Pages
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.

Israeli politics

17 December 2008
No comments
Categories: Israel

For decades, Israeli was noted for its high voter turnout. Call it cynicism, disgust at continuous stories of corruption, or a reflection of the performance of political leaders, participation continues to fall away.

In February 2009, the country will be asked to trot off to their polling stations yet again. On the radio this morning, I heard two anecdotes, which indicate towards yet another lowish turnout.

First, last night, Channel 2 broadcast the final (thank goodness) episode of Israel’s version of “Big Brother”. The ratings were close to 40%, far more than that expecedfor the party political broadcasts next due shortly. More significant, the winner – a 28 year female – received around 2 million votes, way above any number a political party has ever received from the electorate.

You can decide for yourselves what this says about the two “groups”. I noted that the participants had been locked away for 107 days, about the same length as the election campaign. And I did not watch ANY of the former. A clear lesson for me for the rest of the campaign.

Story number 2 features the primaries for the Kadima party, led by Livni. Apparently, earlier this week, a fax was sent round, supposedly from a government minister and party prominent, Edri, asking people for his support. But the message was spelt out in a very tasteless manner.

The point? It was not just that it was obvious that Edri would not do such a deed. The guy, who sent the fax, relayed it to the world from his own home. So the sender’s own name and phone was on the letter, which he tried to frame Edri for!

Only 8 weeks to go. Now that the Big Brother house is empty, we could lock up all the politicians in there. Would you miss ’em?

Business Networking in Israel

15 December 2008
3 Comments
Categories: Business, Israel

The reading of today’s financial papers may not look too encouraging. “The Economist” predicts zero growth for Israel in 2009. The Finance Minister, Bar-On, is quoted as saying: “I must honestly admit that the ability of the Israeli economy to cope with the global crisis is wide-ranging and effective. Even in the most optimistic scenario, the Israeli economy will suffer a substantial slowdown in 2009.”

So what channels are open to Israeli entrepreneurs, looking for a way out?

Last week I commented on the importance of social networking, especially in the Israeli economy. Israel is very much at the heart of the industrial revolution in communications, with software engineers often being leaders in blogging and more.

Today, I went to a working lunch, hosted by IBM, in honour of a visiting delegation from the SE Region of the American-Israel Chamber of Commerce. Based in Atlanta, Georgia, this state sees itself as the 29th largest economy in the world. And these guys were investing their time in coming to Israel. Why?

Look at the current crop of Georgians in the Holy Land. GE, UPS, Coca Cola, Panasonic all have major centres in Tel Aviv or nearby. GE have an r&d unit here, and “the real thing” is produced in Israel. 

Just over 2 years ago, McKesson of Atlanta bought out a small Israeli cardiology team, Medcon, for a cool US$100m. Today, 45 Israeli companies are based in Georgia and nearby.

The IBM building is no small edifice. On the same campus are the status symbols of Alcatel, Intel and others. The Atalanta-based delegation came looking for technologies that offer reimbursement in medical care. Specifically, in a state with a large city and an enormous hinterland, they need ways to provide services, equally to all.

The room contained around 15+ Israeli start ups; medical devices, logistic operations etc. I was there in my capacity as CEO of CEPCO. We made a strong pitch, engaging the visions and concepts of the American guests.

In February 2009, Georgia will invest in hosting a medical care delegation from Israel. This economic powerblock clearly is aware of how to drive through the global recession, and meeting today was a significant step on that road.

The Israeli economy – the “P” effect

12 December 2008
No comments
Categories: Business, Israel, Palestinians

Depending on how you look at it, Israel devotes up to a third of her resources to defending the country. In the past decade alone, Israel has fought an on-going was against internal Palestinian terror, fought a war in Lebanon, had to prepare for the Iranian threat, and more.

Contrast all that (+ the fall out from the Millenniumeconomic bubble  burst) with the fact that Israel’s economy has grown approx 5% pa on average since 2002. Staggering by most standards. As a mark of its success, in 2008, Israel was accepted into the OECD and the Financial Times upped its recognition of the Tel Aviv Stock Exchange.

Usually, peace leads to prosperity. An explanation for the dichotomy? In May 2007, CNBC  ran a series on the Israeli economy. A leader in formulating world economic opinion, the TV channel concluded that Israel has developed a strong model for economic growth, despite war rather than through peace.

How so? Well, some of Israel’s first high tech giants like Elbit were effectively spun out of the local defence establishment. Since then, if the current global industrial revolution is IT based, Israeli tech is a central part of that recent history. By way of proof, just look at the components in your mobile phone or the microchip enabling you to read this. All this coupled with massively improved fiscal and monetary policies from central government.

Israel’s economic joy of this decade has been led by technology transfer. It has been supported by arms sales (also tech based), real estate and the diamond industry. The inevitable consumer boom was the result of and not the trigger for the success.

So what is the effect on Israel’s economy of Palestinian and Hizbollah terror? I can identify 3 specific sectors.

1) SMEs – when people are called for reserve duty, it is the small enterprises which suffer the most. This was shown in stats after the 2006 Lebanese war, as individuals were called for 30+ days of service.

2) Certain regions of Israel suffer more from Palestinian terror. For example, in the south there is a refugee issue as one third of Sderot’spopulation have fled the constant shellings from Gaza. For example, despite the ceasefire, over 200 rockets and mortars have been launched since November 4th.

3) As resources are devoted to the defense sector, health, education and other social services are pushed way below recognised red lines. Only this week, yet another report was released showing how standards in maths and other subjects have dived again in high schools.

As a parallel, I leave my final word for the Palestinian economy: According to World Bank figures, it grew 5.5% annually from 1968 to 1999, just before  Chairman Arafat launched the second Intifada. In effect, once the Palestinians had been freed from Egyptian and Jordanian rule, Israeli support handed them one of the fastest growing economies internationally for over 2 decades. Today…..well, that’s for another posting.

Marketing in a downturn – Anecdotes from Israel

9 December 2008
3 Comments
Categories: Business, Israel

This Sunday, I met up with the CEO of a large Israeli importer of biscuits, sweets and other yummies. He is an established and notable power house in the economy. His premises offers approx 20 sophisticated docking bays for large distribution trucks – over 500 employees.

Was this guy feeling the downturn? Basically, no. His reasoning took him through a cross section of local peculiarities. But to sum it all up – He knows his market. He is listening hard to what people want.

Now jump forward 24 hours, and I moderated the monthly meeting of the Jerusalem Business Networking Forum. David Nordell presented a fascinating discussion on Business Intelligence. Bottom line – understand what your market wants.

How? Nordell spelt it out. Get close to people either by physically networking or by using Twitter and the like.

Nordell has his own blog, is available of LinkedIn and several other net forums.

Significantly, these two anecdotes confirm a series of one off comments passed on to me in recent weeks from a multitude of business persons in Israel. The path to beating a recession is to offer a quality service. And you start to do that by learning what the market requires and why.

Israel – the positive economy

7 December 2008
1 Comment
Categories: Business, Israel

The number of firms in Israel declaring insolvency has risen by 13% in 2008 compared to last year. No surprise there, but I still claim that the economy is continuing to function very capably for the moment.

There are several indicators to that effect.

First, last week, I commented about the positive role of the Tel Aviv stock exchange. The Bank of Israel has reported that overseas players sold US$1.2 billion of Israeli stocks, a prime reason for the fall in the index.

However, foreign direct investment still hit US$444 million, although still 50% down from September 2008. And foreign currency reserves rose strongly in November 2008.

Aaron Katsman, managing editor of a circulated economic newsletter notes that “as far as emerging markets go, Israel has been a big out performer.”

For confirmation, look at what people abroad are saying about the country. Globes newspaper on its website quoted ING Invesment Market executive, Martin-Jan Bakkum. He sees the Tel Aviv index as a strong defensive position.

And he is not alone. Last Wednesday, I attended a private gathering with British health experts, actively looking to invest in Israeli products and services. Two days later, I was contacted by a second British group, which wants to send a delegation to recruit businesses to its shores.

Difficult times, but with a future ahead.

Bethlehem – what it means to me

5 December 2008
1 Comment
Categories: Israel, Palestinians

With less than 3 weeks to go to Christmas, what does the annual countdown mean for Bethlehem? Overseas, the talk is about the remaining shopping days or holidays. In our part of the world, Bethlehem has sadly slid into the drain of the Middle East conflict.

Speak to Israelis and they will quote you how thousands of Christian residents have been forced to convert to Islam or lost property rights since 1993 and the Oslo Accords. Proponents of the Palestinian cause cite harassment by Jewish settlers or blockade of commercial goods.

I have found that the truth often rarely sticks to political spin. There are definitive analyses as to how the security fence has benefited Christians in the West Bank. When I see Palestinian leaders attending Midnight Mass in Bethlehem, I wonder why they need to sacrifice themselves to the cameras, exploiting such a holy occasion.

On a very personal level, I look at Bethlehem very differently. I recall how I used to shop there, like many residents from southern Jerusalem. It was nearer and cheaper than the obvious alternatives.

I remember taking tourists round the Via Dolarosa in Jerusalem’s Old City and then driving 15 minutes into Manger Square. And we could walk around the Church, without interference from security forces of one kind or another. Bethlehem signified..well, an open way of life, peoples of all religions coming together.

Just how much has Bethlehem changed over the past 15 years? Today, Bethelehem is a Muslim city, controlled by the Palestinian Authority. My kids cannot fathom my simple anecdotal stories.

So consider this: The next time you read about Bethlehem, imagine how differently the article would have read if the ruling politicians would stop interfering and the extremists would desist from exploiting frail religious emotions.

Mumbai terror – the Jewish angle

2 December 2008
No comments
Categories: Israel

This afternoon’s tea in Jerusalem was tempered with salt water. Six Jews were laid to rest in cemeteries around the capital and near Tel Aviv. The exact number of foreigners killed on the streets of Mumbai still remains uncertain. But of the roughly 188 mainly Indian dead, six were Jews, an unusually large proportion.

They had been tortured and slaughtered in a Jewish outreach centre. The facility was located in a quiet neighbourhood, barely distinguishable from the outside. And of all the other cultural and ethnic complexes in Mumbai, only this Jewish house was picked out by the terrorists.

The New York Times argues that “it is not known if the Jewish center..was an accidental scene”. You think that’s sick? I suppose the same logic allowed well-travelled UK journalist, Jon Snow, to call these murderers “practitioners”.

But it is the BBC, which reveals how politically correct reporting simply distorts and hides the truth. Tom Gross observed that as Sky News and other media covered the horrendous final moments of the siege of the Jewish house, the editors at the Beeb had the cameras tuned to ….well just something else.

Why?  It is increasingly accepted that the BBC HQ does not like Israel and what it stands for. It is only a small jump to the line of Hamas, the violent and rabidly anti-semitic ruling power in Gaza. An op-ed article in its organ “Felesteen” accused Israel of responsibility for the terrorist attacks in Mumbai. Dr. Issam Shahwar, in his column “Free Zone,” claimed that the captive in Indian custody had said that the objective of the attack was to kill as many Israelis as possible in retaliation for the “barbaric crimes” Israel has committed against the Palestinians. Thus argued Sahwar, Israel bears responsibility for international terrorism and for the dangers faced by many countries around the world.

So, do we understand that these visitors to Mumbai, who presumedly were just trying out some ammunition, accidentally stumbled across a house of Jews, who deserved to die anyway? Er, um? Possibly poor satire from me, but that is the bottom line of these influential journalists.

The BBC did cover the funerals in Jerusalem, even putting a headline on its opening international page. They even have left a video on their website…..  without sound. So you have no clue to what is happening and the key mourners look silly.

How will your tea taste tomorrow?

The Palestinian Economy – vast improvement

1 December 2008
No comments
Categories: Business, Israel, Palestinian Society

Spin it as you want, the Palestinian economy under Israeli rule showed continuous annual growth of over 5% between 1968 and 1993. According to stats from the World Bank, it was one of the world’s best performing economy’s for that period.

The Oslo Accords gave the PA took economic control of the territories. And once Chairman Arafat launched the Intifada in September 2000, serious commercial life for Palestinians basically went the way of the bullets. Unemployment soared. Wages dropped. No serious tax revenue. Etc, etc.

Israel’s Civil Administration has just released preliminary figures for the year 2008. Focused on the West Bank, which has desisted from launching Kassam attacks against Israel, the figures give cause for optimism. For example: –

  • 35% increase in trade with Israel
  • 87% more tourists in Bethlehem
  • 24% increase in average daily wage
  • 953% more cars imported into the region, and so on.

But it is more than the boring numbers. Taxes are being collected on a more regular basis. 3 economic conferences have been held. In Jenin, Israeli Arabs are participating in a number of local projects.

These are the stories that reveal the beginning of a peace process. This process and its causes deserve the encouragement and attention of the international community.

Young Israeli companies riding the storm

30 November 2008
No comments
Categories: Business, Israel

Yesterday in Synagogue, I sat next to a friend who works for an international IT company in Jerusalem. Between the prayers, he voiced concern that his company was about to lay off 10% of staff and cut the salaries of the survivors.

Yes, the recession has reached Israel. The retail price index for October is expected to show  a drop of a whole percentage point. Car sales are down 19.7% as against the previous quarter. Gloom, but not doom.

I continue to maintain that the Israeli economy is facing this downturn in good shape. And the Tel Aviv stock market has picked up on that. Over the past 3 months, it has fallen 22%; difficult, but brilliant compared to the 35% of the FTSE’s world index. Let’s take some specific recent success stories.

  1. Johnson & Johnson will acquire Omrix Biopharm for US$438 million. (Omrix is down the road from my friend’s employers.)
  2. A holding company, Medinvest, has raised US$129 million, backed by 7 successful previous exits.
  3. Plurality‘s efforts in the semiconductor business are already making it the target of companies like Intel and other giants. Its success at at a recent Japanese exhibition led to a central feature on Yahoo’s Finance pages.
  4. HP has become the 11th multinational to sign an agreement with Israel’s Office of the Chief Scientist. Along with Deutsche Teleom, Microsoft and others, it will seek local technologies to match their own strategic development strategies. This is on top of their US$6 billion previously invested by HP in Israel.

For all the problems of its pension funds and aging politicans fighting for their reputations, the Israeli economy is telling the world that it has a lot more to shout about. Worth listening, in my view.

The hidden beauty of Jerusalem

28 November 2008
No comments
Categories: Israel

When you tour aound Jerusalem, you know that you are walking on history; Biblical, Roman, Turkish, a recent war – you name it and we’ve got it. Guests are consistenly amazed at the wealth of stories or parables readily available. Even as a local, I am constantly ‘watching’ secrets emerge out of this precious city – from its walls, the back streets, its houses of worship.

Take last night. My wife and I wandered into the Ein Kerem neighbourhood along the south west edge of the capital. A mile down the road is a site made holy to Christians by John the Baptist. On a far hill is the Holocaust Museum and the silhouette of a railway carriage, recalling past horrors. Today, Ein Kerem is an artist quarter, replete with stylish restaurants housed in structures, built by the British army during the Mandate period. Every 5 yards, and a different twist in the time tunnel.

For the record, we had brilliant fish supper, balanced by a superb cabarnet from the Golan wineries.

Now contrast all that with our tour last week of the Nahlaot region. This area was set up in the 1920s, when Jews were forced to flee parts of the Old City. The wheat fields were gradually replaced with small houses. The open wells, collective washing lines, and public ovens of 90 years ago – amazingly, several are still visible today.

The guide, Jackie Levy, reeled off stories. Each building seemed to own its own foods, smells and hero. Many of Levy’s characters had seemingly grown up in “a glorious and happy poverty”.  

Nahalot backs on to the colourful fruit market called Machane Yehuda, where many of its residents work. Fittingly, it is here where you can see people from all backgrounds, flocking to sell and buy, effectively creating a new round of fables.

After terror – How Israel encourages coexistence

27 November 2008
No comments
Categories: Business, Israel, Palestinian Society

The events in Mumbai have proved that terrorists continue to plunge to ever new depths of violence and hatred. Israel is no stranger to similar senseless carnage. The country has learnt to live with it, and still seek ways to live in harmony with internal minorities and neighbouring countries.

Another 2 examples of this coexistence came to light this week.

The multi-cultural school of Kfar Kana was recently portrayed on an internet TV station. The school is located inside Israel’s pre-1967 borders and is one of 3 such places in the country. The hundreds of pupils learn to speak the language and appreciate the religion of each other. The onus is not just of the schools 2 co-head principals. It is often the parents, who are the true heroes, battling trends in their respective societies. 

A few miles to the east is Nablus, a key Palestinian city. Last week, it hosted 700 investors, a direct follow up to the conference held in Bethlehem in May this year.

Significantly, the Israeli Civil Administration (ICA) played a major role in ensuring that the delegates were able to arrive and depart in comfort and in safety. Lt Col. Dacse Salame, head of the ICA’s Economics Branch observed the mutual importance of such an event, when he said that: “The Palestinian Authority has made serious preparations for the conference, and we, the Israeli side, will do our utmost to ensure a smooth and successful event. The financial benefit that the conference should provide for the Palestinian economy led us to set up a joint situation room, which will be able to solve any problem around the clock.”

These efforts – the moves to developing trust and recognition – that all terrorists reject. That is what is common to the murderers in Bali, from Gaza, in Mumbai or on the London underground.

The Palestinian cause – a moral consideration

24 November 2008
No comments
Categories: Israel, Palestinian Society

I was confronted with a horrific picture in Friday’s newspaper. 3 Palestinian policeman, standing in a recuperation facility, missing 4 legs between them. The one of the left had no left leg. The guy on the right had no right leg. In the middle, the former serviceman was portraying his 2 stumps.

The photo? I was afraid that this was a brave Israeli journalist highlighting an excess by soldiers.

The main article illuminated a dark tale of horror, rarely exposed by the international press. Yes, these gentlemen were probably considered terrorists by Israel not so long ago. However, their injuries had resulted from a totally different, internecine war.

Back in August 2008, Hamas made a deliberate effort to oust Fatah-linked policemen from the Gaza region. Fatah is the main arm of Palestinian President Mahmoud Abbas, who in turn arrested many Hamas supporters. Of the Fatah fighters who fled from southern Gaza to Israel, 22 were mauled by their Hamas captives. Deep brotherly hatred overcame any human compassion.

Of the 22, 3 appeared in the photo. It was taken at the Tel Hashomer hospital outside Tel Aviv, which has treated thousands of Israeli soldiers and terror victims over the years. To quote Dr Yizhak Ziv-Nir, head of the medical team: “This is a rare opportunity to exchange the hand of friendship to our neighbours”.

The article explains what the policemen experienced in Gaza. Trampling on their own children in front of their eyes, beatings with metal rods, jumping on to blocks placed on their bodies, kneecappings, etc.

I have no idea what these people must be feeling to be treated by Israelis; Israeli doctors, who because of them and their fellow Palestinian militiamen, have become world leaders in rehabilitation. The irony!

I do know that this aid is not one off. Take the role of Save A Child’s Heart programme in south Tel Aviv, which has treated hundreds of young Palestinians with heart complications. Bethlehem hospital has aligned itself to a leading Jerusalem medical facility to treat breast cancer. And the list goes on.

The silence of Amnesty International, Human Rights Watch and other organisations on such brutality is simply sickening and hypocritical. Is some torture politically acceptable? These people are effectively refugees from Gaza, another of the ironies engulfing Middle East diplomacy.

Back in the Palestinian camp, I recall the excellent book, “Cain’s Field” by Matt Rees, author and former Time Magazine correspondent in Israel. He concluded that only when the Palestinians (and the Israelis) resolve key internal struggles will peace enter the region. The rule of Hamas has emphasised that conundrum in a most frightening manner.

Kassam rockets – how terror against civilians becomes permissible

21 November 2008
4 Comments
Categories: Israel, Palestinian Society

Ashkelon is a growing costal city. For tourists, it is replete with Roman ruins. In biblical times, the Jewish prophet, Samson, conquered the Philistines nearby. Today, Ashkelon’s new power station provides Hamas – ruled Gaza with approximately 70% of its energy requirements.

Ashkelon is home to over a 100,000 citizens, trying to live their lives in peace.

Instead, the residents live with the ever present threat of Kassam rockets, launched almost daily from Gaza. Take November 14th, when 4 of the 122mm Grad class rockets were launched at the city. One landed in the main shopping centre.

For those who do not know, a rocket is not a sophisticated weapon and cannot be properly directed, unlike a missile. Thus, a rocket’s targets are randomly picked out. Frightening! In fact, it’s downright immoral and disgusting.

There are those who try to explain away the actions of the perpetrators. The weapons are used for defensive purposes only, it is claimed. But Ashkelon has no military structures. Its hospital (which treats Palestinians as well), the academic college, schools, and even the power station itself – they have all been targeted by Palestinian factions.

Others argue that the Palestinians have a legal and moral right to reply to incurssions by the Israeli military into Gaza. OK, but none of that gives Hamas or the Islamic Jihad a mandate to target civilians, aimlessly. 

Check out this link. https://www.youtube.com/watch?v=luiyXA_r2aA It shows Kassam missiles, being fired aimlessly from a school vicinity. If you ask me, the groups responsible for such actions are using politically acceptable spin to cover their own crimes.

I spoke to a leading businessman, who lives in Ashkelon with his family. He explained that an outsider cannot understand what it is like to cope . You may get a few seconds notice, before the “incoming” lands. The proverbial “whoosh” becomes as chilling as the deafening explosive destruction of the final impact. Where did it land? In the neighbour’s garden? The industrial zone? The roof of our local grocery?

Why should they have to live like that?

Ashkelon is under attack. And the world does not care! The UN’s meagre response is to demand that Israel desists from protecting itself against the launchers of terror. Viva Munich and 1938…. only 70 years ago.

Israel’s economic importance – UK case study

18 November 2008
1 Comment
Categories: Business, Israel

Last month, I wrote about Shimon Peres’s forthcoming trip to the UK. I have just received an official briefing from “Parliament Today”, summarising the meeting of Peres with Lord Mandelson, who has the portfolio of Business Secretary in the cabinet.

 

The following are edited highlights of a long statement. They demonstrate exactly how other countries can benefit from Israel’s desire for peace and its global commitment.

 

It reads…….

The UK aims to raise trade between the two countries to £3 billion per year by 2012. Israeli President Shimon Peres, a Nobel Peace Prize Winner, and Lord Mandelson jointly addressed a meeting of about 200 UK business leaders at Mansion House in London, hosted by the Lord Mayor of the City of London Ian Luder today.

 

The Business Secretary said:

“This is an age of great promise and immense global change – driven by the rapid development of new technologies and powerful flows of ideas, people, goods, services and capital across borders. Interdependence defines this new world.”

Lord Mandelson said that nowhere was this more evident than in the current global financial crisis, “the first great test of our new multi-polar globalised world.” “We cannot act by ourselves any more. We have to act together or we will not act at all,” he said.

 

The UK has the aim of achieving bilateral trade worth #3bn per year by 2012, a rise from the 2007 level of #2.3 billion. Opportunities exist in financial services, bio-technology, ICT, medical equipment and software, and also in creative industries, including film-making.

“Your country’s prudent fiscal policy, structural reforms and investment in education and hi-tech industries have encouraged strong growth, foreign investment and consumer spending and left your economy well placed to withstand the current global downturn,” Lord Mandelson said.

 

The International Monetary Fund recently forecast that the Israel economy, which has grown at over 5% per year for the last three years, will grow at 4.3% this year and 2.8% in 2009.

 

Notes to Editors:

1. Israel is the UK’s third biggest export market in the Middle East with leading British companies including HSBC, Unilever and Rolls Royce managing major interests there. The UK is also Israel’s third largest destination for exports. Over 250 Israeli firms are based in the UK.

2. Over 40 Israeli firms are now listed on the London Stock Exchange. Fourteen are listed on the Alternative Investment Market.

3. UK Trade & Investment is the UK Government’s international business development organisation, supporting businesses seeking to establish in the UK and helping UK companies grow internationally.

Palestinian economics – recent updates

14 November 2008
2 Comments
Categories: Business, Palestinian Society

The world economic slowdown has kept the Palestinian economy off the front pages of world media. Sure, the “Free Gaza” campaign has sent in a few boats to highlight how they see that Israel is to blame for all the poverty of the Palestinians.

The facts on the ground indicate a more intricate set of issues.

One such story is the olive harvest, worth an estimated US$140 million to Palestinian farmers. Over the past few months, there had been concerns that Israeli military movement would hinder the harvest. But to quote an army  spokesperson:

“As a part of preparations for this year’s harvest, meetings were held between Israel’s Civil Administration and Palestinian counterparts. The meetings included representatives of the various villages, as well as important figures from the Palestinian Authority (PA) including the PA Olive Oil Department…”

The statement continued: “The harvest has yielded approximately 24,000 tons of olive oil, compared to last year’s 8000 ton yield. 114,000 tons of olives were harvested (compared to 41,000 tons last year), 7,000 of which will be pickled and 107,000 tons are designated for production of olive oil. An estimated 7,000 tons of the olive oil produced will be marketed in Israel.”

On the downside are trends in Palestinian society, which do not enhance economic development. A press release form Hamas on November 5th referred to the proposed “noble Islamic religious law”. This will impact directly on the banking system, employment laws, contracts and other areas of commerce.

This legislation will directly contradict the reforms demanded by the IMF and The Quartet. It has to be noted that a few of these changes have already been implemented by Fayyad, the Prime Minister under President Abbas. Fayyad, a banker with an international reputation, has been consistently ignored and rejected by Hamas.

The law coincides with the continuing decline in basic freedoms, as reported by the Palestinian NGO, the Independent Commission for Human Rights. It is not not just the arbitrary arrests or unwarranted attacks on private property. In October, the Commission received 70 separate complaints from teachers being dismissed by the Palestinian Ministry of Education because of their private political views. 

Israel’s business scene – 3 new positives

12 November 2008
1 Comment
Categories: Business, Israel

Yesterday, Tuesday, the Bank of Israel unexpectedly reduced its rate of interest to 3%, the lowest since 1948. This is a sure sign of the concern that a “mother of world recessions” is beginning to impact on the Israeli economy. Growth forecasts for 2009 are already under 2%  – around 4% for 2008.

Shadowing that news are 3 positive signs that not all is doom and gloom. Panic is neither desired nor necessary.

Take Teva, the world’s largest manufacturer of generic drugs, whose center is located in Jerusalem’s biotech hub. It has just reported for the third quarter, with sales and profits far exceeding analysts’ predictions. And, as President elect Obama prepares policies for worldwide accessibility to cheaper drugs, Teva’s future looks just as healthy.

On a second front, I was involved with a new and high quality conference in Jerusalem. Held last week, MarcShoret brought together many of Israel’s sales directors and biz dev managers from leading high tech companies. Delegates from Sandisk, ECTel, N-trig and many others came to learn how they can fight the global downturn. The presentations and discussions were of the highest calibre, demonstrating inner strengths of the industry.

Meanwhile, in Tel Aviv, the Venture Capital Research Center has revealed that investments in Israeli high tech sector rose 45% to US$600 million in the third quarter of 2008, compared to the same three months last year. Sure, the final patch of 2008 is not expected to do nearly as well.

Now, when you consider that a total of US$1.68 billion has been raised during the first 9 months of this year, it means that a lot of companies are sitting on a lot of cash. There is still a lot of “gold in dem hills of the Holyland”, a whole load of sales.

Kristallnacht: Germany 1938, UK 2008

10 November 2008
5 Comments
Categories: Israel, Palestinian Society

In July 1939, my wife’s family fled from Berlin. 8 months previously, their Synagogue had been destroyed during Kristallnacht. 24 hours of orchestrated pogroms saw thousands of Jewish prayer houses burnt, books from Jewish academics and authors left in cinders, and tens of thousands deported to camps.

In the evening of November 9th 1938, Mr David Weiler returned from his tour of destruction and took out his Bible. The weekly reading referred to Abraham, receiving an instruction to leave the land of his birth and go to the land of Israel. The father of the Jewish nation packed his bags, and Mr Weiler prepared to do the same.

Flash forward 70 years. One of Mr Weiler’s great grandchildren, my son, also called David, yesterday returned from a week-long tour of the concentration camps in Poland. He is 17.5 years old and went with his school.

The stories he has come back with are not so easy to digest. At Maidjenek, he photographed a memorial containing 7 tons of embers of dead souls. At Treblinka, they toured a camp built for the singular purpose of mass, efficient slaughter. In Warsaw, they stood at the spot where Jews were violently rounded up and then sent on a free trip to hell.

They met good Poles. They were also insulted by elderly pensioner. Even a 10 year old threw a piece of rotten fruit at them.

Back in Israel, the group went straight from the airport to the Wailing Wall in the Old City of Jerusalem. They held morning prayers, sang the national anthem, danced to celebrate their freedom, and went home with their thoughts.  2 miles to the north, on the Mount of Olives, lies the tomb of my great grandfather. He had come to Palestine to retire, passing away in 1943, as the Warsaw ghetto was being raised.

It is 70 years since Kristallnacht. Congo, Rwanda, Cambodia and even Poland in 1968 show how we have yet to learn the true lessons of the Holocaust.

In parallel, in the comfort of London’s sheltered academia, we can look out towards the student’s union at Goldsmith’s College. This week, they are hosting an event to compare the horrors of the Holocaust to the current state of Gaza. The union will call for a boycott of Israeli organisations, just as the Nazi Party organised on Kristallnacht. The poverty of Palestinians will be compared to those who were systematically sought out, rounded up, and gassed because of their religion. Hamas literature today refers to such events, positively.

The union’s language of hate and mockery will find a haven behind a wall of political correctness, the wall Nazis built to defend their Aryan race.

For those, who still do not know the difference between Warsaw in the early 1940s and Gaza today, I publish here a simplified table.

Issue

Warsaw Ghetto

Gaza Strip

How did they get there?

Forcibly round up  and sent there

Lived there for generations

Arrived there after wars with Israel

Went there to escape from Egypt

Allowed out?

Under no circumstances – under threat of death

Israel allows 10s of thousands every day to work in Israel.

Israel allows in medical cases.

Egypt maintains a blockade.

Supplies allowed in?

No

Israel sends in continuous supplies, 5 days a week.

Mass smuggling campaign.

Egypt has closed its border.

Has other housing been provided?

No

Israel vacated the Gaza Strip in 2005. Not one person has been relocated from the camps since then.

Do people die of hunger?

Hundreds – daily

No

Is there an end in sight?

Yes – liquidation and slaughter

When Hamas agrees to recognize Israel, then peace can come quickly.

Resistance?

Pathetic  – and directed against troops

Daily rocket fire directed randomly against civilian targets in Israel.

Human rights

The world ignored the slaughter of 100s of thousands.

Hamas rejects freedom of press, persecutes Christians, and subjects women to second class status

 

 Can you spot the similarity?

 

Israel’s trade with Muslim countries (2)

9 November 2008
No comments
Categories: Business, Israel, Palestinian Society

My previous comments about a boycott of Israel and how that would affect trade with Muslim neighbours drew a fair amount of offline correspondence.

One person recalled the attempt of Egypt and Iraq to boycott M&S some years back. Most of his Arab acquaintances removed the labels before they went home. And then they discovered they didn’t need to anyway.

Today, I received some Israeli stats on the level of trade with countries in the Middle East.

 Change (T$)

1-9.2008 (T$)

1-9.2007 (T$)

Country

13,738

26,890

13,153

Gulf States

260

319

59

Algeria

718

1,863

1,145

Tunisia

-732

172

904

Iraq 

67,300

228,200

160,900

Jordan

5,100

17,200

12,100

Morocco

2,500

104,700

102,200

Egypt

88,884

379,344

290,461

Total

 

 

 

 

3,100

11,500

8,400

Indonesia

-30,600

25,100

55,700

Malaysia

 

Meanwhile, European Parliamentarians, through the “Free Gaza” campaign are increasing their demands for a boycott of Israel. If Israel’s neighbours do not feel the same way about a trade boycott, what do these protesters really hate?      Time for the truth to out!

 

 

 

 

 

What makes Jerusalem special

7 November 2008
No comments
Categories: Israel

All my visitors from abroad agree; There is something very special about walking around Jerusalem. The past 24 hours confirmed this truism yet again for myself.

Yesterday afternoon was bright, an unusually hot day for early November. I entered the Old City by Zion Gate. As I covered the 500 meters from the car to the gate, I passed on my left a chilling museum on the Holocaust. To the right was Dormition Abbey, still carrying out renovations after 30 years. (The Turkish architect of the walls of the city forgot to include this church in his plans, and thus lost his head!) And the colourful shops of the Armenian Quarter opened out in front of me.

Getting in to the Old City was annoyingly problematic. People were in the way; Not jus Israeli kids on school outings. Guides leading groups, and more groups and more groups. The place was packed, literally swarming with Christian tours from different continents. The impatient drivers gave up trying to hoot people out of the way.

I made my way towards the main Sephardi Synagogue, where I had arranged to meet a dear 80 year old friend, Ezra G. Unexpectedly, in walks a 30 strong party of young Germans. They were fascinated by the history and architecture of the building. And there were more visitors after that.

Now I will tell you what makes all of this so special? The second Intifada started in the year 2000. Since then, tourism has been in the dumps, until now. I cannot remember the last time Jerusalem, a centre for 3 religions, has been that packed. Good news for all.

But the icing on the cake came as I was retracing my steps to the car. I found myself facing southeast, with a direct view towards the Judean desert. I could see the red mountain tops bending towards the Dead Sea and over in to Jordan. A marvellous moment, which stopped me in my tracks even on such a busy day.

I suggest that it is a view that brings out immense feelings in even the most cynical of us. I invite you all to judge for yourselves.

Israeli banks and the credit crunch

5 November 2008
1 Comment
Categories: Business, Israel

Some positive news from the Israeli finance sector.

Ok, so the Tel Aviv stock exchange has lost “just” 17% of its value, while the FTSE world index is about 35% off since May 2008.

But what about the banking sector, where the credit crunch began? We know about Lehmans and Lloyds and even Icelandic savings schemes. We know that Gordon Brown and others are going round the Gulf States with their begging bowls.

In Israel, the situation looks encouragingly healthier. Here are just 3 of the latest positive recommendations.

  • Merrill Lynch added Tefahot Mizrahi Bank to its most preferred list for financials in emeging EMEA region. With phrases such as “a relatively safe haven” and “almost zero exposure to toxic wastes”, the bank is seen as a good short term option for safety.
  • A few days previously, on 22nd October, Deutsche Bank described the Israeli banking system as “in good shape, despite the challenges”. Hapoalim and Leumi were not seen as possessing assets that would create a threat to their future. It even upgraded Mizrahi shares to “buy”, as it was not dependent on cyclical issues.
  • These findings had already been echoed by a local investment house, Leader and Co back in mid September. It detailed the exposure levels of the 5 leading Israeli banks. For example, it noted that Leumi and Discount had some investments in Freddie Mac and Fannie Mae, but they were manageable. Again, Mizrahi was seen as a “bank of choice”.

Life is not all rosy in the Israeli economy. The high tech sector has announced approximately 1,000 lay offs in the past 2 weeks. Purchases of “white household goods” were markedly down in October.

What remains true is how the fundamentals of the economy continue to remain stable. That will serve Israel well as it fights its way through the next few months of world financial turmoil.

Client Feedback

"Michael transformed the way I think and approach working, and also how to monetize my social media and communal projects."

CEO of digital media company

"Michael helped my high tech company take off."

CEO of clean energy start up

"Michael has been an invaluable resource to me throughout all of the steps of starting up my business."

Art Studio owner

“Working with Michael Horesh is like having root canal treatment, marriage counselling and business coaching all rolled into one, successfully.”

CEO of digital media company
CEO of clean energy start up
Art Studio owner