Israel’s Economy Thrives While the Middle East Disintegrates

Jan. 19 2018

Now that the data have come in from 2017, it is clear that the Israeli economy had another successful year, expanding at a rate higher than that of any other advanced country. Israel’s per-capita GDP also grew, placing it above those of France and Japan. Daniel Kryger notes some of the implications regarding the Jewish state’s place in the Middle East:

The contrast between first-world Israel and the surrounding third-world Arab states is larger today than ever before. Israel’s GDP per capita is almost twenty times the GDP per capita of impoverished Egypt and five times larger than semi-developed Lebanon.

Like any human project, Israel is a never-ending work in progress and much work remains to integrate ḥaredi Jews and Israeli Arabs into Israel’s knowledge economy. Properly addressing Israel’s high costs of living requires more economic and legislative reforms and breaking up inefficient oligopolies that keep the prices artificially high. However, by any standard, the reborn Jewish state is a remarkable success story. . . .

Much has changed since OPEC launched its oil embargo against the West after the failed Arab aggression against Israel in October 1973. Before the collapse of the pro-Arab Soviet empire, China and India had no official ties with Israel and many Western and Japanese companies avoided doing business with Israel. Collapsing oil prices have dramatically eroded the power of oil-producing countries. It has become obvious that the future belongs to those who innovate, not those who happen to sit on oil. Israel has today strong commercial ties with China and a thriving partnership with India. Business delegations from Jamaica to Japan are eager to do business with Israel and benefit from Israel’s expertise. . . .

[For its part], the boycott, divest, and sanction (BDS) movement may bully Jewish and pro-Israel students on Western campuses. However, in real life, BDS stands no chance of succeeding against Israel. The reason is simple: reborn Israel has . . . become too valuable a player in the global economy.

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More about: BDS, Israel & Zionism, Israeli economy, Middle East, OPEC

Palestinian Leaders Fight Economic Growth

Jan. 15 2019

This month, a new shopping mall opened in northeastern Jerusalem, easily accessible to most of the city’s Arab residents. Rami Levy, the supermarket magnate who owns the mall, already employs some 2,000 Israeli Arabs and Palestinians at his other stores, and the mall will no doubt bring more jobs to Arab Jerusalemites. But the leaders of the Palestinian Authority (PA) are railing against it, and one newspaper calls its opening “an economic catastrophe [nakba].” Bassam Tawil writes:

For [the PA president] Mahmoud Abbas’s Fatah officials . . . the image of Palestinians and Jews working in harmony is loathsome. . . . Instead of welcoming the inauguration of the shopping mall for providing job opportunities to dozens of Palestinians and lower prices [to consumers], Fatah officials are taking about an Israeli plan to “undermine” the Palestinian economy. . . . The hundreds of Palestinians who flooded the new mall on its first day, however, seem to disagree with the grim picture painted by [these officials]. . . .

The campaign of incitement against Levy’s shopping mall began several months ago, as it was being built, and has continued until today. Now that the campaign has failed to prevent the opening of the mall, Fatah and its followers have turned to outright threats and violence. The threats are being directed toward Palestinian shoppers and Palestinian merchants who rented space in the new mall. On the day the mall was opened, Palestinians threw a number of firebombs at the compound, [which] could have injured or killed Palestinians. The [bomb-throwers], who are believed to be affiliated with Fatah, would rather see their own people dead than having fun or buying attractively-priced products at an Israeli mall.

By spearheading this campaign of incitement and intimidation, Abbas’s Fatah is again showing its true colors. How is it possible to imagine that Abbas or any of his Fatah lieutenants would ever make peace with Israel when they cannot even tolerate the idea of Palestinians and Jews working together for a simple common good? If a Palestinian who buys Israeli milk is a traitor in the eyes of Fatah, it is not difficult to imagine the fate of any Palestinian who would dare to discuss compromise with Israel.

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More about: East Jerusalem, Israeli Arabs, Mahmoud Abbas, Palestinian Authority, Palestinian economy