"Gaza in the hands of Hamas, with masked militants sitting in the president’s chair; the West Bank on the edge; Israeli army camps hastily assembled in the Golan Heights; a spy satellite over Iran and Syria; war with Hezbollah a hair trigger away; a scandal-plagued political class facing a total loss of public faith.
At a glance, things aren’t going well for Israel. But here’s a puzzle: why, in the midst of such chaos and carnage, is the Israeli economy booming like it’s 1999, with a roaring stock market and growth rates nearing China’s?"
And her answer is a little counterintuitive, but it's basically that the Israeli economy is growing BECAUSE of the mess, not despite of it. Her article outlines the development of the 'home-security' sector (hmm, an interesting cluster that I should suggest to Michael Porter! People taking his MoC class next year, here’s your suggestion :)) with all the surveillance, interrogation, high-tech fences, armed drones...
“”Within three years, large parts of Israel’s tech economy had been radically repurposed. Put in Friedmanesque terms: Israel went from inventing the networking tools of the “flat world” to selling fences to an apartheid planet. Many of the country’s most successful entrepreneurs are using Israel’s status as a fortressed state, surrounded by furious enemies, as a kind of twenty-four-hour-a-day showroom-a living example of how to enjoy relative safety amid constant war. And the reason Israel is now enjoying supergrowth is that those companies are busily exporting that model to the world.""
I give you that it might fully explain all the development of the country - I wouldn’t know. The number she gives are quite impressive, though. But in any event, I wonder whether those industries not only benefit from the current climate but might seek to perpetuate it... What’s the military-industrial complex in Israel like? Anyone?








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