CHARLES ABELSOHN

Shalom from Israel,

Last year, I concluded my annual Rosh Hashanah letter by stating that the anti-Israel Boycott, Divestment and Sanctions (BDS) and “Israel is apartheid” movements are being rejected by the very people they incorrectly assume they are assisting.
The average West Bank Palestinian (not the corrupt and well-remunerated politicians), takes one look at the Arab world and prefers to look the other way. Actually, he looks in the direction of Israel and works there. Yes, 70 000 West Bankers work daily in Israel and the settlements, supporting over 500 000 (about 30 per cent) of the West Bank population. While in South Africa recently for the memorial service for Nelson Mandela, even Palestinian Authority President Mahmoud Abbas stunned reporters, South African ANC politicians and Palestinian activists alike when he stated that the Palestinians do not support a boycott of Israel (other, to be fair, than advocating boycotting Israeli products made in the West Bank).

Last year, I added that despite the usual anti-Israel and anti-Semitic currents, we, the Israeli people, will continue to enjoy standards, opportunities and happiness that Herzl and Ben-Gurion in their wildest fantasies could never have imagined would ever be reached. The barking persists, but the Israeli caravan continues to forge ahead.  A year has gone by. Let`s check.

Reality check

Enough has been written by many, including myself, on the recent events in Gaza and you will be delighted to know that except for one topic, no further reference will be made to Gaza or Hamas. That topic merits a mention: In the conflict with Hamas, Israel enjoyed the not so quiet support of Egypt and the quiet support of Saudi Arabia, Jordan and several of the Gulf States.
Despite BDS and the noise of useful idiots, for the first time since 1948 Israel found itself as part of an Arab coalition. On the international political scene, there are prospects developing which we dared not even to dream about a few short years ago.

From this point on, this year, no more politics: I prefer to bore you with numbers.

Despite the past few months having presented some difficulties (I have a self-imposed ban on mentioning the cause) Israel has much to be proud of. If this sounds like a propaganda sheet, then, well, so be it. There has been too much negative press about Israel recently.

Let`s look at why this Israeli caravan is not just forging ahead but racing ahead.

In this regard, Bloomberg, a provider of financial services, recently measured the price of happiness. It`s a complicated process using several indicators published by different entities (World Bank, Gallup), so let`s skip the mumbo jumbo and go straight to the result. You guessed right (otherwise I probably would not have mentioned the result): Israel is the number one country. The UK is in 7th place, Australia in 11th place, Canada 13th and the USA 20th. Poor South Africa, so critical of Israel: all the dollars (rand?) in the world can`t buy happiness in South Africa. Result: It costs less in Israel to be happy than anywhere else in the world, and Israelis are happier with their lives than people in other Western countries.
Incidentally, all the countries mentioned are richer than Israel, but none are able to use their wealth to better effect than Israel.

The UN produces annually its human development index. Israel is in 16th place out of 186 countries but is in the top “very high human development” ranking. Poor South Africa, so critical of Israel, is in 121st place. And the Palestinian Authority? In 110th place, even above South Africa. Oh, dear me.

The Organisation for Economic Co-operation and Development (OECD) is an international economic organisation of the 34 most developed countries founded in 1961 to stimulate economic progress and world trade. It is a forum of countries committed to democracy and the market economy. Israel applied for membership of probably the world`s most exclusive “country” club in 2004 and was finally admitted in 2010.

Israel attractive for FDI

According to the latest OECD annual report, Israel is the 4th most attractive country for foreign direct investment (FDI) per Growth Domestic Product (GDP) – 4 per cent of GDP, compared to 1,6 per cent of foreign direct investment per GDP in the top 16 economies. Only Luxembourg, Ireland and Chile are ahead of Israel.
The scope of foreign direct investment demonstrates the level of confidence in the long term viability of economic growth. To those worried about “BDS”, just let them keep barking. Money talks, and money says Israel is the place to be.

Israel`s employment rate rise is highest in the OECD. The OECD has reported that between 2010 and 2014, Israeli employment rose 13 per cent compared to the OECD average of 2 per cent.

The employment rate for Israeli women was 6,5 per cent higher than the OECD average. Life expectancy in Israel is among the highest in the world according to the latest OECD report. According to the report, the average life expectancy in Israel is 82, the same as in Australia, which is two years higher than the OECD average of 80 and longer than the UK, Canada, Germany or the USA. So, if you wish to live longer, you are welcome to join us here in Israel.

Natural gas fields discovered off Israel’s coast since 2009 have brightened Israel’s energy security outlook. The Tamar and Leviathan fields were some of the world’s largest offshore natural gas finds this past decade. The massive Leviathan field is not due to come online until 2018, but production from Tamar provided a one percentage point boost to Israel’s GDP in 2013.

I intend reporting Jordan and the Palestinian Authority (PA) to the BDS folk. Contravening all BDS`s boycott instructions, both Jordan, for about $15 bil, and the PA have agreed to purchase gas from Israel.

Israel recently was accepted as a permanent member into the Paris Club of creditor nations, an influential group of rich nations that help poor indebted economies, giving the country an international boost of recognition for its economic accomplishments. The Paris Club announced Israel’s induction, bringing the club’s membership to 20 countries.  There are many countries significantly wealthier than Israel who do not qualify for membership.

GDP catapulted 10x in 20 years

My apologies for this paragraph but, really, it does show Israel`s progress over the past 20 years more effectively than words. Israel’s gross domestic product catapulted from ‎‎$30 bil in 1984 to $300 bil in 2014; per capita GDP surged from $7 000 to ‎‎$38 000; the budget deficit to ‎GDP ratio decreased from 17 per cent to 3 per cent; the defence budget reduced from ‎‎20 per cent to 6 per cent.

Annual inflation collapsed from 450 per cent to one per cent; the foreign ‎exchange reserves swelled from $3 bil to $89 bil; exports rose from $10 bil to ‎‎$90 bil; hi-tech exports expanded from $1 bil to $28 bil; research and ‎development expenditures to GDP ratio grew from 1,3 per cent to 4,2 percent (almost the highest in the world) and the ‎population of Israel grew from 4,1 million to 8,2 million.

The growth ‎from 1948 is even more impressive: a 2 000 per cent growth in GDP, from $1,5 bil to ‎$300 bil.‎

 In 2014, Israel is the world’s top exporter of drones, the world’s co-leader ‎‎(along with the US) in the development, manufacturing and launching of ‎small and medium-sized satellites, the second-largest cyber exporter in the world – ‎‎$3 bil in 2013 and three times larger than Britain’s, as ‎well as an emerging natural gas power.

US leverages Israel’s brainpower

Leading US venture capital ‎funds have established Israel-dedicated funds, and over 250 leading US hi-tech ‎companies established research and development centres in Israel, ‎leveraging Israel’s brainpower, which in turn has become a chief pipeline back into the USA and World economies of cutting ‎edge technologies.

BDS, can`t you do anything right? Do you remember the days when Israel`s top exports were pencils we proudly used in Hebrew school, oranges, grapefruit, jam and matzah? We have come a long way but the ride has just started.

Even in the current war on Islamic extremism, the West is dependent on Israeli technology.

Drones

It has been revealed that Israeli spy satellites, overflying Iraq at angles and frequencies unavailable from US satellites, have provided images that allowed the Pentagon to “fill out its information and get better battle damage assessments” after strikes on Islamic State targets.

Now let`s see BDS demand ‘stop’!

BDS is noisiest in the United Kingdom. I suggest that the BDS movement in the UK is doomed to irrelevance. As Prime Minister David Cameron himself said, back in December 2012: 

“We are going to keep on working with Israel, doing business with Israel, trading with Israel.” 

In that address, Cameron (whose great-great-grandfather was a Jewish immigrant from Germany) was fulsome in his admiration for Israeli achievements. 

“Israel has got more start-up businesses per head than any other country. How do they do it?  It’s about the aspiration and drive of its people. These are people who have innovated around every problem that life has thrown at them.
So we want to work much more closely with Israel – on innovation, on technology.” The success of that policy is clearly apparent in the trade statistics for 2013. Total UK-Israeli bilateral trade rose over those 12 months by 5,7 per cent, or $300 mil, to stand at very nearly $5,5 bil in all.  

Yes, cry BDS, cry

Trading activity is weighted heavily in favour of Israel.  Israel imported some $2 bil-worth of goods from the UK, but exported some $3,5 bil-worth.  The UK is, except for the US, Israel’s largest export market. 

BDS kindly note in particular: It is UK demand for Israeli medicines that helped take bilateral trade to its record high, as British patients benefited from Israeli pharmaceutical advances, including drugs for Parkinson’s disease, such as Azilect, developed by Technion scientists, and generic versions of drugs produced by Teva.

I repeat: Trade in all products usually exported by Israel to the UK increased.

Also not involved in BDS is the Arab world.

Freighters carry trucks to the Israeli port of Haifa, bringing goods from Europe to customers in Jordan and beyond. These goods are then carried from Jordan into Iraq and Saudi Arabia. Until three years ago these trucks would have come through Syria, but the civil war has made that journey too perilous.

The number of trucks crossing between Israel and Jordan has jumped some 300 per cent since 2011, to nearly 11 000 a year.

Transhipping to other Arabs up 4x in 3 years

Transit containers shipped to Israel for passage on to other Arab countries increased to nearly 80 000 tons in 2013 from about 20 000 tons in 2010.  Israel is returning to its historic role, as a transit country, as a bridge between continents, where historic trade routes passed through.  BDS, please point out their errors to these Arab countries.

Is time working for or against Israel? The economic indicators from ‎‎1948 until today confirm that Israel has experienced ongoing continuous splendid and unprecedented economic growth, in defiance of ongoing ‎war, terrorism, boycotts and international pressure.‎ Don`t bet against Israel.

Last year I concluded by quoting the well-known political commentator, Daniel Pipes. This year, I will conclude with a statement by the world`s number one investor, Warren Buffett:

“Israel is the leading, largest and most promising investment ‎hub outside the United States. I’m not Jewish, but Israel reminds me of the United States after its birth. The determination, motivation, intelligence and initiative of its people are remarkable and extraordinary. I’m a big believer in Israel’s economy. I didn’t invest the money in any other country. That’s the strongest vote of confidence I can give you, no?”

As I showed above, also the happiest. An unbeatable combination.

Last year, I mentioned that in addition to my hobbies of economics and finance, several concerned citizens, including yours truly, started an organisation called TbT – Truth be Told. Our activities consisted of writing many articles, assisting our friends abroad, and in this regard may I specifically mention our Christian friends of whom Israel has many, to combat the lies and myths being spread about Israel, involvement with yet another successful Ethiopian students delegation to South Africa to tell the truth about Israel during the so-called apartheid week, public meetings in Israel and a successful internet petition calling upon the UN to investigate itself and its activities in Gaza.

Last year the Ethiopian students visited two universities in South Africa, this year they visited five universities. I took upon myself the responsibility to issue initially a daily report during the recent conflict, now reduced to about once a week.

We hope this update finds you in good health and spirits. It is our Rosh Hashanah wish that this coming year will be a year of good health and celebrations and simchas and happiness. We wish you and all your family a   ;שנה טובה ומתוקה, שנת שלום והצלחהa shana tova umetuka, shnat shalom vehatzlacha, a happy, healthy, successful and peaceful new year.

Warmest regards,

Vivienne and Charles Abelsohn and Family.