Israel’s Bright Future

1931204827A new year is generally a time to assess the past and consider the future. The year 5775 (in the Jewish calendar) is no different. A look back at this past year, with the grim reality of the Islamic State’s (IS) cruel terror, the general instability in the Middle East, and the recent 50-day war in Gaza between Israel and the Palestinian Islamist terror group Hamas, could easily lead one to despair. This mayhem and bloodshed has also obscured the dynamism and progress the marks Israel’s society.

A comparison between Israel, circa 1984, with Israel of 2014 reveals the country’s incredible growth and its maturity as a developed nation – a nation now commonly referred to as the “Start-Up Nation.” A few statistical facts convey the nation’s dramatic growth. Israel’s population in 1984 stood at 4.1 million, doubling in 30 years to 8.2 million. This means more security for the nation by virtue of a larger standing army and reserves, and less impact on the economy during military mobilization.

While Israel is faced with an existential threat from a nuclear Iran, terrorist organizations such as Hezbollah in Lebanon, IS and al-Qaeda affiliate al-Nusra Front in Syria, and Hamas in Gaza, the disintegration of Iraq and Syria with their substantial armies and armament, have lessened the overall strategic threat facing the Jewish state. Egypt, under President Abdel Fattah al-Sisi, the largest and most powerful Arab state, and Saudi Arabia, the primary Sunni Arab state, have found common cause with Israel. They share a concern over Iran’s quest for regional hegemony, and its drive for nuclear arms, as well as Israel’s opposition to the Muslim Brotherhood, and other radical Islamist movements.

A nation’s strength is not measured by the size of its military, and its ability to deter its enemies alone. National strength is also a function of its economic, social, and cultural achievements. Since 1984 Israel has experienced dramatic improvements in its economy. The inflation rate has declined from 447% to 1.5%, and the interest banks charge declined from 771% to 5%; national debt as a percentage of the GNP has declined from 17% to 2.5%. Likewise, the defense expenditures as a percentage of the GNP went down from 20% to 5.6% (2013), still a bit higher than the U.S. military expenditure of 3.8%.  Foreign exchange reserves in dollars grew from $3.3 billion to $90 billion. Exports in 1984 were $10 billion and by 2013 had reached $291.36 billion, while per capita income in 1984 was $7000, and in 2013 it was $34,120. Women in Israel’s labor force amounted to 30% in 1984; it now stands at 53%. And while the Gross Domestic Product (GDP) in the U.S. (2013) grew by 1.9%, in the U.K. 1.7%, France’s 0.2%, Israel’s GDP growth was 3.3%. 

Naturally, Israel has economic and social problems. To reach its full potential Israel needs to increase the number of ultra-orthodox Jews and Arabs in the labor market. The high cost of apartments (due to shortage in supply) has been especially difficult for young couples seeking their first home and is a factor in the emigration of bright young people.  There are not enough rental apartments for the post-military young. Defense expenditures are still high, but unavoidable. However, when compared with the rest of the OECD (Organization for Economic Cooperation and Development) states, Israel’s situation is improving yearly, which is not the case elsewhere in Western countries.

OECD Secretary-General Angel Gurria had this to say about Israel (March 8, 2011) “In a very short period, Israel has become an important contributor to OECD’s work. It is now a full member of more than 100 Committees and bodies, and vice-chairs of 5 of them. Its knowledge on key areas for the viability of our economies, like water management, ‘clean-techs’ and entrepreneurship, is becoming a source of best practices. Its contribution to our privacy protection standards and consumer protection policy has been outstanding.  Its support for our work with the MENA countries is also highly valuable.”

An overview of the Israeli economy by the OECD pointed out that “Israel’s output growth has been impressive, considering global economic weakness, and the output gap is close to zero in contrast to much of the OECD area. The unemployment rate is at a 30-year low, and labor force participation has been rising steadily. Furthermore, new natural gas fields have provided an additional boost to GDP in recent quarters. Substantial public spending cuts and revenue-raising measures legislated in the latest government budget are set to bring fiscal balances back on target for this year and next.”

Billionaire investor Warren Buffett described (5/2/2013) Israel as the “most promising investment hub outside the U.S.” Buffett added that, “[w]e are the world’s fifth-biggest investment firm, but for me the number-one country is Israel, which is far ahead of larger and richer countries.”

The United Nation’s Human Development Index (UN-HDI) for 2014 ranked Israel #19 among 194 member states, ahead of France (#20), Austria and Belgium (#21), Finland (#24), and Italy (#26). The HDI measures life expectancy, education, and income levels in various countries.

In the cultural sphere, Israel is #1 in the world in the number of museums per person. It has over 200 museums, and counting. Israel leads the world in the re-use of sewage water (about 80%) while in second place, Australia’s rate is only 22%. The Jewish state leads the world in the number of people employed in research and development. For every 10,000 workers, Israel has 140 employees, while second place U.S. has 85 (According to Dr. Adam Reuter, CEO of Financial Immunities Consulting, and the Chairman of Reuter-Maydan Investment House). A Wall Street/ NBC-TV survey has found Israel to be the second most educated nation in the world following Canada, above Japan.

The British Economist survey on the best places in the world to be born and live placed Israel as the 20th, ahead the U.K., France, Italy, and Japan. A 2012 Bloomberg poll ranked Israel’s health system as the sixth best in the world, ahead of the U.S. and many European states. Life expectancy for men in Israel ranked second among 146 states polled, women’s life expectancy in Israel was ranked 13.

According to Reuter-Maydan Investment House in 2013, for every 10 Jewish children born, there were 2.4 Arab children born, a decline from the year 2000, when the ratio was 10/3 Jewish to Arab children. Since 2000, the Arab population growth in Israel stabilized at around 40,000 births a year. Jewish births at the same time increased from 95,000 to 125,000 a year. Significantly, the Jewish-Israeli growth has come mostly from secular Jews, especially among immigrants from the former Soviet Union. There has also been a significant decline of birthrates in the Arab sector as a result of better education among Arab women, and Westernization in the Arab sector. Also noted was a dramatic decline in birthrates among Bedouin women, due to the lowering of national insurance paid to families with children.

The Israeli economy is strong. The newly found gas and oil tracts offshore will make Israel a net exporter of energy within five years. A low rate of unemployment and a high rate of investments make Israel an attractive destination for West European Jews fleeing anti-Semitism. Israel’s excellent health system and vibrant cultural life keep Israelis happy and proud of their country. While the recent Gaza war entailed hardship for many Israelis, the Israel Defense Forces proved more than capable in dealing with the situation.  In summary, despite the grim reality in the region, Israel’s future appears to be bright.

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  • Bamaguje

    Go Israel, go!!
    Stick it to the faces of Jihadists and their leftist collaborators who are always plotting the Jewish nation’s demise

  • swemson

    If your interest is in the development of new and exciting high technology, look to Israel, as that’s where it’s happening these days..

    fs

  • StanleyT

    Am Yisrael Chai!

    • carpe diem 36

      and prospers!!

  • http://libertyandculture.blogspot.com/ Jason P

    How does that compare to Egypt? From wikipedia:

    “Egypt is actually facing high levels of unemployment and immense poverty. The majority of its younger population is struggling with unemployment and destitution, and heightening food prices in Cairo. According to an Associated Press report, nearly half of all Egyptians live under or just above the poverty line. More than 15 million Egyptians live on less than $1 a day, and the figure is steadily increasing.”

    • Gee

      Which is well below what the Arabs occupying Gaza, Samaria and Judea are living on

  • kiwi41

    Strange how the westerm media , especially in the US and Englandistan never mentiom these facts.
    I guess they are trying to put a positive spin on their respective descent to third world status, facts about Israel would put a hole in the PCMC boat………..

  • Ari Asulin

    That economic assessment is a joke.
    And natural gas as the icing on the cake? Gaza won’t let you keep those fields forever dude

    • SCREW SOCIALISM

      Hamass won’t be around forever dude.

      The US and like minded countries should take over the oil fields of the Middle East and lower the price of oil back to $10 per barrel.

      • carpe diem 36

        if the people in Gaza were anything like Israelis they would have made Gaza a better and a more beautiful place than the French Riviera. God gave them a piece of heaven of a location – beautiful beach, beautiful weather, a really nice land that can bring tourists from all over the world if they had the brains to use what they have been given. But since they do not they keep their people poor, the only think they bring into their place are weapons, and they see only the success of Israel and this makes them mad enough to devote all their energies to destroy it. Too bad God has wasted his treasure on such people.

        • Ellen_L

          That is the saddest lesson of the situation. The best thing the surrounding countries could do is to trade with Israel who would be happy to teach them to prosper as well.

          • carpe diem 36

            israel may teach them but I believe they are incapable of learning. If they were they would not be the most uneducated group of people in the whole world.

      • CowboyUp

        Not sure why his comment was deleted. I was working and didn’t get a chance to reply in time. Here was my reply:

        “Your cartographic assessment is a joke. The fields are off the stretch of shore between Haifa and Tel Aviv, dude. No doubt clarification of your economic assessment comment would have been a hoot too.”

        I would have loved to see his take on economics.

  • 1Indioviejo1

    What a contrast with the Muslim enemies. Blessed with Oil, they have managed to squander their God given wealth by corruption and stupidity. That is precisely why they are full of envy and hate. Success stares them in the face everytime they see Israel. iIf only they would apostatize from their primitive ideology.

  • Ellen_L

    Of course it is spiritual. Not miracles but the attitude that values success and achievement over plunder and envy. Jews are not so much a religion as a family or tribe. That is not a race since people can be adopted and join in and have so that Israel has great diversity. But there are virtues that are widely valued among Jews whether secular or observant. Among them are a respect for achievement and prosperity. Wealth is part of that but not the whole. A respect for knowledge and education. In Israel especially a respect for responsible action fostered by the IDF. A concern with ethics that drives Jews to political positions on all sides of the issues – there are many liberals and even socialists but there are also many libertarian and classical liberals as well as conservatives. There is even the tendency to argue and disagree among ourselves in a civil way that allows ideas to flourish. It is very much a matter of the spirit of a culture.

  • Gee

    So long as we stop worrying about foreign countries that are attempting to have us killed. We need to stop listening to Odumba and the Eurotrash

    • cree

      You’re right. Ashamed to have to admit it, but the U.S. and European governments don’t favor to having your back. Foolish delusion instead. But, there are many non-jews who agree with “never again.”

  • drygoldfeld

    And this success exactly drives Anti-Semites and Islamists mad with envy and rage .

  • VictorMC

    Yes great stuff long may it continue.
    I would like to add one more very important fact that Germany only spends 1.35% (source CIA world factbook – 2012 figures the latest available) of it’s GDP on defence. This cost in Israel of 5.69% is the real killer and don’t our enemies know it.

  • Dolly

    A very fine narrative by Joseph Pruder, Israel is indeed the most advanced, educated, and modernistic nation in the Middle East. Additionally, history has proven that nations that have Blessed the Jewish people have enjoyed the Blessing of God. The nations that have cursed the Jewish people expierience the curse of God. They shall prosper that love Jerusalem. Genesis 12 : 3 Ps.122:6

  • johnnywood

    If the Palestinians ever got over their ignorance and prejudice against Israel brought on by their stupid religion the economic benefit to them would be tremendous.