured Hamas for its use of children and women as human shields. Even the UN has long failed to confirm that the supplies delivered near daily via Israel are not hoarded by local power brokers.

The cartoonist Steve Breen recently asked, what does Hamas stand for? “Hiding in Mosques and Schools” is the satiric but sad and accurate answer.

Re Israel, the Hamas position is simple. Its charter from 1988 rejects Israel with violent and anti-semitic rhetoric. When Israel withdrew from Gaza in 2005, she left behind a thriving greenhouse industry, now the end point of many Hamas-controlled smuggling tunnels. After 930 days, Hamas continues to hold POW, Gilad Shalit, without one visit from the Red Cross. In 8 years, Hamas and its lackeys have sent nearly 9,000 rockets and mortars into Israeli population centres.

Most of these rockets have been launched since Hamas captured political control of the territory. In the 3 weeks of fighting, over 700 have landed in Israel, a ratio of 1 for 1.5 Palestinians killed in the fighting. (No small proportional revenge there from Hamas). None of the rockets have been targeted at the Israeli troops encamped in the area, but only at civilians.

Israel has 3 options to deal with this vile threat.

a) Do nothing and hope or wait for a ceasefire. That has been done for 8 years. Hamas itself ripped up the summer 2008 truce.

b) Wait for international intervention. The EU border observers left their positions over 2 years ago. Egypt has failed miserably to prevent massive weapon smuggling. Only now do we hear of France, the UK and others trying to work out how to stop the smuggling.

c) Take significant action to stop the violence and thus help get the moderate Palestinians back to the peace talks. That will not be easy nor pretty, but it offers a longer term message of hope for all communities.

If ever the phrase “fighting for peace” had a place, it is in Gaza, January 2009.

As many colleagues overseas return to their desks, you can hear the unasked question in the conversation: “So how are you managing, whilst 20% of the country is at war?”

Today represents a typical day.

I had an early morning meeting in Jerusalem. On the way, I made a condolence call to my neighbour, whose nephew was killed in the fighting. Down the road is another mourning family, close friends of my kids. And opposite us, the parents are camped at a Tel Aviv hospital with their wounded son.

Go to a meeting with a smile they say. Actually, I was pleased to meet up with Cupron. Their CEO and I have a few bits of common past. It is wonderful to see a new tech coming through into Europe and America.

Next stop – income tax department. You think a war is going to stop them from working! Now, if you were to stop the flow of coffee to their  staff…..

More seriously, my second investment call for the day, took me to the North West of Jerusalem, a family company with a small food empire, profitable and looking for a new injection of cash. One thing about Israelis – always rushing around but rarely 2 minutes away from their next bite to eat. A good industry to be in. So hopefully, this deal will work its through over the next few months.

Next up is a skype call linking a disruptive tech in the homeland security field to the UK. This is something that I have had my eye on for some time, and all sides sound keen. Very exciting and with some applications to the war in Gaza.

If there is any time left, I shall be working on the Jerusalem Cleantech Meet Up next Thursday, where I am the moderator. This is pitching 10 start ups in front of a large audience, including city hall bigwigs.

What’s the point?  It’s fun and varied, but you cannot escape the fact that what is happening down south is terrible. Even today, Hamas sent over 10 Kassam rockets, which landed in Israeli population centres and cities. Not one was targeted at Israeli troops on the border. Equally, those in Gaza should not have to suffer.

What Israel is defending is her pluralistic society. Part of its strength is an economy, based on openess and trade with others. I try to carry on as normal, but I do not ignore the efforts of others less safe. Yes, you mention the war and you think of others less fortunate where ever they may be.

Israel has spent much of her 60 years fighting wars to protect its existence. Despite these adversities, it is become a global high tech power and has recently joined the OECD.

The war with Hamas provides another example of how Israel’s economy continues to seek growth, despite thousands being conscripted and vast parts of the country under on-going rocket attack.

Here are 4 examples of what I mean: –

  • The Tel Aviv Stock Exchange has risen 6% during the first 9 days of hostilities. It accepts that the country is being run by strong team of economists, dedicated to long term financial stability.
  • In the same period, the shekel has not suffered any major devaluation against the major currencies, primarily for similar reasons to the above.
  • The Office of the Chief Scientist has just allocated another 225 m shekels ( US$60M) of government money to new high tech projects. Or look at LiveU, which has raised US$9 m, and whose TV tech is now helping live news to be broadcast into homes throughout the world.
  • Yesterday, I participated in a networking meeting, where the names of 6 Israeli companies were mentioned, all signing new agreements with overseas partners, specifically in the UK and in Romania.

The point: Invest in peace and growth, not in war machines. The result – optimistic predictions from overseas pundits.

Now contrast this to the economy of Gaza. The Palestinian Authority took over in 1993 under the Oslo Accords. Israel withdrew in 2005, and Hamas came to power over a year ago.

The successful greenhouses left behind by Israel and which received a US$15m from the World Bank are now dust bowls. Hamas has built hundreds of smuggling tunnels, but few houses and there are no bunkers for citizens (as in Israel). Ad-hoc factories for producing Kassam rockets have emerged throughout the region, but there is no attempt to create a civilian manufacturing base.

And so the Gaza tragedy goes on.

War is terrible for all sides. Israel should be recognised for taking the courageous decision to defend her citizens. Its economy will probably emerge from this period of turmoil without too many battle scars.

And here is a central lesson here for Israel’s neighbours in society building. Wealth creation does not come via exporting hatred.

Hamas’s war with Israel directly impinges on the lives of 0.5m civilians. Add in battalions of regular soldiers and reservists, stationed in the region. And more are being rushed to secure the north, against a possible reprisal attack from Hizbollah in Lebanon. Maybe 15% of the population has been sucked in to the horrific scenario.

In Gaza, the makeshift Hamas society, based on smuggling and repression, is imploding under the weight of Israel’s attacks. Many basic services are not functioning with the leadership suspected of hiding in mosques and hospitals.

Israel offers a different approach, where as far as possible life goes on normally.

What do I mean? Take a large food distribution company, which I visited on Thursday. Located near the port of Ashdod, where many rockets have landed this week, its 550 workers are continuing to clock in. The company is also making a special effort to distribute special parcels to families directly in the line of fire. And that is no one-off story.

In Tel Aviv, the stock market has ticked along, actually rising 5% this week despite the hostilities. I have heard of at least one finance house organising deliveries for citizens living under the Kassams sent from Gaza.

Ashkelon’s Sapir Institute for Higher Learning has been forced to close its classrooms. Some of the students have put together an ad-hoc local radio station, broadcasting mesages of support to affected communities.

It is self-help. It is mutual respect.  A Druse soldier was killed by a rocket and many went to the funeral. The city of Jerusalem has organised for whole families from the south to be hosted locally for a few days. And so the list goes on.

Hamas has deliberately refused any partnership with Israel’s way of life. Israel’s society is now 60 years old. It has emerged out of the depths of struggle and human despair, yet evolved, for all its faults, in to a showcase of pluralism.

The war against Hamas is not just aimed at protecting Israel’s special jewel. The conduct of the home front during the war helps to show off its success.

The world never acknowledged it, but 8 years ago Hamas launched a war against Israel. Since then, it has fired over 8,000 Kassams, grad rockets and mortars against the Holy Land.

For all the complaints of the world over Israel’s military actions, nobody has offered an alternative. No authority has seriously taken Hamas aside and punished the schoolboy for consistently breaking the rules of humanity; POW imprisonment with no Red Cross visitations, firing at civilians, harassing Christians, using kids to dig tunnels, the murder of Fatah members, etc – all documented with evidence.

For once, Israel has responded, and in force. Yes, it is war and it is not pretty. The number of Palestinian killed is close to 400. (Ironically, the figures are similar to those slaughtered this week in the Congo, although the UN and the world press are keeping silent there.) Israel is winning for now. And although she does not have to apologise for success, just because she has better weaponry, neither is she celebrating.

Why? Because Israel knows what suffering is. Twenty years ago, many were afraid to visit Jerusalem, following the violence of the first Intifada. In 1991, there was a nightly exodus from Tel Aviv, as citizens fled the nocturnal scud attacks sent by Saddam Hussein. In 2000, the second Intifada rocked Jerusalemites again. And Druze, Jew, Christian and Muslim communities suffered as one from the inhuman barrage directed at them by the Lebanese Hizbollah in 2006. And now it is time to protect the south communities.

But it is more than that. When you think about it, beyond the standard rhetoric, Israel is showing that it believes in the sanctity of life and in protecting the right of the individual to live in peace. It is making a very painful stand to protect the basic human needs denied to so many by Hamas.

There is no joy in Israel’s streets. My friends do not go round yelping as the numbers tot up. This is not an issue of revenge. Contrast these reactopns to films and newspaper reports of Hamas-led celebrations, when their ammu has hit its mark in the past.

Israel has a proven track record at peace conferences. The Palestinians, and especially Hamas, have yet to show a proper understanding of that game. that is the heart of the problem.

Hamas still seeks the physical removal of Israel from the world. It constantly broke a ceasefire with Israel, attacking population centres. People in Gaza are now having to accept the consequences of actions taking by a Hamas leadership, motivated by hatred and not peace.

Let us hope and pray that in 2009, more leaders in the Middle East will realise that emnity only produces bloodshed and not peace.

As the world concentrates on the Israeli air forces efforts over the skies of Gaza, analysts are asking if the campaign will divert scarce resources away from pressing economic needs.

Consider the size of the issue. According to new IMF figures, Israel’s annual GNP (what she produces) per person stands at US$24,000. (Saudi Arabia – $21,220; UAE – $56,670).

The Tel Aviv stock market has dropped 1.5% in its first response to the campaign. Reservists are leaving work stations and putting on uniforms. Places of entertainment and tourist attractions in the south are empty. All this in light of a poor global economic outlook. And yet…..

Over the past decade, Israel’s economy has coped with an Intidfada, withdrawal from Gaza, wars in the north, and more. Until recently, growth remained around 5% per annum. In effect, Israel’s neighbours have forced her to develope a virtual technology for its economy. This allows the country to find success despite war rather because of peace.

If you are a high tech geek, you may call it a perverse form of search engine optimization technology – looking for a way through the clouded cyber space of war.

Specifically, regarding the events in Gaza:

  • Yes, industry in the south is winding down. There again, nearly, 8,000 Kassam rockets and mortars have landed in the region over 8 years, so these companies have been on a reduced footing for a long time.
  • Hotel bookings around Ashkelon are down (except for journalists). Again, I openly admit that people like myself have long stayed clear of Ashkelon for family holidays. So not much change there.
  • Aside from one-person businesses or SMEs in general, most organisations will continue to functions, especially in the Israel’s commercial centres further to the north.

The future? Who knows. Certainly reduced economic activity to begin with, but no disaster. Much will depend on the length of the military scope and the potential horrors that Hamas have threatened to launch against Israeli civilian targets. And it is a threat not to be underestimated.

For the moment, Israel’s economy looks to be safe and under good management.

Thursday morning. 6.30am. I am sitting quietly in my kitchen, when the radio announced another Kassam alert in the Sderot region. Hence began the last day of a 6 month ceasefire, when Hamas and its allies have launched 236 non-guided rockets and mortars into Israel.

Move forwarded another  two and half days. As my peaceful Sabbath ended, my mobile beeped a message at me. 10 rockets and 24 mortars had been fired on the day of rest. The targets – Bedouins, Jews, tourists, whoever was in the path of terror.

This has become a humanitarian problem! Over the past few years, over 20% of Sderot’s population have been fled. Trauma levels became intolerable a long time ago. The papers show pictures of kids running in to schools, escaping the path of the deadly weapons.

Yes, during the truce, Israel has responded sporadically. So, is there a difference between the two sides? Well consider these facts.

Christian communities. In Jerusalem, the municipality has been handing out Christmas trees to the needy. In Gaza this year, the American school and the YMCA have been bombed, and the culprits have not been apprehended. Strange, as hamas controls the region with an iron fist.

Prisoners. Last week, as part of a good will package, Israel released around 230 Palestinians prisoners, all of whom had received constant Red Cross supervision. Hamas holds one prisoner, Corporal Gilad Shalit, who has spent over 900 days in captivity, without one visit from any overseas go-between.

Protests. A quick search will find a myriad of  overseas bloggers, resident in Israel, whose writings strongly oppose the country. In Gaza, the distribution of newspapers such as Al Ayyam and Al Hayat al Jadida are prevented. they do not support Hamas opinions.

Pilgrims: The New York Times reported that Hamas refused to allow 2,000 pilgrims to join the Haj pilgrimage. In parallel, Israeli authorities are working even closer with the Bethlehem municipality to ensure that Christians are able to visit the holy sites over Christmas….And so the list goes on.

Before the truce ended, Israel sent a high ranking envoy to Egypt to see if the agreement could be extended. The Hamas leadership made an announcement, carried on the international media, that such a deal was not on offer.

Would you allow a “peace” like that on your borders? Is that the kind of future you want for the Middle East? What will make Hamas learn that this is not the way to bring quality of life for any of the people involved?

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