Israel’s Prime Minister, Bibi Netanyahu, walked into a trap, created out of his own ego. President Obama simply closed the door, tight. Elegant and simple. In the eyes of the White House, Bibi has finally to revert from spin to substance.

Reading the papers, many argue that all Bibi has to do is to carry out the Road Map, which previous governments had already committed to. Yes, there are a few tag ons, but they would happen sooner or later anyway.

And why was the Road Map of 2002 not carried out? Without going in to the whole time line, the Palestinian leadership stuck with the Intifada, which turned out to be a series of unacceptable sporadic and inhuman attacks against Israeli citizens. Jerusalem was forced into a series of military responses. In parallel, the trust, which developed via the Oslo Accords and Nobel Peace Prizes was replaced with doubt and deep suspicion. The violence had to cease before there could be an effective return to the negotiating table.

Obama is pushing aside a decade of terror, forcing Israel to dismiss literally overnight all its misgivings. He is demanding that Israel freeze all West Bank activity including in East Jerusalem, as well as the release hundreds of deemed terrorists from prisons.

In return, the Jewish State is offered the promise of peace. Tens of percent of its wealth will be released from the military sector and devoted to social issues. Its sports teams will compete in Asia. Arabia will open up to trade and other delights. Europe will cease its diplomatic coldness. A brave new world could be around the corner.

So if Bibi delivers on what Obama demands, assumedly it will be left for Obama to convince the members of the Arab League to come to the party. And we all know that we are talking about a group, which remains united on one issue only – its common distrust if not demonic hatred of Israel.

What will this mean in practice? Will Syria stop encouraging Hizbullah in Lebanon from attacking Israel’s northern border? Will Hamas, which has held an Israeli soldier captive for 1,400 days without one visit from the Red Cross, respond to calls to open itself to pluralism? Will Saudi Arabia finance the peace plan, when it has rarely honoured monetary promises to the Palestinians?

And President Abbas cannot be ignored. Here is the man, whose heroic path in the Palestinian resistance movement was engraved in his planning of the massacre at Munich in 1972. Yes, Munich, the same city where Chamberlain had signed away the deaths of millions decades earlier. For all Obama’s pressure on Bibi, Abbas has yet to say openly and unreservedly and repeatedly if he is prepared to recognise Israel, unconditionally.

Obama is a man of sincerity. The health bill has its critics, but it will be bringing a major improvement to the lives of millions, very belatedly. To have lost the Congress vote would have meant a loss of credibility and power for the president. To fail in the Middle East will mean the loss of some Jewish votes and maybe the eventual demise of the one democratic state in the region, but not much more than that.

So the question is not as the media would have us believe when it asks how much pressure is on Bibi. What interests me more is if Obama will deliver on his peace promise or has he will he be handing over Washington to the ghosts of Munich past?

Teva in Hebrew means nature, like wild rolling fields. It is also the name of one of Israel’s largest companies, quoted on NASDAQ.

Teva has grown in 3 decades from an insignificant local manufacturer to become the world’s largest generic drug producer, with factories on 3 continents. Only this week, it completed the purchase of Ratiopharm, Germany, for nearly US$5.0 billion, beating Pfizer to the finishing line.

Barden Capital Management, Texas, is typical of many such firms. It has consistently held a long position in Teva. Assessing the management, current and future market positioning, price ratios etc, they believe that Teva remains a good hold for some years to come.

Teva represents much of Israel’s commerce in that it is a company that has grown despite the existential problems, which the country continues to face. This week, the Tel Aviv Stock Exchange climbed to within 2% of its record high before the credit crunch arrived. Few other bourses can claim that achievement.

You will be unlikely to read about these successes in your average newspaper. Most reports from Israel  this week focus on the diplomatic spat with America; Israel’s poor management of internal decision-making by a minor committee of civil servants in the housing ministry and Washington’s childish response.

In fact, Washington and its European friends were merely content in blasting Prime Minister Netanyahu. They contrived to ignore how Palestinian President Mahmoud Abbas led a ceremony Ramallah to rename the main public square in honor of Dalal Mughrabi, the woman who in 1978 helped carry out the deadliest single terrorist attack in Israel’s history. All this, the day after the American Vice President had met with Abbas.

And neither did the Western allies condemn calls from Hamas and from the Palestinian Authority to react with violence against a religious Jewish ceremony in Jerusalem’s Old City.

Teva represents Israel’s natural response to these hypocrisies. It shows how the country is prepared to just get on with it. All Israelis want to do is to live their lives in peace with the world, creating a better global community.

The past week has seen a string of hot news items, featuring Israel’s high tech sector. SunRay, heavily involved in Israel’s solar energy industry, has been bought for nearly US$300m by Sun Power.  DSPG is set to gain big time from the iPad era. Oracle has bought Comvergin. And so the list goes on.

Israel will hold 3 mega conferences in 2010 to enhance its global status in high tech. This week, Eilat will host of 2,000 delegates to its annual cleantech fest. In June, the roadshow moves to Tel Aviv, where Biomed will show off Israel’s latest contributions in nanotech and medical devices.

And I have just read of a fantastic opportunity later on in June 2010. Several thousand participants are expected in Jerusalem for an event which will link start ups with venture capital groups.

I guess that it is smart money that finds smart people to invest in.

What are the main factors which go into building successful and continuous economic growth. Speak to ex-Intel CEO Craig Barrett and he will talk to you about:

Smart people, doing smart things in a smart entrepreneurial environment

Simple enough. Barrett notes that Ireland’s boom decades were based on education. That’s what enticed Intel to the country. He continues by comparing Ireland to Israel.

He said that while two of Ireland’s universities are among the Top 100 in the world, neither are functioning as wealth creators in the same tradition as Stanford or Berkley in California or indeed universities in Israel. “The economics of Stanford, Berkley, MIT and Israel, this is what your future has to entail.”

What I found of particular interest was his observation that “90% of countries around the world envision themselves as potential leaders in the knowledge economy and it is no secret that technologies like nanotechnology are key.”

Israel has led in the industrial revolution based around communication tech. As for nano and cleantech, Jerusalem is buzzing with small set ups in these fields. The Eilot conference next week has 2,000 delegates registered, including some of the richest people in the world.

Intel has a been central part of the Israeli economy for over 2 decades. It is likely that the company’s latest 22 nanotechnoly fab will be built in the Holy Land. If that eventuates, the Irish will know why.

Yup – the holy city of Jerusalem has spent another week in the news, usually for the wrong reasons. Should I write about the Mayor Barkat’s attempts to end illegal building by both Jew and Muslim, as others watch him walk the impossible political tightrope? The BBC’s Panorama reporter, Jane Corbin, has already made a series of malicious and unsubstantiated claims on the subject.

So let us move on to something more palatable. Last night, I spent a couple of tasty hours at Simone’s restaurant at 54 Hebron Way. Now, let me be very clear, this is the classic delight, hidden away from the usual tourist track, offering a wonderful fish menu.

The restaurant barely holds more than 14 people at any one time. It is located in south east Jerusalem, surrounded by plenty of buildings from the late Ottoman period. The owners are very welcoming, ensuring a personal service.

A special word for Claude – I think that is his name. To the British snobs, when you first meet him, he looks like a couple of greats from television series of old. And yes, he has some nice jokes of his own, yet he helped make the evening fun.

 None of our party left disappointed. I started with the unusual but excellent chestnut soup. This was followed by a creamy spinach pie, where the vegetable had not been drowned in cheese. My friend choose mullet, which was superb, and my wife had codfish in orange sauce. Again, fantastic.

We passed on the desserts, which was an act of immense self-restraint. Somehow, the Shiraz wine had not totally gone to our heads.

The guest book was full of names of diplomatics, local celbs and members of the world of entertainment. A wonderful way to end another frantic week in this very special city.

Silwan was once a small innocuous village, located just south of the Old City of Jerusalem. At the beginning of the previous century, it was home to poor Muslim traders and ultra-orthodox Sephardi Jews. Today, it is a microcosm of all the hypocrisies of Middle East conflicts.

Silwan is no longer a place for the poor, but a mainly middle class Arab area in Jerusalem. In the past 2 decades, Jews have started to return to the area. This has not met with the approval of much of the international diplomatic community. Who is right?

If any other people or religion wouls ask to move to the neighbourhood, nobody would blink an eyelid. Yet, these Israelis are simply living where the ancient City of David was concentrated. They are next to the also holy Mount of Olives. How can it be a crime to want to live next to the heart of your own religion?

On the other hand, the American State Department, supported by Brussels, argues that the new residents are creating facts on the ground, which could prejudice the peace that everyone craves for. Bottom line: The diplomats want the religious Jews kicked out for living there illegally, especially the new residents of “Jonathan’s House”.

And now comes the “oops”. You see, it turns out that right in the middle of Silwan is a large building, housing offices of the European Union. Much of the building has been constructed illegally, and is facing a very real threat of being torn down. Oh la la!

(To be precise, the Jerusalem Municipality has identified this site along with several other homes in the Arab part of Silwan as illegal). Of course, there is a solution. The Jerusalem Municipality is thinking of approving all the construction retroactively in a one-time, one-off move.

Fine for the Europeans of course……..so long as they realise that the law would also approve the Jewish homes as well.

 Now, if only all problems could be solved so simply, n’est ce pas?

I have commented that the Israeli economy ended 2009 in a solid position; absolutely and compared to competitors. So what’s in store for 2010?

I am not a great fan of predictions. But, whether you are an analyst or investor, there are several positive commercial tends to watch out for.

No, I will not concentrate on the stock market or specific companies, here I will look at sectors. Let’s start with tourism. The responsible government ministry bypasses most budgetary cutbacks. It has its own new investment centre. Last week, it launched a plan for 15 new golf courses. And the ministry is seeking to boost hotel space by 5% very rapidly. Ambitious but relalistic.

Jerusalem, through the efforts of its ambitious mayor, Nir Barkat, intends to be part of that pull of inward tourism. And outside this field, Barkat is looking to expand Jerusalem’s commercial base. He has scrapped a plan to tax high tech profits.

Cleantech will continue to flourish in Israel. Next month sees the 3rd International Renewable Energy Conference at Eilat.This remote city drew hundreds of participants last year, and this year is set to be even better. The event is a symbol of the advances that Israeli industry has made in exploiting solar and wind energy, as well as other new technologies.

Diplomatic considerations are never far from the mouths of most Israelis. What is generally accepted as one leading reason for Israel’s innovative strength is the number of high tech graduates, who had previously work on military projects. In 2010, the IDF has no intention of letting its competitive advantage slip, a good sign for the long term future of the country in general and for the economy specifically.

Finally, I do not want to ignore the retail sector. Quietly in the past decade, Israeli chains have been moving towards overseas markets. Ahava, a manufacturer of Dead Sea cosmetics, has a flag-ship store in London. Castro, adult clothes, has shops in Europe and in the Far East. I am starting to cooperate with a successful franchise line, looking to tackle Europe and America.

Quite a lot for a country of 7.5 million people.

It can be dreadfully boring to quote stats. Of Israel’s 7.5million people, around 11% live in Jerusalem. And of that number, around a third are Arabs.

Now let me tell you some really wow things about the cityJerusalem, a city which I love and am proud to be associated with. And to help me, I will quote from a lecture given by Mr Gideon Ben-Zvi, which I heard this evening.

Now when it comes to Jerusalem, Gideon knows what he’s talking about. He was born and educated in the Holy City. He has set up at least 5 high tech firms in Jerusalem. He is a friend of the current mayor, Nir Barkat.

Gideon observed that many local entrepreneurs have started out with an idea, originating from the heart of the Hebrew University in Jerusalem. Surprise? Well this educational establishment has possibly the highest number of patents in the world for a university – around 70% are in the life sciences.

And Gideon mentioned that teams from Hitachi, Siemens and other multinationals are regularly vetting the books of Yissum, the university’s biz dev commercial arm.

Now consider that Jerusalem hosts around 22% of the high tech companies in the country. This includes about a third of the biotech firms. And of the 760,000 Jerusalemites, large sections belong to the growing ultra orthodox Jewish communities and the Arab sector, many of whom exist outside the main workforce.

Jerusalem’s immediate commercial future looks bright, as the mayor looks set to continue with his plans. Jerusalem, at the turn of the decade, has a hopeful future to consider.

An announcement from the Israeli army caught my eye.

The Coordinator for Government Activities in the Territories, Maj. Gen. Eitan Dangot, and the Head of the Civil Administration in Judea, Brig. Gen. Yoav (Poly) Mordechai, met today (22.12.09) with Christian leaders, including ……the head of the Franciscan monastery, the Custodian of the Holy Lands, the Ambassador of the Vatican, the Greek Orthodox Patriarch, the Armenian Patriarch, and the Latin Patriarch to ……….

And that does include Prostestants and others. Can you imagine the logistical and security nightmare, ensuring that every group gets to its fair share of the Church of Nativity in Bethlehem? And all in 12 days.

Israel is considered the one country in the Middle East, where the numbers of Christians is rising. About 5% of the total population, the largest single group belongs to the Eastern Orthodox churches. But not all have had an easy year.

Start with those Protestants who live in the southern Negev desert. The largest group are the Black Hebrews, originating from America. Over the past few years, they have endured thousands of rocket bombings from Hamas. “Only” 200 were launched in 2009, a decrease of over 90%. My teenage son was talking to the community last week, and they felt that things were returning to normal.

Life in Gaza for the 3,000 Christians has rarely been easy since Israel departed 4 years ago, and especially more so with the onset of Hamas rule. As opposed to the past, it is hoped that this year, over 300 pilgrims will be permitted by the Islamic authorities to journey to Bethlehem.

In the West Bank, the Palestinian Authority has been more accommodating, although life is not without periods of harassment.

In an effort to promote further harmony, President Peres has sent a message to Christian communities throughout the area. It is now 25 years, when Peres became the first acting Prime Minister to take part in the ceremonies in Bethlehem.

Next year? Who knows. But Israel must be doing something right if Christians find security there coupled with the basic freedom of worship. Here is a seasonal message for others in the Middle East to read and learn from.

This coming week, the Jerusalem Municipality will distribute free Christmas trees to the Christian residents of Jerusalem. A lovely gesture and not a solitary one from Israeli officialdom.

Yesterday, the Tourism Minister, Stas Misezhnikov hosted a special reception for Christian leaders of several denominations. This came two days after the Hebrew University in Jerusalem announced that its team had analysed the DNA of a man from the time of Jesus. The skelton was found in a tomb near Jerusalem’s Old City and presented clear evidence that leprosy existed at that period.

As Christmas approaches, the international media almost inevitably sends teams to the Holy Land. They usually ignore such stories. They will bypass the continuing harassment of Christians in the West Bank and in Gaza

Instead, Christmas is exploited as a further opportunity to demonize Israel. It is sad and ironic. Israel, the one democracy in the Middle East and the one country in the region where the Christian community is actually growing, suffers from this distortion of truth, and at such a spiritual moment in the calendar.

Mount Scopus, which sits on the rim of Northern Jerusalem, is about 850m above sea level. It hosts one of the world’s leading universities for r&d, two hospitals – one of which is run by Lutherans – and a British military cemetary.

At the back of the summit are the beginnings of the Judean desert. Travel 30km south east through the desert and you have dropped over 1,200 meters to the Dead Sea, the lowest point in the world. Between these two extremes, I took a cross terrain jeep ride yesterday.

What a fantastic adventure! Desert it is, dunes rising and falling, extending roughly from Jericho to Arad. And yet, because it is surrounded by hills on either side, unlike most arid regions, the Judean desert receives rain in the winter.

The journey took us to several vantage points. We saw a sheer drop, which looked like a snappling trail. In fact, next week, when the rains are due, it will turn into a gushing waterfall. We drove along some Bedouin encampments, waving to each other as we went by. We investigated a cave with inscriptions, and you realised that the place was used to collect water thousands of years back.

The most spectacular view was a peak approx 125m above sea level. Directly ahead we looked into Jordan, with the Dead Sea and the Jordan river separating the two countries. Immediately below was Nebi Mussa were Muslims believe Moses is buried and they come to worship annually. To the right in the distance we saw Herodian, a Roman palace curved out from inside a hilltop 2,000 years ago.

Continuing the panorama, but nearer to the Dead Sea, was the peak where the High Priest would make sacrifices every Day of Atonement. He would walk from the Temple to make this important journey. And if we looked up, we could see the outskirts of the Old City of the Jerusalem and trace the steps the old man would have made.

What was the contrast? It was not the many towns we saw going north, Jewish or Arab. Right next to us was a large crater. This was where the American and Israeli military had placed a patriot missile system in 1991 during the first Gulf War. My son also found some old shell casings, possibly even belonging to the Jordanians, when they had used the region for anti-aircraft training decades back.

It was a great day all round. It is clear how everybody is free to roam there today. It was also a reminder that the desert belongs to all. A future peace treaty, which ignores this fact, will not be worth the paper it is printed on.

Networking is one of those key buzz words, which is turned out ad nauseam by marketing gurus. However, a recent experience in Jerusalem focused the importance of the concept and why we cannot run away from it.

Let’s quickly examine how networking fits into our lives. Keith Ferrazzi summed it nicely. By liaising and mixing with people, we succeed. Therefore, we have to get up from our comfort zones and find out who can help us.

Simple no? Well, not if you are shy, physically restricted, uncertain, or whatever. In other words, the vast majority of us seemingly have no idea how to go about networking.

Enter Ezra Butler. I was the moderator at the latest meeting of the Jerusalem Business Networking Forum, when Ezra spoke. To sum up his 20 minute presentation in one sentence: Networking is all about making friends, and nothing more complicated than that.

It is friends who turn to each other for help in commercial matters. Friends trust each other on difficult subjects. Friends rely on the advice of each other. And you make friends by listening to the needs of a new acquaintance.

On the flip side, if you walk into a meeting of strangers and start pumping them with your value proposition, you tend to end up with nothing more than a 2 minute chat. Follow up is minimal at best. 

Listening often takes more than a couple of minutes of your time. The rewards are stronger and last longer.

Maybe there is a spiritual lesson in all of this. Jerusalem has been around for over 5,000 years. Its religious monuments have borne the stories of millions in that time. And the city still stands today.

When looking at the factors which go towards a successful start-up, the importance of a solid vision cannot be underestimated. This enables you, the entrepreneur, to see what resources are required and when.

OK, so you now have a crystal clear picture of what you want to achieve and by when. Fine. It will cost roughly whatever. That can be financed by a bank loan or an investor. Time to start making the phone calls, no?

It’s a that stage you receive an annoying reality check from your spouse. “Honey, shouldn’t you draw up a budget?” And we all know the response. “Oh gee, thanks for your concern (newspeak for ‘keep out of it’), but I am only a start-up. Those excel spreadsheets are not for me.”

Wrong! But why? Because we all need a budget, whether you are a 10 year old kid, stretching your pocket money to the last sweet, or if you are about to invest your savings in an untried project.

A budget is like as a vision. It forces you to think.

When initiated properly, it encourages you to admit exactly what you need and how much the project will cost. In parallel, on the revenue side, you will be forced to justify your market model. Not a pleasant process, but very necessary.

And if you think that exercise was painful enough, get this. Imagine that you have finally spent days on your spreadsheets. You produce some positive figures, which are checked by your ever-supportive spouse. You are relieved and are about to pour a celebratory glass of wine, when you hear a tentative voice from the computer room: “Your cash flow is negative.”

“What’s that? How can it be if my budget looks sound?” you scream, as your glass narrowly misses the laptop. “And anyway, why do I need a cash flow, if I have a budget?”

It’s not back to square one, but more financial thought is demanded, and rightly so.

If you want some tips on cash flow, I suggest you look at this management blog. For future entrepreneurs, I have been asked by WritePoint to conduct a course on “how to start-up a successful business”. For further details, contact Chaya on 02 5716668 or see https://writepoint.com/blog/?p=961

Read the international press, and you could assume that Jerusalem is one divisive city. After all, Jerusalem has been the centre of disputes for thousands of years; 2 destroyed temples, crusades, Turkish rule, 4 different Christian sects fighting today for control of the Church of the Holy Sceptre, different orthodox Jewish groups, and loads more. So, it is easy for editors to play on the theme. 

But if you walk round the city itself, you would have to ask why such drivel is sent to print by respected journalists. Jerusalem actively and continuously supports projects which encourage coexistence.

I recently wrote about Jerusalem hospitals hosting co-projects with Palestinians. I did not mention the sprawling Alyn rehab centre. It has been the saviours of countless lives, particularly young children, from all ethnic backgrounds. 

Alyn’s “Wheels of Love” annual bike ride saw 650 participants from over 12 countries and several religions raise nearly US$3 million. When the bikers returned, many kids and their families, several distinguishable from their different attire, came to meet them.

Sounds too inspiring or Hollywoody, take something more mundane. Israel’s police force has sent a delegation to Northern Ireland to teach their co-professionals about “fair policing models”. 

These are successful techniques, which have evolved over time. Whether it be work in Jerusalem’s crowded streets or patrolling the diverse communities in the north of Israel, the Holy Land has much to teach police counterparts overseas.

Last Thursday night, I enjoyed a wonderful “thanksgiving meal”.  I met up with one of the founders of the Christian Embassy in Jerusalem, which now has reps in dozens of countries around the globe. With other friends, we commented on the new park planned in East Jerusalem, next to several Arab suburbs……..And the list goes on.

Yes. Not all is rosy. In the past 2 months, there have been provoked riots in the Old City. And ultra orthodox Jews have taken to the streets with violence against the police.

But these are not the stories of what is going on daily, the on-going stories of good news. And now you appreciate why good news rarely makes it in to leading media outlets.

Like Iceland, Dubai tried to expand too fast, until boring old reality caught up with it. Sooner or later, people will not finance debt without reward.

Meanwhile, Israel plods along with its mundane officials ensuring that the essentials are done right. Hence, the encouraging growth predictions from the Treasury, the IMF, Barclays Capital and others for 2010.

So why are most Israeli financiers rather amused at the Dubai fiasco? Well, first of all, because of the malicious Arab Boycott, officially Israelis are not allowed to conduct affairs with Dubai. Just speak to tennis player Shahar Peer, who has been banned from taking part in competitions there.

So, maybe the view from the Holy Land is that these guys are getting what it deserves.

On the other hand, business encourages any politicians, including those from Dubai, to be hypocrites. Today’s Israeli press reports of Kibbutz Afikim and maybe a dozen other agricultural companies that have or are conducting commerce in the country. I have a Jerusalem friend, who regularly travels there to go to exhibitions, where he meets other Hebrew speakers. etc etc etc.

Yes, Israel’s wealthy have bought interests in Dubai and will suffer, at least in the short-term. Lev Leviev has a flagship diamond shop in Dubai. Yes, Israel’s stock market will dip temporarily in sympathy with its rivals around the world.

Actually, the most interesting effect on Israel may come through the back door. It is estimated that up to 100,000 Palestinians are in danger of losing their jobs and being thrown out of Dubai. I wonder where they will go?

If you were to judge by the reporting of the international media, Jerusalem today is a city waiting to explode.

The Israeli government is accused of building on Palestinian land in Gilo. Actually Gilo is a full suburb of Jerusalem with over 30,000 residents, and the Jerusalem Municipal Planning Committee has also granted permits for 5,000 new apartments to be built for Palestinians in the east of the city.

In parallel, thousands of ultra-orthodox Jews have been demonstrating violently against the opening on the Sabbath of the local Intel factory.

The fact is that commercially, Jerusalem is one on the most important facets of Israel’s hightech community. And this statement does not just rest on Intel’s existing complex in the city. For example, this coming week, the corner-stone of a new IDPj factoy will be laid, which will employ a further 200 locals.

According to the BioJerusalem website, “nearly half of the biotech research and half of the medical research in Israel is conducted in Jerusalem at the Hebrew University of Jerusalem and its affiliate Hadassah Medical Center”. In fact, down the road from Intel, a new nanotech centre is being completed.

Israel’s capital city hosts many of the world’s leaders in solar energy. LUZ began its history in Jerusalem. GSE has created a new technology for solar panels. Leviathan (wind energy) and Cequesta (water treatment) lead the way in other aspects of the alternative energy business.

Jerusalem has an amazing biblical and modern history. If left to the ill of extrmists or the simplistic writings of journalist meeting deadlines, the true successes of the city will be lost to the world.

 

 

As Palestinians head towards elections in January 2010, few external commentators will be looking at their financial leadership. So let me chip in with some opening thoughts.

1) Israeli military restrictions are often held up as the sole or main cause of poor Palestinian living standards. In parallel, reports from the World Bank for the past 5 years have consistently chastised the Palestinian Authority (PA) for its excessive levels of public spending.

 This is a euphemism for employing too many people, particularly in the security services. 60% of the PA budget is devoted to paying salaries, including Hamas officials in Gaza. When will the government have the courage to reduce this patronage?

2) Another issue often ignored is the non-delivery on promises of donations, made by members of the Arab League, or its non-accountability in the books. This was brought to light again by Ekmeleddin Ihsanoglu, the secretary-general of the Organisation of Islamic Conference (OIC). With 57 members, it is the second largest inter-governmental body after the UN.

In an interview with Al-Jazeera, Ihsanoglu berates Israel and observes how the Goldstone Commission was a pre-planned tactic. But he effectively admits that much of the money raised on behalf of Gaza cannot be accounted for.  He mentions $100m. He clarifies that the Palestinians received $37m, of which $21m came from Norway. Where is the missing US$56m?

3) Britain’s Daily Mail newspaper eloquently explained why increased supervision of Palestinian accounting is needed by the international community.

The Government is sending British police and intelligence officers to the West Bank to try to stop a wave of brutal torture by Palestinian security forces, funded by UK taxpayers.

Their mission is to set up and train a new ‘internal affairs’ department with sweeping powers to investigate abuse and bring torturers to justice.

The department is being paid for by Britain, with an initial planning budget of £100,000 – a sum set to soar as it becomes established.

Yesterday a senior official from the semi-autonomous Palestinian Authority (PA), which runs the West Bank and its security agencies, admitted for the first time that torture, beatings and extra-judicial killings have been rife for the past two years, with hundreds of torture allegations and at least four murders in custody, the most recent in August.

And as noted by the World Bank, about 25% of the PA expenditure is supported by external donations, particularly from Western countries. They are effectively paying for the salaries of these people.

4) Despite the abuse of budgetary control, the World Bank notes that since 2008, as violence has reduced, so economic activity has risen. Just visit new shopping centres in key Palestinian cities like Ramallah and Jenin for proof.

However, a note of warning. This is the Middle East, where logic is often a poor way to analyse the geopolitical dynamics. Just before the outbreak of the Intifada in the year 2000, Palestinians were enjoying their best economic boom ever. Back then, the realities of the peace process ensured how that prosperity would not continue.

Nine years later on, will the Palestinian leadership, through their rioting on the Temple Mount and actions from Gaza, allow the same thing to happen?

On the surface, signs for peace in the Middle East are looking faded.

George Mitchell’s shuffle diplomacy has revealed the naivety of the Obama regime. Camera evidence from Jerusalem’s Temple Mount show that the recent disturbances are the result of deliberate extremist provocation. And with President Abbas calling elections for January 2010, he will not want to portray himself to his electorate as a man of compromise.

So what are we left with? Answer is that if you take out the politicians and let ordinary people get on with it,there are a few yet significant moves to peace taking place.

Take the campus of Beershaba university, where 15 Jordanian students are studying for bachelors in emergency medical care. No, this is not a one-off story. The Save A Child Heart unit at the Wolfson Hospital has spent years treating Palestinian babies and training doctors from Bethlehem or nearby.

Away from the medical arena, a group of Israeli physicists have invested in a new technology to bring electricity to poor Palestinian villages. The Everest Hotel near Bethlehem and the American Colony Hotel in Jerusalem are deliberate meeting points for Israelis and Palestinians to get together.

In Jericho, a synagogue, dating back to the sixth century, had been ransacked in the early part of the Intifada. Nearly a decade later, the Palestinian Authority has helped to ensure that the renovations have been completed. With a joint Israeli-Palestinian patrol, a group of ultra-orthodox Jews have begun to hold prayers at the site.

You want more? Check out Jordan and Israel’s work together over protecting the Dead Sea. Investigate the joint sewage and tourist projects in the Jenin/ Gilboah regions. Talk to the tens of thousands of Palestinians who work in Israel during an average week.

Ghadaffi’s calls to give Palestinians nuclear arms – the new calls in the UK to boycott Israeli products, culture or academics – violence against holy sites in Jerusalem; all of these actions are updated versions of the hatred of the past, which resulted in violence and hopelessness and death.

The actions of coexistence described here are the genuine steps towards creating a peace dynamic. They need to be told about, encouraged and copied. It is time for analysts to discover a new genre within the Middle East.

The “State of Economy” index, a combination of 5 leading indicators rose by 1.3% in August. This is the fourth consecutive monthly increase.

Particularly encouraging was the sharp rise in exports. This was matched by an increased demand for workers and a corresponding drop in the numbers of unemployed.

The economy has yet to return to “complete normality”. Despite the above, industrial production continues to fall. And the shekel is rising against most of the major currencies, placing a strain on the profitability of exports.

Israel has been bubbling with ideas for over three decades. 

Israeli hightech can be found in computers, mobile phones, operating rooms and wherever else around the world. The country leads in developing solar and water technologies. Israel’s defence related exports easily place the country among the Big Seven global manufacturers.

Managing all this brain power has led to the creation of a whole new industry. What do I mean?

First, let me introduce you to QMarkets, a new Tel Aviv-based software outfit. I have been associated with them for some time now. They have developed a fast and efficient company-wide platform to convert new ideas into practical applications.

Interestingly enough, one of QMarkets first customers is an international concern of business analysts, concerned with economic modelling. The software enables the client to generate new revenues.

A second expression of the knowledge boom is to be found in the patent industry. Based on 2008 stats, Israel ranked third in the world for the number of registered patents per capita.

This week, I was asked to attend a seminar, hosted by one of Israel’s leading patent attorney’s outfit, JMB, Fa©tor & Co. Their leading team gave an impressive survey of the demands of the industry, particularly with regard to the country’s enormous biotech sector.

Consider for a moment why Siemens, Microsoft, Intel, IBM and other mega multinationals all have large r&d centres in Israel. That is an idea for overseas investors to follow up.

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