For the past year, I have been a member of the board the Israel-Britain Chamber of Commerce. The organisation was recently involved in coordinating the visit of the British Minister of Trade, Lord Digby Jones.

Now get hold of this:  “Over the past decade, bilateral trade has grown by 40 per cent and is now worth over £2.3 billion pounds. …..  more than 250 Israeli companies now located in the UK…. and 47 Israeli companies listed on London stock exchanges, with 41 having joined in the last three years.”
  
Lord Jones said his government organisation UK Trade & Investment, which is responsible for promoting the UK international business, is committed to securing another 25 more inward investment projects from Israel by 2010.
 

What an opportunity for Israeli companies. The Brits are actually giving a direct entry int the vast network of European trading relationships. Just hop on board.


Over the past decade Israel has received a lousy press abroad on the subject of human rights. Strange that for a country which has full freedom of worship, has non-Jews in its Parliament representating several political parties, and has a myriad of national papers.

By way of comparison, yesterday I received a report from the Ramallah-based Independent Commission for Human Rights. Every month they highlight abuses by Palestinian officials in Gaza and the West Bank. Using names, dates, places, in August 2008 alone, they refer to: –

    • 1 female citizen who died through so-called “honour crimes”
    • 8 citizens were reported to have been killed in family fights and acts of revenge
    • 15 complaints from citizens alleging that they were subjected to torture while they were being detained or interrogated. In the Gaza Strip, ICHR received 7 grievances from citizens, claiming that they were subjected to torture.
    • Attacks on charitable houses and orphanages
    • Interference with the legal system
    • Blocking distribution of daily newspapers

  • ~

It is said that the Israeli economy has grown by over 30% in 5 years, despite wars and the Intifada. The Palestinian economy is just the opposite.

The best proof for this came from Nigel Roberts, a senior offical at the World Bank. He has noted that Palestinians receive the highest level of aid per capita in the world, but implies that little seems to come of it.

And now along comes a report from Israel’s Civil Administration, responsible for the social and economic welfare of the West Bank. It starts by saying that as a result of less violence in the region, over 100 roadblocks have been removed. And thus?

Unemployment is dropping fast, although still too high at 19%. Tourism in places like Bethlehem has nearly doubled upto June 2008. Agricultural exports to Israel are up 25%, even after a disasterous weather spell. And so on.

This all generates real income, which assumedly must filter to the average man in the street. This will weaken the dependence on aid. And it was this aid, which seemed to feed only the violence and thus, ironically, into stabilising previous poverty levels.

The fallout of the mortgage crisis in America and the rise in commodity prices have begun to affect the Israeli economy, but to waht extent?

For the past 5 – 6 years, the stats show an economy that has grown by over 30%. No wonder the OECD wants Israel as a member. As for 2008, only last week, unemployment fell to another low of 5.9%. Time lag until it rises back up? Maybe, but all the predictions still say growth this year will round off at about 4%.

Now compare that to other countries.

Evidently, there are some underlying strengths within the Israeli financial scene that over weigh short term international economic changes. I was talking last week to a senior planner in the Ministry of Trade. Currently, the forecast for 2009 is growth around the 3.5% mark, well beyond almost all of Israel’s competitors.

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