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

To Israel’s Leading Strategist, Strength, Not Concessions, Has Brought a Measure of Calm

Aug. 14 2018

Following a long and distinguished career in the IDF, Yaakov Amidror served as Israel’s national-security adviser from 2011 to 2013. He speaks with Armin Rosen about the threats from Gaza, Hizballah, and Iran:

For Israel’s entire existence, would-be peacemakers have argued that the key to regional harmony is the reduction of the Jewish state’s hard power through territorial withdrawals and/or the legitimization of the country’s non-state enemies. In Amidror’s view, reality has thoroughly debunked this line of reasoning.

Amidror believes peace—or calm, at least—came as a result of Israeli muscle. Israel proved to its former enemies in the Sunni Arab world that it’s powerful enough to fill the vacuum left by America’s exit from the region and to stand up to Iran on the rest of the Middle East’s behalf. “The stronger Israel is, the more the ability of Arab countries to cooperate [with it] grows,” Amidror explained. On the whole, Amidror said he’s “very optimistic. I remember the threat that we faced when we were young. We fought the Six-Day War and I remember the Yom Kippur War, and I see what we are facing today. We have only one-and-a-half problems. One problem is Iran, and the half-problem is Hizballah.” . . .

In all likelihood the next Israeli-Iranian confrontation will be a clash with Amidror’s half-threat: the Lebanese Shiite militant group Hizballah, Iran’s most effective proxy in the Middle East and perhaps the best armed non-state military force on earth. . . . “We should neutralize the military capability of Hizballah,” [in the event of war], he said. “We should not destroy the organization as a political tool. If the Shiites want these people to represent them, it’s their problem.” . . .

“It will be a very nasty war,” Amidror said. “A very, very nasty war.” Hizballah will fire “thousands and thousands” of long-range missiles of improved precision, speed, and range at Israeli population centers, a bombardment larger than Israel’s various layers of missile defense will be able to neutralize in full. . . . This will, [however], be a blow Israel can withstand. “Israelis will be killed, no question,” Amidror said. “But it’s not going to be catastrophic.”

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More about: Hizballah, Iran, Israel & Zionism, Israeli Security, Israeli-Palestinian Conflict, Lebanon