ISRAEL 
HIGH-TECH & INVESTMENT REPORT

from the October 2000 issue


Reflections Ahead of 5761

With the coming of the Jewish New Year, 5761, according to tradition, the time is ripe for some reflections. On the political front there are arguably some positive developments.

Israelis and Palestinians have finally bared their souls to each other and tabled a central issue, namely Jerusalem. This could be a positive step because it underlies what really matters in the hearts of every Israeli and Jew throughout the world. It is unlikely that any Israeli politician can strike an acceptable long-term agreement with the Arab world without taking into account the issue of Jerusalem.

The essential preservation of the sanctity of Jerusalem for all who hold it dear, cannot be turned over to outside parties. It is an "insiders" problem, one which is understood with difficulty by "outsiders".

The issues of Peace for Israel and Peace for the region will be debated, argued and undoubtedly, if required, fought for. Peace is as elementary to Israel's very being as the Bill of Rights is for the Americans and the right of free speech to the British. So with the New Year, we hope for a further move towards Peace for Israel and the Middle East, Region.

In their 52 year old history Israelis have never been more convinced tof their ability to create dollar wealth based on technological creativity. We chronicle frequently multi-million and more recently multi-billion dollar deals.

Electronic engineers and software programmers are in greater demand than ever. The ranks of regular army electronic engineers are being decimated, as the private sector combs the Israeli Defense Forces for qualified, but less highly paid personnel. The yeshivot, the halls of learning for the ultra-religious are becoming the battleground for computer trainees. The Hebrew language has acquired a new jargon which is a transliteration of Initial Public Offerings, options, mergers and strategic partnerships and investments. These are the buzzwords for a population that not long ago concentrated on felafel, drip irrigation and the miracle of exporting $150 million worth of oranges a year.

The articles in the newspapers and popular journals concentrate on how long it would take to "make it big". Some delve into the long-term psychological effects on children and wives, left at home while the men toil around the clock to move the startup to a new level of achievement and a higher valuation.

So what are the problems as we face 5761? It all comes down to Israel's role in the globalization of countries, economies and the individual. It is not just a question of big payoffs and high salaries but a the forging of a new way of life.

It is the adjustment of a temporary two-track economy which punishes participants in Old Economy pursuits and rewards those that partake in the New Economy which embraces Information Technology. It is also the necessity of dealing with the new mobility for Israeli entrepreneurs. That includes overseas registration of startups, researching and product development. There are worries of loss of tax revenues, personnel or even worse a possible "brain drain".

As we end the old year indeed, the blessings held out by globalization are great and beckon to those who will partake in them in 5761.



Reprinted from the Israel High-Tech & Investment Report October 2000

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