This summer, Jerusalem has come alive.

The city is losing its tag of just being a place for pilgrims and is rapidly revealing its true diversity. The municipality has organised an amazing array of street festivals, making a significant and positive difference for locals and tourists.

I have commented on a vist to open-air Shakesperean theatre in Hebrew. This week’s postings in newspapers include wine-tasting sessions, sing-a-longs, a moving play through old neighbourhoods, local markets, arts-and-craft fairs. Need I go on?

No wonder that GAP, the international clothing chain has chosen Jerusalem for its new flagship shop. Two weeks ago, permission was announcd for five new 5-star hotels in the area.

This historic and beautiful city, the centre of three religions, has never been so open to all.

Until along came the Secretary-General of the Arab League, Mr Amr Moussa. According to an Israeli media outlet, The Arab League reacted with fury to reports that a small group of Jews had prayed on the Temple Mount on Sunday. The Secretary-General termed the spontaneous prayer gathering “a violation of international law.”

So, let’s get his right. Jerusalem, under Israeli law, which in turn is gbased heavily on British jurisprudence, encourages a pluralistic society in the Holy City. The one part of the capital not controlled by Israeli authorities, which happens to be the most important site in the world to Jews, is forbidden to Jews?

In early June, President Obama launched his peace process in Cairo, Egypt, Moussa’s home country. He called on Arab countries to finally understand that Israel has a right to exist.

You have to wonder if Obama really understands what he is dealing with. When will Israel’s enemies bury their hatred and thus rise to see the beauty of who they are rejecting? It is the wonders of Jerusalem that encaptures that joy.

Down the road from me in Jerusalem, a 10-storey high research complex is nearing completion. Its structure may be out of place n the landscape, but the capital’s new biotech research facility will fit in well to its surroundings.

Jerusalem’s Hebrew University has a strong science tradition, dating back nearly 100 years. The city and its satellite towns have attracted a high ratio of academics in recent decades, particularly from Russia, USA and Britain. And the government grants Jerusalem start ups Grade A status in terms of public sector financial support.

What goes in Jerusalem can also be found in other parts of the country. D-Pharm in Rehovot has just raised around US$23 million in a rights and shares offering. Protalix is finishing Phase III trials, edging towards a billion dollar plus market.

If that is not exciting enough, the Office of the Chief Scientist has launched a tender for a National Biotech Fund, projecting to add hundreds of millions of extra investment to the industry.

No downturn here.

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?

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 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.

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.

I have just received a summary of current financial activity in Israel, as distributed by the Economics Division of Israel’s London embassy. Bottom line: This is an economy that has suffered, but has survived. As one UK based journalist commented this week; Alistair Darling would kill for only a 1% or so reduction in GDP, which is what is predicted in Israel for 2009.

Only yesterday, it was reported that “The Israeli Procurement Managers Index rose by 9.5 points in June 2009 to 52.1%, the first time in 14 months that it has risen above the 50%.”

Yes, inflation peaked in June. Unemployemnt has breached 8%. For all that, the following data shows that there are very encouraging undercurrents supporting the Israeli economy.

Economic Summary

  • MSCI Index revised its definition of Israel from emerging market status to a developed market status.
  • On July 15th 2009 the budget for the years 2009 – 2010 was finally approved. It is the first time ever that the Knesset approves a budget for more than one year. The approved budget for 2009 is NIS 316.6 billion, and for 2010 NIS 321.5 billion.
  • According to BoI press release, the negative trend in economic activity has begun to moderate.  
  • The budget has continued to record a deficit in the first 5 months of 2009.
  • The Central Bureau of Statistics (CBS) adjusted real GDP for Q1 2009 downward, yet nominal GDP was adjusted sharply upwards.
  • Bank of Israel (BoI) leaves interest rate unchanged for the month of July.
  • CPI increased in the month of May by 0.4%
  • The rate of unemployment increased for the third consecutive quarter. Q1 2009 the rate was 7.6%.
  • Following a 46% decline in 2008, the TA-25 Index has risen 25% in 2009.

The government has initiated several stimulus packages to address the difficult economic environment. The latest plan will expand guarantees for the banking system, create new funds for mid-size business and exporters, further institute negative income tax, reduce the number of foreign workers, implement structural reforms and increase investments in infrastructure.
 
Macro Focus
In the first five months of 2009 the budget deficit (excluding credit) was NIS 10.5 billion compared with a surplus of NIS 6 billion in the same period of 2008. This is principally a product of decreased tax revenues. Moreover, in May the government continued to act without an approved budget form the Knesset. Total government expenditure in the first five months of the year was lower than that permitted in the absence of an approved budget, and was NIS 7.8 billion less than that consistent with the full implementation of the expenditure in the 2009 budget proposal.
 
The CBS has issued a downward revision of growth rates for the last three quarters of 2009.
The CBS has issued a downward revision of growth rates for the last three quarters of 2009. 

In Q1 2009 real GDP was 0.5% below the forecast, yet nominal GDP was 3.6% higher, indicating a rise in prices. Consequently, inflation in the last four quarters now amounts to 8.2% based on GDP prices, whereas it only amounts to 3.4% based on the CPI. This difference largely reflects changes in oil prices which have had a larger impact on the CPI than GDP prices. It should be further noted that whilst growth rates were negative, the decline was significantly less than experienced in the US and Europe.
 
Whilst data on real activity in Israel support the BoI’s forecasts that the reduction in GDP is beginning to moderate, real activity is still expected to contract further in the next few months taking into account increases in the unemployment rate. The BoI asserts that a continued expansionary monetary policy supports the return of the economy to positive growth.
 
The rate of unemployment increased for the third quarter in succession climaxing at 7.6% in Q1 2009. The CBS published a figure of 7.8% unemployment for April and BoI forecasters believe this is set to continue rising. Real wage and nominal wage both increased by roughly 3% YoY in Q1 2009, following 3 consecutive quarters of real wage declines. Health tax revenues were 0.5% lower in April and May of this year than in the same months in 2008, largely reflecting a decline in wages and employment levels.
 
Consumption fell sharply in Israel during 2009. Private consumption decreased by 3.4% YoY with a decrease in consumption of durable goods forming a considerable part of this decline. Public consumption declined as well by 7.1% YoY, largely reflecting the absence of an approved budget to date.
 
Exports fell sharply by 37% YoY, reflecting the slowdown in the global economy as well as a delayed reaction to the real appreciation to the Shekel in H1 2008. Imports fell as well by 41.3% YoY. As a result the surplus in the current account of the balance of payments greatly increased in Q1 2009 to USD 2.7 billion, compared to a an average of less than USD 1 billion  in each of the preceding quarters. In the last four months, the current account totaled 2.1% of GDP. 
 
Foreign direct investments (FDI) totaled USD 1.7 billion in Q1 2009, compared to an average of USD 2.9 billion in the first 3 quarters of 2008. 
 
The industrial production index decreased in April by 1% and was down 11% on the 12 months ending in April. Whilst the trade and services indexes fell by 3% in April and 10% in the 12 months ending in April. 

Monetary Policy Focus
The CPI rose by 0.4% in May, in line with BoI forecasts. Since the beginning of 2009 the CPI has risen 1.2% and for the first time since December 2007 the inflation rate was within the target range at 2.8%. Yet, following changes in the tax rate and government-supervised prices including water prices, inflation is expected to be closer to the upper limit of the inflation target range.
 
In the period between the previous two monetary policy discussions, the shekel’s standing against the dollar and euro changed little, appreciating 1% and depreciated 1.1% respectively. The nominal effective exchange rate of the shekel (which shows the shekels change compared to that of its trading partners) declined by 0.3%. Whilst the shekel gained against the dollar more moderately than other currencies, the shekel-dollar and shekel-euro exchange rates were still highly volatile.
 
The BoI maintained the interest rate at 0.5% as expected. In its statement the bank noted that inflation expectations continued to be well contained, with taxes and an increase in regulation prices keeping inflation artificially high. Inflation has decreased by 2.8% in the past 12 months, following seventeen consecutive months of above 3% increases.
 
In an accompanying statement, the Bank reiterated its commitment to easing measures, namely the purchase of long dated government paper and foreign exchange with the goal of supporting financial conditions. It added that the negative trend in economic activity was moderating, as was the negative situation in the financial markets.
 
Micro Focus
IVC Research Centre reported that 122 Israeli Start-ups raised USD 279 million from local and foreign venture capital funds in Q2 2009. This figure is down 40% from the corresponding quarter of 2008 when 115 start-ups raised USD 465 million, yet 5% higher than the preceding quarter of 2009.
 
The Manufacturers Association of Israel has published findings from the Survey of Expectations forecasting further declines in industrial activity in Q3 2009, but the rate of decline has begun to slow. The survey rose to 96.6 points for Q3 expectations, up from 89.2 for Q2 and 74.3 for Q1. 100 points is the survey’s dividing line between a quarter of economic expansion and contraction.
 
Property Focus
London’s commercial property market has begun to show signs of recovery in Q2 2009. According to a report by Jones Lang LaSalle’s head of West End Markets Damian Corbett, this is partly a result of increased investment by Israeli property investors.
 
The report asserts that the volume of commercial property deals in Central London increased by 58% in Q2 with GBP 1.3 billion invested. Corbett added “during the second quarter of 2009 there was a large range of international purchases with 43% of investments coming from the Middle East and notable purchases from Israel. Corbett was referring to Israeli deals such as the purchase in May by Harel Insurance Investments and Financial Services Ltd and Clal Insurance Enterprises Holdings Ltd for GBP 40 million of a building in central London. Other examples cited included Nochi Danker’s IDB Holding Group and Israeli entrepreneur Gil Levy exploring further investment opportunities in the City.

Jerusalem does not have a great reputation as a centre for the classic arts. “Shakespeare Jerusalem” is making a strong challenge on that notion.

Last night, at the Jerusalem Botanical Gardens, the troupe performed a series of …well, I would call them loosely love themes, in public. Let me hurriedly explain.

The stage was set outside. The first act began with the onset of sunset, the end of another sweltering day. For those who do not know the holy city, this is usually the call for a strong cooling breeze to descend on the residents.

The actors performed sketches from 7 separate plays. The show casings were presented under the title “battle between the sexes”. How was it? Well, I listened to the reaction of the people around me. To be honest, I was almost bored as one after the other repeated the word “fantastic”. Over a thousand people just loved it.

After the intermission, we were exposed to a theatrical concert; a mix of Shakespeare’s flowing poetry and modern Hebrew sonnets. The production was excellent. The choice of songs, a potential disaster area, was superb. Lisa Woo’s vocal ability set the audience alight.

Yes, the atmosphere helped. The stage was partially surrounded by a large lake. On the other side, the high branches of the trees rustled, as in harmony. It was almost romantic, even for a sceptic like me.

A big round of applause to the sponsors, such as Mercantile Bank, who could see an unusual and badly needed opportunity. And I believe that the Jerusalem City Hall was also involved – about time!!!

Yesterday, I commented about the freedom to protest on the streets of Jerusalem.

I have just received a translation of an article, posted in the Israeli newspaper Ma’ariv from 22nd June. The authors pose a simple question: Six months ago, many commentators around the world were demanding that Israel be sanctioned over its actions in Gaza. Today, re Iran, those same voices are silent.

It is not the shame that stinks. Nor even the hypocrisy. These people originally spoke out in the name of human rights. Clearly, that was a lie, an abuse of the phrase for ulterior motives. Their true interest was the denigration of Israel, the one true democracy in the Middle East.

Below is a copy of the translation, as I received it:

Where is Everyone? 

Ma’ariv (Monday, June 22, 09) by Ben Caspit and Ben-Dror Yemini (opinion) –

 

Tell us, where is everyone?  Where did all the people who demonstrated against Israel’s brutality in Operation Cast Lead, in the Second Lebanon War, in Operation Defensive Shield, or even in The Hague, when we were dragged there unwillingly after daring to build a separation barrier between us and the suicide bombers, disappear to?  We see demonstrations here and there, but these are mainly Iranian exiles.  Europe, in principle, is peaceful and calm.  So is the United States. Here and there a few dozens, here and there a few hundreds.  Have they evaporated because it is Tehran and not here?

   

All the peace-loving and justice-loving Europeans, British professors in search of freedom and equality, the friends filling the newspapers, magazines and various academic journals with various demands for boycotting Israel, defaming Zionism and blaming us and it for all the ills and woes of the world—could it be that they have taken a long summer vacation?

 

Now of all times, when the Basij hooligans have begun to slaughter innocent civilians in the city squares of Tehran?  Aren’t they connected to the Internet?  Don’t they have YouTube?  Has a terrible virus struck down their computer?  Have their justice glands been removed in a complicated surgical procedure (to be re-implanted successfully for the next confrontation in Gaza)?  How can it be that when a Jew kills a Muslim, the entire world boils, and when extremist Islam slaughters its citizens, whose sole sin is the aspiration to freedom, the world is silent?

   

Imagine that this were not happening now in Tehran, but rather here. Let’s say in Nablus.  Spontaneous demonstrations of Palestinians turning into an ongoing bloodbath.  Border Policemen armed with knives, on motorcycles, butchering demonstrators.  A young woman downed by a sniper in midday, dying before the cameras.  Actually, why imagine?  We can just recall what happened with the child Mohammed a-Dura.  How the affair (which was very harsh, admittedly) swept the world from one end to another.  The fact that a later independent investigative report raised tough questions as to the identity of the weapon from which a-Dura was shot, did not make a difference to anyone.  The Zionists were to blame, and that was that.

   

And where are the world’s leaders?  Where is the wondrous rhetorical ability of Barack Obama?  Where has his sublime vocabulary gone?  Where is the desire, that is supposed to be built into all American presidents, to defend and act on behalf of freedom seekers around the globe?  What is this stammering?

   

A source who is connected to the Iranian and security situation, said yesterday that if Obama had shown on the Iranian matter a quarter of the determination with which he assaulted the settlements in the territories, everything would have looked different.  “The demonstrators in Iran are desperate for help,” said the man, who served in very senior positions for many years, “they need to know that they have backing, that there is an entire world that supports them, but instead they see indifference.  And this is happening at such a critical stage of this battle for the soul of Iran and the freedom of the Iranian people.  It’s sad.”

   

Or the European Union, for example. The organization that speaks of justice and peace all year round.  Why should its leaders not declare clearly that the world wants to see a democratic and free Iran, and support it unreservedly?  Could it be20that the tongue of too many Europeans is still connected to dark places?  The pathetic excuse that such support would give Khamenei and Ahmadinejad an excuse to call the demonstrators “Western agents,” does not hold water.  They call them “Western agents” in any case, so what difference does it make?

   

To think that just six months ago, when Europe was flooded with demonstrations against Israel, leftists and Islamists raised pictures of Nasrallah, the protégé of the ayatollah regime.  The fact that this was a benighted regime did not trouble them.  This is madness, but it is sinking in and influencing the weary West.  If there is a truly free world here, let it appear immediately!  And impose sanctions, for example, on those who slaughter the members of their own people.  Just as it imposed them on North Korea, or on the military regime in Burma.  It is only a question of will, not of ability.

   

Apparently, something happens to the global adherence to justice and equality, when it comes to Iran.  The oppression is overt and known.  The Internet era broadcasts everything live, and it is all for the better.  Hooligans acting on behalf of the regime shoot and stab masses of demonstrators, who cry out for freedom.

   

Is anything more needed?  Apparently it is.  Because it is to no avail.  The West remains indifferent.  Obama is polite.  Why shouldn’t he be, after all, he aspires to a dialogue with the ayatollahs.  And that is very fine and good, the problem is that at this stage there is no dialogue, but there is death and murder on the streets.  At this stage, one must forget the rules of etiquette for a moment.  The voices being heard from Obama elicit concern that we are actually dealing with a new version of Chamberlain.

   

Being conciliatory is a positive trait, particularly when it follows the clumsy bellicosity of George Bush, but when conciliation becomes blindness, we have a problem.

   

The courageous voice of Angela Merkel, who issued yesterday a firm statement of support for the Iranian people and its right to freedom, is in the meantime a lone voice in the Western wilderness.  It is only a shame that she has not announced an economic boycott, in light of the fact that this is the European country that is most invested in building infrastructure in Iran.  She was joined by British Foreign Secretary Miliband.  It is little, it is late, it is not enough.  Millions of freedom seekers have taken to the streets in Iran, and the West is straddling the fence, one leg here, the other leg there.

   

There is a different Islam.  This is already clear today.  Even in Iran.  There are millions of Muslims who support freedom, human rights, equality for women.  These millions loathe Khamenei, Chavez and Nasrallah too.  But part of the global left wing prefers the ayatollah regime over them.  The main thing is for them to raise flags against Israel and America.  The question is why the democrats, the liberals, and Obama, Blair and Sarkozy, are continuing to sit on the fence.  This is not a fence of separation, it is a fence of shame. 

Visit Jerusalem and you come to a city where you walk on history.

In the Old City, you can wander back thousands of years. In the newer parts of the city, geopolitics storms out at you from every corner. And in any one of the main streets, you can find people of several religions streaming towards you.

Sit in your internet cafe and complain about the Israeli political system, well you will be typing away with no fear that a policeman is looking over your shoulder with a baton, as in Iran.

This week, Jerusalem has proved that it is more than just a centre to the 3 main religions. Yesterday, Thursday, a gay parade took place. Yes, it did anger leaders of all religions. Yet I went into the night life area, later in the evening. The atmosphere was definitely one of fun and good will.

Today, the ultra orthodox will protest the opening of a car park on the Sabbath. I have many reservations about their aims and methods, however they will be protesting when most others in the Middle East can only dream of the opportunity.

Opposite these devout Jews will be standing a group of youths, dressed in jeans and tanktops, demanding greater pluralism.

Free speech – in Jerusalem or in Israel per se – is a precious gift. It must be protected, and not abused. When people complain about Israel and its so-called treatment of Palestinians, they rarely apply the same principles in reverse. Amnesty International feels that Israel should release political prisoners, but its silence over the abuse of Gilad Shalit is reprehensible.

Here, the choice of silence is as unacceptable as repression of free speech.

It’s a cauldron, but Jerusalem is a great place to live, because her freedom is available to all – for all to respect its precious status.

BBC? CNN? Sky? They are all asking if the world is emerging from a recession. Every little new detail is analysed. Today, the UK announced a significant fall in the predicted number of house repossessions, and thus…..

The cruel fact is that officially nobody can say where the economy is at, until formal stats are released looking back over six months.

Israel being Israel, people do not hang around, waiting for announcements. In fact, despite the rise in unemployment way over 7%, there is a large amount of anecdotal evidence to suggest that our economy is commencing an upswing.

Here’s what I mean.

  • I am trying to book  a week’s holiday in August in the north of the country. Many popular hotels are full.
  • Today, I spoke with my insurance agent, who specialises in policies for the family and small practices. While this a sector liable to cut back in a recession, he is enjoying a boom period.
  • Similarly, a client, specialising in internet research, has recorded a string of new projects since the beginning of the summer.
  • And today’s newspapers are full of reports about how house prices have been rising as far back as January 2009.

It is early days yet. This week, the Bank of Israel kept the interest rate at 0.5%, but it will not be long before that moves upwards. That is the kind of change, which results from officialdom not wanting the economy to overheat. Boy, it will be great to worry about too much growth!

Check out all the links to Israel on WordPress, bloggers paradise, and you will find tens of entries everyday.

Most of the authors impart bile. They hate Israel. You tell them that Israel is the one democratic country in the region, with a growing Christian population, and a medical system open to all, and and and …..you might as well be talking to a brick wall. For these people, Israelis are murderers.

It is easy to be cynical. If I was to count the number of times I am supposed to have carried out genocide, the Palestinians would be equivalent in numbers to those in India or even China.

So how can I prove my point that Israelis are really just like any other people, looking to live a life full of fun and in peace?

Enter Aussie rules football. Now for those of you not used to this sport, you may consider “peace” and Aussie rules (or Footy) a contradiction in terms. I was first introduced to the sport some years ago via a film called “The Game”, which made the battle of the Somme look like a Sunday afternoon picnic.

But no. The Shimon Peres Center for Peace brought the game to Israel. It recruited 20 Israelis and 20 Palestinians. They trained together near Jerusalem and sent a joint team to an international tournament in Melbourne.

What did this mean on the field? A great story is Nasser Gus, who had served a jail sentence for firing on Israeli soldiers. He partnered up with religious Jews living in the West Bank. The actual results seem less important than the political and social bonds formed.

This Sunday night, a documentary film will be screened in Jerusalem, showing how the idea moved from a wild though all the way to reality. As the director observed in a newspaper interview, this is a direct lesson in seizing an opportunity, despite considerable social obstacles constantly being shoved in your face.

As for the detractors on WordPress reading this, they should ask themselves why this film is not currently being shown on the West Bank or in Gaza. And they should consider why if Israelis keep coming up with programmes for coexistence, how come there are few equivalent Palestinian initiatives?

Following on from my previous posting on Jerusalem’s burgeoning biotech industry, today I paid a visit to the Biomed conference in Tel Aviv.

You had to ask. It was a muggy hot day in Tel Aviv. The city is located on a short flight to terror grounds either to the north in Lebanon or southwards in Gaza. The exhibition halls were not properly air conditioned. So what brought in these massive delegations from Japan, numerous European countries, Canada, around 10 American states and so on?

What is so special about Israeli biotech?

The answer is in the stats. Between the years 2004 and 2008, Israel’s life science exports nearly trebled to US$6.5 billion. There are a few very savvy international business people, who have found a country which knows how to deliver.

And there were numerous examples at the conference. Take Neowater, which has patented a method to modify the properties of water.

As my pet theme is Jerusalem, let me concentrate on Yissum, the tech transfer company of the Hebrew University of Jerusalem. Reading their brochure: –

  • Exelon, an Alzheimer medication, was sold to Novartis and generated sales of US$632 m in 2007
  • Doxil, for breast cancer, racked up US$417m in revenues for Johnson and Johnson.
  • Nearly 500 technologies have been licensed + 65 spin off companies.
  • 6 Nobel laureates. etc etc.

Beyond the Middle East conflicts and undistracted by global recessions, there is a phenomenal world of commercial opportunity waiting to be released in Israeli biotech. What has so far reached the balance sheets of the big players in only the proverbial tip of the iceberg. see you at Biomed 2010.

Jerusalem has been a key word on the google search list today. How did Bibi relate to the future of the holy city? Will it please Obama? Will the Palestinians like it?

I will ditch my ache to give some sarcastic responses. Because about 10 miles from where Bibi spoke to the world, Jerusalem’s new mayor, Nir Barkat, was making his own declarations about Jerusalem. In many ways, they are more immediate and could have a more direct impact on the populace of all backgrounds.

Barkat is no regular politician. He has a successful track record in hightech. He took  hold of City Hall as the regular power brokers turned in on themselves. To survive long-term, he will have to produce quick and meaningful change.

Thus, today, he launched his biotech initiative. Over the coming 5 years, he has pledged to raise approximately US$25 m for research carried out in Jerusalem. This will be over and above any new financial incentives for the sector.

To give some perspective to the importance of this statement, note that some of Israel’s biotech powerhouses, which are quoted on overseas capital markets, are located in Jerusalem. Teva is the most notable example. Estimates suggest that nearly half of all biomed research is carried out in Jerusalem.

In a press statement,  Dr Shirley Kutner, Executive Director of BioJerusalem, the Jerusalem Development Authority added how, “Despite the economic situation, we have seen a 20% growth in the number of companies and a 34% growth in the number of biomed employees in town relative to 2006. …… The investment on behalf of biomed companies is expected to top $350 million over the next five years.

She added that the life science industry in the capital hasalready yielded two innovative drugs, Doxil and Exelon, which originated from the Hebrew University and are now sold at over a billion dollars per year.

So while all these Muslim, Christian and Jewish scientists will begin to work together over new projects, Obama and his mates will continue to decipher what Bibi really meant in his speech. Maybe the road to peace and prosperity for all is to be found in the science labs in the heart of the world’s holiest city and not in the mouths of politicians.

Stats show that from Israel to Chine to America, SMEs – small and medium sized enterprises – make up over 95% of a country’s economic activity.

Last night, I moderated the monthly meeting of the Jerusalem Business Networking Forum. Over the past 20 months, this group has seen new businesses expand, secured employment for members, garnered contracts for attendees, and much more. The classic use of a small network group!

Last night’s meeting was no exception. The event was hosted by Paula Stern, the CEO of Writepoint, who spoke about the commercial potential of social networking. Twitter or join LinkedIn or prepare this blog, for most of us these are vital tools today in marketing strategy.

What specifically impressed me was the dynamism of the participants. The world is in the depths of a recession, and Jerusalem is part of that economic cycle. Each and everyone of those present is in the process of creating something new, all staring at the level of SME.

A visitor from Canada is launching a mobile advertising solution on the net. An American has created a small team, successfully involved in mining raw materials in Israel. A new immigrant had launched a photography business which is thriving despite private incomes being cutback. And there was a senior rep of a new foreign currency trader in Herzylia.

My message is simple. In order to create wealth in a recession and in order to enter commercial food chain, a necessary ingredient is the initial dynamism of the founders of an SME.

My question is: If most of us in social networking and outside know that, why has the Israeli government and the Finance Ministry missed this basic point? 

(Disclaimer: I am an associate of the Institute of Independent Business, whose Business Support Programme is designed to offer practical advice and support to senior execs of SMEs).

Pope Benedictus XVI arrives in Israel today, Monday. What’s the fuss?

Last night, Tel Aviv traffic came to a halt for several hours, as 50,000 people turned up to watch Depeche Mode in concert. And as I write, crowds as surging towards Mt Meron near Safed to commemorate “Lag Ba’omer” the cessation of a plague that killed thousands of rabbinical student nearly 2,000 years ago. The expected attendance is estimated at 500,000.

As for the Pope, how many can he count on? Officially, there are around 150,000 Christians in Israel, the one country in the Middle East with a growing Christian population. Most of these are from the Eastern Orthodox groups. Catholics are few in number.

The Pope’s visit is important for a number of reasons. It is not just that he is expected to make some definitive statements denouncing anti-semitism. His delegation will push to seek control of Vatican owned property in sensitive areas, like the Old City of Jerusalem. How all this will help to further the continually awkward Vatican- Jerusalem diplomatic loop is difficult to assess at this early stage.

One thing is clear. At best, the Pope will draw with him around 15,000 pilgrims – and no doubt others will follow later where he has lead. But these numbers are still insignificant compared to other mass events in Israel. (Pun not noticed, until after it was written – MH).

The Pope will learn that Christans are free to pray in Israel, something he will struggle to find elsewhere in the region. However, he has much more work to complete if he wants to secure a greater role in the Middle East for the Vatican.

I recently came across a wonderful book: “Not In My Name: A Compendium of Modern Hypocrisy”, written by Chas Newkey-Burden and Julie Burchill, and published by Virgin Books.

The section on Israel was written by Burden and can be found at: https://www.oyvagoy.com/israel. The author asks a challenging question.

The anti-Israel brigade would have us believe that the motivation for this vitriolic hatred of Israel is a genuine, compassionate concern for the fate of the Palestinian people. But do they really care about the Palestinians, or is their compassion somewhat selective, to put it politely? In reality, are they only interested in Palestinian suffering for as long as it gives them an opportunity to bash Israel?

As Burden notes: When Palestinian women are stabbed to death in “honour killings” across the West Bank and Gaza Strip, no anti-Israel Westerners lose a single moment’s sleep on their behalf.

So what?

Well, yesterday, I read about a new and challenging extension of this hypocrisy.

UNRWA was set up 60 years ago to help Palestinians and their social problems. It has a standing annual budget of over US$400m, which is regularly topped up for special campaigns. European taxpayers are particularly generous donors. Even since Israel left Gaza in 2005, UNRWA has still to resettle even one refugee outside the camps.

Israel and her supporters have been consistently critical of UNRWA and its increasingly political role. The Lindsay Report is the best documented comment to that effect.

In return, UNRWA through John Ging, its chief rep in Gaza, has never pulled its punches. The most notable occasion was during the January war in Gaza, when UNRWA claimed that Israel has deliberately shelled a school killing 42 civilians. UNRWA is proud of its record of supporting schools, funding school books, founding clinics and far more on behalf of Palestinians. It openly accepts that Hamas is its partner in Gaza, and works with this proscribed organisation.

And yet: Well, we all know that the 42 turned into 12, and 9 of those were Hamas operatives. Christopher Gunness, an UNRWA spokesperson, had to censure Hamas for stealing aid during the war. Ging has just called on the Western and Arab communities to deliver on its aid pledges to Gaza.

And now for the hypocrisy. For all the bending over backwards to help the Palestinians, often deliberately cooperating in tandem with militias, Ging has been censured by Hamas.

In effect, on 16th April, the Hamas paper “Felesteen” called on Ging to resign, as he opposes the “resistance”. His crime is his efforts to work within UN ethical standards. In other words, the man whose job is to funnel millions of Western money into Hamas projects is now seen as a traitor, because he is calling for transparency and opposing some of the violent methods.  

Fortunately for Hamas, Obama is currently trying to see it included in a new Fatah government. European politicians are also queuing up to visit its leaders, as they refuse to even consider recognising Israel. Phew, no hypocrisy here, either.

This week, Israel marks two important days in the calendar; Remembrance Day and Independence Day.

The former honours 22,437 civilians and members of Israeli security services killed since 1948. Rabbi Ari Kahn noted in his article on facebook that one of the strongest blessings that he can offer to soldiers and to all Israelis is that “they return home safely along with all their comrades, and live normal lives …..” .

When you balance those remarks with current trends in the peace process, they take on greater significance. President Abbas appears to be retreating on previous commitments to recognise Israel. In the words of an official from the Israeli Foreign Ministry: –

The Palestinians cannot negotiate for a two-state solution where one is Palestinian and the other is Palestinian-to-be. This is essential; it is the choice between ending the conflict or failing to end the conflict.”

Yes, Israelis are still very much in need of the blessing of peace. The IDF Chief of Staff, Gabi Ashkenazi commented this week how: 

Even after dozens of years of struggle, we have still not lost our hope to live by your side in peace and mutual respect; but I don’t recommend that anyone tests the strength and determination of the IDF.

In direct contrast, as we review Israel’s celebrations for her 61st year, we can see just how much President Abbas has to learn from his adversary. The official event to start the 24 hours of celebrations saw the customary participation of all parts of society, including Druze and Bedouin. Pluralism at its best.

But it is more than that. Israel is a beautiful country. In the winter, you can ski on the Hermon, and then a few hours later you can sunbathe in Eilat. In Jerusalem, you can almost literally walk back thousands of years and touch elements belonging to the First Temple Period. Israeli technology is literally universal, as she has become one of the few countries to possess satellite capabilities.

Israel’s modern history is replete with triumphs, which others would be proud of, but have difficulty in bringing themselves to acknowledge.

Israel has many blessings to offer other peoples and nations around the globe. All are welcome to receive them in peace and with good health. They too have much to celebrate from Israel’s 61 years of independence.

On Tuesday, I went for a wonderful walk in the midst of Samaria. Today, I finally realised what was disturbing me about the trip. For all the beauty of the nature, what I also saw was the very core of the Israeli – Palestinian conflict. For either side, it is no way to live (NWTL).

What do I mean?

 The walk itself was along the banks of the River Shilo. Spring flowers were out in full, and their colours won over the hearts of even your sarcastic author. The last winter rains mixed with some early summer sunshine ensured we were surrounded by a lush green backdrop.

The town of Shilo is nearby, built near the ancient city where the Tabernacle or Mishkan was located. This is holy for many different religions.

So why the phrase NWTL?

To get there, we travelled north out of Jerusalem along Route 60. Palestinian and Israeli drivers happily took turns breaking the speed limit. Each had their own number plates. Each was able to move freely to where they wanted. Fine, but then look again.

Under current peace proposals, Israel will be asked to surrender control of Shilo. Jews will not be allowed to return to a key holy site nor have access to the nature trail I trapsed. NWTL.

Sure Palestinians were zooming freely up and down the road. But on the edge of Jerusalem, they have to undergo security checks to visit friends and family. NWTL.

The security checks are staffed by young 18-20 year old soldiers, who are being asked to make immediate and sensitive decisions, all day every day. Not a fair imposition, leading to unsatisfactory results for all. NWTL.

Looking at the Palestinian villages from a distance and comparing them to the set up of Israeli towns, you can see that the Palestinian Authority is clearly unable (and unwilling) to invest resources in their social development. NWTL.

The route back to Jerusalem was poorly marked, and Israeli drivers nearly caused accidents as they desperately tried to ensure not to take an incorrect turn and thus drive into the wrong village. Who needs that danger or fear? Who needs to be humiliated by these drivers? NWTL.

The list goes on. But do not misunderstand me. Israelis have rights like any other people on the planet – to live their social /religious dream in peace and security. In parallel, the Palestinians deserve better.

And here’s the punchline. As Obama is sucked in to the depths of office, his lackies are also beginning to resort to the spin of the past. They are clearly gearing up to pressure the new Israeli government, assuming that this will bring results.

BUT, the fact is that there is no peace plan – Saudi, American, Israeli, European, etc – that gives a full and genuine resolution to these on-going subjects described here.

World leaders, including Israelis and Palestinians, must start to engage with those real, day-to-day, and on-the-ground issues, and in a manner that replaces rhetoric for realism and multi-level understanding. Then, maybe, we will see a sustainable peace process emerging for the Middle East.

Obama, Miliband and co have yet to reach that stage.

The Passover festival has commenced. Easter for many Christian communities is on its way. The Holy Land is full of strange stories just now, but if there is no overt Middle East crisis, then the world press ignores us.

What do I mean? Well take this Wednesday morning, around 6.40am. Hundreds of thousands of worshippers all over the country rushed out to watch the sunrise. The rabbis have calculated that the sun returns to its starting position every 28 years, and this week was that big moment. Yup, there were sarcastic mutterings about Stonehenge, but there we all were, bright and early.

And then, the country completed its preparations for Passover. Leavened food is a no-no for 7 days, as we recall the Exodus from Egypt. The cleaning goes so far that even bottled water from underground springs has to have a special certificate to say that it has no bread content.

Whether that was what Moses intended for future generations, I do not know. But I am at a loss to  explain some of these customs to outsiders.

Even the Kenesset has joined in the silly season. Bibi Netanyahu is back in power. He controls the Kenesset, yes? Well…how come the opposition party of Tzipi Livni, with barely 25% of the seats was able to filibuster the budget debate for nearly 24 hours? Just wait till the new PM tries to pass a contentious peace package through the chamber!!!

There are many more stories, but I will leave you with a note from Israel’s football team. They have received one of the easiest routes ever towards the World Cup Finals in South Africa next year. The main task was to beat Greece.

But, our 11 heroes failed, if only because they have clearly been trained to pass the ball to the opposition.  It now turns out that at a crucial point in the match, some Greek intellectual tried to blind the Israeli goalkeeper from long distance. Considering how Israel  played, this tactic may have had the opposite to the intended effect. In any event, the 3 points may be transferred from Greece to the Israeli clowns.

Could these stories happen in other countries? Probably. Could they all occur, and together, and in such a short space of time, I doubt it. And that is why I love living here.

Best wishes to all my readers, whatever you are celebrating this month.

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