The China Mail - At 75, Israel's economy offers success or inequality

USD -
AED 3.672504
AFN 64.999985
ALL 80.801578
AMD 379.052619
ANG 1.79008
AOA 917.0005
ARS 1444.518097
AUD 1.411841
AWG 1.80125
AZN 1.696279
BAM 1.635086
BBD 2.015232
BDT 122.267785
BGN 1.67937
BHD 0.376978
BIF 2963.891885
BMD 1
BND 1.262572
BOB 6.913877
BRL 5.197695
BSD 1.000552
BTN 91.90563
BWP 13.092058
BYN 2.844901
BYR 19600
BZD 2.012306
CAD 1.352525
CDF 2239.999892
CHF 0.766005
CLF 0.021855
CLP 862.939846
CNY 6.95465
CNH 6.94336
COP 3670.36
CRC 496.603616
CUC 1
CUP 26.5
CVE 92.184025
CZK 20.2826
DJF 178.171634
DKK 6.232985
DOP 62.953287
DZD 129.125047
EGP 46.831098
ERN 15
ETB 155.581807
EUR 0.83478
FJD 2.18535
FKP 0.725629
GBP 0.722945
GEL 2.695028
GGP 0.725629
GHS 10.935965
GIP 0.725629
GMD 73.000171
GNF 8779.982109
GTQ 7.676359
GYD 209.330809
HKD 7.802105
HNL 26.404826
HRK 6.287903
HTG 131.029265
HUF 317.125504
IDR 16790
ILS 3.08995
IMP 0.725629
INR 91.961098
IQD 1310.716137
IRR 42125.000158
ISK 120.879818
JEP 0.725629
JMD 156.845533
JOD 0.708973
JPY 153.140309
KES 129.019508
KGS 87.449851
KHR 4022.138062
KMF 412.000269
KPW 899.941848
KRW 1426.244988
KWD 0.30638
KYD 0.833849
KZT 504.129951
LAK 21556.00515
LBP 89599.377999
LKR 309.821593
LRD 185.10375
LSL 15.909425
LTL 2.95274
LVL 0.60489
LYD 6.283493
MAD 9.046646
MDL 16.778972
MGA 4464.341698
MKD 51.411749
MMK 2099.981308
MNT 3572.641598
MOP 8.041032
MRU 39.942314
MUR 45.150063
MVR 15.459886
MWK 1734.990323
MXN 17.130502
MYR 3.917499
MZN 63.760234
NAD 15.909425
NGN 1396.979967
NIO 36.81874
NOK 9.549755
NPR 147.04884
NZD 1.64394
OMR 0.384495
PAB 1.000548
PEN 3.347838
PGK 4.282979
PHP 58.894035
PKR 279.904359
PLN 3.50968
PYG 6719.056974
QAR 3.637952
RON 4.252796
RSD 97.993015
RUB 76.553846
RWF 1459.772854
SAR 3.750344
SBD 8.077676
SCR 14.335635
SDG 601.5029
SEK 8.798985
SGD 1.26207
SHP 0.750259
SLE 24.297895
SLL 20969.499267
SOS 570.833804
SRD 38.092014
STD 20697.981008
STN 20.482723
SVC 8.754828
SYP 11059.574895
SZL 15.902821
THB 31.037498
TJS 9.35016
TMT 3.5
TND 2.861454
TOP 2.40776
TRY 43.417022
TTD 6.791011
TWD 31.321495
TZS 2559.99997
UAH 42.769647
UGX 3582.341606
UYU 37.863461
UZS 12105.606367
VES 358.47615
VND 26060
VUV 119.671185
WST 2.725359
XAF 548.392544
XAG 0.008378
XAU 0.000179
XCD 2.702549
XCG 1.803217
XDR 0.682024
XOF 548.390252
XPF 99.704048
YER 238.411671
ZAR 15.66115
ZMK 9001.201907
ZMW 19.885632
ZWL 321.999592
  • RBGPF

    0.0000

    82.4

    0%

  • SCS

    0.0200

    16.14

    +0.12%

  • CMSC

    -0.1000

    23.7

    -0.42%

  • VOD

    0.0700

    14.57

    +0.48%

  • NGG

    0.3700

    84.68

    +0.44%

  • RIO

    0.4600

    93.37

    +0.49%

  • RYCEF

    -0.5500

    16.6

    -3.31%

  • BCC

    -0.8900

    80.85

    -1.1%

  • CMSD

    -0.0457

    24.0508

    -0.19%

  • RELX

    -0.9800

    37.38

    -2.62%

  • GSK

    -0.7000

    50.1

    -1.4%

  • BCE

    -0.2500

    25.27

    -0.99%

  • AZN

    -2.3800

    93.22

    -2.55%

  • BTI

    -0.1800

    60.16

    -0.3%

  • JRI

    -0.6900

    12.99

    -5.31%

  • BP

    0.0800

    37.7

    +0.21%

At 75, Israel's economy offers success or inequality
At 75, Israel's economy offers success or inequality / Photo: © AFP

At 75, Israel's economy offers success or inequality

Now 75 years old, Israel models itself as an economic success story, a leader in business, agriculture and advanced technologies -- despite glaring inequalities that have left many Israelis behind.

Text size:

The country readily describes itself as a "start-up nation", and its per capita GDP is higher than that of Germany, France or Britain.

But "there is the start-up nation and the soup kitchen nation," says Gilles Darmon, the head of Latet, an Israeli non-profit group working to fight poverty and deliver food aid.

According to Darmon, almost 10 percent of families among Israel's population of 9.7 million face "severe" food insecurity.

The economy offers two opposing images, he said, one side centred on Tel Aviv's hi-tech industries "where in terms of prosperity you have to be in the richest cities in the world... and on the other side more than 312,000 families are in a situation of severe food insecurity".

To highlight its commercial successes, Israel, a nation born on May 14, 1948, can point to enviable economic performances.

Growth was 6.5 percent in 2022, down from 8.6 percent in 2021 but well above the OECD average of 2.8 percent, and the budget deficit largely contained.

Israel's cyber security work has made the sector one of the economy's driving forces, with companies such as Check Point establishing themselves as global leaders in IT security.

- 'Commando spirit' -

The eastern Mediterranean country is also at the forefront of innovation in biotechnology and agriculture, with firms such as Netafim, which first developed irrigation technology in the Negev desert in the 1960s and grew to supply agribusiness worldwide.

The weapons industry remains an important component of the economy, with Elbit Systems, Israel Aerospace Industries and Rafael Advanced Defense Systems competing for lucrative international arms contracts.

Israeli expertise is also found globally in many hi-tech corporations, said Daniel Rouach, president of the Israel France Chamber of Commerce.

"There is Israeli know-how in the components that are found in large multinationals like Intel or Google," he said.

Waze, a much-used car navigation application, was an Israeli enterprise before Google acquired it.

Rouach said these successes stem from Israel's entrepreneurial mentality, "a commando spirit which consists of maximum use of allocated budgets in minimum time with sometimes enormous risk-taking, the only parameter being the goal to reach".

But on the margins of this success, which is visibly represented by sprawling housing estates of opulent villas in central Israel, the reality is less flashy.

In Shimshon, a suburb of the coastal city of Ashkelon, stand long rows of decrepit concrete buildings.

Hastily built in the late 1950s to accommodate massive immigration, mostly from North Africa, they are now largely occupied by Ethiopian and Russian migrants, without having seen significant renovation.

- Food or medicine -

Yellow facades are strewn with drying clothes hanging from small balconies black with grime, and paper litters back yards.

"We are all in trouble. The whole neighbourhood! We are barely surviving on public assistance benefits," said 73-year-old retiree Esther Benhamou, as she painfully climbed the steps to her apartment.

"I have to choose: eat or buy my medicine," she added, once inside her sparsely furnished living room.

More than 27 percent of Israel's population lives in poverty, according to figures published by Latet at the end of 2022.

And Israel has the third highest poverty rate in the OECD, behind Bulgaria and Costa Rica.

"In just over 30 years, we have gone from one of the most egalitarian societies in the world... to a highly unequal and individualistic society", Darmon said.

"The state has ceased to ensure its role, to mitigate the effects of the market and to redistribute wealth."

Many charitable organisations are working to meet the needs of the poorest. In Kyriat Malakhi, a small town in southern Israel, Nikol Jibril, 72, has provided meals to those in need for 30 years.

One of a dozen volunteers in a kitchen, she said the poverty "situation is only getting worse".

"As soon as you help a family get out of it, another one arrives," she said. "It never stops, there are always more who are sent to us."

U.Chen--ThChM