Over the past 3 months, the Tel Aviv Stock Exchange has more or less held its value, despite sharp daily fluctuations. compared to the 10% losses in London or on the Dow, that is good news.

The past few days have seen another mark of confidence in the Israeli financial system. The International Organization of the Securities Commissions has agreed to host its next conference in Tel Aviv, commencing 8th June 2009. 

There is a list of financial heavyweights due to attend. The current program includes: –

Mr. Lloyd C. Blankfein, Chairman and CEO, Goldman Sachs Group, Inc.; Mr. Deven Sharma, President, Standard & Poor’s; Prof. Eddy Wymeersch, Chairman, IOSCO Regional Committee, Chairman, Committee of European Securities Regulators; Prof. Stanley Fischer, Governor, Bank of Israel; Prof. Zohar Goshen, Chairman, Israel Securities Authority; Mr. William Brodsky, CEO of the Chicago Mercantile Exchange

A couple of weeks back, I commented on the excellent report Israel received from the IMF visiting committee. I still tend to agree with the Governor of the Bank of Israel. This recession may be tough, and it is not ignoring Israel. However, the country has a good chance to come through in a strong position.

It is an accepted fact that whether due to conflict or a corrupt leadership, Palestinians are dependent on aid.

I have long argued that while the money is needed, it is handed out in a manner that wavers between meaningless to dangerous. For proof, just consider how Chairman Arafat died as one of the richest men in the world.

In contrast, I have recently witnessed some encouraging news for the Palestinians. 

First, this week, I was invited to join a tour around Israel with an NGO, whose charity is active in the Palestinian territories. One of the first stops was in Ramallah, where the The Portland Trust is building cheap housing and helping to develop pension schemes. These are on-site projects,which will make a long-term difference to society, beyond the reach of waring factions.

And I am to attend the Jerusalem STEP Conference, directed at promoting economic opportunities in the Palestinian Areas. The PM designate, Netanyahu, will give the opening address.

It is these types of initiatives, which the world needs to focus on. It is time to move away from terms like “occupation” and “terror”. If the peace makers would start to concentrate on the very people affected by the conflict – on both sides – maybe there will be some genuine hope for all.

The Office of the High Commissioner of the United Nations for Human Rights will host “the Durban Review Conference”in Switzerland in April 2009. It is designed to create an international momentum against racism.

By chance, at the exact same time on Tuesday 21st April, 10,000 people will be holding a rally at Auschwitz under the banner of “Say No To Hatred Today”.

The Durban conference will not be attended by the USA, Italy, Israel and Canada. Australia and Holland have open doubts. Around 90,000 people voted on Der Spiegel’s website against German participation. At least 45 MPs at Westminster have signed a motion of protest. So why boycott a UN sponsored event?

The answer is simple. The conference will be an extension of a previous debate held in 2001 in Durban, when the thin veil of pretence between anti-Zionism and anti-Semitism was blon away. Speaker after speaker attacked Israel’s right to exist, calling for economic, cultural and diplomatic sanctions against the Jewish State, the sole democratic country in the Middle East.

I have written often how my daughter is a volunteer in an ambulance brigade in Jerusalem, where staff and patients are from different religions. The Kenesset is host to Jewish and non-Jewish Communists, who regularly joust with Lieberman’s right wing approach. The churches in Ein Kerem, Jerusalem, where my wife works, toll freely every day. And this week, the members of Hapoel Tel Aviv football team offered their respects to a Circassian colleague, who lost his father in heart-breaking circumstances.

When visiting NGOs come to Israel and look for coexistence projects to invest in, there is no shortage of opportunities to consider. And that is the point. Such diversity and pluralism is hard to find in the other vast expanses of this violent region.

This openness is not just laid down in common law in Israel. It is a way of life for the overwhelming majority.

Significantly, the same principles are rarely applied when investigating other countries. Israel is thus judged by a set of standards, which converts spin into deligitimization. The result is often hypocrisy, mistrust, and even hatred. Ironic for a country looking to the outside world to help secure a peace with its neighbours.

The UN’s attempt at anti-racism has become an open route to vent venom at Israel, and thus at Jews.

I offer the remaining UN delegates an alternative. Leave the comfort of Geneva. Join those on the “March of the Living” in Auschwitz. No clearer message could be sent to totalitarian regimes around the world…….such as Libya and Cuba, the prime movers of iniquitous resolutions in Switzerland.

Then let us look toegther towards building coexistence through the multiple projects in the Holyland.

There’s an old joke in Israel. It takes 3 months to decide on a date to hold an election, 3 months to campaign, and 2 months to form a coalition. And when that is over, it is nearly time to start the circus all over again.

So while Bibi Netanyahu has been dallying around, trying to create a government based on a solid majority of 1 – or is it 5 – votes, the country has calmly gone through a series of crises. Hamas continues to send rockets into population centres. Stanley Fisher, the Governor of the Bank of Israel, is predicting the worst economic scenario in the country’s 60 year history. The Obama administration is looking increasingly hostile. etc etc.

Is Bibi the man to save the country? So far in coalition negotiations, he has surrendered several top portfolios to Avigdor Lieberman’s party, even though they received barely half the number of votes as him. Not a good omen for when the PM has to handle Palestinian or American pressure.

If only it would end there.

It is my wife who pointed out with pointed despair and disgust that neither Lieberman nor any of Bibi’s potential partners have sought the economics or education portfolios. She correctly observed how most people go into politics ostensibly to change things. And where better to make a mark on society than through these two ministries?

But in Israel, after over half a year of jockeying and puported idealism and electoral holier-than-thou comments, nobody at the top has the combined courage and ability to make a stand. These two jobs, which urgently need people of calibre, are being shunned by potential cabinet members.

What the hell did these people fight an election for?

Tourism in Israel had a brilliant year in 2008. Around 3 million visitors arrived, two thirds of whom were Christians. A significant increase on previous years. 

As the Tourism Ministry has reported: –

During the last decade, the ministry has invested tens of millions of shekels in developing sites including, among others, the Mount of Olives Promenade, Via Dolorosa and Christian trails in Jerusalem, Nazareth and around the Sea of Galilee.

Going forward, in less than two months from now, Pope Benedict XVI will visit the Holy Land. Although accepted that he will not be accompanied by tens of thousands of “well wishers” as his predecessor was in 2000, his entourage will still be very heavy indeed. Jerusalem hotels are already reporting full capacity for the period.

It goes further. This week, a large delegation of Israelis, representing the full spectrum of the tourism industry, visited Bethlehem.

With the cooperation of the Civil Administration, the city has been part of the boom since late 2007. In parallel, the Tourism Minister of the Palestinian Authority, Khouloud D’eibes, has given his open support to the initiatives and enhanced cooperation.

The net uplift: Welcome income for two economies, showing what can be done together. A model for economists. A slap in the face for detractors.

This weekend’s tennis match between Israel and Sweden appears to have more to do with politics than sport. Pictures of the violent protests against Israeli representation recall the worst days of the Intifada.

It is easy to compare the lawlessness of the protesters with those who attacked British police recently in London. Of more interest is to analyse their basic complaint that Israeli society is racist.

Speak to Ishamel Khalidi, Israel’s deputy consul general in San Francisco. A Muslim, a proud Bedouin, the owner of a master’s degree from Tel Aviv university, he clearly disagrees with such an appraisal. Writing recently in the San Franciso Chronicle, he observed: –

If Israel were an apartheid state, I would not have been appointed here, nor would I have chosen to take upon myself this duty.

On a different spectrum, the Leo Beck School in Haifa has a diverse student background. You can find Jew, Muslim, Druze, Christian, etc. Almost every year, another multi-ethnic school opens in Israel.

The Israeli Parliament has numerous non-Jewish representatives. The judiciary is replete with members of the minorities. And my wife works in the Ein Kerem area of Jerusalem, where today the church bells will toll out loudly as per every Sunday.

On March 4th, the Independent Commission for Human Rights released its monthly report re violations of civil liberties in Palestinian territories. At least 4 citizens, including Basheer ‘Ilayyan al Zaytouneh, died from torture. One died under interrogation from Palestinian police. Numerous journalists, like Wa’el Issam Abdul Qader, were detained or arrested or deported. etc etc.

So, are teh protesters in Sweden really interested in human rights or dumping their “politically hatred” on others?

This week, I attended an economic briefing at UBS. The Swiss banking giant is predicting global growth in 2009 at a miserly 0.2%.

This is what many see happening in Israel – although that is a giant positive mark when compared to several other Western economies.

Don’t get me wrong. The Israeli economic press is full of depressing reading. This week, the Tel Aviv Stock Market matched the loses in Europe and on Wall Street. High tech lay offs continue in quantity. The local bank news is still edgy.

And yet. And yet. There is still gold in dem Judean hills.

I am associated with a start up that has embedded a software on a smart card with a UBS application – enhanced content data management. It recently raised approx US$1m, with sales commencing in Spring 09. Another client’s software has made significant sales in the UK this quarter, despite the dire economy in Britain.

These are not isolated stories. the latest bulleting from Israel’s Investment Promotion Centre is extremely positive.

  • FDI in 2008 hit US$10 billion
  • Since December 2008, 3 Israeli medical device companies have been bought out for a combined value of over US1 billion.
  • GAP, Banana Republic and H&M will begin to open outlets in Israel over the next 12 months.
  • Solel, BrightSource Energy and other cleantech companies are striking large deals in Spain, California and elsewhere.

The UBS representative noted that the clever people are those who plan carefully at the end of a recession. 2009 will not be pretty. But for Israel there will still be several bright spots worth tagging. early on.

With hindsight there were many people warning over Madoff, years before he was forced to tell the truth about his Ponzi scheme.

Now turn to the Middle East. Since the Oslo Accords of 1993, roughly 25% of revenue of the Palestinian Authority comes from taxpayers in Europe, America and other donor groups. For example, in a statement released from Brussels last week, the commission observed that: 

The EU is the largest donor to the Palestinians. In recent years, the combined contribution of the European Commission and EU Member States has reached €1 billion per year, which is not sustainable.

 The question is: Do we know where the money is going to? Are the transfers accountable and transparent?

Just look at the work from the pressure group, Funding for Peace Coalition. With reports dating back to 2003, 2004 and 2005, the team has warned that large amounts of foreign taxpayers investment in the Palestinian Authority has simply disappeared.

What makes this a Ponzi scheme?

A combination of political correctness, goodwill and pressure from the Arab League has encouraged Europeans to support the Palestinians financially, just as America is perceived to help Israel.

It is no secret that the Arab countries have rarely delivered on their promises. The Europeans are finally wondering what they are getting for their Euro.

Benita Ferrero-Walder, European Commissioner for External Relations and Neighbourhood Policy, intended to pledge on 2 March in Sharm El Sheikh (Egypt) €436 million ($554 million) to the Palestinian people for 2009 at the “Conference in Support of the Palestinian Economy for the Reconstruction of Gaza”.

This will be on top of a similar amount of direct aid alone delivered in 2008, much of which went to pay for Hamas civil servants in Gaza. The new gold is supposed to be used for rebuilding Gaza. However, it is to be handed over to Abbas of Fatah, who has no control in Gaza!

So here comes the sting! The Europeans have opened the door as widely as possible for Barak and Hilary from the new-can-do White House. The Yanks have promised US$900 million extra bucks. But to whom and why?

To Fatah? Er, remember that Arafat died as one of the richest men in the world. To Gaza? But again Abbas does not rule Gaza. To UNRWA, whose stores are openly ransacked by Hamas operatives? Etc etc.

So what we have is: A bottomless pot, designed to feed aid to the Palestinians. European taxpayers, who have poured in loads of wealth but seen little in return. Americans, who are used to parting with money without conducting due diligence.

This week’s confrence in Egypt has promised US$4.5b  to 3m Palestinians. Will they get it? Would some of this be better used in Darfur, Zimbabwe or elsewhere? Learning the truth about Gaza and the Palestinians is often more complex than unravelling a Ponzi scheme.

A stream of bad economic data has been released in Jerusalem in the past few days. GDP shrank by 0.5% in 4Q08. 18% fewer tourist nights were recorded in January 09 compared to 12 months previously. Intel announced a sharp drop in exports.

The Economist Intelligence Unit recently updated its predictions for 2009. The current forecast highlights a 1.9% real drop in global GDP. Taking the USA as an example, it explained that:

The US economy is in freefall. The 3.8% contraction in fourth-quarter GDP was the worst showing since the opening months of 1982, when the economy contracted by more than 6%. Business spending dropped by a stunning 19.1% at an annual rate in the three months to December.

So Israel is better placed? Well, I have long argued that Israel entered the recession with numerous structural positives, which are still true today. Naturally, that does not make the country immune, especially when the political system is neutered due to post-election coalition gamesmanship.

There is one stunning major bonus, clearly identifiable on the horizon. About a month ago, commercial quantities of gas were discovered in the Tamar field just off Israel’s coastline. This week, two hugely important pieces of information were released to the press.

First, it is very likely that the find is larger than initially thought. Second, spurred on by the American partner, Noble, the gas will brought to the market within 3 years, and not 5 as originally thought.

The knock on effect here – increased revenue for the treasury, employment, export possibilities, etc – will have a substantial and positive effect on the Israeli economy.

The Economist concluded its report with a “subdued outlook for the global economy in 2011- 2013”. Israel has a chance to be a special exception to that forecast.

Over 25 years ago, I attended a play at the Royal Court Theatre in London. Titled “Not Quite Jerusalem”, it revolved around the lives of foreign students working on a kibbutz. It was humourous while poignant, but had little to do with Israel per se.

In those days, the Royal Court was a fun place to visit. You were guaranteed an evening of entertainment, which made you think. It was an important part of the world of expressive fringe theatre.

Jump forward to 2009 and the theatre is hosting a 10 minute short play by Caryl Churchill, called Seven Jewish Children. Churchill is an established author, who unashamedly tests accepted norms. Provoked by recent events in Gaza, she has taken 7 historical themes important to Jews and questioned them.

Anything wrong in that? Not, in theory. Anything wrong in criticising Israel? Not, in theory.

Michael Billington is a respected critic. He notes that by using conversation with children as a backdrop, Churchill accuses Israel of using security to justify massacres. Anything wrong in that? Yes, plenty, lots of plenty.

There were no massacres in Gaza. And as a parent of three children attending Israeli schools, I can testify that Israel does not officially or unofficially teach or preach massacres. To claim or imply otherwise is a libel.

And neither are children taught about the “otherness” of Palestinians, as Billington has observed.

My children study Arabic. They learn about Muslim culture. Their geography books contain references to the pre 1967 borders. And they are taught about Christianity, the Crusades and European history.

I cannot find similar curricula in Palestinian schools. In fact, many have argued that the new Palestinian textbooks published since 2000 would fail any critical analysis by UNESCO.

But I digress. Churchill has denied that her play is anti-semitic. Yet she writes about Jews. She uses Jewish themes. She inserts them in a deliberately provacative way. She causes wide spread revulsion amongst most  British Jews.

Is her play about Israel? Well, sort of, but Jews are the central theme., and thus makes people question if Jews possess acceptable values and ethics.

To my way of thinking, the play is a libel. It is anti-semitic.

Amazingly, in this woeful episode of British culture, there is still something yet more pathetic; the feeble actions of the Royal Court management. Its spokesman has urged people to see the play before they judge it. “It is possible to criticise the actions of Israel without being anti-Semitic,” he says.

In other words, they will show what the hell they want in the name of free speech. But apparently Ramin Gray, the theatre’s associate director, has admitted that the Royal Court would be hesitant to stage a play critical of Islam.

This is hypocrisy, out right hypocrisy. Double standards exposed mega time. It is this abuse of free speech, which allows the Churchills of this world a stage and platform for their hatred.

Remember the Protestant priest, Rev Martin Niemoller? In 1945, he recalled how nobody had protested that Jews, Communists and Catholics had been rounded up. So when they arrested him, there was nobody left to object.

Similarly, it is time for the UK to wake up. Most criticism of Israel has often bordered on the anti-semitic. In Churchill’s case, she has crossed the boundaries of the acceptable with a Bob Beamen leap. Her work is disgusting, aimed at sowing hatred and mistrust, that and nothing else.

Protectors of free speech should see her words for what they are, and then replace them vociferously…….before the thought-police put them next to Niemoller.

The Western media has concluded that Israel’s air force and artillery flattened the Gaza Strip. Many are homeless. And Hamas, yes they are naughty for firing rockets at Israel, but it needs to be helped in order that the population at large does not suffer further.

According to a debate in the British Parliament, “the Muslim community in Blackburn raised £150,000 for a Palestinian charity in just one week.” Praiseworthy indeed, and let us hope that transparency has improved since the days when the Arafat and Dahlan team pocketed much of such donations.

In the past few months, there has been growing evidence to suggest that Hamas is in fact far wealthier than it wants to admit.

1) Khaled Abu Toameh is one of a rare breed. An investigative Palestinian journalist, he has eyes and ears in many parts of the territories. In a recent interview, he noted that:

Hamas could not have taken control of the Gaza Strip in 2007 had it not been for support from Iran and Syria. They had logistical and financial support, which means weapons. Most of the weapons coming into Gaza are being financed by Iran and facilitated by Syria.

2) Hamas is also not burdened with having to provide over a million people with education and welfare. Much of that role has been taken on by UNRWA. In a recent report,  UNRWA was slammed for becoming a political institution, managed by Palestinians for Palestinians, even open to abuse by terrorists. Ironically, on at least 3 separate occasions since early January, Hamas members have stolen UN property, including UNRWA supplies.  

3) It is the smuggling tunnels that have historically been the financial lifeblood of Hamas. Speak to any journalist, like Matt Rees, who has covered the Gaza Strip over the years. During the Intifada, cease fires with Israel were broken because gangs could not bring in their contraband. Toameh notes that the tunnels have existed for decades.

 And new evidence is emerging that Hamas has actively encouraged the tunnel industry since 2007. The tunnels provided a way to bring in weapons and raw materials. Hamas sold “licenses” for the building of some tunnels, raking in a fortune in undisclosed taxes in a poor economy. Individuals made a fortune out of commissions, just like Dahlan of Fatah in the past.

To quote Hamas Finance Minister Ziyad Thatha:

A number of investors collected millions of dollars in a way that is against sharia (Islamic law) and we will operate against them.

At least now we know why Muslims around the world have to collect money for their brothers and sisters in Gaza. No wonder, national appeals have been started for them. it will be interesting to see if that includes donations from governemnt ministries.  

On the surface, Israel’s economy is heading the same way as America, the UK and others.

Initial figures show unemployment doubling to 20,000 people between October 2008 to February 2009. The two largest banks, Hapoalim and Leumi, have reported large losses. In fact, Leumi’s share price has now lost over half its value. High tech companies are looking at a 4-day working week.

And yet, as I keep stressing, Israel does not need to panic. For the moment, I am not alone in that view, as reflected by the stock market, still on the up in fits and starts.

Just as encouraging is the latest report from the IMF on Israel. It predicts a small but positive growth of 0.5% for 2009. This is down from its previous analysis but still higher than the 0.2% as suggested by the Bank of Israel.

The IMF went on to praise the monetary and fiscal policies of Israel. It did find that there was room for selected budget stimulus and an even lower interest rate. However, the general picture is encouraging, hopefully leading to a major pick up in 2010.

Last week, Israeli women gave a global lesson in equality.

Let’s start with the general election Like her or not, and whatever the final make up of the new government, most commentators accept that Foreign Minister, Ms Tzipi Livni, ran the best campaign. She came from behind in the polls to become the largest party. She looked comfortable slipping into jeans and boogying at a disco. She was the lady to fear.

And as for Avigdor Lieberman, he may be the enemy of the foreign press, but of his electoral list, 4 are counted as former models. And one of those is the daughter of a former deputy Prime Minister. Yup, women did well in the polling booths.

But the successes do not stop there. Bar Raphaeli, Israel’s best-looking export and long-time partner of Leonardo DiCaprio, made the front cover of Sports Illustrated Swimsuit Issue. This is a lady who is proud to acknowledge her own natural beauty in tandem with that of her homeland.

Possibly even more sensational was the triumph of Hila Plitman. Growing up near the centre of modern Jerusalem, this soprano picked up a Grammy award. She received the attribute as in the category of best classical vocal performance.

Israel may be locked in to much of the culture of the Middle East, but she continues to offer pluralism and democarcy,  In fact, a female duo has been chosen to represent Israel in the Eurovision Song Contest, a Jewess and a Muslim. 

Curiously, Saudi Arabia has just appointed its first female deputy minister. Yet another case of Israel showing others in the region the benefits of her open society.

Israel has voted. The results are in. And the financiers reacted by causing a 2.6% drop in the Tel Aviv Stock Exchange (TASE). They don’t like change, especially when political uncertainty remains in the air.

Now look again.

Despite the fall, the TASE has still risen 5.36% since the beginning of the year. And there was a war going on as well for much of the time.

Some of the Israeli companies listed overseas are also being sought after. In the healthcare sector, Teva’s continuing success is well documented. Card Guard is located in Rehovot and has a strong reputation for devising remote patient monitoring systems. 

On the internet front, Michael Eisenberg recently identified 3 Israeli companies that may be well positioned to take off financially; Incredimail (MAIL), Answers.com (ANSW) and Babylon (traded on TASE: BBYL).

On more fundamental issues, the local papers remain full of pessimistic news about high tech companies going on to a 4-day working week. Yet on a rainy election day itself, most of the shopping malls were packed. Many reported a 200 – 400% increase in normal trading volumes. That spending power came from somewhere.

I don’t hold positions in the companies mentioned. I was not shopping on election day. Yet, while I recognise that 2009 will not be a pretty year for everyone commercially, there is still a lot of business out there in Israel.

Israel goes to the polls today. 33 parties to choose from – green, Jewish religious, Arab, pensioners and the usual lot – they are all there competing on the basis of strict proportional representation.

Each election throws up its own irony. This year, when the winter rains have been almost non-existant, it is puring down as I write. Maybe this will put off a few people.

The non-Jewish voter is never short of choices. For example, the Druze are represented on many of the lists of the major parties. The Balad group and others, openly and consistently critical of Israeli governments, are trying to encourage their supporters to turn up and vote.

What is undisputed is that everyone has a right to one vote and cast is freely.

Palestinians can look on with wonder. , Hamas continues is rule by threat and violence. The Palestinian-run Independent Commission for Human Rights reported in a press release on February 8th that yet another Palestinian has been tortured to death by Hamas in a Gaza hospital.  Jameel Shafiq Shaqqura was 51, and heralded from Khan Yunis. In a separate incident, UNRWA has finally convinced Hamas to return supplies that were stolen in broad daylight.

No doubt, the result of the election will produce yet another coalition government. Weak or strong, right or left, whatever its formation, today confirms yet again that Israel resides firmly in the camp of pluralistic, democratic societies.

This week, Bank Hapoalim posted a massive 4th quarter loss. Deutsche Bank is concerned that Israeli banks are hiding too much bad debt, whose significance has yet to be fully appreciated. And in a troubling conversation, a private banking analyst told me that the Israeli public has yet to internalise fully the depth of the world recession.

Crisis? Well, the jury is still out. Yoram Ariav, the DG at the Finance Ministry, has gone on record saying that he knows of no Israeli bank in trouble. Good! And most banks have yet to cut the pay packets of the humble board members, as is happening in other countries.

This week, I spent some time with a specialist in private banking, who occupies most of his time in European financial centres. Having conducted several days of back-to-back meetings in Israel, he finished his visit totally confused. Why aren’t the Israelis worried, he pondered.

To paraphrase his comments: There is a financial downpour soaking the global economy. Yet, Israelis are not reaching for an umbrella and waiting under a bus stop. They are running forward to get to the next stage in the economic cycle.

They want to know how to invest anything, somewhere, in order to be ready for the next sunny day. He may not have understood the pysche,  but I felt that he had had a successful trip. 

It is not all rosy in Israel. But this story is more than simply anecdotal inference. Shimon Peres, the President of Israel, believes that Dell will consider a large investment in the Jerusalem region. Daniel Vasella, the CEO of health giant Novartis, will raise their presence in the Holy Land.

Israel entered this recession with a fine economy. Since the mid 1980s, the banking system has been reformed consistently and sensibly. Wise and measured domestic policy will see the country through the rough. These factors indicate why there is cause for cautious optimism.

This week, I attended a get-together with reps of Israel’s defence industry under the auspices of the Israeli Export Institute.

Surprise no’ 1: An introductory talk was given by the head of the Defence Ministry’s licensing team. The rules are clear and getting tighter by the day. Israeli companies need approval before signing contracts.

Opponents of Israeli arm exports beware – many of your complaints are without justification de facto. Israel does not export the naughty countries of the world.

It turns out that there are around 900 companies involved in this sector. The number of licenses have trebled in the past 4 years, but they are only given out once due diligence has been thoroughly completed.

Actually, the speech drew the wrath of manufacturers present in the room. They complained of a long drawn out process. And here’s the joke – for all the country’s high tech capabilities, the ministry is working with a software over a decade old. No wonder approvals often come through after competitors have overtaken their Israeli counterparts.  

Surprise no’ 2: Most of the companies in this sector are not related to weapons manufacture. For example, ZAG Industries is entering the fray of RFID tech. Whitewater Security has a comprehensive platform to prevent terrorist penetration of water works.

I was very impressed by the capabilities of R.K. Diagostics. they provide a tailor-made solution for manufacturers, particularly for heavy vehicles.

And the irony: After the successes of previous Olympic games,  150 licenses were issued in 2008 for Israeli firms to submit tenders to Beijing. But none of them won a contract. Meanwhile, the UK, which is clamping down again on arms exports to Israel, has just signed a massive trade deal with the lovers of human rights in Red Square.

Several of my recent postings relate to the great tech available in the Jerusalem region re solar power, clean water and green heating capabilities.

You have to conclude that if there was a touch more investment available, Israel would suffer very little from water shortages, waste or even expensive fuel.

Cleantech is not the only area where Jerusalem excels. I have just received the latest issue of the Jerusalem Life Science Bulletin. The Holy City is full of modern miracles.

The briefing commences with details of the most recent breakthroughs in research . Israeli scientists reversing brain birth defects using stem cells. The identification of genes of a rare skin disease. And many more.

In terms of building strategies, the Kaiser Foundation Health Plan and BioOhio have signed agreements with local teams.

In academia, the “scientist” magazine ranks Israeli academic institutions in first, second places in its annual search ‘the best places to work in academia’ outside the US.

And all this news is wrapped by the International Nanotechnology Conference taking place at the end of March 2009 in Jerusalem.

Recession, maybe. But there are several Israeli enterprises pressing ahead for all that. Overseas investors take note of what is happening in Jerusalem.

I am usually reluctant to write about the Israel-Palestinian issue head on. In the past 2 weeks, several stories have come my way, which were never covered by the Western media and I feel deserve a wider readership. What links them is how they show that human rights in Palestinian territories are exposed and still protected under extreme situations.

Last week, an Israeli from the town of Emannuel in the West Bank was arrested. He was arrested, suspected of shooting dead a Palestinian youth, who had thrown stones at him as he was driving. When examined, there were no bullet marks on the body. A forensic report revealed that the teenager had died from his own stone, which had hit a tyre of the car and had rebounded at high speed.

A few days later, Jordanian news agencies reported that aid sent by the Hashemite Kingdom to Gaza had been hijacked by gunmen, never to reach the average man on the street. This act merely confirmed what Israeli sources have been shouting for years. Significantly, UNRWA had to suspend temporarily its aid conveys in to Gaza.

And finally, there is the story of Yishai, an Israeli soldier, who spent several days in Gaza during January. His unit slept in a temporarily abandoned house. What follows is Yishai’s thoughts, wrapped as an open letter to the family.

Yishai’s humanity is profound. It demonstrates a sincerity which cannot be described as spin. In his 3-page brief, he has managed to summarise the reports and feelings that I have heard from many soldiers who served during the recent hostilities.

Yishai not only describes in detail how they looked after the premises. His words form a plea to stop the hatred – to realise that all Israelis want to do is live in peace with Palestinians, fostering a mutual understanding for generations to come.

 Yishai wrote:

An Open Letter to A Citizen Of Gaza:

I Am the Soldier Who Slept In Your Home:

By: Yishai G (reserve soldier)

 

Hello,

While the world watches the ruins in Gaza, you return to your home which remains standing. However, I am sure that it is clear to you that someone was in your home while you were away.

I am that someone.

 

I spent long hours imagining how you would react when you walked into your home. How you would feel when you understood that IDF soldiers had slept on your mattresses and used your blankets to keep warm.

 

I knew that it would make you angry and sad and that you would feel this violation of the most intimate areas of your life by those defined as your enemies, with stinging humiliation. I am convinced that you hate me with unbridled hatred, and you do not have even the tiniest desire to hear what

 

I have to say. At the same time, it is important for me to say the following in the hope that there is even the minutest chance that you will hear me.

I spent many days in your home. You and your family’s presence was felt in every corner. I saw your family portraits on the wall, and I thought of my family. I saw your wife’s perfume bottles on the bureau, and I thought of my wife. I saw your children’s toys and their English language schoolbooks. I saw your personal computer and how you set up the modem and wireless phone next to the screen, just as I do.

 

I wanted you to know that despite the immense disorder you found in your house that was created during a search for explosives and tunnels (which were indeed found in other homes), we did our best to treat your possessions with respect. When I moved the computer table, I disconnected the cables and lay them down neatly on the floor, as I would do with my own computer. I even covered the computer from dust with a piece of cloth. I tried to put back the clothes that fell when we moved the closet although not the same as you would have done, but at least in such a way that nothing would get lost.

I know that the devastation, the bullet holes in your walls and the destruction of those homes near you place my descriptions in a ridiculous light. Still, I need you to understand me, us, and hope that you will channel your anger and criticism to the right places.

I decided to write you this letter specifically because I stayed in your home.

 

I can surmise that you are intelligent and educated and there are those in your household that are university students. Your children learn English, and you are connected to the Internet. You are not ignorant; you know what is going on around you.

 

Therefore, I am sure you know that Qassam rockets were launched from your neighborhood into Israeli towns and cities.

 

How could you see these weekly launches and not think that one day we would say “enough”?! Did you ever consider that it is perhaps wrong to launch rockets at innocent civilians trying to lead a normal life, much like you? How long did you think we would sit back without reacting?

I can hear you saying “it’s not me, it’s Hamas”. My intuition tells me you are not their most avid supporter. If you look closely at the sad reality in which your people live, and you do not try to deceive yourself or make excuses about “occupation”, you must certainly reach the conclusion that the Hamas is your real enemy.

 

The reality is so simple, even a seven year old can understand: Israel withdrew from the Gaza strip, removing military bases and its citizens from Gush Katif. Nonetheless, we continued to provide you with electricity, water, and goods (and this I know very well as during my reserve duty I guarded the border crossings more than once, and witnessed hundreds of trucks full of goods entering a blockade-free Gaza every day).

 

Despite all this, for reasons that cannot be understood and with a lack of any rational logic, Hamas launched missiles on Israeli towns. For three years we clenched our teeth and restrained ourselves. In the end, we could not take it anymore and entered the Gaza strip, into your neighborhood, in order to remove those who want to kill us. A reality that is painful but very easy to explain.

 

As soon as you agree with me that Hamasis your enemy and because of them, your people are miserable, you will also understand that the change must come from within. I am acutely aware of the fact that what I say is easier to write than to do, but I do not see any other way. You, who are connected to the world and concerned about your children’s education, must lead, together with your friends, a civil uprising against Hamas.

 

I swear to you, that if the citizens of Gaza were busy paving roads, building schools, opening factories and cultural institutions instead of dwelling in self pity, arms smuggling and nurturing a hatred to your Israeli neighbors, your homes would not be in ruins right now. If your leaders were not corrupt and motivated by hatred, your home would not have been harmed. If someone would have stood up and shouted that there is no point in launching missiles on innocent civilians, I would not have to stand in your kitchen as a soldier.

 

You don’t have money, you tell me? You have more than you can imagine.

Even before Hamas took control of Gaza, during the time of Yasser Arafat, millions if not billions of dollars donated by the world community to the Palestinians was used for purchasing arms or taken directly to your leaders bank accounts. Gulf States, the emirates – your brothers, your flesh and blood, are some of the richest nations in the world. If there was even a small feeling of solidarity between Arab nations, if these nations had but the smallest interest in reconstructing the Palestinian people – your situation would be very different.

 

You must be familiar with Singapore. The land mass there is not much larger than the Gaza strip and it is considered to be the second most populated country in the world. Yet, Singapore is a successful, prospering, and well managed country. Why not the same for you?

My friend, I would like to call you by name, but I will not do so publicly. I want you to know that I am 100% at peace with what my country did, what my army did, and what I did. However, I feel your pain. I am sorry for the destruction you are finding in your neighborhood at this moment. On a personal level, I did what I could to minimize the damage to your home as much as possible.

 

In my opinion, we have a lot more in common than you might imagine. I am a civilian, not a soldier, and in my private life I have nothing to do with the military. However, I have an obligation to leave my home, put on a uniform, and protect my family every time we are attacked. I have no desire to be in your home wearing a uniform again and I would be more than happy to sit with you as a guest on your beautiful balcony, drinking sweet tea seasoned with the sage growing in your garden.

 

The only person who could make that dream a reality is you. Take responsibility for yourself, your family, your people, and start to take control of your destiny. How? I do not know. Maybe there is something to be learned from the Jewish people who rose up from the most destructive human tragedy of the 20th century, and instead of sinking into self-pity, built a flourishing and prospering country. It is possible, and it is in your hands. I am ready to be there to provide a shoulder of support and help to you.

 

But only you can move the wheels of history.”

Regards,

Yishai, (Reserve Soldier)

Last Friday, Britain fell into recession. Today, it was the turn of Israel to accept reality. In 2009, the economy is expected to retreat by 0.2% – not much compared to the UK et al. There again, Israel had been charging along at 5.0% on average for several years.

Most of us already know it. The employment service has reported that over 17,000 new people were looking for work in December 08, compared to 10,000 12 months previously. Microsoft and IBM’s r&d centres in Israel will lay off workers next month.

Why? Global recession is now hitting Israel’s exports. VCs are choosing their next high tech conquests carefully. And a 22-day war has to be paid for, putting a strain on the budget.

Significantly, the Tel Aviv Stock Exchange took a different view. It rose over half a percent today. One reason is the next expected drop in interest rates, already down to 1.75%. But the investors are more savvy than that.

I suggest that there is another for optimism. And it also points to route out of the recession, which a bold new Israeli government must consider.

In the past week alone, I have visited 3 Israeli companies in the cleantech sector. Each possesses a simple but disruptive, patented technology, which will add significantly to Israel’s future wealth.

Now, I have written previously about Israel’s strength in this sector. Jerusalem alone contains many of the world’s new techs. in solar heating.  Globes has reported about investment opportunities in water technology.

The companies I met – water purification, biofuels and alternative heating – are linked by a key feature.  They require investment capital. Within a year this will be converted into hundreds of jobs and valuable export revenue.

Currently, Israel’s government is paralysed by the forthcoming general election. And the “Sir Humpreys” are still caught up in redundant concepts for promoting high tech. It will be months before a plan of action is approved and then implemented! As the Neros pluck their fiddles in Jerusalem, the country is calling out for action.

Take a risk. Hand out some short term loans. Give these companies a chance, and then sell out quickly as the venture capitalists return to play in 18-36 months.

Who benefits? The people; the environment, the treasury. Sometimes, the simplest solutions are the most effective ones.

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