Ambassador (ret.) Yoram Ettinger, "Second Thought: a US-Israel Initiative”
"Israel Hayom”, http://bit.ly/1ilhGNQ
According to Secretary John Kerry, "if we do not resolve the issues between Palestinians and Israelis; if we do not find a way to find peace; there will be an increasing isolation of Israel.”
However, a thorough examination of Israel's international standing reveals an increasingly splendid global integration of the Jewish state - economically, technologically and scientifically - irrespective of the Palestinian issue.
Contrary to the Kerry school of thought – and based on a reality check
- the Palestinian issue has never been a core cause shaping the Middle
East, a crown-jewel of Arab policymakers or the crux of Israel's
relations with Arab countries and the international community. While diplomatic talk highlights the Palestinian issue, the diplomatic, commercial and industrial walk
reveals that policy-makers and the international business community do
not embrace Kerry's "Palestine First” assessment and his "Isolation
Warning/Threat.”
Thus, the Turkish Statistics Institute documented an expansion of the Turkey-Israel trade balance,
despite the brutal anti-Israel ideology of President Erdogan. The
Institute reports a 56% export increase, to Israel, during the first
five months of 2013, compared with January-May, 2012, while the imports
from Israel were increased by 22% during the same period. The
Israel-Turkey trade balance was $3.4BN in 2008 and exceeded $4BN in
2012. Turkey's requirements in the areas of industry, medicine, health,
agriculture, irrigation, education, science, technology and defense -
and Israel's unique innovations in these areas – have prevailed over
Erdogan's anti-Western, anti-Israel and pro-Hamas Islamist orientation.
The London Financial Times reported: "in six hours of [Prime Minister Netanyahu's] talks with the Chinese leadership, they spent roughly ten seconds on the Palestinian issue, while revealing an unquenchable thirst for Israeli technology.” Highlighting Israel's intensified and diversified global integration, the China-Israel 2013 trade balance exceeded $10BN,
providing a tailwind to the currently negotiated free trade agreement,
and enhanced by Chinese investments in some fifty Israeli high tech
companies. The Japan Times reported the growing Japanese interest in Israeli business opportunities, tripling the number of reviews of Israeli companies.
Moreover, foreign investments in Israel catapulted in 2013,
achieving a seven- year high of $12BN, including $4BN in acquisition of
Israeli companies by global giants such as Google, IBM, Cisco, AOL,
Facebook, Apple and EMC. Furthermore, since January 2014, Israeli
companies have rised over $500MN on Wall Street. Deloitte Touche – one
of the top CPA firms in the world – crowned Israel as the fourth most
attractive site for foreign investors, trailing only the USA, China and
Brazil. According to the British Economist Intelligence Unit,
"Israel's cluster of high tech companies, investors and incubators is
enjoying a boom which has not been witnessed since the global tech
bubble burst more than a decade ago.” Neither Kazakhstan's billionaire Kenges Rakishev, nor Mexico's
billionaire, Carlos Slim allowed the "Isolation Warning/Threat” to stop
their flow of investments in Israel's high tech sector.
In fact, Israel, the Startup Nation, has become a critical Pipeline Nation
that transfers to the American high tech industry a plethora of cutting
edge technologies and applications, developed by Israel's brain power.
This provides some 200 US high tech giants an edge over their global
competitors, thereby contributing to US employment, research,
development and exports. As stated by Microsoft's new CEO, Satya Nadella,
"The two Microsoft research and development centers in Israel
constitute a strategic factor, enhancing Microsoft's capabilities in
many areas.” This was echoed by Google's Chairman, Eric Schmidt,
who also invests in Israel through his private venture capital fund,
Innovation Endeavors: "Israel will have an oversized impact on the
evolution of the next stage of technology. Israel has become a high
tech hub. Israel is the most important high tech center in the world
after the US.”
Unlike Secretary Kerry, Warren Buffett does have confidence in Israel's long term viability,
realizing that Israel's economic and technological capabilities are the
derivatives of Israel's brainpower and fiscal responsibility (since
1985), independent of the Palestinian issue. Hence, on the eve of
Israel's 2006 war against Lebanon's Hizballah, Buffett invested $4BN in
an Israeli company - located next to the Lebanese border - recently
expanding that investment by $2BN. Buffett followed in the footsteps of
Intel, which has invested $11BN in its four research and development
centers and two manufacturing plants in Israel; IBM, which just acquired
its 13th Israeli company; Motorola, which established in
Israel a research center second only to its Houston center;
Hewlett-Packard, which owes 55% of its 2012/3 development to its seven
Israeli research and development centers; and the leading Silicon Valley
venture capital funds, Sequoia, Benchmark, Greylock and Accel, which
operate successful Israel-dedicated funds.
Astute observers of the Middle East – who do not subordinate reality to wishful thinking
- are aware that the Arab Tsunami is not an Arab Spring; that the Arab
Street in general, and Egypt in particular, are not transitioning
towards democracy; that Iran is committed to the pursuit of military
nuclear capabilities; that Assad has not been forsaken by Russia and
Iran; and that Arab leaders are apprehensive of Palestinian subversion
and terrorism.
Likewise, astute investors have realized that the ongoing wars and terrorism, challenging Israel since 1948, have been but bumps
on the road of Israel's unprecedented surge and integration into the
global economy and technology, now bolstered by Israel's Leviathan-size
offshore natural gas explorations.
Shabbtat Shalom and have a rewarding weekend,
Yoram Ettinger, Jerusalem, Israel
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