Israel Archives - Page 19 of 67 - Michael Horesh Business Coach and Mentor

21 November 2016

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

Last week’s post about how Israeli commerce impacts on the UK economy turned out to be a mild understatement. Last week, 400 Israeli and British entrepreneurs participated in a conference in London, known as “Mind The Tech”, as the logo played on the theme of the London Underground.

The “noise” and out put of the meet-up was phenomenal, and it is worth recording some of the salient points.

The British ambassador to Israel, David Quarrey,noted how 60 Israeli companies in the UK have reported increased activity in the past two months.
Liam Maxwell, the UK’s National Technology Advisor, stated openly that Israel has not only brought its know-how to the island. This change has had a direct and positive impact on creating new jobs.
Of the 2,200 companies quoted on the London Stock Exchange, 29 are Israeli, a relatively high proportion for such a small country.
As the UK is creating its own version of the ‘start up’ nation, it has never hidden its desire to copy the Israeli model.
The conservative forces of the UK’s banking system are gradually coming to realise that they have to turn to Israeli Fintech leaders to protect themselves from threats and to keep ahead of competitors. Ironically perhaps, it is Brexit that has put those issues in front of everybody’s closed eyes.

In many ways, Brexit is forcing the UK to think like an island again, as if the past five decades have been a blip.

This trend draws a parallel to Israel, which has comparatively little trade with its own neighbours. High-tech has more than saved the economy of the Holy Land. It has allowed for the creation of commerce, simply by going around many of the obvious borders, tariffs and other obstacles….significantly downsizing that island syndrome. So far in 2016, a year of yet more international instability, investment in Israeli high-tech is 35% higher than last year.

And that is why the UK is so determined to work with Israel more than ever, for thae mutual benefit of all peoples from both nations.

16 November 2016

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The mandarins at Israel’s Ministry of Finance have good reason to be pleased.

First, it was revealed that Israel’s debt to gdp ratio is now down to 63.9%, as opposed to 95% back in 2003. This shows the country’s ability to repay debts. Below 60% is considered excellent, especially in the post- credit crisis era. A few days later, Fitch raised Israel’s credit rating to A+. Overall, the outlook is stable and healthy, as the Israeli economy still continues to grow steadily.

So, that’s all OK, isn’t it?

Now look again. For a considerable time, I have been warning of a split economy in the Holy Land. Global expert Prof. François Bourguignon observed that Israel is a country where the rich are benefitting from an inadequate tax system and from high prices for land. The gap between the haves and have nots is only growing.

There are plenty of indications of this inequality. The number of recorded bankruptcies in 2015 grew to 15,450, 50% higher than in 2012. The price of housing continues to rise, about 8% in the past year. Non resident Israelis have an easy time in avoiding taxes. And so the list goes on.

The point is very simple. The Israeli economy appears to be doing all right, according to base line stats. However, there is increasing evidence that the benefits of this improvement are reaching a limited number of people. And what is worse, the government does not seem to care.

Can I prove my point? Last week it was revealed that Israel had bought three submarines from Germany, despite the objections of the military. In today’s Hebrew media, we learn that the German manufacturer is represented in Israel by Prime Minister Netanyahu’s private lawyer, Dan Shimron.

Shimron’s office denies that he ever discussed the matter with the Prime Minister. Fair enough, but would you not have expected a top lawyer like Shimron to have declared the issue openly in order to prevent any possible thought of a conflict of interest?

Maybe, unless the rules for the elite are different than for others in Israel.

12 November 2016

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Categories: Afternoon Tea in Jerusalem, Israel, Jerusalem, Palestinians

For a country of a little over 8 million people, Israel has more than its fair section of minority interest groups.

It is not just that about 25% of the populace is not Jewish. There are Muslim Arabs, as well as Christian Arabs. Bedouins and Druze do not see themselves as Arabs. Moving along, you have the ultra orthodox people, who can then be subdivided, and so the listings go on. And all of this is wrapped around the geopolitical instability of the region.

And through all of this, Israeli society has some amazing positive things to teach others. Last week, I mentioned the amazing work at Beit Issie Shapiro – teaching autistic kids of all backgrounds to communicate via an Ipad. this work has received the blessing of the UN. Previously, I had referred to the ever increasing role of women in Israeli society, despite many internal religious pressures.

What is pleasing to see is that these patterns of change are continuing. In the past two weeks, different news agencies have informed us that:

A) There is a special business accelerator for start ups led by Israeli women. To date, participants in the programme have raised US$20 million.

B) Lucy Aharish is an amazingly talented TV presenter. She has been prominent in celebrations of Israel’s Independence Day. And she is very proud of her Arab heritage, which she uses to break down barriers presented by all sides. Her story and triumphs should be an inspiration for all.

C) And then there is the university scene. The latest set of stats refer to 2014, when 3,600 additional students enrolled. Most of these come from the ultra orthodox sector, which are not normally associated with tertiary education. In total, females make up nearly 59% of the numbers, again somewhat surprising as there are so many conservative forces at work.

What does this all add up to? No, Israeli is not a perfect society, although I have yet to find such a thing. On the other hand, the efforts to create a pluralistic society in the Holy Land, where opportunity is available for all, are truly producing results that need to be observed if not copied by others.

9 November 2016

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Categories: Afternoon Tea in Jerusalem, Business, Israel

For over a decade now, trade between Britain and Israel has been booming. And if Brexit is to bring changes, that growth is only expected to be accelerated.

The size of Britain’s annual trade with Israel is now valued at well over US$6 billion. This is staggering. Consider that Israel is not the USA nor part of the EU nor part of the Commonwealth. There are relatively few arms’ sales between the two countries.

However, bilateral trade is not all the Israel contributes to the British economy. A few days ago, the Secretary of State for Wales declared that the Israeli company “Lordan UK Ltd’s £1million investment into Wales is an example of the new investment opportunities that have arisen since the Israeli business delegation visit to Wales in 2015, which has generated further job and business growth.”

Following on from that, Mark Garnier, who is the Secretary of State for International Trade, responded to a question from a fellow MP on the benefits of trade with Israel.

UK Trade and Investment, now known as the Department for International Trade, was actively involved in assisting 29 Israeli companies to set up or expand their operations in the UK and create 560 new UK jobs in 2015. The UK is the number one destination for Israeli FDI in Europe and there are now more than 300 Israeli companies established in the UK. Israel is an important trading partner for the UK and we are committed to further strengthening our trade and investment relationship.

And that is not all. “29 Israeli organizations are listed on London Stock Exchange across the Main Market and AIM, with a combined market capitalisation of $10.2 billion.” “Mind the Tech” is a massive UK-Israel technology conference in London, taking place next week. In my own work, I know of several joint Israeli lawyers, accountants, and other services with offices in both countries.

Bottom line, and maybe there is a message here for the Trumpish politicians in the world. Do not close your country off to trade not dally with boycotts, because trade has benefits for all. Britain has proven this conclusively, as it continues to welcome Israeli goods, know-how, and services.

8 November 2016

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Palestinians

Having a child with autism must be very challenging, if not downright stressful. Over the past few years, Beit Issie Shapiro (BIS) has been channeling the innovative wonders of Israel into finding solutions for autistic kids and others. This triumph deserves a bigger audience.

I happened to attend a talk given in Swiss Cottage London by Jean Judes, the Executive Director, of BIS. She highlighted the most fascinating of case studies in their efforts to bring children with extreme special needs back into Israeli society. In brief, the stories focused on reaching out to children, many of whom are still at a pre school age, but are unable to communicate with the outside world.

The key part of these efforts is the use of an Ipad. It appears that there is something in screen technology that allows the infant to ‘discover themselves’. In return, the staff at BIS have discovered that some of these kids are incredibly intelligent and fun loving. In one instance, it was learnt that the toddler understood English fully, and not just Hebrew. (The parents used to speak to each other in English when they did not want the child to understand)!

Israel is known as the ‘start up nation’. Not far from BIS are the large Israeli facilities of both Google and Apple. Both have assigned teams to work with BIS staff to create new services for such children.

Judes deliberately stressed in her talk that the children are cared for in their native language, Hebrew. The one exception are those in the Arab sector – Muslim, Christian or otherwise. This is particularly true in the Kalansua Family Advancement Center for early intervention.

BIS now has partnerships with similar centres as wells as governments and academic institutions in tens of countries, including China. Their work has been presented at UNICEF . This is as much an Israeli export as the high-tech services or its agricultural produce.

This knowledge – these changes – are just another aspect of Israeli innovation. They are enabling tens of thousands of children internationally to take their place in society.

2 November 2016

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

A recent blog from “entrepreneur.com” considered 10 bad habits to eliminate from your daily routine. No surprise that the first three referred to cutting back our use of mobile tech or similar.

True, but I felt that the item was lacking. After all, what prompts us – well, most of us – to spend so much time on Facebook or just checking, yet again, if somebody has sent us that one email which hopefully will change our lives?

I found my way to the website of super Australian life coach, Sharon Pearson. She stresses a theme that is very important to me and what I often explain to my clients as a business mentor in Israel. Do not let others dictate how you should think nor let them dictate what is important for you.

Pearson phrases it slightly differently:

Take responsibility for changing your thoughts. I found this very difficult in the beginning, because I was so used to the negative thoughts. i was kinda hooked on them, because I layed the victim! When I chose to take responsibility for them, no exceptions, my thoughts started to change.

Last week, I wrote that: “Our negativity will ensure that bad things will happen.” We have more ability than we realise to take control of what we want to do.

This very theme came up with a client of mine in Jerusalem a few days ago, a self employed exec who has created a business from nothing. Yes, they are going through some business problems, which is stressing. Their natural default mode is almost predictably one of despair. In contrast, what I am trying to show them is that these same issues present an opportunity to change things around and then to move ahead.

The alternative for people like that? Yup, we can bury our sorrows in prolonged and distracting conversations on Facebook. At least that would allow somebody to write a blog about the habit.

26 October 2016

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Categories: Afternoon Tea in Jerusalem, Israel, Jerusalem, Palestinians

The Western Wall Plaza in the heart of the old city of Jerusalem is arguably the holiest site in the world. In a proximity important to three great religions, people have been allowed to practice the beliefs freely since it fell into Israeli control in June 1967.

This week, UNESCO will vote on a resolution that effectively abrogates Jewish and Christian history. In an effort to denigrate Israel, the organisation will call for sanctions against the Jewish state. And it is this clear divide between the reality of pluralism as opposed to the world of vicious political or diplomatic manipulations that brought me to question:

‘What else does the world not want to hear about Israel?’.

With incredible timing, this morning I came across three seemingly unrelated pieces of news. Individually, they may be interesting. Together, they reveal a society in Israel that is bubbling, at least partially integrated, and continually struggling to improve despite of all the surrounding external threats. For example: –

Let me deliberately start with some news from the military. The IDF (Israel Defence Forces) has just completed its latest and largest programme to induct people with special needs. In the past few days, 80 young recruits finished a basic training course and are starting to find their way to their designated units.

Then there is the contentious issue as to how Israel treats Palestinians. Now I am not going to boast that all is rosy. However, I can say that this week, I will be starting with a new client who may claim that he is a Palestinian. And this video clip presents a whole different take to what is reported in places like the New York Times and similar. War is created through distrust, while on the ground Israel is doing much to break down barriers with Palestinians.

Number three on my list is actually a set of three women: Miriam Banki, Adenko Sabhat Haimovich and Esther Tapeta Gradi. Not exactly household names. All three ladies were appointed as judges a couple of weeks ago, not something you would see in most other Middle Eastern countries.

And now look again. Banki’s teenage daughter was murdered last year, when she marched in a gay a parade. There was mass condemnation at the outrage, and this “promotion” must also be seen in that context. In contrast, Haimovich and Gardi were born in Ethiopia. And for all the struggles of the community which has emigrated from there, they represent the progress towards integration that has been made over the decades, and the more that still needs to be done.

Yes, Israeli society is not perfect. However what these stories and anecdotes illustrate is that UNESCO’s resolution today is based on one big fabrication. Is it not ironical, sad and shaming that the leading global agency for cultural integration is promoting a modern form of that classic hatred, known as anti-Semitism?

25 October 2016

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When hopes and dreams are dashed, they are often replaced by self-doubt, pessimism, accusations, and anger.

Thus wrote Dr. Robert Brooks in yet another excellent monthly blog. He considers the balance between being optimistic whilst having to consider the possibility of failure.

Brooks has long concentrated on the theme of resilience and how it can be developed in most of us from an early age. The key factor is to have at least one individual around us, who understands and actively supports our feelings.

So what happens if you miss out and enter adulthood without that security blanket? Many of my clients are entrepreneurs, and not just in the field of high-tech. And while I am no psychologist – I am a business mentor and coach, operating primarily in the Jerusalem area – it does not take me too long to assess if a new customer fits the “Brooks ticket”.

And I readily accept that even those people who are not business owners and maintain responsible positions of employment, they too have their setbacks. Can you prepare yourself for those disappointments?

The answer is obviously yes, every one in their own field of activity. However, Brooks offers up a more interesting question, one which is far more far pertinent to my line of work. Why do so many of us spend so much time working out what we will do if something might go wrong – thinking up layer upon layer upon layer of awkward scenarios?

It is almost as if we are encouraging the oedipus effect. Our negativity will ensure that bad things will happen. Alternatively, as Brooks states, we can be more aware of the possibility of ‘success’, a word that so many of my clients seem afraid to contemplate. “What we do have more control over than we realise is our attitude towards and response to those events”, which we cannot influence.

In other words, if something does go wrong, the default thinking should be that you probably handle it, even if that will not be a simple task.

But let me go further. I wish I had a dollar for the number of times people say to me: “What if such and such a bad thing happens”? It may. It should not be ignored. Without being naïve or dismissive, I often throw back a curve-ball and ask: “But what if it does not and what if you achieve your goal”.

I never cease to wonder how people seem so shocked and aghast about embracing the concept that they may do well.

23 October 2016

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Categories: Afternoon Tea in Jerusalem, Business, Israel

Two new set of stats were released last week about the Israeli economy

A report from the OECD noted that while there are a lot of “good looking” elements to the economy and many feel satisfied, poverty is on the up.
Prices are barely rising.

Well, surely this is all very tolerable? After all, no economy gets its finances right all the time. Look again!

It is true that prices have been kept down recently. However, due to increase of world food prices and raw materials, sooner rather than later, these changes are going to end up being felt in the bank accounts of the average Israeli. Now factor in the global truth that the poor spend more on food (and health services) than the richer sectors of society, and you will soon find that the OECD report will have even more painful meaning.

One comparative fact just made my blood boil. Over the past decade, the consumer price index in Israel has risen by 19%. Impressive. However, the index for fruit and vegetables – basic staples of a person’s diet – has leapt up 44%, more than double all other standard items together.

As the analysts observed, Israel has the highest relative rate of poverty in the OECD. And that is why I keep writing and warning about the absurdities and tragedy of Israel’s dual economy.

For years, food prices in Israel have been kept high by vested interests, often close to the corridors of power. For example, there have been suggestions and even attempts to open the market up to imports. For example, why Israelis are only allowed to eat strawberries 3 months a year is beyond me. A combination of religious groups and the agricultural lobby have managed to put this off for yet another year.

And then there is the farce of the creation of a national vegetable distribution centre. A government unit was set up back in 2012 to establish what is supposed to save consumers an estimated 2.5 billion shekels annually – say US$0.6 billion. After numerous surveys and a dozen different reports, nothing – I repeat, nothing – has been decided nor achieved.

And in the meantime, I guess the OECD can start to prepare its next disappointing report on poverty in Israel, because the people at the top, even if they do care, are incapable of acting.

18 October 2016

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Categories: Afternoon Tea in Jerusalem, Business, Israel

Last week, I wrote about the Israeli economy that it is:

…. continuing to press ahead. Unfortunately, in parallel, there is growing evidence that the rich are getting richer. Those less well off may still be doing better, but are also being left further behind.

The post drew a lot of private comments and a few on Facebook. And it is a theme that I feel very strongly about. The government is unable in part and seemingly unwilling to act. For example, yet again, we read in today’s newspapers how the price of housing has risen a further 8% since the beginning of the year. (The government controls the price of land and it benefits from large levels of taxation from property transactions).

Sever Plocker is one of Israel’s leading financial journalists. Writing in his regular Friday column in Hebrew, he discussed the annual IMF conference, which took place earlier this month. Yes, he readily noted, Israeli banks were praised for their stability and caution, especially in light of the Deutsche Bank crisis threatening Europe . But……

Plocker went on to stress the thoughts of the IMF’s managing director, Christine Lagarde:

(Globalisation) needs to be slightly different. It cannot be that push for trade as we have seen it historically. The inclusiveness, the determination to make it work for all, and to pay attention to those that are at risk of being left out, whether it is as a result of technology, digital economy, or international trade by modification of supply chains, that factor has to be taken into account.

So, what does it mean for the IMF? It means that if we want to include, if we want to address the inequality issues, we need to have a strong international safety net so that countries that feel at risk, because of policies determined elsewhere, have the tools, have the financing instrument to actually respond.

As Plocker concluded, this is as close as you will find to the language of humility at such an event. In effect it is a public declaration that the strong have failed to look after the weak. And if something does not change soon, we will all suffer.

I wonder if Israel’s politicians and economic mandarins in their villas are tuned in to this message .

16 October 2016

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One of those recurring themes in business coaching is sales: “I want more clients”, my own customers scream at me. And it is amazing how time and again, the solution lies in their own hands.

Here are two of my standard tips to jolt people forward, and they succeed time after time.

The first was written up very succinctly now so long ago as a case study in “Inc.com”. They focused on a young CEO, who was faced by an slightly docile sales team. So, she challenged them all to contact the five people they most wanted to meet in order to conclude their next deal. The results were phenomenal and very dynamic.

When you think about it, the concept is very simple. However, many of us are put off by it immediately with a subconscious thought of “why would these ‘great’ want to talk to somebody like me”. Maybe? Possibly? But if you do not try, you will never know. After all, what have you got to lose except five minutes of your time?

Just recently, I put this trial in front of two sophisticated CEOs. Within a week, one had completed three first meet-ups with key potential clients. The other had greeted me very dubiously, but by the end of our session had enthusiastically listed the names to ten “must-to-contact” rainmakers.

A second tactic is again somewhat obvious but frequently ignored. Go and seek some testimonials, and then publish them. The point is that many of us are persuaded by seeing a review, preferably a visual comment, by somebody who has used your product or service and not been disappointed.

Let me rephrase this. When we look for a plumber or an electrician, we often ask a friend or a neighbour for a recommendation. Similarly, request others to promote you. It is bizarre how so many of us are reticent to do so.

To take this thought one step further, I was watching Sky News last week, when a serial entrepreneur gave a plug to a new website called Social Superstore. This allows you to recommend to others products that you have bought. If they also purchase the item, then you receive a financial reward.

And as a business coach, the best piece of news I can give my clients is that these ideas can be repeated almost continuously. Even better, while much of my client reach is in the Jerusalem region in Israel, these marketing principles can be applied globally.

As I remarked above, quite often the path to higher sales is right in front of us. What we may lack is the clarity to see the opportunity and then the confidence to seize it.

11 October 2016

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Categories: Afternoon Tea in Jerusalem, Business, Israel

Officially, Israel’s economy is growing at its fastest rate for nearly two years, about 4% per annum. Impressive by most global standards for these days. The question is who is really benefitting for this upsurge?

“The Calcalist” (Economist in English) newspaper has just released a fascinating analysis on changes in the Israeli economy. The starting point is that in the ten years to 2014, GDP per capita has risen 34% (despite the credit crisis). However, real wages have only grown by 5%. So where has the money gone to?

This creeping sense of inequality – a country of two economies – has been seeping into my writings over the past year. And the Calcalist immediately notes the Gini index for measuring differences in financial standings. Whereas Iceland and Norway boast coefficients of around 0.25 and the OECD average is 0.317, Israel stands just better off than the USA with 0.365. Not good.

To give that stat some perspective, it appears that Israelis work on average about 5% more hours per year than counterparts in the OECD. However, it still takes an average Israel around 12 full years of salary payments to buy a flat. Not only is that a number that has grown by 10% in 5 years, it is about the highest in the OECD.

The report refers to a multiple of distortions:

As with many countries, there is not enough public money for pensions.
Despite the multiple improvements in the past decade, the Arab (eg, education facilities) and Haredi (eg, social services) population sectors lack resources.
The food industry, including local agriculture, is heavily protected, to the detriment of the consumer and prices paid in the shops.

Yes, there are positives.

Israel’s debt to GDP ration is less than 65% and still dropping
As the central government budget grows, the proportion of spending on the military is projected to keep falling – to around 16.8% by 2018.
For the past three years, revenue from taxes have consistently beaten targets by about 4%.

So what next? The report comes at a time of year in the Jewish calendar when people are encouraged to reflect. Tomorrow is Yom Kippur, the Day of Atonement, a fast day.

The economy is continuing to press ahead. Unfortunately, in parallel, there is growing evidence that the rich are getting richer. Those less well off may still be doing better, but are also being left further behind. The question is what will be the trigger for the suffers – typically supporters of the government – to scream out at the election polls “no more”?

10 October 2016

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I have just read an amazingly important blog entitled “7 brutal life lessons everyone has to learn multiple times” .I specifically liked the emphasis on the line that “you cannot stay the same forever, and trying to do so will hurt you”.

With respect to the author, Nicolas Cole, I feel that he could have added one further point: Dealing, and then utilising, anger.

We all get angry, especially at work. As a business coach, I am frequently asked by clients how they should handle a supplier who does not perform, or a client who does not pay, or a colleague just…does not. And here’s the funny thing. In over 90% of the cases:

a) My customer finds it difficult to pin point just what ‘hurts’ them

b) The reason is often because the origin of the problem lies……with their own initial actions. And how most of us hate to admit that we are at fault!

Here is a personal anecdote that happened to me over the past few days. I was excluded from a project that I believed that I should have been part of and had a lot to contribute to. I appealed to various parties, as my voice registered increasing displeasure. It took me 24 hours to understand why I was annoyed, if not angry, and at whom.

However, in the process, I found myself going back several months to how the story had unraveled. Sure enough, I had to admit that could have and should have acted differently, and that is not just with the benefit of hindsight. Ouch. Painful for me!

(For the record, my initial position has not changed, but the parties are reconciled and still friends).

And now for the second point. There is second level to handling our anger. This is where you need to invoke some cognitive thinking.

For example, in sport, athletes curse injuries. Yet, the transmission period offers a time for reflection. First, they can use the time for other activities. They can also consider if they have been training properly, considering what has happened. The net result, after all the initial cursing, can be a stronger, better prepared and happier person.

In my case, I have began to use the rejection to consider where else I can be of use. I have already begun to direct my abilities in other areas, where the same project has not been so successful. I am still annoyed at what was, but I have achieved has also been recognized.

Bottom line? Much our anger resides in faults or mistakes that we are ultimately responsible for. It is not always so easy to accept that. Once you do so and then find the cognitive path to turn things to your advantage, then everyone becomes a winner.

5 October 2016

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem

As ever, the international media is full of crisis events – the murdering in Aleppo or the childish debate between two seemingly mature American politicians. However, quietly and without too much drama, something significant happened in the Middle East. There again, as somebody once said, miracles are supposed to happen in the Holy Land?

I am not talking about how two top British politicians and foes since schooldays, Johnson and Cameron, amazingly managed to patch things up over a whisky in a Jerusalem bar. Nor am I referring to the fact that Charles Prince of Wales surreptitiously visited a Jerusalem church to pay homage to the grave of his grandmother…….despite the pathetic attempts to keep the event ‘hush hush’.

Dig deeper and look again.

First, Israel has just appointed two lawyers of Ethiopian backgrounds to become judges. And they are female. While the Ethiopian community still sufferers from discrimination from specific sections of society, this decision is a significant step forward towards greater integration.

And second, if we are talking of women, it is time to praise the Israeli army, a bastion of male domination. According to an article in the Hebrew press: –

85% of all jobs in the military are now fully open to the female sex.
8% of all female recruits now have a combat role, up 400% since 2012.
24% of all technology based jobs are filled by women, and this stat is growing annually.
It is evident that sooner rather than later several women will be members of the general staff

In other words, in a country were both the ultra orthodox and Arab communities are very conservative in nature and which has a police force that has been riddled with sex scandals, the Israeli army is showing others that an alternative route is possible.

And the question remains: Where else in the Middle East would you find such a determination to create a more equal and fairer society? I suggest to you that the answer is only in Israel.

30 September 2016

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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.

27 September 2016

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There are hundreds of multinationals operating in Israel. Typically Siemens, Microsoft, Google and many more have their own r&d centres, usually near the costal plain. Just recently, there are indications that their customary approach to the ‘start up nation’ of the Middle East has begun to change. For example: –

Intel

Intel chose Israel as the first country, when it decided to build plants outside America. Today, it now has three facilities in the Holy Land, and at least three generations of chips have emerged from the land of miracles.

Intel’s latest contribution to Israel is to create a smart development centre. It is designed to house 2,500 personal in a state of the art, environmentally friendly complex. Recycling, shared info , customised air-conditioning and much more are its focus points. It will be a show piece to the world.

2. Samsung

Samsung this week officially brought its ‘early stage tech investment project’ to Israel. It has a simple yet determined aim. The Korean company is looking to invest around US$1 million in ‘the next technology’. The company has previously bought control of several Israeli start ups. So this move is a natural extension of this policy. It can be seen as a relatively cheap way to discover a competitive advantage over its rivals.

3. Sequoia and Benchmark Funds

Sequoia and Benchmark are American finance houses, which over the past two decades have invested heavily in the Israeli economy. Both have set up full local offices and raised monies for these operation.

Sequoia has led locally five rounds of financing, raising around US$780 million since 1999. In return, they have secured some of the largest exists in the market. For example, Ravello was sold to Oracle for US$430 million earlier this year. And Benchmark can report on similar successes.

All this is about to change. Neither of the two local offices will be raising more sums. Instead, any local investments will have to be financed by the funds from the American offices.

And then coming up, there is the multi-faceted conference in London on 16th November, called “Mind The Tech”. This will premier Israel’s leading high-tech figures – entrepreneurs, funders, accelerators and more – with their equivalents in the UK. The size of the event is nearly unprecedented, and just goes to show the continuing interest from large parties in the start up scene in the Holy Land.

25 September 2016

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Categories: Afternoon Tea in Jerusalem, Business, Israel

The Israeli economy never ceases to surprise, even the self-acclaimed experts. Have a look at these five snippets of info, and ask yourself why they are not reported in the world press for others to learn from.

In a period when the global economy is wondering how to generate new growth, Israel has just announced that its unemployment figure is at a new all-time low of 4.6%. That is a major achievement of which most other OECD countries can be jealous.
After decades of trying, Israel’s exports have begun to find new markets in Africa. Countries like Zambia and Kenya had been forced to put aside Israel’s offerings in their attempt to appease the Arab League. This pressure has been substantially removed, and thus exports from the Holy Land to the continent are likely to double or more in 2017.
In high-tech, Israel’s strengths are well documented. Only last week, CA Technologies invested US100 million in the purchase of the Tel Aviv company BlazeMeter. And Intel, one of the first American conglomerates to enter the country, is about to construct a state-of-the-art r&d centre near Tel Aviv. Never mind the coffee shops and restaurants for workers. Nor that employees’ tech instruments will “talk” to each other. This will be a fully GREEN 34,000 sq m work space, which will be the envy of many around the world.
And then there is the car industry, where since the 1973 Yom Kippur War, Israel has been seen as the ‘enemy’, due to the high cost of oil. However, today Israeli tech is sought after by the manufacturers. And the reason? Look at VW that intends to invest tens of millions in a new company called CyMotive Technologies, because there is a genuine fear that smart cars can be hacked just like smart phones. This presents a threat to human life. Interestingly, the company is partially run Yuval Diskin, the former head of the Shabak.
And continuing on the theme of the motor trade, Arkal Automotive is a relatively unknown company, locked away toward the north of Israel. The majority share holder is an agricultural kibbutz. And yet it has contracts with BMW, Mercedes, Opel and others to supply light weight, glass fibre components for vehicles. Total sales revenue will increase from about US$82 million in 2015 to well over US$90 million this year.

If there is a joint message in all of these points, it is a very simple one. Israel has so much to share with the rest of the world. And many of its products are in use in homes and on the road in most countries in the world. Embrace this knowledge for your own betterment of life, or just lose out.

20 September 2016

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Categories: Afternoon Tea in Jerusalem, Israel, Jerusalem

When people oppose Israel, are they doing it for the right reasons? Consider these two examples: –

President Mahmoud Abbas has defended the recent stabbings by Palestinians against Israelis in Jerusalem as a legitimate response to Israel’s oppression. The problem is that this argument justifies a continuance of hostilities against innocent people.
Jeremy Corbyn, the leader of the opposition in the UK Parliament, grudgingly believes that Israel has a right to exist under the 1948 borders. Yet, he fails to appreciate that these geographical divisions were never recognised in international law and never allowed Jews the right to pray at the Western Wall.

There comments are typical of the many criticisms to be found by political leaders and others, littered across the internet.

Now let us reconsider the events of yesterday, 19th September 2016, in Jerusalem. Yes, there were numerous attacks by Palestinians on Israelis throughout the day. And yet, while all that was happening…………

Around lunchtime, I had a medical appointment. The surgery is located in an ultraorthodox area, about a ten minute walk from the Old City of Jerusalem. I was treated by an Arab doctor, possibly a Christian.

But that is the point. Nobody asks or needs to know his religion or political views. You live together, despite the incitement of a small vocal minority on both sides.

Then later on that evening, I took part in a half marathon around the city. We weaved our way around different neighourhoods, looking at historical sites going back over 5,000 years. It was a joy. I think the first across the line was an Ethiopian, (predictably?). Again, it was an event open to all.

Israel has is faults, as do all of the other 200 or so countries around the globe, but not as described above.

So I have to ask: Just what are the likes of Abbas and Corbyn objecting to? Why do they need to peddle such falsities? What is their true agenda? For up to now they seem to be spreading hate rather than the bible of peace when it comes to the holy city of Jerusalem.

19 September 2016

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Categories: Afternoon Tea in Jerusalem, Business, Israel

Over the past year, the OECD has made much of Israel’s relatively low labour productivity performance. A updated survey from the Taub Center in Jerusalem reveals a more positive picture. Since 2001, productivity has improved 15%. Interesting, wages have remained static.

I would not normally be too interested in such stats. However, I am still trying to absorb a very impressive summary, which I read last week. Apparently, there is an annual competition amongst the larger employers in Israel as to who can come up with the most innovative techniques to keep workers happy. The event is sponsored by numerous parties, including KPMG and the financial newspaper “Calcalist” (Economist).

Here are my three favourite case studies.

Tower Semiconductors is located in the Galilee region. Approximately, 75% of the senior management has risen through the ranks. The company goes out of its way to finance the tuition fees of first and second degrees. Currently, around 45 members of staff are benefitting from this arrangement, which will filter back into the firm’s profits in the years to come.
Local authorities are never known to be great payers. Some help out with training courses. The Modi’in Regional Council has taken this simple concept one exciting step further. Not only does it seek to offer technical courses. It will then hire people who have undergone training. The example cited featured a worker who had learnt photography and who was then asked to film one of the council’s events.
Nilit’s factory operates 3 shifts every 24 hours. It employs people of all faiths – 60% of its employees count themselves as Moslems and a further 20% are Christian. Before each festival, even at 11.30pm at night, the factory will recognise the on-coming religious event. And that demands the participation of representatives of senior members of staff. Staff turnover has fallen dramatically from 30% to 20%.

I do not have space for all the stories. By way of a bonus, it is worth noting that Pizza Hut deliberately looks to those 16-18 year olds, who start with them on summer jobs, in order to promote them in years to come. Apparently, 90% of outlet managers began their careers that way.

What this anecdotal Israeli experience seems to be confirming is that you do not have to pay somebody a lot of money in order to keep them in their place of work. People want to be encouraged. They need to feel that they are valued. That is one of the core elements of motivating employees. That is what these innovative ideas are celebrating.

16 September 2016

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Categories: Afternoon Tea in Jerusalem, Business, Israel, Jerusalem, Palestinians

For decades, Palestinian leaders have been trying to convince the world that heir economy is bankrupt, and that can only be the fault of Israel. In a year of Brexit, a bizarre American election campaign and continued global retrenchment, has that rhetoric changed. And anyway, who is still listening?

Some facts: In July of this year, an IMF team warned that overseas donations, a critical part of the numbers for the exchequer in Ramallah, were slowing down again. Israel had held up its contributions, due to the Palestinian Authority’s (PA) massive state to Jerusalem. Unemployment is 27% in the West bank and much higher in Gaza. While their is growth of over 3%, this does not cover the growing population.

The World Bank status report, released this week, also makes for depressing reading. The fiscal system is under pressure. And because there is such a disproportionately large public sector, there is a looming threat of a pensions crisis.

The problem for the Palestinians is that the world financial crisis, which continues to fizzle along, ensures that there is no longer so much spare cash available for international aid. In parallel, the competing crisis of refugees from Syria and elsewhere in the Middle East has demanded that large sums be set aside for them.

Add into that equation the continuous flow of stories and rumours about corruption and mismanagement within the Palestinian leadership, and what do you end up with? Less funding!

Even the notoriously conservative thinking British government’s Department for International Development, which has handed out hundreds of millions in aid over the years, observed: “…we will work with organisations in the right way to make sure that we are delivering the right outcomes that meet our Government priorities—both peace and stability, as well as humanitarian causes.” That is Oliverian Newspeak for ‘we are reviewing the situation…you have all been warned’.

One positive factor did emerge this week. Israel and the PA finally settled their argument over how the Palestinians owe Israelis for use of their electricity and other amenities. A time schedule was established to pay off the debt, while Israel wrote off a billion shekels in back payments. Such a deal also answered the critiques, who have repeatedly claimed over the years that Israel has cut off power to the Gaza Strip.

However, the future does not look too bright. 81-year old President Abbas is clearly losing control over the West Bank. That is probably the true reason why elections there have been postponed. In addition, it is becoming horrendously apparent that Abbas will block any challenge to replace him, especially if that means the financial empires of his two sons are threatened. The Falcon Enterprise is evidently worth hundreds of millions of dollars.

Whatever the true size of the Abbas family’ private fortune (and that of Hamas leaders), as the Autumn of 2016 approaches, the rhetoric of hatred directed against Israel continues unabated. Many Palestinians continue to live in poverty. And their representatives continue to prosper.

Pages

UK-Israel commercial relations – a new high

Israel’s economy – winners and losers

Minority groups in Israel – something’s changing

How Israel’s economy impacts on the UK

Autism, Ipad, Issie Innovation and Israel

If you could eliminate one bad work habit……

Israeli society – 3 things you never knew

The entrepreneur. The setbacks. The business mentor

Israel’s economy – why the poor keep suffering

Dangers of Israel’s split economy – new confirmation

Israel’s economy growing fast…for whom?

Angry at work? 2 non-fail paths towards a resolution

Did you see the change in the Middle East last week?

Shimon Peres and the iPhone 8

How multinationals view Israel – 3 perspectives and a bonus

5 unusual facts about Israel’s growing economy

Rejecting Israel and Jerusalem for the wrong reasons

3 innovative Israeli tips to raising output without upping salaries

Palestinian economy, Autumn 2016 – beyond the rhetoric

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