Wednesday, May 12, 2010

Positive news for Israel

The formation of a Conservative-LibDem coalition government in the UK is a positive outcome for Israel. PM Cameron will be a more positive influence in the world than the Labor Government against terrorism and in favor of Israel, although his priorities will be domestic economics to reverse the deficit. William Hauge will be Foreign Secretary and he spoke recently at the Anglo-Israel Association dinner in London and is a member of the Conservative Friends of Israel, so we can expect a definite turn for the better in Britain. Since the far right was decisively rejected in Britain (the BUP got 1.9% of the national vote) and the left was rejected (Labor dropped 91 seats, the largest drop since the 1930s) it is hard to reconcile this Conservative win with the prevalent anti-Israel bias in Britain. Hopefully, LibDem influence on these issues in the coalition should be muted. No doubt the forces arrayed against Israel in Britain will continue their insidious games, but they should have less influence and be less effective than in recent years.

Israel has been voted onto the Paris-based Organization for Economic Cooperation and Development (OECD) unanimously by its 31 members. This is quite a coup, since this organization is chiefly concerned with bringing together countries whose economic status is considered advanced and stable. Israel certainly fits this definition, the shekel is a strong currency and the economy has remained stable throughout the recent economic crisis. This is partly because of sound Israeli banking practices and appropriate actions taken by Stanley Fischer, Governor of the Bank of Israel. Such votes however are often not certain because of Arab/Muslim influence, which fortunately is low in such an economic forum (the only Muslim member is Turkey).

We Jews and Israelis are used to expecting the worst for Israel. We are attacked in all international organizations such as the UN, the Human Rights Commission (e.g. the Goldstone Report) whereever there are Arab and Muslim nations represented, and in the EU. Also, there is the Boycott, Divestment and Sanctions (BDS) movement in the West directed solely against Israel. But, absent their routine and continual attacks, in a forum where they have little or no influence, Israel does very well. This is certainly a filip for Israel and will result in greater investment in Israel by the member countries of the OECD. Now the fact that Israel has the second greatest concentration of electronic and biotechnology start-ups after the USA is becoming well known and this will attract further investment. Note that this is true even though Israel has an enormous defense commitment and has been under physical attack from its beginning.

Greece is also a member, so you might conclude that the OECD has not been totally successful in its aims, but it cannot force countries to abide by its requirements, and there are several other members in economic difficultes. Fortunately strong action by the consortium of Eurozone countries over the weekend, mostly Germany and France, pledging between them nearly 1 trillion euros as a fund to support the euro has had the desired effect of strengthening the value of the euro and giving the capital markets the necessary boost they were seeking. Nevertheless Israel joins the OECD as one of its poorer but more stable members.

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