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Israel and the recession

23 August 2009
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Categories: Business, Israel

Today’s papers in Israel were full of the stats from the last economic quarter. Private consumption up 4%. Growth up 1%. Exports up 5%. Investments up 5%.

Apart from rising unemployment and inflationary scares, all seems rosy, as Israel comes through the global downturn. And…and now let’s return to reality.

Yes, I have always maintained that Israel’s economy was well placed this time last year, especially compared to the UK and to the USA. For example, there was no mortgage crisis in the Holy Land.

“We are not out of the economic recession yet,” declared Finance Minister Steinitz today.

Look at the reports, and maybe the problem is not if “you are out of it” or if you are “emerging from it” or if “round the corner is a bright light”. What has happened is that in order to ensure that the country would not go through a major depression, unusual economic measures have been taken. And these have created discrepancies that have not existed for decades.

1) How can the government provide more resources for growth, when the fiscal deficit has soared?

2) The shekel has strengthened to the dismay of exporters, but the Bank of Israel (BoI) is about to raise interest rates. And, the BoI has ceased to buy dollars in the financial markets. Thus, the 2 weapons used to depress the shekel have been taken out of play. thus exporters will receive less of a return.

3) The labour market has yet to pick up, as layoffs still occur or production is fuelled by overtime.

So, where is the country going? Yes, Israel is doing well, on its own and compared to many others. That is very encouraging for the future and good news for overseas investors.

However, when considering what may happen next, it is The Economist magazine that gives us some guidelines. As this week’s leader points out, the global economy has ceased to shrink, but that is the end of the good news. Many powerhouses are in for a long period of weak growth.

For Israel, with an economy dependent on exports, that is not good news.

 

3)

The Palestinian economy

22 August 2009
1 Comment
Categories: Business, Israel, Palestinians

Last week, Israel’s ambassador to USA, Michael Oren, authored a telling item in the Wall Street Journal. His opening lines says it all.

Imagine an annual economic growth rate of 7%, declining unemployment, a thriving tourism industry, and a 24% hike in the average daily wage. Where in today’s gloomy global market could one find such gleaming forecasts? Singapore? Brazil? Guess again. The West Bank.

These are stunning stats, which are rarely seen around the global economic scene. They are based on the most recent assessment of the IMF.

Oren continues by differentiating between the West Bank and Gaza, where the latter is ruled by Hamas. In that fertile strip, 40% unemployment is a common number.

Certainly, we must take Oren’s glowing priase of economic success with some perspective. The ambassador gets paid a salary to hide the downside of the stats.

And this latest growth comes in the aftermath of the Palestinian initiated Intifada, when Palestinians paid a heavy social and financial price for their violence. For example, up to the Autumn of the year 2000, around 120,000 workers daily crossed over into Israel, receiving relatively high salaries. Much of that income disappeared for years.

However, Oren is hinting at something else, something far more positive for Palestinians. If this is what can be achieved with even a tiny smattering of reduced terror against Israel, then think what could be attained with a full peace treaty.

If that is the case, we have to ask ourselves why the Palestinian leadership cannot bring itself to negotiate with Israel, openly and properly?

Stats show Israel emerging from recession

19 August 2009
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Categories: Business, Israel

Intel has 3 r&d plants in Israel. In the second quarter of 2009, he company recruited tens of new software engineers. that trend is expected to continue for 3Q09.

Info from Israel’s Central Bureau of Statistics reveal that this is no isolated item. There is a clear rise in the number of hours worked, although not of all of this is carried through into increased employment. Revenues from commerce and services rose 4% annualized in 2Q09, a sharp reverse of the 5.5% drop in the previous quarter.

Add in a booming stock market and better tourism figures, what does all this mean?

To be clear, Israel’s economy is not back to the rosy levels of this time last year. Inflation soared in July, as the 1% rise in VAT took effect. Many companies are still watching their wage bill.

What is increasngly evident is that Israel is pulling itself away from the bottom of the pit. That is what overseas investors look for.

Palestinians deserve better

18 August 2009
3 Comments
Categories: Israel, Palestinians

The Fatah Conference is over. United in its hatred of Israel and divided over any other subject, the result was a sham. Instead of talking about peace, more obstacles were placed in the way of progress.

In the immediate fall out, it is the average Palestinian who will suffer from this display of disunity.

With a great deal of irony, about the only togetherness took place when most delegates resigned quickly after the ballot results were announced. Former Palestinian Authority Prime Minister Ahmed Qurei (Abu Ala) told the London-based Al-Quds Al-Arabi newspaper:-

The forgery in Iran’s recent presidential election was nothing compared to what happened in Fatah……There were behind-the-scenes arrangements that removed some names and added others to the winning list.

It will be interesting to see how President Obama handles President Abbas, who clearly does not possess the flowing confidence of his own party, Fatah; a party which has again reiterated the option of armed struggle against Israel.

Fatah’s stronghold is in the West Bank, having been evicted by Hamas from Gaza. Yet this former Egyptian territory raises its own human rights issues.

Last weekend, Hamas took out and slaughtered a rival political group, linked with Al-Qaida. Highly respected commentator, Tom Gross, reports that:

Hamas forces also stormed a mosque in Rafah on the Egyptian border, where about 100 members of Jund Ansar Allah, or “The Soldiers of the Companions of God,” were holed up. At least 150 Palestinians were injured.

Hamas, which regularly cons Western human rights groups into believing it doesn’t have any money, used a considerable array of weapons, including rocket propelled grenades, to attack the mosque. …

According to the Palestinian Ma’an news agency, an Egyptian child was hit by a stray bullet fired during the exchange, and ten artillery shells also landed on the southern side of the Gaza-Egypt border, ….

This news is of considerable political significance because it shows that Hamas is determined to maintain absolute control over Gaza and allow no dissent whatever (thereby reducing the prospects of reconciliation with Fatah and the possibility that the Palestinians might be unified enough to form an independent state).

That Hamas has little respect for common law is no surprise. Two weeks ago, it commandeered 3 new ambulances, just as they were being delivered to UNRWA. That is several tens of thousands of international tax payers money, donated on behalf of Palestinians, which has been swallowed up into the heart of the Hamas organization.

As I end this piece, I have just recalled that back in April, Israel’s entry for the European Song Contest was entitled “There has to be another way”.

Oh, how the Palestinians deserve so much better

German, French and Israeli economies.

16 August 2009
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Categories: Business, Israel

Much has been made of the French and German economies leading Europe out of a recession.

Figures released on  August 13th showed that the euro area’s GDP shrank by just 0.1% in the three months to the end of June, far less than the 2.5% slump in the previous quarter. The near stability was the result of an early exit from recession in the region’s two largest economies. The economies of both France and Germany grew by 0.3% in the quarter…..

The Economist magazine has also pointed to the strengths of several Asian economies.

The four emerging Asian economies which have reported GDP figures for the second quarter (China, Indonesia, South Korea and Singapore) grew by an average annualised rate of more than 10%……..

All very encouraging. And I want to draw attention to Israel’s economy. I have consistently stated that the country entered the downturn in a good position, structurally. It turns out that GDP grew by 1% in the second quarter of 2009, beating most predictions.

I am sure that the finance ministers of all these economies are gloating at these stats. Prime MinisterNetanyahu has already released a press statement promising more structural reforms, particular in the Land Administration.

Clearly, one quarter does not make a year and certainly not a long stretch of recovery. What it does point to is the potential of an improved economic future and thus a stronger platform for investment.

Can you tour Israel freely?

14 August 2009
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Categories: Business, Israel

Let’s get down to the point. My familyhas just spent 7 days travelling round the north of Israel, including the Galilee and the Golan Heights. And I want people to know what we did and why it was such a great success.

We left Jerusalem via the road to Jericho. The Jordanian Valley is rich with Bedouin, Palestinian, Christian villages and sites. The main road, which travels the West Bank  was open to all, and the camel owners appeared to have no problems encouraging tourists to part with their dollars.

We eventually stopped just south of the Sea of Galilee at Neharayim Park, right on the River Jordan. This was the site of an electricity power station, set up by Zionists in 1931, which even supported towns stretching into modern Syria and Jordan.

Here’s what is fascinating. A small section of the area is called “the island of peace”. Under the 1994 peace agreement, it officially belongs to Jordan, but is under the complete management of Israel. Both flags fly near to each other. The murder of 7 Israeli schoolgirls in 1997 have not stopped this wonderful project.

We spent 3 nights at the hotel on Kibbutz Hagoshrim. The Kibbutz lies along the northern ridge of the Hula swamp, drained by pioneers 100 years ago. In 1940, Emir Fa’ur, a powerful tribal leader, sold his lands to the Jewish National Fund (Keren Kayemet) and left his palace . 13 years later, the hotel was established, and in the lobby you can still discern the original structure.

The hotel hosted a multitude of languages; English, French, Arabic, Hebrew and more could be heard. As for nationalities, the dining room was a ready match for the UN, both amongst staff and guests.

10 miles to the west of Hagoshrim is Kibbutz Manara. It is perched about 1,000 meters above the hotel and stares straight at the Golan Heights, into villages divided by the Lebanese border, and into surrounding Israeli towns. It proides a commanding view.

It backs on to an area, which possesses a rare mix of religions; Druze, Muslim, Circassian, Christian, Jewish and several more, living together. It is only the threat of the Hizbollah and its consistent rearmament that clouds the tranquility.

From Hagoshrim, we moved to Had Nes, located on the lower Golan Heights and just above the Sea of Galilee. It is almost a decade since the late President Assad refused to make peace with Prime Minister Barak, because the Syrian leader would have had to concede a 10 meter wide strip along the lake.

Meanwhile, Israeli development continues in the Golan, where over 50 ancient Synagogues have now been excavated. The Golan winery challenges the best vintages from Europe. Red grapefruits are big seller in Japan.

One of the highlights of the week was our walk through the gorge of the River Yehudiya. At the top, we passed an abandoned Syrian village, which in turn had been built on the ruins of a former Jewish town. Below, we struggled along the heavy basalt rocks, wading in and out of the river. We dropped from ledges into small lakes. fantastic challenge.

I could describe other parts of the holiday. Watching and talking to Druze picking sabra fruit – a rare but simple technique. Meeting up with European volunteers on kibbutz enjoying themselves. etc etc.

There were many reasons why our family had a great holiday. Maybe the most important factor was the beauty of the region, open to all. Long may it stay that way.

Israel – a market for overseas investor

14 August 2009
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Categories: Business, Israel

In the past week, Israel has thrown out a series of encouraging news items for overseas investors.

Let me start with a story that was first reported on the Hong Kong stock exchange. Hutchinson Telecommunications International will sell its 51.3% equity interest in Partner Communications, Israel. This is expected to pull in a pre tax profit of around US$1,000 million.

Shlomi Cohen is an established commentator on the local finance scene. In his latest writing, he has identified several Israeli high tech companies that have ridden the global tsunami with great skill.

And these companies are not individual islands of success. If you look at today’s Globes financial newspaper, you can find a string of satisfying investment news. To take just 2 examples, check the links to D-Pharm and to Tower Semiconductors.

The Israeli economy is on the move back.

UBS sees clear recovery in Israel

6 August 2009
1 Comment
Categories: Business, Israel

This item was posted on Globes site just now, echoing much of what I have been arguing for the past 9 months.

Main point – Israel will come out of the recession relatively early. UBS expects growth at well over 2% in 2010.

The article in full appears below.

UBS believes that economic activity in Israel “will show clearer signs of a pickup over the course of the third quarter of 2009.” The assessment is based on the Swiss bank’s composite lead economic indicator, which showed a moderate rise in April-May, and a strong rise in June.

UBS economic Reihard Cluse believes that the Israeli economy will recover sooner than many other organizations that track the local economy, including the Bank of Israel, which is quite concerned about growth forecasts.

Cluse writes, “Overall, the new data point has strengthened our confidence that the Israeli economy will return to positive growth (in sequential quarterly terms) in the third quarter, following a weak first quarter and, most likely, an even weaker second quarter. We maintain our above-consensus growth forecasts of minus 0.8% for 2009 and 2.7% for 2010 (consensus estimates: minus 1.2% in 2009 and 1.6% in 2010; and the Bank of Israel forecast of minus 1.5% in 2009 and 1% in 2010).

Cluse adds, “Compared with many of its EMEA peers, the Israeli economy suffers from relatively few structural problems; we believe this should help it to pick up again relatively quickly once the global economy (and the US economy, in particular) recovers in a more sustained manner.”

UBS’s composite lead economic indicator comprises six variables: manufacturing Purchasing Managers Index (PMI ) for stock of purchases, new order and new export orders; intermediate goods imports; the Tel Aviv 100 Index, and the Bank of Israel quarterly lead indicator. UBS states, “All of these subcomponents registered positive changes in June.” The banks stressed the word “all”.

Has the Tel Aviv stock market got it right?

6 August 2009
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Categories: Business, Israel

The main index of the Tel Aviv stock market (TASE) just keeps on shooting upwards. A 13% climb in the past month. And the trading volume is also up 10%.

Boom or bust? Well, I have always maintained that Israel would be well placed to emerge relatively well from the global recession. Reforms starting back in 1986 have created a sound structure, with no false mortgage market.

Another reason, somewhat cynically, is that as the recession emerged, Israel’s politicians found themselves engaged in a drawnout general election. No time for unimportant matters like saving (or tinkering with) the economy. That was left to Stanley Fisher, Governor of the Bank of Israel, a man trusted by the international community.

The results can be seen in today’s newspaper.

  • IKEA has 300 stores around the world. Its store in Netanya is one of the top 20 in terms of revenue. In July, it reported record takings at the tills!
  • In July, the number of people seeking unemployment benefit dropped 5%
  • Leonard Cohen, Madonna, Pet Shop Boys and others are all performing in Israel this summer. Sell out is an understatement. Despite the high price of tickets, extra shows are being laid on in some cases.

Is the recession over? No. Is the shekel overvalued? Yes. And many will say that the TASE is due for a small correction. However, something very positive is happening in Israel’s economy.

Let’s make sure that the politicians take an extended summer holiday.

Blow for Palestinian economy

5 August 2009
1 Comment
Categories: Business, Israel, Palestinians

Fatah, the largest block in the PLO and in the Palestinian Authority, is holding its Sixth General Congress this week in Bethlehem.

General opinion holds that Palestinian President, Mahmoud Abbas, will ensure that the discussions take a hard line in tone. The option of armed resistance remains firmly on the table. Even Palestinian schools, responsible for a new generation of peace makers, continue to teach as routine that Israeli cities including Haifa are part of Palestine.

What is disappointing is the lack of state-building. President Obama with European support is actively taking measures to bring this near eternal conflict to an end. In response, Fatah offers a negligible amount of discussion, which deals with creating a functioning economy or implementing administrative reforms.

Bottom line: The corruption and nepotism, for which Fatah was famous for under Chairman Arafat and which led to the Hamas triumph in Gaza, will be protected at all costs.

The Palestinian Prime Minister, Salim Fayyad, is an economist with a strong and hard-earned international reputation. It is through him that much of the hopes of the West are transferred. But as we learn in psychology, such transference is not a guarantee for a new reality. As information from the Congress emerges, it is clear that real power lies outside Fayyad’s spacious office.

The result? For the near future, more political uncertainty, a poor recipe  for economic growth. As for policy measures, there will be no new initiatives to build cheap housing, as has happened previously in the Ramallah region. There are no known initiatives to set up regional development councils. (That is often undertaken by NGOs, who then criticise Israel). There will be no restructuring of the public sector finances, as consistently demanded by the IMF.

The intenational media will continue to receive sensationalist copy. The Palestinian person in the street will continue to receive large amounts of valueless rhetoric. No if that where to be registered in the national accounts, the Palestinian economy would be booming today.

Motivation + Gaza + war = Hollywood

3 August 2009
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Categories: Israel, Palestinians

Lieutenant S’ was a crack sniper in the Israeli army. About 9 months ago, he was severely wounded in Gaza by a Palestinian sniper. He took two bullets, which penetrated vital organs.

S’, whose name has not been released for security reasons, was not expected to survive.

A former martial arts expert, S’ was fully conscious when he reached hospital. Within 5 months, he had left his recuperation unit, a near record time. Although confined to his wheelchair, he successfully pushed to be inducted in an officer’s course. And, having passed with honours, he has returned to his crack unit.

Hollywood loves stories like this. Remember the film about the first American black navy diver, who defeated racism and then overcame the loss of a leg? What in hell drives these people ? And why insist on returning to places, where they had already lost limbs?

I do not know if there is a definitive answer. S’ is currently fighting his next war against accepted medical principal, determined to abandon his wheelchair one day.

Somewhere, mixed up in all the pain and the sentiments of heroics is a basic feeling or deep need to “do good”. In other words, people like this just want to serve their country, to protect their fellow citizens, whenever and whatever it takes.

They have been brought up with a deep motivation to succeed. And when that success can be shared by the whole country, they know that they have accomplished something morally good, which an be passed on to others.

During the fighting in Gaza, around 1,250 Palestinians were killed. The IDF has named all of them, of whom about 2/3 were combatants. Palestinians sources put the figure at about 1.400, but the stat is open to questioning.

I gather that S’ lives not far from me. As a result of the war, another neighbour did not return from the battle. Others were injured. All of them shared one thing in common – a burning desire to contribute. They understood that Israel’s security is won through being prepared and by defending the country through honour and by all legal means.

Israeli troops have long since withdrawn from Gaza, although the shelling of southern towns by Hamas continues sporadically. Meanwhile, Israel’s critics are having a field day. The UN has appointed a commission to investigate possible excesses by the Israeli military, although no inquiry has considered the role of Hamas sending rockets against population centres.

The international media has consistently lambasted Israeli units for not taking into account the needs of innocent civilians in the field of battle. Yet concurrently, there were wars in Sri Lanka, Afghanistan, Iraq, and in several African countries. For all the inconsistencies and abuses in these conflicts, no inquiries have been launched. You do not find any investigative reporters from the Sunday Times or the New York Times.

The Israeli army has announced that it is investigating 14 separate incidents of possible abuse by soldiers. No other army in the world has such a transparent system. No questions are asked in Westminster or in Congress about possible misdemeanours by NATO troops.

The UK’s leading journal for black people, The Voice, recently claimed abuses against blacks in Israeli prisons. The article was soon pulled from the website after it was found to be ridden with factual errors.

And so the ritual of this unethical mock trial continues. Maybe the true Hollywood story is not the heroics of S’. What the scriptwriters should look for are the facts hidden from view by those who should be writing about them every day. S’ merely symbolises what 99.9% of Israelis think and how they try to behave day after day, despite the mistrials and hypocrisies of others.

Building in Jerusalem

1 August 2009
1 Comment
Categories: Israel, Jerusalem

International media continues to focus on private building projects on the Eastern side of the city. In parallel, there are two areas that the journalists fail to report on.

First, commercial building in Jerusalem has accelerated in recent months, despite the recession. For example, figures for June 09 show a 54% increase on last year regarding new flats bought from public sector projects.

Similarly, Jerusalem’s tourism boom has clearly influenced Rixos, an international luxury hotel chain. It has agreed invest around US$50 million in building a 200 room complex. This ties in with the ambitious plans of the new mayor of Jerusalem, Nir Barkat, to ramp up significantly the local tourism market during his tenure.  

Second, it is now an established fact that hundreds of Moslems are buying properties in West Jerusalem. Nothing wrong in that. What I cannot fathom is why international governments sanction Israeli Jews from living in Moslem suburbs.

A comment from the journalists?

Jerusalem; sadness or hope?

30 July 2009
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Categories: Israel, Jerusalem

For traditional Jews, this is a sad time of year. They recall the destruction by Babylon and then by Rome of the Jerusalem Temples, on the same calendar date. The book of Lamentations is read, where the opening verses set the tone of mourning: –

Alas – she sits in solitude. The city that was great with people has become like a widow. The greatest among nations, the princess among provinces, has become a tributary.

For all Jerusalem’s stature amongst nations, it has continued to find pain in history. The stories are many.

After Rome left, the crusaders brought new wars. The Turks ran the city into poverty at the turn of the previous century. And in the past decade, the inhumanities of the Intifada and homicide bombing have created hundreds of bereaved families from all ethnic backgrounds.

As deemed by rabbis hundreds of years ago, the suffering is commemorated through a 25 hour fast.

In the same breath, Jerusalem – old and modern – is an amazing place. New visitors are consistently amazed and awakened at its contrasts and beauty. When I take guests around the Old City, I lead them out of Jewish Quarter, which then opens out towards the Temple Mount; a stunning, unravelling view pulling together 3 major religions and thousands of years in one gaze.

It was my wife, who helped me to place all this history in perspective. She is an avid fan of a Jerusalem bike club, which hits the streets every Tuesday evening. It is run by Nitzan from his bike shop on Jaffa Street.

And every Wednesday morning, she rightly describes every detail with a thrill that few of us achieve from other activities. But this week was something special. They were over 50 in total, whose backgrounds included tourists and a foreign film crew.

The ride took them along the northern ridge of Mount Scopus, around the old campus of the university. They progressed through the holy Mount of Olives, where they saw loads of Arab weddings, celebrating with fireworks. They rode down through Gethsemane – despite the late hour, pilgrims were pouring in. And towards the end, they drove in formation along a new bridge at the entrance to the city.

Lamentations, as probably written by the prophet Jeremiah, ends with a message of hope, a call to renew and to return to the days of old. Jerusalem asks people to recall the past in order to learn how to create a future of joy, a future where everyone can live together in peace and in honour.

I feel that it is that hope that my wife was blessed to witness on Tuesday.

Israel cleantech surges ahead

30 July 2009
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Categories: Business, Israel, Jerusalem

Israel has been a strong partner of the third industrial revolution, communications. When it comes to cleantech, Israel has shown itself to be a world leader.

Just look at some of the news items over the past month alone.

Siemens has committed to playing a major role in promoting Israeli cleantech.

New water purification techs were shown off at the annual Greentech exhibition in Tel Aviv.

Last week, I accompanied a European investor to several Jerusalem based companies. And discussions have already moved on considerably in some cases.

“The Economist” magazine featured 2 Jerusalem based solar companies, an impressive honour for the city.

There are several overseas investor conferences promoting Israeli clean technology. I am associated with one in London,  20-22 October 2009. Organised through the commercial attache in London, it will place dozens of companies in front of potential strategic partners. The event has already attracted the attention of international media.

What Israel has done is to take cleantech beyond a dream. Almost daily, concepts are being converted into commercial realities, which is capturing the minds of international investors.

What next for Israel’s economy?

28 July 2009
1 Comment
Categories: Business, Israel

The Israeli stock market kicked off the week with a near 4% jump. This brought it back up to the levels of November 2008.

In parallel, unemployment has hit 8.5% and inflationary fears are on the move. What’s going on?

Listening on the radio yesterday, one of the country’s leading constructors, Akirov, referred to the state of two economies. And Israel is well used to this situation. Despite the growth in GDP over decades, Israel has one of the widest discrepancies amongst Western economies between the top and bottom income earners .

Specifically, Israel’s economic policy makers are faced with several contradictions over the next few months.

For example,the rate of interest stands at 0.5%, down from 4% in August 2008. Alhough the Bank of Israel has announced “no change” for August, everybody knows it will start to rise in order to head off inflation.

However, such a movement will protect the shekel, already seen as overvalued against key currencies like the US dollar.

Now look at the stock market: It has been driven upwards by the performances of Wall Street, low interest and future expectations. However, for the small private investor to start risking money on the back of current improvements is… it’s still a risk. The world may be over the worst of a recession, but the downturn still remains in may key economies.

As for the government, there are signs that a budget will be passed soon. However, the pressures of coalition politics place an enormous strain on the spending side. And politically, Mr Netanyahu has not shown a clear capability to lead and to control.

The governemnt has promised huge structural reforms – opening the supply of electricity to competition, privatising the ports, etc. In opposition, the unions have already demonstrated their strengths.

So what’s the bottom line? It is great to read about the stock market leaping forward. However, economic history teaches us that sustained economic growth, the basis of any solid financial revival, rarely comes through one-off, huge improvements.

The government needs to lead through constructive initiatives and sound decision making. Now that would be a revelation in the Holy Land.

Healthcare in Israel

25 July 2009
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Categories: Israel, Jerusalem

A few weeks ago, I received a briefing from The Israel Project about Israel’s healthcare system since 1948. Full of turgid facts, what it proved beyond doubt was that the medical is staffed by all ethnic groups on behalf of ……. all ethnic groups.

So here are a few examples of what I mean by this:

  1. When my teenage son was hospitalised for a stomach complaint, over half the beds were occupied by non-Jews, as was much of the staff.
  2. Save A Child’s Heart international campaign, located in South Tel Aviv, has treated over 800 Palestinian youngsters in the past decade.
  3. Prof. Zeev Rotstein at the internationally accredited Sheba Rehab Center near Tel Aviv was quoted as saying that:  “You have army doctors in white gowns alongside Palestinian doctors who are being trained, at the same time treating Israeli casualties of terrorist attacks and Palestinians who may have been hurt in army actions.”
  4. Earlier this July, a team of 12 physicians from the UK’s NHS  visited Jerusalem to learn more of Jerusalem’s emergency health system, Terem. The software in use has won a prize from Microsoft. The aim is to launch a similar initiative in the UK, drastically waiting time.
  5. And finally, let me show off about my own 16 year old daughter. She is currently completing the next level of being a volunteer for Israel’s ambulance service. Nearly 200 youths are engaged in the course, and yes they come from a multitude of different backgrounds.

As the NHS recognises, there is much in Israel’s heathcare to be copied by others.

Are Israel’s critics wrong?

24 July 2009
2 Comments
Categories: Israel

It is politically correct to attack Israel, particularly in the UK.

A discussion in Britain’s House of Commons on 22nd July practically wanted to lynch the whole country: try most of the Israeli government for war crimes, deliberate Israeli campaign to distort customs declarations, open harassment at checkpoints, and so on.

Now these are good people, looking to encourage world peace. They would certainly deny any element of anti-semitism in their hatred. For example, Chris Huhne, is the Liberal Democrat Shadow Home Secretary. He mentioned in a separate debate that:

Britain is setting a shameful new record in anti-Semitic incidents this year, which are running at double the annual rate of the previous record. It is completely abhorrent that anyone should be intimidated on the grounds of their race, colour, gender, sexuality or creed.

Bravo. Yet he continued: “It is absurd that home-grown bigots should hold British Jews responsible for the actions of a foreign government. We cannot have overseas conflicts echoed on Britain’s streets.”

The implication is that British Jews must not support Israel? Israel is an awful place and I will have nothing to do with it? Not quite a double standard, but then a friend of mine pointed out that: –

Liberal Democrats themselves have a great deal to answer for; Jenny Tonge (understands Palestinian terrorist suicide bombers), Nick Clegg (false accusations re Gaza), Chris Davies (Yes, he did actually write “wallowing in your own filth” to a Jewish lady he presumed was a Zionist. He also reported to have denounced something that he called the “Jewish Lobby” and re-stated his position that the conflict between Israel and Palestine is to be rightly compared with the Nazi occupation of Europe.)  The Lib Dems were the first party that invited  Norman Finklestein the Holocaust denier. 

These people are clearly uninterested in Israel’s right to defend herself – for example no mention of the two rifle shooting incidents directed from Gaza this week. No mention that Israel is the one country in the Middle East with a growing Christian population. No mention that Israel is an open society, the one country in the Middle East that accepts UN commissions to investigate – and even when the terms of inquiry state up front that the country is guilty.

Double standards? I don’t know. Not if the House of Commons spends as much time on Israel as with human rights in Saudi Arabia or Libya or Syria? What about the accusations of murder and corruption launched at Hamas….by the Palestinian Authority itself?

The “Economist” is one of the most respected international journals in the world. “The United Nations Development Programme (UNDP) this week published the fifth in a series of hard-hitting reports on the state of the Arab world. It makes depressing reading.”

Six Arab countries have an outright ban on political parties and the rest restrict them slyly. They have failed to make their people rich: despite their oil, the UN reports that about two out of five people in the Arab world live on $2 or less a day. They have failed to keep their people safe: the report argues that overpowerful internal security forces often turn the Arab state into a menace to its own people.

Etc etc etc

There will be little if no referral to this sad and damning report in the House of Commons.

And here is the irony and hypocrisy in one. The debate of 22nd July was led by Rob Marris, who declared that he was briefed by Chris Doyle of the Council for the Advancement Arab-British Understanding (CAABU). CAABUwas originally founded by former British diplomats, who fumed at the founding of the state of Israel. An open pressure group, it is difficult to find practicising Jews amongst its membership.

So let’s cut to the chase. When you look at Israel’s critics, has anybody dared to acknowledge the similarity between the language of the 1930s,including Mosley’s fascist blackshirts in the UK, and the current terminology is used to demonize Israel? Is this a task too intimidating or too abhorrent for Mr Huhne’s team to research?

Israeli cleantech sector moves ahead

23 July 2009
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Categories: Business, Israel

Israel’s cleantech sector has an impressive global reputation. There are now close to 1,000 companies engaged in the industry, not bad for a country the size of Wales.

In the past week alone, two important pieces of news have been posted. An American solar giant, SunEdison, will be moving into Israel. In parallel, Israel’s Office of the Chief Scientist will start to prioritise funding of projects in the cleantech sector.

These are not isolated items. For example, earlier this week, I visited several companies, developing water and solar capabilities, with a European investor. One stop included Solaris Synergy, utilising solar energy from water. Established less than a year ago, they have 2 beta sites in Israel and strong prospects in Europe.

The Ministry of Industry, through the Israel Export Institute, have already announced the details of an Israeli cleantech misssion to London in October. Participants will engage with potential strategic partners. Last week, I met up with Gil Erez, the commercial attache in London, who is organising the event.

In other words, small and medium sized Israeli companies are playing a strongly growing part in the global cleantech industry.

Unilever shows its confidence in Israel

22 July 2009
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Categories: Business, Israel

Unilever is one of those global giants. Loads of well known household food brands come out of its factories.

In Israel, Unilever has long established itself on the local breakfast table. Annual turnover is estimated at over US$400 million.

To illustrate its importance, anti-Israel boycott groups have tried to target the conglomerate, but without much attributable success. Now, a leaked report in today’s “Yediot” newspaper claims that Unilever will significantly increase its place in the Israeli economy.

Strauss is considered the major seller of ice-creams in Israel with about 60% of the market. It already has a partnership with Unilever. Strauss is now reported as preparing to sell its remaining 49% of its agreement to Unilever.

The value of the contract is not known. It can be assessed against Strauss’s annual turnover of ice cream at around US$150 million per annum.

Time management – 2 brief case studies

22 July 2009
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Categories: Business, Israel

I recently commented on twitter about how to “get the right work done”. In a nutshell, simple techniques to focus on what is important and not to be sidetracked. The net result will be ….net results!

I have been working with 2 SMEs in Israel, serious and industrious teams. They are committed to establishing their respective businesses, both very ambitious. They have different backgrounds, both arriving at commercial life with good experience and support groups.

And here’s the interesting point. For all the good intentions, neither were sure how to move forward.

To put it another way: The final goal or vision sounded great, but proved to be too cloudy and near frightening.

In both cases the way forward has been to: –

  1. Define precisely the vision.
  2. Give that vision a time deadline
  3. Working backwards, set out the task leading up to the vision. 

Inevitably, this creates new sub-challenges, re logistics and budgets, and that is marvellous. Effectively, the small business owner invites themselves to take a hard look at what resources – time, money, raw materials – will be needed and when.

If they cannot meet that time framework, which they have set, the question arises if they are really so committed. If they are not, time management becomes a very difficult issue.

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