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Afternoon Tea in Jerusalem Blog

In addition to my work as a business coach, one of my interests is blogging about life in Israel. This is a country full of contrasts – over eight million citizens living in an area the size of Wales. You can see snow and the lowest place on the globe in the same day. Although surrounded by geopolitical extremes, Israel has achieved a decade of high economic growth. My work brings me in contact with an array of new companies, exciting technologies and dynamic characters. Sitting back with a relaxing cup of strong tea (with milk), you realise just how much there is to appreciate in the Holyland. Large or small operations, private sector or non profit, my clients provide experiences from which others can learn and benefit.

Israel beyond the recession?

22 June 2009
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Categories: Business, Israel, Jerusalem

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!

Internet and Arab theocracies

21 June 2009
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Categories: Israel

The current troubles in Iran have been a big boom for the twitters of this world. Despite trying to gag foreign journalists, the mullahs have learnt too late that internet and mobile tech are readily available. Their own violence and hypocrisy is being exposed by the minute to the listening world.

CNN, BBC et al are showing off their twitter networks to their audiences, as if they discovered them. The truth is, as the Iranian leadership is learning, this is a revolution from below. And just as Bill Gates started in a garage, so Facebook was founded in university dorms.

So what?

It seems that the Iranian theocracy is not the only regime under threat in the region. A study of Arab bloggers was conducted by the Berkman Center at Harvard . To quote Saad Ibrahim, an Egyptian disssident resident at the university:

Blogger has become almost a revered term in Egypt. Groups that are otherwise completely disenfranchised, the only outlet for them is online.

And the more the authorities arrest the writers, the more who appear later on.

Now from an Israeli perspective, all this is very interesting. I wrote yesterday, how much of blogging and twittering is often virulently anti-Israel. And yet, Israel is one of the largest twittering communities in the world.

Do Israeli geeks compalin about the government? Yes, and from many different persepctives. Significantly though, Israel is an open, pluralistic society. Demicratic safety valves already exist through transparent elections and multi language media. Television from all over the world is broadcast daily into people’s homes.

By way of a suggestion to the rulers of most of the members of the Arab League. If you want to be around in 10 years time and still keep criticising Israel, maybe you need to adapt your constitutions in order to meet the challenges presented by modern technology.

Aussie rules WordPress in Israel

20 June 2009
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Categories: Israel, Jerusalem, Palestinian Society, Palestinians

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?

Absolutle financial market horror, and a Spanish waiter

19 June 2009
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Categories: Business, Israel

Much has been written about why the financial system collapsed on its heavy feet.

Opportunism replaced by vulgar greed is one popular theme. American, British and other financiers convinced most of us that their paper money was worth more than…paper.

Then of course there are the politicians. It is not just that they were prepared to believe the first category. They institutionalised the grab for money. Governors in America have lost poitions of power. Members of Parliament in the UK have used taxpayers money to build a moat, to buy manure, to pay off mortgages that did not exist, and..well, I gave up reading.

In Israel, Hirchson, the former head of the Kenesset finance committee was ripping off millions from blue collar workers, as he was preaching financial purity. (He later became Finance Minister!).

And there is one last part of the picture; the regulators. Until now, we have let them off the hook, even epathised. Many have commented that their freedom of action was curtailed by their bosses, the politicians.

Let’s be honest. That has not always been true. Last month, a shocking example came to light of mismanagement on the part of regulators in America. To quote a stockbroker friend of mine in the UK, this is  “absolutle financial market horror”!

Inspector-General Coleman of the Federal Reserve admits at a public hearing that she has not investigated what happened to a trillion dollars of American taxpayers’ money. She ain’t got a clue where it has gone.

No transparency. No accountability……except for the fact that she and many others receive a handsome salary to know nothing.

By the way, the las person to claim that “I know nothing” was Manuel, a Spanish waiter in a John Cleese comedy show. Maybe one of them should be appointed to run the world’s financial systems.

Israeli biotech – one mega commercial opportunity

17 June 2009
1 Comment
Categories: Business, Israel, Jerusalem

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.

Israel’s stock’s reclassified upwards

16 June 2009
1 Comment
Categories: Business, Israel

From May 2010, the MSCI Barra world stocks index will upgrade Israel to the status of  “developed market”. Kudos indeed.

There is a down side. Some brokers hold an Israeli portfolio, because it currently represents around 13% of the European-Asia “emerging” market scene. Its anticipated weighting in its new home will be under 0.5%. A concern has been voiced that some brokers may sell initially as they consider how the new postioning impinges on their portfolios.

Despite that lag, this move is definitely an encouraging sign; a pointer in the overall confidence that the international financial community holds in Israel.

In parallel, both the Finance Ministry and the private sector will have to strive even further to continue to deserve that trust. Power plays over how to run the country’s banks or public spats surrounding the high salaries earned at the Bank of Israel are not what anybody needs to see or feel. 

The world has asked the Israeli children to move on to more sophisticated games. The country’s financial leaders must show that they are up to the challenge.

Jerusalem’s biotech future

15 June 2009
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Categories: Business, Israel, Jerusalem

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.

When social networking misses the boat

14 June 2009
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Categories: Business, Israel

If you are reading this, you are part of the social networking bug. Blog it, Twitter it, Plaxo it or whatever, you and I are part of the new hightech methodology to promote yourself rapidly across continents.

You could imagine Tom Lehrer having a field day with the phenomenom. Who caught it from who, and then passed it on to …well, which best friend!

But there is a problem with all this. You have to be part of the crowd in order to know about the game and then to join in.

Last week, I participated in a meeting at Israel’s Export Institute. About 20 manufacturers and sales teams were brought together in one room. The opening lecturer consisted on the rudimentary elements of social networking. What is blogging? Why invest time in having a place on LinkedIn? etc.

And here was the surprise. Barely half of this sophisticated audience knew what the speaker was talking about, let alone be a part of the internet challenge.

Israel is a country that struggles to obtain and consolidate good marketing channels. Social networking is a great way to break down or even go around the barriers to commercial success.

My initial conclusion is that for the moment much of the buzz of this skill is only reaching the easy-to-be-converted. More of an effort is required to interest the small and traditional businesses. And I would hasten to speculate that this limitation does not only apply to Israel.

So here’s the conumdrum. How do companies, which specialise in social marketing services, reach out to those who are not on the radar screens?

Learning to succeed – management lesson for kids from Bill Gates

9 June 2009
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Categories: Business

I don’t like to plagiarise. However, I have just received some pearly words of wisdom, attributed to Bil Gates.

The great man gives kids a “reality check” in how to succeed – not quickly, but slowly, methodically and with wisdom. 11 simple and basic rules.

I do not know if these lines are a direct quote. No link was provided. Whatever the origins, there are same great messages for all of us, whatever our age or status.

Rule 1: Life is not fair – get used to it! 

Rule 2: The world won’t care about your self-esteem. The world will expect you to accomplish something. BEFORE you feel good about yourself. 

Rule 3: You will NOT make $60,000 a year right out of high school. You won’t be a vice-president with a car phone until you earn both. 

Rule 4: If you think your teacher is tough, wait till you get a boss. 

Rule 5: Flipping burgers is not beneath your dignity. Your Grandparents had a different word for burger flipping: They called it opportunity. 

Rule 6: If you mess up, it’s not your parents’ fault. So don’t whine about your mistakes, learn from them. 

Rule 7: Before you were born, your parents weren’t as boring as they are now. They got that way from paying your bills, cleaning your clothes, and listening to you talk about how cool you thought you were. So before you save the rain forest from the parasites of your parent’s generation, try delousing the closet in your own room. 

Rule 8: Your school may have done away with winners and losers, but life HAS NOT. In some schools, they have abolished failing grades and they’ll give you as MANY TIMES as you want to get the right answer. This doesn’t bear the slightest resemblance to ANYTHING in real life. 

Rule 9:  Life is not divided into semesters. You don’t get summers off and very few employers are interested in helping you FIND YOURSELF.  Do that on your own time.

Rule 10: Television is NOT real life. In real life people actually have to leave the coffee shop and go to jobs. 

Rule 11: Be nice to nerds. Chances are you’ll end up working for one. 

If you agree , pass it on. 
If you can read this – Thank a teacher!

Bottom line – In order to feel good and hopefully do well, get a hold of reality sooner rather than later.

Obama the magician; can he twist 3 refusals into 3 positives?

7 June 2009
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Categories: Israel, Palestinians

President Obama turned up in Cairo and asked the Muslim world to recognise that America is not an evil giant. He also called on his listeners to find an alternative to violence and bloodshed, especially when it comes to the Israeli – Palestinian issue.

As Obama pointed out, the revolutions in South Africa and elsewhere were eventually accomplished through peaceful means and not through the barrel of a gun. It is time for the Arab world to deal with Israel as a living and continuous reality.

International media has focused on Israel’s reaction. In today’s Hebrew newspapers, Netanyahu is quoted as saying that partial building in settlements will continue, as per an agreement with George Bush. that does not sound good to much of the outside world.

But how have Arab governments reacted?

Egypt wanted to ban Obama’s live broadcast on the state television. Hamas and the Palestinian Authority have welcomed the pressure on Israel, but not much more. From other countries, silence. No official comment.

And here’s the catch. Because to talk to Israel is a psychological anathema for most Arab leaders and their peoples. When Israel was created in 1948, it had no formal borders, as none of its neighbours recognised it. In place was a series of armistices, but nothing permanent.

And after the 6 Day War, the Arabs were united under the Khartoum Declaration of 1st September 1967: no peace with Israel, no recognition of Israel, no negotiations with Israel – the infamous 3 “noes”!

Since then, Israel has convinced Egypt and Jordan to sign full peace accords, partially breaking that physche. However, it is a cold peace. Hamas, Hezbollah, Iran and others have more than replaced the hatred from Cairo and Amman. 

Initial indications are that Obama has failed to induce his listeners to accept Israel. Without that, a significant move from Israel will be a solo waltz towards a change in the regional balance of power.

Managing failure into success

5 June 2009
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Categories: Business, Israel, Palestinians

This past week, I was sent three seemingly unrelated yet inspirational articles. With an extra cup of strong coffee this morning, their real message hit me. When combined, they make for fascinating reading.

Let’s start with failure. This facebook link shows how many of the popular heroes of history have suffered failure in those areas, when their mythos would have us believe otherwise. The motto? Without failure, you have not lived and you then have an increased chance to go on to success.

Now go to another corner. Rabbi Hammer  is a resident of Sderot, famous for being constantly shelled  from Gaza. He probably leads a very different life to the gentleman who posted the item on failure. The rabbi has commented on his exasperation in dealing with his teenage children, unusual for a man who is supposed to have all the answers to family distress situations. More failure, yes?

Hammer found his way out of the conumdrum by looking at how others have succeeded in similar situations. Love can be maintained and expressed, even when you disagree, possibly disagree fundamentally. Anger is sometimes an emotional disguise for a desperation to get it right together.

My third story relates to a reality TV series. 2 povactive, rude, intelligent British teenagers were taken to Israel and placed for a week in the home of an ultra-orthodox, socially conservative family.  The result was an extremely volatile week, where two beautiful youths learnt how to convert their weaknesses into strengths.

So, your past may not have brought you the success or peace of mind you deserve. You probably have the clarity to know that you really want to achieve that success. the question is how to manage and develop your skills towards a successful future.

Is this what Obama is telling leaders of the Middle East? More to the point; is he really ignoring them, but engaging with the people at large? The past is full of war and hate – that is not a sign of triumph.

Emblaze – a story of what could have been

31 May 2009
2 Comments
Categories: Business, Israel

Emblaze used to be a symbol of Israel’s hightech success. It provides a plethora of technologies to telecom and mobile operators. It was one of the first Israeli companies to launch itself on London’s AIM financial market. Within 3 years, it had been upgraded to a full listing on the London Stock Exchange.

Just over 2 years ago, I met with a VP in biz dev in the Emblaze Group, offering him an attractive media package. Young, and proud of his arrogance, my host told me that the company had no need to push itself forward, as journalists constantly sought out Emblaze.

I was told that the company had raised around a US$1 billion in recent years. Despite continuous losses, the company was still cash rich. And out I walked.

Jump forward to this week’s news. Eli Reifman, the founder and president of Emblaze, owes around US$60 million and has been placed under temporary receivership.

Surprise? I checked the companies market data. The reports for 2008 show a 50+% rise in revenue, matched by a 700% drop in net income! Stunning. The share price has managed to regain its former level of a year ago, despite attacks from corporate raiders.

When I left Emblaze’s corporate offices after my meeting, you did not need to be genius to see that something was fundamentally wrong. I was accompanied by a savvy international business person, who was simply disgusted by what they had witnessed.

I sincerely hope that Emblaze will see better days. They have exciting new products, already on the market and generating interest. Elements of the software section of the group are performing very well. 

And yet, you really get the feeling that if the top team had led with a little less pride and with more respect for old fashioned commercial practices, Mr Reifman and his colleagues would be in a far more healthier position today.

Funny how this story reminds you of many former giants who have diasppeaered recently from the global commercial map.

Managing HR and the Israeli ant

28 May 2009
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Categories: Business, Israel

Bibi Netanyahu, Israel’s Prime Minister, has a master’s degree from MIT Sloan School of Management.

Last week, a close friend of mine sent me a satirical presentation on how successful companies often wither through poor management of human resources. In brief: –

An ant was known to be happy and productive working on its own. So the lion boss wondered how much more could be achieved with a supervisor, providing direction. So the cockroach supervisor, oh and its secretary, drew up wonderful and pretty reports, helped by the new IT department.

The lion decided that the whole structure needed to be controlled, which led to the recruitment of further staff and resources. But nobody was happy as there was too much paperwork and too many meetings to attend, while production levels remained static.

So the lion turned to the owl for its suggestions. And the wise old bird declared that the organisation was overstaffed. So guess who was the first to go and why???? The ant…for lack of motivation, which had impacted on others.

And what is the connection to the Israeli mouse? For all Bibi’s experience as former leader of the opposition and a previous term as Prime Minister, he has appointed a government of 30 ministers and 9 deputies – for a population of 7.5 million and 120 members of the Kenesset.

This large team, in the space of less than 3 months, has managed to: –

  • Oversee a serious deteriation in realtions with the USA, Israel’s most important ally
  • Watch placidly as economic and academic boycott’s of Israel continue to sprout up
  • Initiate a strong budget, which was replaced at the whim of Bibi’s own economic advisor and with the connivance of the trades union organisation. 

The result? Well, no result. Confusion, fear, lack of leadership.

It is time, now, for Bibi to show the country what management skills he really posseses. In the months ahead, the choices and the decisions will only grow far more difficult. Either Bibi puts his team to better use, replacing rhetoric with actions, or he dumps them. Then we will see if Bibi really knows how to handle the ants of Israel.

Boosting the Palestinian economy, or not

27 May 2009
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Categories: Business, Israel, Palestinian Society, Palestinians

Believe it or not, Israel sells nearly US$4 billion of produce and services to Palestinians every year. In return, Israel imports about US$1 billion, as well as employs tens of thousands of labourers.

Ofir Gendelman is the CEO of the new Israel Palestinian Chamber of Commerce. In a recent interview, he noted how the 2 economies are very much inter-related.

Most of the products sold in Palestinian markets are Israeli. West Bank supermarkets stock mainly goods made by Israeli companies such as Osem, Strauss and Elite. For the Palestinians, most trade at the end of the day is with Israel.

Personally, I have seen this cooperation in practice. This week, I was asked to speak to a Palestinian, developing a finance project. And earlier this month I attended the Agritech exhibition in Tel Aviv, where there was clear interest in the Palestinian sector.

This mutuality is a great way of creating trust and of building towards peace. One of the factors stopping this exciting prospects is…… wait for it…. academics. Yes, the university champions of this world see this progress as dangerous.

How so? Take the UK union of lecturers. It wants to propose a boycott of Israel and encourage divestment. The potential net result?

Well, you could imagine the flow diagram: The Israeli economy would suffer. This will have a knock-on effect, firstly on Israel’s neighbours. And Palestinian militants will see that if they attack again, not only will they not be punished, it will be the Israelis who will be told off for retaliating. And round we go again.

Now, that explanation may be too complicated for your average intellectual delegate of university lecturers. But their pensive decision-making is going to hit adversely the dinar in the pockets of Palestinians, the very people they want to help.

How would I grade that policy? F for failure. 

Helping the Palestinians will require joint efforts and not one-way messages of hate.

How SMEs create wealth in a recession

26 May 2009
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Categories: Business, Israel, Jerusalem

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).

Israel in China

24 May 2009
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Categories: Israel

My previous posting, signalling Ken Loach’s hypocritical attitude on Israel, picked up some good pull.

It is classical socialist ideology, so desperate to protect the purity of its spirit, that it misses the true story. Thus, in looking to protect human rights of one side of the conflict, Loach resorts to racist spin of previous epochs.

So, it came  as a refreshing change to see what China, of all countries, is doing to promote Israeli culture, and big time at that.

Next year, China will host the Expo exhibition in Shanghai. Brand Israel has opted for a major display, coordinated by Haim Dotan Architects. One of over 200 exhibits, this promises to be one of the most adventurous.

See the following futuristic clip.

With 70 million people expected to look into Israel’s golden offering to the world, Loach must be feeling very unhappy. (Oh dear! How sad!)

Ken Loach locks out George Orwell

22 May 2009
2 Comments
Categories: Israel, Palestinians

Ken Loach is a brilliant British film director. That is a precious skill, because cinematography is a key medium to ensure that holders of differing opinions communicate with each other. And Loach has an excellent history of bringing difficult subjects to the attention of big screen viewers.

This week, Loach spat in the eyes of his own profession. He actively and successfully campaigned to ensure that the Edinburgh International Film Festival did not receive a small grant to feature an Israeli film.

The film is a romance set in a sex-therapy clinic, and makes no reference to war or politics. It recently won an award for Best Film at Israel’s International Women’s Film Festival. The film is produced by a Tel Aviv University student

So what? Loach was looking to ban Israeli participation.

EIFF had commented that: “Not accepting support from one particular country ‘would set a dangerous precedent by politicising what is a wholly cultural and artistic mission. We are firm believers in free cultural exchange, and do not feel that ghettoising filmmakers or restricting their ability to communicate artistically on the basis that they come from a troubled territory is of any benefit.”

A few days later, the organisers capitulated, pathetically.

The actions of Loach are detestable. He claims that his argument against Israel is based on the country’s excessive force. If that were true, why does he not complain about Palestinians to the same degree? With true irony, as he was campaigning, rockets landed on people’s homes in Sderot, southern Israel.

Loach is a hypocrite. By isolating one group of people in the global society to relieve his hatred, he opens himself to the accusal of racism. He copies tactics employed by those who have hated Jews over the centuries, and wraps in acceptable 21st century spin.

The acclaimed director has learnt how to control the communication of others.

I bet that Ken Loach cultivated his political activism partially on the works on George Orwell, the author of 1984.

One key message of Orwell’s philosophy was the need to speak out when people try to clamp dows on freedom of expression. Loach has crossed that line of human decency.

Obama meets Mike Wallace in the Middle East

20 May 2009
1 Comment
Categories: Israel, Palestinians

So you think that Obama’s policy is new and exciting? You believe that Bibi Netanyahu is not talking about a 2-state solution? Scrap the spin and let’s get real.

Over 50 years ago, before Obama was even born, TV legend Mike Wallace took on Abba Eban in a powerful interview. Ebanwas one of the diplomatic greats of the Twentieth Century and who represented Israel for decades.

It is compulsive viewing. Despite taking place before the Arabs launched the 6 Day War, when Israel gained control of the West Bank, the arguments are directly paralleled to those of the present. Israel is aggressive, does not seek peace, is an economic disaster, and all the rest.

In response, Eban set out the cold truths. Seek peace with Israel and we can all live together in prosperity. No rhetoric. That’s how it should be.

In effect, this is the commitment that Obama was seeking from Netanyahu. This is what Obama will tell the Arab world and Israel in Cairo on June 4th, almost 42 years to the day when Nasser declared war on Israel.

Bibi can bluster that he did not cave in during his visit to Washington. However, he has already accepted the Road Map of Bush. Everybody knows that includes a 2-state end game. The media is left to quibble over the semantic finesse.

So where is the difficult bit in the peace puzzle? It is called the Palestinian leadership.

President Mahmoud Abbas is the next politician expected to catch a flight to the White House. To get a state with territorial continuity, all he has to do is:- (A) Say yes to Obama and (B) Deliver on his promises, eliminating terror and that includes controlling Hamas. 

(The Iranian nuclear threat is serious but is a side issue in this context,  even though Tehran will do its utmost to confuse matters through its proxies in Hamas and Hizbollah).

And this is where Abba Eban may have the last word. In 1983, he wrote:

They (the Palestinians) have never missed a chance of losing an opportunity. They have persistently rejected proposals conceived largely in their interest…

Obama has learnt well from Eban and from Wallace. for all the poor analysis of the press, the American President has quietly placed all the real pressure on the Palestinians. They have to deliver in the name of international peace. 

Well that was simple enough, wasn’t it?

Palestinian economic progress

18 May 2009
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Categories: Business, Israel, Palestinians

I have long opposed aid for the Palestinians, when it inexclicably seems to disappear down a black hole. Donors and intended recipients become the victims to the owners of greed and violence.

So it is refreshing to come across some positive news.

Tonight, the Israel Palestinian Chamber of Commerce will hold a gala dinner. 

Guests of honour at the event will be President Shimon Peres, Tony Blair, official Envoy of the Quartet on the Middle East and his wife Cherie Blair, the Vice Prime Minister and Minister for Regional Development Silvan Shalom and Deputy Foreign Minister Danny Ayalon.

If this role of honour is impressive, of more importance for me is the sign of Palestinian commercial interests beginnings to take a lead. This is the beginnings of the creation of an independent economy, which looks to build wealth through normality and not via political dominance.

For example, The Portland Foundation is working in the Ramallah region, building new affordable homes. In a secondary field, they are developing long-term savings schemes. 

(Place this against the number of senior Palestinian officials, who have been accused of controlling the cement industry or similar rackets.)

Maybe Obama and Netanyahu should start by fostering similar positive schemes, create a stable framework, and then go for a comprehensive peace arrangement.

Tax breaks for Palestinians

17 May 2009
No comments
Categories: Business, Israel, Palestinians

It seems that the international community has finally found a way to channel money to the Palestinians in a manner that clearly gets around the “Hamas factor”.

The aim seems to be to use UN institutions. Clearly even the Saudis have been worried, as there hundreds of millions is still in Riyahd as opposed to Palestinian bank accounts.

Certainly this is a positive step. But it begs one horrible question. What has happened to the money until now?

The Funding for Peace Coalition long campaigned for greater transparency and accountability of Western tax payers money going into Gaza and into Ramallah. EU, UNWRA, USAID and others have all invested billions.

We know that Arafat died as one of the wealthiest men in the Middle East. Crawl the web and you will find that he son of President Abbas has been censured for his new-found wealth. Hamas has finessed the art of smuggling, profiting on the building of the tunnel, their use, and the goods eventually sold.

A recent convert to this need for monitoring has been the Taxpayers Alliance. In a report released last month, the group detailed how the EU in particular funds a Palestinian educational curriculum filled with direct and indirect hatred.

To quote the key findings: –

  • Over €729 million of EU taxpayers’ money spent on aid to the Palestinian territories each year.
  • Donations to the Palestinian territories create a responsibility to ensure that the Palestinian Authority does not misuse its budget. That responsibility exists whether EU taxpayers are directly supporting the promotion of hatred and violence, providing the Palestinian Authority with funds that it can use to do the same or providing services that Palestinian authorities would otherwise be expected to provide, freeing up their budget to use as they like.
  • 42% of the Palestinian population are under 15 years old.
  • The Palestinian media is dominated by official newspapers, radio stations and television channels, paid for by the Palestinian Authority’s budget which is in turn supported by British donations. That media frequently broadcasts statements that advocate the continuation of violent struggle instead of pursuing peace.
  • Breakdown of the €729 million: €420m from the EU; €67m – France; €67m -Sweden; €55m -Germany; €27m -Italy; €93m – the UK.

The point? Well, tax collection by the Palestinian Authority and by Hamas is negligent. So if they are going to use other people’s money, especially in tight times as today, they should have the decency to use it on morally justifiable measures, which will feed into a genuine peace process.

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