“Nobody expects the Spanish inquisition” was one of the great catch phrases of the UK comedy team, Monty Python. Stupid, funny, yet poignant, this simple idea illustrates how little America and the West understand the Arab world.

Few analysts, if any, predicted the domino effect of the current protests, stretching from Algeria to Oman and into Iran. In parallel, few of the region’s leaders have learnt one of the basic rules of 5,000 years of history. As Barbara Tuchman eloquently surmised in the March of Folly: If you treat your people like scum, they will find a way to revolt.

These countries share much in common; poverty (usually coupled with valuable mineral resources), Islam and autocracy. One reason for the “disconnect” by Western policy makers is their consistent inability to how perceive how desert sand distorts your perspective on myths and facts. Here are some examples of what I mean:

It’s all about democracy, as the British Prime minister almost pleaded this week in the House of Commons.

Actually, it is not. Just look at Tahrir Square in Cairo, where the middle classes mixed with members of the Muslim Brotherhood. All they share is a hatred of Mubarak. And in Iran, do not think for one moment that the opponents of President Mahmoud Ahmadinejad are looking to copy Eastern Europe’s Velvet Revolution of 1989.

The protests are an opportunity to solve the Palestinian issue.

I wish. An analysis on the BBC shows just how those regimes, supporting a mutual peace process, have taken a beating. Egypt is the prime example. Jordan has seen street protests. Bahrain and Oman are strong friends of the West. And the West had intended to use these countries to lead the Arab world in recognising Israel. The move would allay Israel’s fears. And today? Those fears are larger than ever.

In order to calm the Arab world down, it is time to pressure Israel.

You sure? Just before a Tunisian villager burnt himself to death, the Palestinian cabinet imploded. Its chief negotiator with the Israelis resigned, as Al-Jazeera leaked that Abbas is prepared to consider concessions on Jerusalem et al. Only Abbas and co cannot admit it. (No surprise – even Palestinian geography books in schools do not even show a map of Israel within 1967 borders.)

For the past month, Abbas has not made one statement in favour of a negotiated settlement. He has run in the other direction. But the Quartet is looking to force the hand of its one democratic friend in the Middle East, Israel.

With Libyan protesters now claiming that Ghaddafi is a Jewish plot, could we have expected the Python crew to write such a bizarre scenario?

“Help! I have no idea how to make a presentation.”

As a mentor, you hear it all the time: What should I say? Can I read from my slides? What if they don’t like my ideas? I am no good at fancy graphics? I think my printer is on the blink!

Any excuse, which will prevent the petrified presenter from going out and doing the one thing they are good at – telling the potential audience just why they have a cracking idea that deserves a chance! Ironic.

There is no shortage of advice on the web. Have a look at “5 tips for a great presentation“. In a nutshell, it is all about telling a concise and enticing story. And like everything else in life, in order to do it well, you have to practice, repeatedly.

Simple, no?

I used to be part of the frightened crowd. Then, about 15 years ago, I saw my boss at the time give a talk on a subject about which he knew nothing, but I was well-informed. While he missed out key points, but the audience found it fascinating. And I had to ask myself what made him such a hit.

He had stuck to his theme, had some clear slides, and spoke fluently – at least as if he knew what he was talking about. Simple? Yes.

This week, I had the good fortune to attend a seminar in Tel Aviv, cohosted by Profeel. This is a new outfit, which has brought together a group of business mentors from different backgrounds. (I declare that I am one of them). There was guest talk from “Debate Company“, which has a track record in helping executives deliver their message.

The discussion revolved around the importance of counter-intuitive messages and how to project them. It is not just good enough to talk to your audience. You need to be convincing. But how?

The short video on Debate’s website provides an interesting check list:

  • Be brief
  • Share your experience and knowledge
  • Think how your presentation will help lead the audience to the outcome you want
  • Look for impact

I invite to view the other short clips, probably the most practical offering I have yet seen on the subject.

And here’s a well-known secret. In order to deliver a good presentation may take a heck of a lot of preparation, but we are all capable of getting it right.

So the world is in shock. Few predicted the collective turmoil of Tunisia, Egypt, Yemen and maybe even Jordan and Algeria. After all, only last week, Israel’s head of military intelligence went on record saying that the Egyptian regime was in no danger of collapsing.

And why is the world scared? Usual stuff – the threat of cutting oil supplies that feed the power engines of modern industry. And some of these regimes have a lot of heavy weaponary that should not fall in to the wrong hands.

Amazingly, there are those like Senator John Kerry, who believe that if Israel was to make immediate concessions to the Palestinians, maybe the revolts will calm down or even go away. See his interview on the BBC from Davos.

Some sobering perspective was offered by Professor Bernard Lewis, who at 94 is still one of the world’s leading historians on the Middle East. Interviewed in the Hebrew press on Friday, he observed that the protesters are jealous of freedoms  – press, worship, women’s rights, votes for all – found in Israel.

So, it got me thinking, why has there been no uprising in Gaza? Is the Hamas grip on power that oppressive? Or is it that the economy is not as weak as made out in the world media?

Returning to the theme of Davos, much has been made in the discussions about promoting entrepreneurship, as a way to boost small or poor economies. 

….teaching young people living in poverty how to create wealth for themselves is the surest path to poverty alleviation.  More simply put, ownership equals prosperity.  And really how do we ensure inclusive economic growth – by opening the path to ownership to as many people as possible.

In Israel, entrepreneurship is part of the culture of society; a constant desire to find new solutions for economic, medical and environmental issues. And while many sectors need additional resources, education is available for all. It is a society of opportunity.

As for countries, which are members of the Arab League………….

The European Commission decided today (22.12.10) to provide an initial financial package worth €100 million for the Occupied Palestinian Territory under the 2011 budget.

Now that is a pretty cool donation, especially from an international organisation also financing at least 4 economies suffering meltdown. And this public money is going to end up in an economy that does not officially exist, at least as a member of the UN.

This is not the only set of Western taxpayers funds ending up in the Treasury of the Palestinian Authority. The UK recently confirmed that it had contributed approx US$45 in 2010 to the World Bank Trust Fund, which “pays the salaries of public sector workers in both Gaza and the West Bank”. Japan gave US$12m in early December. Mrs H Clinton came up with US$150m. And so the list seems to go on.

Conglomerates from the private sector have also joined the game:

  • Cisco will invest $5 million in a venture capital fund for Palestinian startups.
  • Google is investing $2 million which will include contributions to the same VC fund and to the local operations of NGO Mercy Corps.
  • A long term commitment by HP to expanding business operations in Palestine and local collaborations with USAID.
  • Intel will expand cooperation with Palestinian IT/software firm Asal Technologies.

Is this a wise bet on the future or just politically correct? SKY TV recently reported on the new strengths of the Palestinian economy. Google Bethlehem at Christmas and you will find plenty of info on how Manger Square has been full of tourists this year.

According to David Makovsky of the Washington institute for Near East Policy, Prime Minister Salam Fayyad claims that 120 schools have been built in the last decade. Those and 3 new hospitals, 50 health clinics, hundreds of new or resurfaced roads, etc, etc. And tax collection was up 50% in 2010, although starting from a meager base.

Bottom line for Fayyad is that poverty is down a third as are expected contributions from foreign assistance.

 It’s all looking very positive….that is until you start to ask a few questions.

1) The European press release above recognises that “the EU now fulfils by far the pledges made at the Paris Donors’ Conference in December 2007.” Good. Encouraging. So where are the equivalent donations from Arab countries. What do they know that is stopping them from fulfilling their pledges and thus investing?

2) If the World Bank Trust Fund is asking the UK and others to contribute to salaries of public workers in Gaza, they are effectively paying the wages of Hamas officials. Hamas is listed as a terrorist organisation. As I write, news came through that Hamas has illegally arrested over 3000 political opponents in 2010 alone.

3) If the Palestinian economy is improving so much, why is so much aid needed in the first place.  The World Bank talks about 8% annual growth. New luxury hotels are to be seen in Gaza and in the West Bank. Israel is no longer withholding tax revenues as all debts by the Palestinian Authority are accounted for. Even the number of manned Israeli roadblocks in the West Bank is only 14 in number, thus allowing for easier commerce.

So here’s my issue: When an investor or venture capital group seeks to become involved with a new project, they look at the skills available, the team, transparency, history, and future accountability. They consider who else will share the risk. Above all, is it possible to assess the true need.

Would you invest 100m Euro in one go under such conditions? There again, in this case, it was signed off by those who are not necessarily accountable.

I was at a charity stand up show last night. And the comedian asked to an observant Jew how he explained Judaism and Israel to non-Jews.

Easy, came back the response, as “I do it all the time”. And he then rattled off a series of comments…that nobody understood. He was almost a funny (unfortunately) as the act. Case proven? 

Take a step back. Move from the theatre of life and into reality, and you will see why the queston is not as simple as it seems. Just look at what has happened in Israel in the past week or so.

In the middle of December, the country has suffered a “Biblical drought“. This enabled forest fires to spread out of control.

Another reason for the mass damage and loss of life from the fires was that Israel – a technological and innovation world leader – is running a fire brigade based on equipment from the 1980s. The public was disgusted, but it was too late for the outcry.

As for the drought, within 5 days, it was snowing in the north and waves flooded over the sea promenades in the resort of Eilat.

Meanwhile, European and American political leaders were releasing their final round of “I am fed up with Israeli intransigence – why won’t they just give in” tirade. (For a tremendous response, you may wish to read the British Christian writer, Robin Shepherd). How do these people expect that Bibi will decide on anything, when he has a government of 30 ministers from 10 different parties + one nagging wife.

As does the local business sector care about this instability? The Tel Aviv stock market hit another record high, encouraged by further overseas money. In New York, 14 Israeli biomed companies were attracting some very real attention of leading investors.

And why invest in Israel? Just look how the award-winning Glee tv programme featured some Israeli tech. This is in the same week week that Teva, a mega player in the global generic drug scene, released optimistic results for its latest Phase III research on the terrible disease, MS. (As irony would have it, a friend of mine told me 8 days ago that he had contracted the same illness).

So can one explain all this sped and diversity to a stand up comedian, who had flown in specially from America? By the way, the proceeds from the evening of humour were donated to the Kobi Mandell Foundation, which provides relief for victims of trauma and terror…….Yup, nothing is straight forward in the Holy Land.

When the credit crunch kicked in, economic leaders cried “gevalt”. Bastions of financial stability ceased to be.

With the ability of hindsight, we can pick out a few wise pundits who foresaw how to get through the meltdown, at least at the micro level of company management. In particular, I recall several articles from “The Economist” and “The Harvard Business Review” which called on CEOs to invest in marketing and growth activites.

Such geniuses pointed to historical evidence that many of the commercial giants of the last half century had originally emerged out of the gloom of the Great Depression of the 1930s.

The Hebrew newspaper, Yediot, has just published a list of 10 local companies that came through the recession in a stronger position. You can find them in the retail sector, high tech, manufacturing, all over.

Seemingly, there is no one theme that connects them. A second look reveals otherwise. For example:-

  • Strauss, a food manufacturer, specifically targeted overseas markets such as Brazil and America. That was despite the downturn in those countries.
  • Azrieli has continued to build new shopping malls who improve existing premises
  • Bezeq, the national telephone company, did not cease to offer new technologies and services.
  • Teva, one of the world’s largest manufacturers of generic drugs, did not alter its policy of growth through takeover. 

iThe conclusion: In a recession, you can survive and grow through upping your marketing activities.

Naturally, there were many other individual factors, ranging from good management to pure luck. And of course, the steadying macro role of the Bank of Israel, led by Stanley Fischer, was critical.  But the basic point remains. Marketing or strategy rather than cutbacks is called for.

Quiksee, Israel, was started in 2007 on the edge of the impending economic tsunami. Developing interactive video mapping technologies, it was purchased this week by Google for around US$10 million.

Christian Christensen is a professor of global media. In a fascinating commentary, he pointed out how the leaking of tens of thousands of classified documents on America’s role in Afghanistan has proved to be an endorsement of traditional journalism and the rule of good government. How so?

First, the power of Wikileaks is not in its role as part of social media.

Because while complete openness (of the net) might be attractive in theory, information is only as valuable as its reliability, and WikiLeaks has an organizational review structure in place that Twitter, Facebook, YouTube and most blogs (for obvious reasons) do not. All social media are not created equal, and so their power is far from equal.

Wikileaks is a trusted information source. Thus people wanted to find its video on utube, while millions of other exposure tapes are ignored.

Next, the Wikileaks team played on the role of laws designed to protect democracy.

WikiLeaks is semi-officially based in Sweden and has all the protection offered to whistleblowers and guarantees regarding anonymity of sources under Swedish law…..

Material submitted to WikiLeaks first goes through PRQ, and then to servers located in Belgium… which has the world’s second strongest laws for the protection of sources. And WikiLeaks founder Julian Assange chose Iceland as the location for decrypting the aerial video footage of the killings in Baghdad. Iceland recently passed the Icelandic Modern Media Initiative, devised to make the country a global haven for whistleblowers, investigative journalism and freedom of speech.

Finally, Wikileaks carefully exploited old-fashioned media routes.

WikiLeaks decided to release the Afghan documents to the Guardian, the New York Times and Der Spiegel weeks before they were released online ….. The WikiLeaks people were savvy enough to realize that any release of the documents online without prior contact with select news outlets would lead to a chaotic rush of unfocused articles the world over.

And what does all this mean for Israel, who’s opponents claim that the political and military chiefs in Jerusalem hide behind the demands of security in order to cover up war crimes?

Israel has one of the largest foreign press contingents in the world. Its internet system is open and free. Its judicial system was founded on the lines of British jurisprudence.

Are documents leaked? Barely a week goes by without one of the major radio or TV stations blurting out something sensitive. In a country of 7.5 million people, where most civilians have served in the army or knows somebody who has, few secrets are kept for very long.

So is Wikileaks a defunct feature in Israel? Not exactly. However, it seems to possess more relevance in those very countries that are often critical of her policies – such as Sweden, Iceland and Belgium. Now why is that?

Ask people about the link between Israel and Afghanistan, and the answer is usually something to do with trouble or fighting. But now there are other commonalities, many of which will be really positive for the rest of the world.

It is not just that both have improving cricket teams. Nor that Islamic fanatics are trying to kick out exisitng governing sytems. Almost overnight, it seems that both countries are sitting on vast and lucrative raw materials.

It is now an accepted fact that Israel has large reserves of gas deposits, particularly offshore. It will not be long before Israel becomes an energy exporter,  a dream in a pipeline just a few years back.

But that is not all. There are increasing indications that Israel does possess oil, although the levels have yet to be substantiated. Never mind the OECD. At this rate, Jerusalem will be applying for membership of  the holy-of-holies, OPEC! In any event, the country’s economic balance is set to change significantly in the next few years, and others will need to engage this economic ability.

As for Afghanistan, the hell hole for British, Russian, Pakistani and NATO troops over decades, a miracle has emerged out of the emptiness and poppy fields. Pentagon sources are saying that there is real gold in dem hills. And not only, but also copper, iron, lithium and more. In other words, NATO finally does have something tangible to fight for and to protect.

Business often has a funny way of interferring with predertermined global politics. It will be interesting to observe how voting blocks at the UN and elsewhere begin to change as the dollar signs start to light up.

I have written extensively about what motivates people. Last week, I encountered an entirely new take on the theme…….as I began to reflect on my colonoscopy.

If you want to know what a colonoscopy is, I refer you to Dave Barry’s hysterical description.

A few days ago, I also had the dubious honour of “turning my back” on a doctor in an examining room. For all my worries and deep breaths of apprehension beforehand, I feel that Mr Barry did not share my ridiculous set of circumstances.

Let’s go back to the previous afternoon, when I had to open the first of 2 sachets. I was instructed to add the sherbet-like powder to cold water. Ominously, the instructions said that if the mixture heats up, I should not commence drinking until it had cooled down.

What? I had visions of 3 Shakespearean witches, stirring the spoon in my cup. Hot steam, oozing out of a fizzy mess. Anyway, I downed the concoction quickly, and expected to have to rush off to the small room very quickly.

In fact, nothing happened. And that’s when you begin to get worried. Because you know that if you do not empty out the system, all the fasting and liquid diet up to then will have been a waste of time. It was 5 hours later as I was about to go to bed, when the “heavens opened”. It may not have been rain, but there was a lot of thunder.

Well that was good news. Except that my doctor’s instructions told me that I now had to reach for the next sachet. More visions of cauldrons.

The next morning, I got up early. Nerves, you may think. No, not really. It was time to take the final eye-watering solution. How women go through this every time before they give birth, I do not know.

My wife really was very good to me. Showed concern, sympathy, and even produced some genuine smiles. Worse, she took a route to the hospital which skipped all the traffic jams. She was determined that I would not miss out on the fun…..which was only just beginning.

We found the gastro department without any problems, unfortunately. Inside, we had to wait until the nurse had finished her vitally important conversation on the mobile regarding her holiday plans. I took the opportunity to look around and read a sign asking members of the public to switch off their phones. Say no more!

Madam nurse finally greeted me with the words “the doctor has been delayed by traffic”. My face gave a response implying “oh no problem”. Meanwhile, something inside me was shouting “I have come all this way, on time, nervous, and the expletive expletive is late! Is this a scene from candid camera?”

Still, we progressed. She took my blood pressure. Now, I had to wonder. Here I am, hungry, tired and worried, and they want to test my pressure level. Did anyone consider how uptight I was and they might get a false reading? In fact, she pumped me up twice, because the print out from the first machine inferred that I had three hearts.

And then it was time to put a needle in my arm. OK. One needle in one arm. Simple? Madam nurse just left it there. No fluid. That would come once I had been wheeled on to the room with weird machines. She had brutally stabbed my delicate body because that was what the rule book said was next on the list, regardless of the need. So, I had to lie there in some discomfort for no reason, waiting for doctor!

Stupid, you may think. Now get this. As I am cursing my luck and wishing I had a fullish whisky flask next to me, I was given a consent paper to sign. In less than 10 lines it asked for my permission that in case something goes wrong, the staff can do whatever they want – including leave the country on the next plane – and I will have no objection. Cool, why not, who could say no to that? Why was somebody hinting that anything could go wrong? Anyway, nobody gave me a pen, as the nurse hit the phone drug again.

Finally, I was asked to get undressed…. with the damn needle still protruding out of my side. Did anybody think of drawing up a workflow for these people? I can tell you I began to understand how disabled folks have to cope, and just how capable they are.

The big moment arrived. Off they took my bed to the doctor, and they made sure I was on it. They look after the important details. And that doc is also no fool. After a quick good morning, he immediately shoved the consent form in my face with a free bonus pen. My lucky day.

30 minutes of my life disappeared. I woke up to be told that all was OK. I was handed my health card and a letter from the doctor, and we left for home. And I was feeling dead pleased with myself. Why?

There was nothing truly difficult or painful. I had been anxious beforehand. The 48 hours beforehand was annoying, but not terrible. There are many many worse medical procedures.

 For all that, I realised that I had beaten my “internal fears”. I had been determined to get over this issue, and move on. With hindsight, I had treated the matter, just as if approaching a troublesome professional problem or trying to improve my running. I was determined to succeed and knew that I could if I wanted to. Nothing – not even a silly nurse – was going to stop me getting it right.

Back in my own sweet smelling lounge, armed with a much needed coffee in my favourite mug, I read the doctor’s note…………with another person’s name on it. I had been given the wrong person’s file, and will have to return to the hospital next week. Scream!

“How is it possible that non-religious Israelis, often associated with those who want to talk directly and immediately with the Palestinians, are not prepared to consider similar discussions with their religious counterparts?

And how is it possible that religious, who constantly talk about the unity of the land of Israel, are prepared to dismiss so readily the views of their non-religious counterparts?” 

Thus wrote Yair Lapid in this Friday’s Hebrew edition of the Yediot newspaper. Lapid is the son of a Holocaust survivor, Tommy Lapid.

Tommy was a leading journalist turned politician, who made a name by lashing out at the power of religious institutions. His son has made no secret of trying to find a way back to religion, but outside the convenient definitions that societies hand us.

OK, Lapid junior’s questions are challenging, but so what? Dip into Jewish history. There have been two Temples. One was destroyed because of false religious practices. The other because of the horrendous way Jews treated each other, despite many being openly religious.

Skip to my experiences in recent years. How often do I get surprised looks when I talk to my non religious friends about contemporary music or tell them how my daughter mixes with young men of her age? In parallel, just as frequently, I am offended by religious people who say “those leftists don’t know what damage they are causing to the country”.

Both extremes are an anathema to me. I just wish that I had more courage to challenge directly those who make such statements.

Last week, I met somebody, who by dress and appearance could be taken for a typical non-believing person. After our discussion, he was due to go to his weekly study session in Torah texts. We stereotype to an extent that is a danger to society’s future.

Yair Lapid’s comments should be hung over the entrance of every school in country, unless we wish that differences of opinions also means different societies…….and the Jews of the Temple period saw what that can lead to.

Yesterday, I went to pitch to a CEO of a 6-person company. He is the founder. He has guided it through opening years. It is his vision that has taken the firm through the successes.

And now he is stuck. He initially approached me about sales. And as the conversation developed, it became apparent that he would not accept my proposals or alternatives, because he would have to spend time working on them.

Meanwhile, he admits that the company needs a substantial injection of resources in order to proceed. And despite the emphasis on sales, the sales cycle is long and complex, and he has to be involved in most aspects. Another reason, he cannot afford the time of my services.

So the circle is complete. Worse, possibly. During the conversation, the mobile went off several times demanding his attention.

The CEO, a man of many talents and with strong analytical skills, was seemingly being rushed to every corner of his life  every hour of the day, as his business was stuck in the wrong commercial track.

It is clearly risky to judge a situation on the basis of a few discussions. However, it is a scenario which I see repeatedly amongst many of the smaller companies I meet. What do you do when time runs out?

Or to rephrase the question, how often do I hear: “How come time keeps disappearing when I am so good at planning?”

Running a small business is not a simple disciplin. There are many tricks. Some of them were recently summed up in 10 Health Habits That Will Help You Live to 100.

What may astound many people is that the basis to good management and to clear thinking often lies far from the area of your tidy desk, the comfy chair and your new laptop. It starts with you, how you “wear yourself” and how you balance your homelife; consitently good sleep, a truly balanced diet, exercise, rest, etc.

It was no irony that my local rabbi pointed me in the direction of the article…… even though it advocated the works of Seventh Day Adventists. the problem is that I am not sure if these CEOs have the time to read these 10 points.

 

The Israeli newspaper, Ha’aretz, poses the question if relations between the Palestinian Authority (PA) and Israel have ever been so good?

The report notes how the Israeli army has a liaison team, evidently trusted by the PA, run by the Fatah group of President Abbas. Violence and killings in the West Bank, where Fatah rules, are significantly down from 2008. Fatah is beginning to act against is Hamas opponents.

Significantly, on Wednesday 2nd September, the joint Israeli-Palestinian economic committee convened for the first time in years. Echoing the theme of Ha’aretz: –

We hope that away from politics, we will be able to do something on the ground to improve the economic realities of Palestine, Palestinian Economy Minister Bassem Khoury said with Israeli regional development minister and Vice Prime Minister Silvan Shalom at his side.

All very positive and encouraging. It must be admitted that there is another side to this story. I cannot write for Palestinians. But talk to many Israelis and they are sceptical of peace moves. “Peace? Don’t make me laugh” is a common theme.

Let me clarify. It is not that they oppose peace. Even during the Intifada, I would argue that many Israelis remained pragmatic. Barak, Netanyahu and Olmert met with Arafat and Olmert on countless occasions. What has changed is that since Israel withdrew from Gaza, a very painfull process for Israeli society, 3 things have not happened.

First, Hamas has refused to move even one family from the refugee camps into former Israeli towns. The poverty continues in parallel to the war cries against thier neighbour.  Second, Hamas, Islamic Jihad and others have continued to bomb Israeli civilian population centres rather than seek to build friendships. Even for the most patient of Israelis seeking compromise, that is not a sign of a Palestinian leadership looking for peace.

As for Fatah, which Israel is talking to, Abbas is certainly not all-powerful. Will his successor honour any agreements Israel makes with him? And what happens if Hamas captures power from Fatah, as it did in Gaza?

The stats reveal that the random shootings against Israeli civilians continue. As Sky TV Foreign Editor, Tim Marshall, recently observed, Hamas has been particularly ruthless in eliminating political opponents.

Last night, I was approached by an intermediary acting on behalf of an Israeli sculptor. They want to link up with Palestinian counterparts. I have come  across many such ideas in the past decade.

What I do not find is a similar number of approaches coming from the other direction. When that happens, Bassem Khoury’s words will have a stronger meaning all together.

This week, I attended an economic briefing at UBS. The Swiss banking giant is predicting global growth in 2009 at a miserly 0.2%.

This is what many see happening in Israel – although that is a giant positive mark when compared to several other Western economies.

Don’t get me wrong. The Israeli economic press is full of depressing reading. This week, the Tel Aviv Stock Market matched the loses in Europe and on Wall Street. High tech lay offs continue in quantity. The local bank news is still edgy.

And yet. And yet. There is still gold in dem Judean hills.

I am associated with a start up that has embedded a software on a smart card with a UBS application – enhanced content data management. It recently raised approx US$1m, with sales commencing in Spring 09. Another client’s software has made significant sales in the UK this quarter, despite the dire economy in Britain.

These are not isolated stories. the latest bulleting from Israel’s Investment Promotion Centre is extremely positive.

  • FDI in 2008 hit US$10 billion
  • Since December 2008, 3 Israeli medical device companies have been bought out for a combined value of over US1 billion.
  • GAP, Banana Republic and H&M will begin to open outlets in Israel over the next 12 months.
  • Solel, BrightSource Energy and other cleantech companies are striking large deals in Spain, California and elsewhere.

The UBS representative noted that the clever people are those who plan carefully at the end of a recession. 2009 will not be pretty. But for Israel there will still be several bright spots worth tagging. early on.

With hindsight there were many people warning over Madoff, years before he was forced to tell the truth about his Ponzi scheme.

Now turn to the Middle East. Since the Oslo Accords of 1993, roughly 25% of revenue of the Palestinian Authority comes from taxpayers in Europe, America and other donor groups. For example, in a statement released from Brussels last week, the commission observed that: 

The EU is the largest donor to the Palestinians. In recent years, the combined contribution of the European Commission and EU Member States has reached €1 billion per year, which is not sustainable.

 The question is: Do we know where the money is going to? Are the transfers accountable and transparent?

Just look at the work from the pressure group, Funding for Peace Coalition. With reports dating back to 2003, 2004 and 2005, the team has warned that large amounts of foreign taxpayers investment in the Palestinian Authority has simply disappeared.

What makes this a Ponzi scheme?

A combination of political correctness, goodwill and pressure from the Arab League has encouraged Europeans to support the Palestinians financially, just as America is perceived to help Israel.

It is no secret that the Arab countries have rarely delivered on their promises. The Europeans are finally wondering what they are getting for their Euro.

Benita Ferrero-Walder, European Commissioner for External Relations and Neighbourhood Policy, intended to pledge on 2 March in Sharm El Sheikh (Egypt) €436 million ($554 million) to the Palestinian people for 2009 at the “Conference in Support of the Palestinian Economy for the Reconstruction of Gaza”.

This will be on top of a similar amount of direct aid alone delivered in 2008, much of which went to pay for Hamas civil servants in Gaza. The new gold is supposed to be used for rebuilding Gaza. However, it is to be handed over to Abbas of Fatah, who has no control in Gaza!

So here comes the sting! The Europeans have opened the door as widely as possible for Barak and Hilary from the new-can-do White House. The Yanks have promised US$900 million extra bucks. But to whom and why?

To Fatah? Er, remember that Arafat died as one of the richest men in the world. To Gaza? But again Abbas does not rule Gaza. To UNRWA, whose stores are openly ransacked by Hamas operatives? Etc etc.

So what we have is: A bottomless pot, designed to feed aid to the Palestinians. European taxpayers, who have poured in loads of wealth but seen little in return. Americans, who are used to parting with money without conducting due diligence.

This week’s confrence in Egypt has promised US$4.5b  to 3m Palestinians. Will they get it? Would some of this be better used in Darfur, Zimbabwe or elsewhere? Learning the truth about Gaza and the Palestinians is often more complex than unravelling a Ponzi scheme.

Over 25 years ago, I attended a play at the Royal Court Theatre in London. Titled “Not Quite Jerusalem”, it revolved around the lives of foreign students working on a kibbutz. It was humourous while poignant, but had little to do with Israel per se.

In those days, the Royal Court was a fun place to visit. You were guaranteed an evening of entertainment, which made you think. It was an important part of the world of expressive fringe theatre.

Jump forward to 2009 and the theatre is hosting a 10 minute short play by Caryl Churchill, called Seven Jewish Children. Churchill is an established author, who unashamedly tests accepted norms. Provoked by recent events in Gaza, she has taken 7 historical themes important to Jews and questioned them.

Anything wrong in that? Not, in theory. Anything wrong in criticising Israel? Not, in theory.

Michael Billington is a respected critic. He notes that by using conversation with children as a backdrop, Churchill accuses Israel of using security to justify massacres. Anything wrong in that? Yes, plenty, lots of plenty.

There were no massacres in Gaza. And as a parent of three children attending Israeli schools, I can testify that Israel does not officially or unofficially teach or preach massacres. To claim or imply otherwise is a libel.

And neither are children taught about the “otherness” of Palestinians, as Billington has observed.

My children study Arabic. They learn about Muslim culture. Their geography books contain references to the pre 1967 borders. And they are taught about Christianity, the Crusades and European history.

I cannot find similar curricula in Palestinian schools. In fact, many have argued that the new Palestinian textbooks published since 2000 would fail any critical analysis by UNESCO.

But I digress. Churchill has denied that her play is anti-semitic. Yet she writes about Jews. She uses Jewish themes. She inserts them in a deliberately provacative way. She causes wide spread revulsion amongst most  British Jews.

Is her play about Israel? Well, sort of, but Jews are the central theme., and thus makes people question if Jews possess acceptable values and ethics.

To my way of thinking, the play is a libel. It is anti-semitic.

Amazingly, in this woeful episode of British culture, there is still something yet more pathetic; the feeble actions of the Royal Court management. Its spokesman has urged people to see the play before they judge it. “It is possible to criticise the actions of Israel without being anti-Semitic,” he says.

In other words, they will show what the hell they want in the name of free speech. But apparently Ramin Gray, the theatre’s associate director, has admitted that the Royal Court would be hesitant to stage a play critical of Islam.

This is hypocrisy, out right hypocrisy. Double standards exposed mega time. It is this abuse of free speech, which allows the Churchills of this world a stage and platform for their hatred.

Remember the Protestant priest, Rev Martin Niemoller? In 1945, he recalled how nobody had protested that Jews, Communists and Catholics had been rounded up. So when they arrested him, there was nobody left to object.

Similarly, it is time for the UK to wake up. Most criticism of Israel has often bordered on the anti-semitic. In Churchill’s case, she has crossed the boundaries of the acceptable with a Bob Beamen leap. Her work is disgusting, aimed at sowing hatred and mistrust, that and nothing else.

Protectors of free speech should see her words for what they are, and then replace them vociferously…….before the thought-police put them next to Niemoller.

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