At 67, Israel exudes long-term optimism

By Yoram Ettinger, ISRAEL HAYOM

Sixty-seven years ago, upon Israel’s declaration of independence, Life magazine noted (May 31, 1948) the odds facing the 600,000 Jews of the newly born economy-starved and militarily embargoed Jewish state: “King Abdullah of Transjordan sent his Arab Legion against Jerusalem. … Egypt’s planes repeatedly bombed Tel Aviv. Syria, Iraq, Lebanon and Saudi Arabia pitched in. … The Arabs cut off Jerusalem from the coast by blocking the road to Tel Aviv. … The old walled city came under artillery fire. … A three-pronged attack was compressing the [Jewish] defenders into the Jewish Quarter of the Old City. … King Abdullah’s Arab Legion was spearheading the Arabs’ land offensive. … The Jews had little but light anti-aircraft to fight off these attacks. … A country the size of Connecticut is ringed by hostile neighbors. … Time and geography favor the Arabs, and England, which does not recognize Israel, is sending the Arab states arms, [while] Israel’s friends in the U.S. aim to lift our embargo on arms. … Can Israel survive?”

In defiance of the jagged cutting edge of the Middle East and the world at large, and in spite of boycotts, sanctions, embargoes, condemnations, wars, terrorism and diplomatic adversity, the Jewish state has catapulted from the Holocaust, and the near-destruction during its War of Independence, to world-class stellar performance in the areas of economy, technology, science, medicine, health, agriculture, irrigation, first responding, military and counter-terrorism, and sharing its exceptional achievements with the Third World, the West, and especially with the U.S.

At 67, Israel reaffirms a historic fact: Pressuring the Jewish olive produces superb oil.

At 67, against all odds, and beyond the wildest expectations, Israel demonstrates that principle-driven, highly motivated and defiant societies are capable of transforming tough times into challenges and opportunities, while surging to new heights.

At 67, Israel enjoys splendid integration into the global economy and Israel’s economy is praised by the International Monetary Fund and the three leading rating companies, Standard & Poor’s, Moody’s and Fitch Ratings. Israel’s gross domestic product and industrial exports total $300 billion and $47 billion, respectively, compared to $1.5 billion and $5 million, respectively, in 1948. Israel’s GDP growth (3%) is similar to the U.S. and higher than Canada (1.9%), Britain (1.6%), Germany (1.1%) and the OECD average (1.3%). Israel’s unemployment rate (6%) is lower than the OECD average (7.5%). Israel’s debt-to-GDP ratio (67% and declining) is lower than the U.S. (106%), the Euro bloc (108%), the G-20 (97%), Britain (92%) and Germany (75%). Israel has the largest (per capita) number of startup companies in the world, the highest (per capita) ratio of university degrees, the highest ratio of research and development personnel (140 per 10,000 workers), and is a research and development hub of some 250 U.S. high technology companies. Overseas investment in Israel is at a record level and trade with India and China is skyrocketing.

At 67, Israel is facing a potential wave of aliyah (Jewish immigration), which could be the most effective engine of growth, attracting more investment to Israel, enhancing Israel’s Jewish demography, and bolstering Israel’s posture of deterrence in a dramatic manner. A proactive aliyah policy could generate 500,000 immigrants — in the next five years — from France, Russia, Ukraine, Germany, Britain, Argentina and the U.S., due to the relative strength of Israel’s economy, the rise of global anti-Semitism, the gradual Islamification of Europe, and the expansion of Jewish/Zionist education in major Jewish communities.

At 67, Israel is — in contrast to the tumultuous, unpredictable, unreliable, violent and generally anti-U.S. Arab street — the only stable, predictable, reliable, capable, willing, democratic and unconditional ally of the U.S., regionally and globally. In 1969 and 1978, the revolutions that installed Muammar Gadhafi and Ayatollah Ruhollah Khomeini transformed Libya and Iran, respectively, from pro- to anti-U.S. regimes. In 2003, the rise of Erdo?an changed Turkey from a pro-U.S. to an anti-U.S. Islamic orientation. In 2012, the pro-U.S. Egyptian military regime was replaced by the anti-U.S. Muslim Brotherhood terrorist organization. A regime change in Jordan, Saudi Arabia and other Gulf States would trigger a similar anti-U.S. shift. On the other hand, Israel’s Right and Left, hawks and doves are inherent and unfailing allies of the U.S.

At 67, Israel is increasingly involved in mutually beneficial, two-way street, win-win ties with the U.S., providing the U.S. with critical intelligence on Islamic terrorism, exceeding intelligence received by the U.S. from all NATO countries combined. Moreover, Israel is the most battle-tested, cost-effective laboratory of the U.S. defense industries, sharing with U.S. manufacturers thousands of upgrades and modifications, enhancing the U.S. global competitiveness, exports, research and development and employment. Israel is to the U.S. defense industry what triple-A tenants are to shopping malls: increasing value and drawing clients — a mega-billion dollar bonanza.

At 67, Israel’s robust demography leads birth rates in the free world with more than three births per Jewish woman, providing a tailwind to Israel’s economy and national security. In 1995, there were 2.3 Jewish births per each Arab birth; in 2014 — 3.4 Jewish births. The number of Jewish births surged from 80,400 in 1995 to 136,000 in 2014 — a 69% increase — while the annual number of Arab births has stabilized over the years. From 600,000 Jews in 1948, Israel’s Jewish population has grown to 6.5 million, benefitting from a robust tailwind of fertility (especially among secular Jewish women!) and net immigration, while Arabs have experienced an unprecedented modernity-driven decline in fertility, in addition to net emigration.

Against the backdrop of the last stormy 67 years, one may conclude that the sustained wars, terrorism and diplomatic adversity have been merely bumps on the road of unprecedented growth and development, benefitting the Jewish state, the U.S. and the rest of the world.