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ISRAEL
Israel
Matt Hixson
10/09/14
BUS325-B20 Tim Burke
Fontbonne University
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TABLE OF CONTENTS
I. Introduction (p.3)
II. Who are Israelites? (p.5)
1. Demographics (p.5-8)
2. Socio-Cultural aspects (p.8-10)
3. Legal/Bureaucratic Environment (p.10-11)
4. Economic Climate (p.11-14)
5. Managerial and Labor considerations (p.14-15)
6. Financial posture (Currency and Banking) (p.15-16)
7. A State of War (p.16-18)
III. Summary (p.19)
IV. References (p.20-21)
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Introduction
It can be said that no other nation on Earth, from ages past to present day, holds such influence
for good or perception of bad as the nation Israel. Israel is either loved and praised, or hated and
cursed. “The land that is now Israel and also surrounds its national borders, once called the fertile
half-moon or fertile crescent, stretches from the Tigris and Euphrates to the Sinai between the
Mediterranean and the desert of the Arabian peninsula.” (Israel past and present, p.18, 1998)
These are areas in modern day Egypt, Jordan, Syria and Lebanon.
Around 2000 B.C., nomads from current day Iraq and Syria settled into the coastal areas
of the Mediterranean. These were the Canaanite people. Farmers cultivated crops and raised
cattle. Hieroglyphs developed here as well as copper production. This area was the cradle of
civilization.
The Hebrew people of Israel came about from the fathers of Israel, Abraham, Isaac and
Jacob. “Now the Lord said to Abram go forth from your country, and from your relatives and
from your father’s house to the land which I will show you. I will make you a great nation and I
will bless you and make your name great and so you shall be a blessing. I will bless those who
bless you and the one who curses you I will curse. In you all the families of the earth will be
blessed.” (Holy Bible, Genesis 12:1-3) There is a lot going on with this promise, but Abraham
obeyed and history was made. Abraham began growing his family into a great people. As time
went on and the Hebrew people flourished in the land of Egypt, they became subjugates of the
Pharaoh of Egypt. Even under slavery they grew greater in number. Eventually the leader of the
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Hebrews, Moses, led the Exodus from out of Egypt into the territory of modern day Israel. Israel
conquered the surrounding enemies of its growing territory. Israel flourished and indeed blessed
the world around it during the kingdom years of David and Solomon. In the fourth century B.C.,
the Babylonians or modern day Syria and Iraq besieged Jerusalem and overthrew it. This began
the diaspora or dispersion of the Hebrew people. The ancient history of Israel concluded with the
Romans destroying Jerusalem and the Jewish temple in 70 A.D.
In 1948, after the Holocaust, the Hebrews, or Jews as they are now known, re-established
Israel as a nation. War broke out immediately following this declaration of statehood. It has
continued for decades off and on in intensity and scale.
The special features of Israel are the collective talents of the people in the forefront of
technical, military, education and resource development. On such a small landmass at six miles
wide at the narrowest point, a people have turned deserts into orchards.
I wanted to learn more about the diversity and successes of Israel and share them with
others. To go more in depth about the nation beyond what the modern global media portray
Israel as being. I will look into the various people living in Israel, the great cultural diversity. I
will touch on the form of government, the type of economy and the working classes of Israel.
What is the financial state of Israel’s currency and banking institutions? What kind of
partnerships are forged with western institutions? Finally I will touch on the state of war, and
how it has affected Israel today. As a young eighteen year old man, I visited Dachau
concentration camp in Munich Germany. I looked upon piles of shoes, clothes, glasses and hair. I
walked into the “bath houses” and looked into the ovens. I visited the ghettos of Krakow Poland.
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I chose Israel because the Jewish people survive today. They have always survived and they are
thriving as best as they can. There is nothing more inspirational to me than cheating death and
destruction. I want to glean off of the success of Israel.
Who are the Israelites?
The nation Israel is as diverse today as it was 4,000 years ago. The territory in and around the
nation of Israel today was the center of the world in ages past. Today, Israel is developing into
the top nation for new technological frontiers. They have discovered natural gas resources, they
are on the verge of discovering oil and the Dead Sea has trillions of dollars’ worth of minerals in
and around its geographical area. Israel may become the center of the world again.
Demographics
“The Jewish population makes up 6,135,000 (75%); 1,694,000 (20.7%) are Arabs; and, those
identified as "others" (non-Arab Christians, Baha'i, etc) make up 348,000 people (4.2%). When
the state was established, there were only 806,000 residents and the total population reached its
first and second millions in 1949 and 1958 respectively.”
“http://www.jewishvirtuallibrary.org/jsource/Society_&_Culture/newpop.html
I think it is interesting that over six million Jews were murdered during the holocaust and today
their numbers in Israel are equal to that figure. It is also interesting that in 1948 when the nation
was established, 82% of the 806,000 residents were Jewish. “Arab migrations in and out of the
country fluctuated in response to prevailing economic conditions. Late in the 19th century, when
Jewish immigration stimulated economic growth, many Arabs were attracted to the area by its
employment opportunities, higher wages, and better living conditions.”
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http://www.jewishvirtuallibrary.org/jsource/Society_&_Culture/Minority_communities.html
The modern news media and the world portray the Israeli government and its people as “land
grabbers”, and murderers of innocents. Under the Turkish rule, “Palestine” was a virtual
wasteland. Arid desert, swamps in lowlands due to depopulation and lack of agricultural
developments, was everywhere to be seen. The Turks didn’t care for the land, they just held
control of it until World War I. They were brutal throughout their time in Palestine.
“Palestine is the name (first referred to by the Ancient Greeks) of an area in the Middle East
situated between the Jordan River and the Mediterranean Sea. Palestine was absorbed into the
Ottoman Empire in 1517 and remained under the rule of the Turks until World War One.
Towards the end of this war, the Turks were defeated by the British forces led by General
Allenby.” http://www.historylearningsite.co.uk/palestine_1918_to_1948.htm
There is an interesting story about the British General Allenby. While the British had been
fighting harsh battles losing lives from malaria and bullets, Jerusalem was finally within reach.
Here is an excerpt from J.R. Church, in his book Hidden Prophecies in the Psalms: In 1917, the
British general, Edmund Allenby, led his troops to surround the city of Jerusalem. It is reported
that the night before his impending invasion, Allenby prayed that he might take the city without
destroying the holy places. He had wired London for instructions and had received a simple
reply---a scripture verse! 'As birds flying, so will the LORD of hosts defend Jerusalem;
defending also he will deliver it; and passing over he will preserve it' (Isaiah 31:5).
The exciting prospects of such a thing led him to have the verse read aloud before all his troops
positioned in the foothills of Jerusalem. Allenby commandeered every available aircraft for a fly-
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over. On the morning of December 10, what seemed like hundreds of planes skirted low from just
over the 'Hill of Evil Council,' which lies to the south of the Temple site. The sky was covered
from wing tip to wing tip and from nose to tail with airplanes---British biplanes---captured
German aircraft---everything that would fly!" This wasn’t the interesting part of the story, but I
think it scared the Turks anyway. General Allenby’s name in Arabic means “God’s son”.
Leaflets were dropped from these planes asking for the surrender of Jerusalem signed by General
Allenby. The Turks were terrified by this name and it caused the surrender of Jerusalem without
a shot being fired.
Today there are many Jews and Arabs living together. Muslim Arabs: Over 1.2 million
people, most of whom are Sunni, reside mainly in small towns and villages, over half of them in
the north of the country.
Bedouin Arabs: Also Muslim (estimated at approximately 250,000), belong to some 30
tribes, a majority scattered over a wide area in the South. Formerly nomadic shepherds.
Christian Arabs: Some 123,000, live mainly in urban areas, including Nazareth,
Shfar'am, and Haifa. The majority are affiliated with the Greek Catholic, Greek Orthodox and
Roman Catholic churches.
The Druze: Some 122,000 Arabic-speakers living in 22 villages in northern Israel,
constitute a separate cultural, social, and religious community. While the Druze religion is not
accessible to outsiders, one known aspect of its philosophy is the concept of taqiyya, which calls
for complete loyalty by its adherents to the government of the country in which they reside.
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The Circassians: Comprising some 4,000 people concentrated in two northern villages,
are Sunni Muslims, although they share neither the Arab origin nor the cultural background of
the larger Islamic community. While maintaining a distinct ethnic identity, they participate in
Israel's economic and national affairs without assimilating either into Jewish society or into the
Muslim community.
http://www.jewishvirtuallibrary.org/jsource/Society_&_Culture/Minority_communities.html
There are also many Russians and Ethiopians making their “aliyah” or homecoming to
Israel. Other Africans from the Sudan and Somalia have been trying to enter into Israel illegally
as we here in America have been dealing with in the south. They have been turned away.
Socio-Cultural Aspects
Israel contains a multi-ethnic, multicultural, multi-religious, and multi-lingual society, Jews
maintain their strong cultural, religious, ideological, and/or ethnic identity as well as the other
Arab groups in Israel. Hebrew is the main language, and classes are required for new immigrants
becoming citizens in Israel. Most Israeli’s speak fluent English, but have restored and identified
with ancient Hebrew as their forefather’s spoke before even the Aramaic of the time of Jesus.
Arab’s speak Arabic as well as Hebrew. Those who want to prosper in the modern culture of
Israel understand having this ability is helpful to them.
Where people live in Israel is a blend between the ancient and restored cities like
Jerusalem and Be’er Sheva and cities that began in pre-state agricultural areas, or areas of mass
immigration from the time of the First World War.
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Jerusalem is vitally important to all Jews in Israel as the capital. It is a much contested piece of
property, including the top of the Temple Mount were the Dome of the Rock sits. Current peace
talks involve the possible separation of Jerusalem into a Jewish and a Muslim sector. The Jews
do not want this but the Arabs do. It reminds me of the story of Solomon and the two mothers
who came before him claiming a child belonged to both of them. King Solomon commanded that
the baby be divided in two and half given to each mother. One mother said no problem, the other
weeping, gave the child over to the other to spare its life. Solomon then knew the truth. It is the
same with the Jews today concerning Jerusalem.
Something interesting about the Jews in Israel is that as they returned from the Diaspora,
they brought with them the different cultures they lived in far away. "Edot", refers to Jewish
ethnic subgroups living in Israel. “ Ashkenazim”, refers to Jews from France and Germany and
later Eastern Europe and Russia.. “Sephardim”, refers to Jews from Spain and later Bulgaria
and Turkey. “Oriental Jews”, these are Jews with no real connection to European ancestry. This
can include ancient Jews from Babylon in Iraq, after the first Diaspora and destruction of the first
temple in Jerusalem and also North African Jews and those from Iran, Afghanistan and other
Muslim states occupied under the Soviets.
http://jafi.org/JewishAgency/English/Jewish+Education/Compelling+Content/Eye+on+Israel/So
ciety/1%29+Introduction+The+Diversity+of+Israeli+Society.htm
Each of these Jewish groups bring their own traditions from their Diaspora to these lands as well
as still being completely Jewish in tradition as well. Jewish Israeli’s celebrate seven holy feast
days as appointed by Moses. They also celebrate their independence day as we do here in
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America, complete with good food, flags and fireworks. Arab Israeli’s celebrate their Muslim
holy days like Ramadan and Hajj. http://islam.about.com/od/holidays/f/holidays.htm
Legal/Bureaucratic Environment
Israel’s legal system and government is based on western culture. Israel uses a parliamentary mix
system with a prime minister elected by the people and a president elected by the parliament.
The Knesset is the name of this legal body. http://www.llrx.com/features/israel.htm Israeli law
courts do not directly follow common law or civil law principles as we have in America, it’s
more of a mix. They don’t use juries either in trials. It is all controlled by the judge. Their
modern laws have evolved from mixed laws formed by the Ottoman Turks and later the British.
It has evolved into a very sophisticated system, but effective as well. Israel does not have a
single document “Constitution” as we have here in America, or the “Magna Carta” as Britain
has. The Knesset has been developing a constitution chapter by chapter, now numbering eleven.
They have a strong basic law, human dignity and freedom and basic law, freedom of occupation.
Their courts are divided into the labor courts, to settle “tort” disputes, military courts, divided
into six jurisdictions to provide law for military personnel and prisoners of war, and lastly the
religious courts. The religious court is divided into rabbinical law dealing with marriage and
divorce and laws of the Torah. This court can oversee matters of other religious jurisdictions
such as Christian and Druze complaints if both parties agree to proceedings. There is a court of
Sharia law for the Muslims as well. http://www.llrx.com/features/israel.htm
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The bureaucracies of Israel are similar to here in America and Europe as well. There are special
interests on the corporate and religious fronts. We have the EPA in America, Israel has the Israel
Union for Environmental Defense (IUED). More and more regulations are being created to
control pollution and environmental issues in Israel. This has an effect on business as much as
the EPA does here. The courts routinely uphold decisions in favor of the IUED, forcing costly
action by the defendants to clean up their acts. In America, we have lobbyists for the state of
Israel. We have been intimately tied to Israel since 1948. Most of our Middle East policy is
directly tied to our commitments to Israel. There are special interests in the Knesset as well.
Under the Obama administration, this policy of singular friend to Israel has seen a dramatic
change in the last few years in the opposite direction. Israel is seeking out other partnerships.
One in particular is India. There will be a trade agreement with India this year. Israel is the
second largest arms supplier to India after Russia. Traditionally Indians have viewed Israel as
Imperialistic like the British Colony rule of old over India. This has changed over the last eight
to ten years. It will be interesting to see what direction this partnership will continue to move.
http://online.wsj.com/articles/revealed-the-india-israel-axis-1406133666
Economic Climate
The economic climate in Israel is amazing when it comes to new technology. For over thirty
years Silicone Valley in California has been the leader in computer tech. Israel is poised to
overtake this position. Israel is providing the world with what it needs in terms of military
defense and offense, computer security for the personal user and the business user, ecological
and agricultural developments shared with international partners, etc. There is so much going on
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in Israel now with new developments. Here in America, there still is a sense of stagnancy and
fear of another economic meltdown. We are so wrapped up in political foolishness and internal
social problems, we are quickly falling off of the world stage as a global leader. People may talk
about China the rising dragon, but realistically they have just borrowed or outright stolen what
America has already done. Israel on the other hand, is reinventing the wheel. One company
Mobile Eye Vision Technologies has developed a reliable and more inexpensive system to drive
personal vehicles by computer at highway speeds. This technology is here and will be readily
available to new car purchasers before 2016. Water-Gen is another Israeli company that has
perfected water development and purification from thin air. They have developed portable
systems that can create water out of the humidity in the atmosphere, air conditioning evaporation
and even purification of the smallest and dirtiest streams. They can even make a poisoned water
source safe to drink. Another company Pythagoras Solar Systems has developed the first clear
see through photovoltaic solar panels in the form of windows. There windows are installed in
homes and businesses to generate energy. They also create a light source to light the rooms they
surround, instead of using traditional CFL’s or incandescent light bulbs. Argo Medical
Technologies of Israel has developed the ReWalk system for handicap individuals. The initial
public offering opened at around $13 and soared to about $25 per share just two days ago, Friday
September 12, 2014. This device will eradicate the wheel chair. Control modes are standing,
sitting, and walking and are very user intuitive. On the computer side of upcoming offerings are
security programs by CyActive and CyberArk Security. CyActive has claimed 94% of all
computer viruses are based on old viruses that are adapted and rereleased. They claim to have the
end of viruses with a program that identifies all previous viruses adapts and counter codes the
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new viruses even as a hacker is changing code to prevent detection. CyberArk has a system that
does similar things with networked systems that are compromised by stolen passwords. A
company called SCiO has developed a small portable device that can quickly scan an object to
determine its physical make up. It has been called a “tricorder” by aficionados of Star Trek. That
is essentially what it is. This next company StoreDot is pretty amazing too. It has created a
revolutionary new bio-nano technology that can be used for screen displays and batteries. The
nano batteries can be charged in less than a minute and the nano screens provide amazing image
viewing and response time without being poisonous like cadmium screens on smart phones
currently are. These are just a few of the amazing inventions coming out of Israel that are going
to change the world. http://www.businessinsider.com/20-hottest-startups-from-israel-2014-
6?op=1 http://www.store-dot.com/
http://nocamels.com/2014/06/the-six-israeli-startups-on-forbes-top-ten-health-tech-changing-the-
world/ I would encourage individuals to look into what is coming out of Israel now and in the
next decade. Investing in these companies may be a smart move for your portfolio. These are
short breakdowns of the sectors of Israeli economies, agriculture 18.5%, industry 23.7%,
services 50%, other 7.8%. http://www.nationmaster.com/country-info/stats/Labor/Labor-
force/By-occupation
Many people think of Gaza and the West Bank as dirty third world slums with very little
resources. That may have been the case just ten to fifteen years ago, but not today. “Many
American firms have established agencies and distributorships, and Palestinian consumers have a
strong preference for a wide variety of U.S. goods and services.
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http://www.export.gov/westbank/doingbusinessinthewestbank/index.asp
Many American companies have targeted these territories as culturally and significantly different
than target markets inside of Israel main. Businesses are encouraged to use Palestinian
distributers and agents as opposed to Israeli distributers. “In 2012 the GDP of the West Bank
and Gaza (WB/G) reached an estimated $10.30 billion with $7.70 billion in WB and $2.6 billion
in Gaza. In 2012 the Palestinian population was 4.29 million with 2.65 in the West Bank and
1.64 million in Gaza. Despite relatively low incomes, there is a sizeable middle/upper-middle
class in the West Bank and Gaza. The West Bank and Gaza boast one of the highest per capita
rates of university graduates in the Arab world. Palestinians have a long-standing tradition of
spending generously on higher education, regarded as an asset.”
http://www.export.gov/westbank/doingbusinessinthewestbank/index.asp
Managerial and Labor considerations
Most successful businesses in Israel are owned by Jews or Jewish venture capital firms like
Jerusalem Venture Partners or Carmel Ventures. They fund and provide multiple levels of
support for new start-ups such as those mentioned in the economy section above. Labor is
provided to these companies by a very viable and educated skilled workforce. These are those
age 24-29 and college educated. Unfortunately, even Israel faces future problems with their
workforce. Like America today, many people don’t want to work. They want “social
entitlements”. Free food, shelter, t.v., transportation, etc. In Israel today, a rising population of
Ultra Orthodox Jews and Arabs who are not skilled is on the rise. UO Jewish men do not work
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and spend all of their time studying the Torah. Most Arab men are uneducated and can only
perform unskilled work in construction or agriculture. Palestinian women however are enrolled
in college at the rate of 65% for Arab women in Israel. There are only two working people for
every retiree over 65 in Israel and this is not sustainable. If you take into consideration the
constant defense costs of a nation at war, many of Israel population live in poverty.
http://www.haaretz.com/news/national/israeli-economy-unsustainable-if-haredim-arabs-don-t-
join-workforce-experts-warn.premium-1.524651
Financial posture (Currency and Banking)
The situation in Israel is the same the world over. An ever aging population, not enough skilled
workers, too much debt, and growing threats of war and terrorism because of these situations. At
the time of this writing one New Israeli Shekel is worth .28 cents to $1.00 U.S. dollar.
http://www.xe.com/currency/ils-israeli-shekel. “As of February of 2014, Israel’s banking outlook
has been changed from negative to stable. Moody’s forecasts a real GDP of 3.4% growth in
Israel this year.” https://www.moodys.com/research/Moodys-Israels-banking-system-outlook-
changed-to-stable-from-negative--PR_292561 Here in America, our first quarter growth was at
0.1%. With Israeli household income strong in assets and European exports continuing, Israel
will maintain a strong financial posture. Israel is a strong exporter economy. From Europe to
India, Israel delivers. Israeli citizens take savings seriously. Bank management is in charge of
issuing loans and lines of credit. They prefer strong savings assets before handing money out. As
of 2013 customer savings accounted for 76% of total banking assets and a loan to deposit ratio of
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89%. https://www.moodys.com/research/Moodys-Israels-banking-system-outlook-changed-to-
stable-from-negative--PR_292561
Even with the value of the Shekel below that of the Dollar, the determination of Israeli’s
to save and invest is strong. It is difficult for Americans to put money in a savings account
beyond our 401k’s and Roth IRA’s. If you want a loan in Israel, you have to have cash collateral.
Not just a car or your home or a co-signer. As of September 16, 2014 new Shekel designs,
starting with the denomination of 50 will be released. “The new banknotes have a standard of
security, innovation, and accessibility that is among the most advanced in the world, and they
incorporate a range of leading edge anti-counterfeiting security features, created through various
technologies. In addition, the new banknotes include special features to aid the blind and vision
impaired.” http://www.bankisrael.gov.il/en/NewsAndPublications/PressReleases/Pages/10-09-
2014-New50BankNote.aspx Many foreign banks partner with Israeli banks. “Large international
banks, such as Bank of America, Deutsche Bank, HSBC and PNB-Paribas also have
establishments in Israel. Their branches are located in large cities like Jerusalem and Tel Aviv.”
http://www.justlanded.com/english/Israel/Israel-Guide/Money/Banking
A State of War
In 1947, the U.N. passed the “Partition Resolution” to divide former British Palestinian
territories into Jewish and Arab plots. The Arabs disagreed and protested. The division was to be
finalized in May of 1948. Attacks on Jewish settlements began almost immediately by arab
militias from Palestinian territories supported by surrounding Arab nations. The Jews formed
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Haganah, Irgun, and LEHI. These were Jewish militias for the protection of Jewish lands. As
fighting intensified, The Jews declared independence on May 14, 1948. On the evening of May
14, 1948 Tel Aviv was attacked from the air, but thwarted by Jewish forces. Lebanon, Iraq,
Syria, Egypt and Saudi Arabia sent forces to eradicate the Jews. Two cease fire attempts were
brokered by the United Nations, but fighting continued until February of 1949. Israel gained
some Arab territories awarded under the original “Partition Resolution”. Final armistice lines
were created, including the West Bank and Gaza controlled by Egypt and Jordan. This remained
so until 1967. https://history.state.gov/milestones/1945-1952/arab-israeli-war
June 5-10, 1967, war came again to Israel. After months of “terrorist attacks”, military build-up,
shipping blockades in the Gulf of Aqaba and extermination rhetoric by the same Arab countries
involved in the war of 1948, Israel took the offensive. On the morning of June 5, 1967 Israel
destroyed the Egyptian air force, then later in the day Jordan and Syria’s air power as well. Over
250,000 troops from Arab nations were amassed in the Sinai, with over 500,000 involve on the
Arab side. Israel had over 250,000. Israel decimated this force overwhelmingly and gained new
territory in the Golan Heights of Syria, The Sinai Peninsula in Egypt, Gaza, the West Bank, and
most importantly to the Jews, all of Jerusalem. The decisive and swift victory in six days by a
greatly outnumbered and under equipped Israeli force has been called no less than a miracle.
West Point Military Academy does not study this war because as a West Point general once said
“we are interested in strategy and tactics not miracles”. I would encourage anyone to research the
battles fought by the Jews and stories and accounts from both sides of the fight, describing unreal
and strange occurrences. http://www.britannica.com/EBchecked/topic/850855/Six-Day-War
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October 6, 1973, Egypt and Syria began attacking Israeli forces in the Golan Heights. They
wanted territory returned to them taken in the 1967 war. This time, Israel wasn’t succeeding on
the war front and came to the U.S. for aid. The Arabs were allied with the Soviets. The U.S.
began airlifting military equipment and aid to Israel and the tide changed. Most people don’t
realize this conflict brought the U.S. close to a nuclear confrontation with the Soviet Union.
Thank God it didn’t, but what it did bring were several years of oil embargos by Arab nations.
This actually changed the global economy, by forcing auto makers to produce better fuel
efficient cars. First in Japan, then in the U.S.
There have been dozens of attacks and small wars between Israel and terrorist groups like
Hezbollah, PLO and Hamas since 1980. No Arab country will directly attack Israel because they
historically cannot win. So they circumvent direct attack by supplying and funding these terrorist
groups. The cost of these wars are terrible in financial and human aspects. This never ending
conflict has cost the U.S. over 3 trillion dollars in direct and indirect loss from military aid costs
to trade and sanction embargos. http://www.wrmea.org/2003-june/the-costs-to-american-
taxpayers-of-the-israeli-palestinian-conflict-$3-trillion.html
The last conflict earlier this year, cost Israel billions of dollars. Over $585 million in just twelve
days of fighting. This is only one battle. There is still no resolution because the groups that attack
Israel want to completely annihilate them. What is Israel to do? I read about all of the
innovations that are coming out of Israel and how much money the U.S., and Israel has lost and
what could have been created to help the Middle East and the world. I think of all the aid these
terrorist controlled areas receive from the E.U., the U.S. and others and how they use the money
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to build paved tunnels with electric and HVAC to move weapons and personnel inside of Israel,
instead of real infrastructure that could help their communities. Who has the answer?
Summary
In reading a host of sources concerning the nation of Israel, my notions of Israel as a fortress of
democracy and industry were strengthened. I don’t want to believe in my personal bias towards
this little nation, but whenever I see or hear anti-Semitism or pro-terrorist organization rhetoric
my stomach churns. I want Palestinians to enjoy prosperity as much as I want Americans to
enjoy it. I found underneath this layer of conflict, a desire for Jews to want to promote
development of communities and business in Palestinian areas. Creating factories in Palestinian
controlled areas to employ Palestinians or promoting and providing for Palestinian women to
attend Israeli universities is a noble thing. Israel is in a fight to survive its very existence. Many
still remain from the days of the Holocaust and remember it well. Israel fights against the death
and anti-Israeli rhetoric from its enemies by being generous in aid, education, jobs, land and
especially patience among its enemies. Would America tolerate missiles launched across our
borders into our towns?, no way. Israel has been attacked ceaselessly for over 66 years. So it still
remains a fact, that Israel is loved and hated by those around her and around the globe. What
would happen if the hate was removed? How would the world benefit from not just the Jews, but
the Arabs as well?
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References
http://nocamels.com/2014/06/the-six-israeli-startups-on-forbes-top-ten-health-tech-changing-the-
world/
http://www.jewishvirtuallibrary.org/jsource/Society_&_Culture/demtoc.html
http://www.jewishvirtuallibrary.org/jsource/Society_&_Culture/Minority_communities.html
http://www.historylearningsite.co.uk/palestine_1918_to_1948.htm
http://jafi.org/JewishAgency/English/Jewish+Education/Compelling+Content/Eye+on+Israel/So
ciety/1)+Introduction+The+Diversity+of+Israeli+Society.htm
http://www.llrx.com/features/israel.htm
http://online.wsj.com/articles/revealed-the-india-israel-axis-1406133666
http://www.businessinsider.com/20-hottest-startups-from-israel-2014-6?op=1
http://www.haaretz.com/news/national/israeli-economy-unsustainable-if-haredim-arabs-don-t-
join-workforce-experts-warn.premium-1.524651
http://www.xe.com/currency/ils-israeli-shekel
http://www.nbn.org.il/aliyahpedia/finances/banking/12771-a-guide-to-navigating-the-israeli-
banking-system-some-practical-tips.html
https://www.moodys.com/research/Moodys-Israels-banking-system-outlook-changed-to-stable-
from-negative--PR_292561
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http://www.bankisrael.gov.il/en/NewsAndPublications/PressReleases/Pages/10-09-2014-
New50BankNote.aspx
http://www.export.gov/westbank/doingbusinessinthewestbank/index.asp
https://history.state.gov/milestones/1945-1952/arab-israeli-war
http://www.britannica.com/EBchecked/topic/850855/Six-Day-War
http://www.wrmea.org/2003-june/the-costs-to-american-taxpayers-of-the-israeli-palestinian-
conflict-$3-trillion.html
http://www.haaretz.com/business/.premium-1.606091
Holy Bible, Genesis 12:1-3
Israel past and present, p.18, 1998
J.R. Church, Hidden Prophecies in the Psalms 1986

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ISRAEL PAPER

  • 2. 2 TABLE OF CONTENTS I. Introduction (p.3) II. Who are Israelites? (p.5) 1. Demographics (p.5-8) 2. Socio-Cultural aspects (p.8-10) 3. Legal/Bureaucratic Environment (p.10-11) 4. Economic Climate (p.11-14) 5. Managerial and Labor considerations (p.14-15) 6. Financial posture (Currency and Banking) (p.15-16) 7. A State of War (p.16-18) III. Summary (p.19) IV. References (p.20-21)
  • 3. 3 Israel Introduction It can be said that no other nation on Earth, from ages past to present day, holds such influence for good or perception of bad as the nation Israel. Israel is either loved and praised, or hated and cursed. “The land that is now Israel and also surrounds its national borders, once called the fertile half-moon or fertile crescent, stretches from the Tigris and Euphrates to the Sinai between the Mediterranean and the desert of the Arabian peninsula.” (Israel past and present, p.18, 1998) These are areas in modern day Egypt, Jordan, Syria and Lebanon. Around 2000 B.C., nomads from current day Iraq and Syria settled into the coastal areas of the Mediterranean. These were the Canaanite people. Farmers cultivated crops and raised cattle. Hieroglyphs developed here as well as copper production. This area was the cradle of civilization. The Hebrew people of Israel came about from the fathers of Israel, Abraham, Isaac and Jacob. “Now the Lord said to Abram go forth from your country, and from your relatives and from your father’s house to the land which I will show you. I will make you a great nation and I will bless you and make your name great and so you shall be a blessing. I will bless those who bless you and the one who curses you I will curse. In you all the families of the earth will be blessed.” (Holy Bible, Genesis 12:1-3) There is a lot going on with this promise, but Abraham obeyed and history was made. Abraham began growing his family into a great people. As time went on and the Hebrew people flourished in the land of Egypt, they became subjugates of the Pharaoh of Egypt. Even under slavery they grew greater in number. Eventually the leader of the
  • 4. 4 Israel Hebrews, Moses, led the Exodus from out of Egypt into the territory of modern day Israel. Israel conquered the surrounding enemies of its growing territory. Israel flourished and indeed blessed the world around it during the kingdom years of David and Solomon. In the fourth century B.C., the Babylonians or modern day Syria and Iraq besieged Jerusalem and overthrew it. This began the diaspora or dispersion of the Hebrew people. The ancient history of Israel concluded with the Romans destroying Jerusalem and the Jewish temple in 70 A.D. In 1948, after the Holocaust, the Hebrews, or Jews as they are now known, re-established Israel as a nation. War broke out immediately following this declaration of statehood. It has continued for decades off and on in intensity and scale. The special features of Israel are the collective talents of the people in the forefront of technical, military, education and resource development. On such a small landmass at six miles wide at the narrowest point, a people have turned deserts into orchards. I wanted to learn more about the diversity and successes of Israel and share them with others. To go more in depth about the nation beyond what the modern global media portray Israel as being. I will look into the various people living in Israel, the great cultural diversity. I will touch on the form of government, the type of economy and the working classes of Israel. What is the financial state of Israel’s currency and banking institutions? What kind of partnerships are forged with western institutions? Finally I will touch on the state of war, and how it has affected Israel today. As a young eighteen year old man, I visited Dachau concentration camp in Munich Germany. I looked upon piles of shoes, clothes, glasses and hair. I walked into the “bath houses” and looked into the ovens. I visited the ghettos of Krakow Poland.
  • 5. 5 Israel I chose Israel because the Jewish people survive today. They have always survived and they are thriving as best as they can. There is nothing more inspirational to me than cheating death and destruction. I want to glean off of the success of Israel. Who are the Israelites? The nation Israel is as diverse today as it was 4,000 years ago. The territory in and around the nation of Israel today was the center of the world in ages past. Today, Israel is developing into the top nation for new technological frontiers. They have discovered natural gas resources, they are on the verge of discovering oil and the Dead Sea has trillions of dollars’ worth of minerals in and around its geographical area. Israel may become the center of the world again. Demographics “The Jewish population makes up 6,135,000 (75%); 1,694,000 (20.7%) are Arabs; and, those identified as "others" (non-Arab Christians, Baha'i, etc) make up 348,000 people (4.2%). When the state was established, there were only 806,000 residents and the total population reached its first and second millions in 1949 and 1958 respectively.” “http://www.jewishvirtuallibrary.org/jsource/Society_&_Culture/newpop.html I think it is interesting that over six million Jews were murdered during the holocaust and today their numbers in Israel are equal to that figure. It is also interesting that in 1948 when the nation was established, 82% of the 806,000 residents were Jewish. “Arab migrations in and out of the country fluctuated in response to prevailing economic conditions. Late in the 19th century, when Jewish immigration stimulated economic growth, many Arabs were attracted to the area by its employment opportunities, higher wages, and better living conditions.”
  • 6. 6 Israel http://www.jewishvirtuallibrary.org/jsource/Society_&_Culture/Minority_communities.html The modern news media and the world portray the Israeli government and its people as “land grabbers”, and murderers of innocents. Under the Turkish rule, “Palestine” was a virtual wasteland. Arid desert, swamps in lowlands due to depopulation and lack of agricultural developments, was everywhere to be seen. The Turks didn’t care for the land, they just held control of it until World War I. They were brutal throughout their time in Palestine. “Palestine is the name (first referred to by the Ancient Greeks) of an area in the Middle East situated between the Jordan River and the Mediterranean Sea. Palestine was absorbed into the Ottoman Empire in 1517 and remained under the rule of the Turks until World War One. Towards the end of this war, the Turks were defeated by the British forces led by General Allenby.” http://www.historylearningsite.co.uk/palestine_1918_to_1948.htm There is an interesting story about the British General Allenby. While the British had been fighting harsh battles losing lives from malaria and bullets, Jerusalem was finally within reach. Here is an excerpt from J.R. Church, in his book Hidden Prophecies in the Psalms: In 1917, the British general, Edmund Allenby, led his troops to surround the city of Jerusalem. It is reported that the night before his impending invasion, Allenby prayed that he might take the city without destroying the holy places. He had wired London for instructions and had received a simple reply---a scripture verse! 'As birds flying, so will the LORD of hosts defend Jerusalem; defending also he will deliver it; and passing over he will preserve it' (Isaiah 31:5). The exciting prospects of such a thing led him to have the verse read aloud before all his troops positioned in the foothills of Jerusalem. Allenby commandeered every available aircraft for a fly-
  • 7. 7 Israel over. On the morning of December 10, what seemed like hundreds of planes skirted low from just over the 'Hill of Evil Council,' which lies to the south of the Temple site. The sky was covered from wing tip to wing tip and from nose to tail with airplanes---British biplanes---captured German aircraft---everything that would fly!" This wasn’t the interesting part of the story, but I think it scared the Turks anyway. General Allenby’s name in Arabic means “God’s son”. Leaflets were dropped from these planes asking for the surrender of Jerusalem signed by General Allenby. The Turks were terrified by this name and it caused the surrender of Jerusalem without a shot being fired. Today there are many Jews and Arabs living together. Muslim Arabs: Over 1.2 million people, most of whom are Sunni, reside mainly in small towns and villages, over half of them in the north of the country. Bedouin Arabs: Also Muslim (estimated at approximately 250,000), belong to some 30 tribes, a majority scattered over a wide area in the South. Formerly nomadic shepherds. Christian Arabs: Some 123,000, live mainly in urban areas, including Nazareth, Shfar'am, and Haifa. The majority are affiliated with the Greek Catholic, Greek Orthodox and Roman Catholic churches. The Druze: Some 122,000 Arabic-speakers living in 22 villages in northern Israel, constitute a separate cultural, social, and religious community. While the Druze religion is not accessible to outsiders, one known aspect of its philosophy is the concept of taqiyya, which calls for complete loyalty by its adherents to the government of the country in which they reside.
  • 8. 8 Israel The Circassians: Comprising some 4,000 people concentrated in two northern villages, are Sunni Muslims, although they share neither the Arab origin nor the cultural background of the larger Islamic community. While maintaining a distinct ethnic identity, they participate in Israel's economic and national affairs without assimilating either into Jewish society or into the Muslim community. http://www.jewishvirtuallibrary.org/jsource/Society_&_Culture/Minority_communities.html There are also many Russians and Ethiopians making their “aliyah” or homecoming to Israel. Other Africans from the Sudan and Somalia have been trying to enter into Israel illegally as we here in America have been dealing with in the south. They have been turned away. Socio-Cultural Aspects Israel contains a multi-ethnic, multicultural, multi-religious, and multi-lingual society, Jews maintain their strong cultural, religious, ideological, and/or ethnic identity as well as the other Arab groups in Israel. Hebrew is the main language, and classes are required for new immigrants becoming citizens in Israel. Most Israeli’s speak fluent English, but have restored and identified with ancient Hebrew as their forefather’s spoke before even the Aramaic of the time of Jesus. Arab’s speak Arabic as well as Hebrew. Those who want to prosper in the modern culture of Israel understand having this ability is helpful to them. Where people live in Israel is a blend between the ancient and restored cities like Jerusalem and Be’er Sheva and cities that began in pre-state agricultural areas, or areas of mass immigration from the time of the First World War.
  • 9. 9 Israel Jerusalem is vitally important to all Jews in Israel as the capital. It is a much contested piece of property, including the top of the Temple Mount were the Dome of the Rock sits. Current peace talks involve the possible separation of Jerusalem into a Jewish and a Muslim sector. The Jews do not want this but the Arabs do. It reminds me of the story of Solomon and the two mothers who came before him claiming a child belonged to both of them. King Solomon commanded that the baby be divided in two and half given to each mother. One mother said no problem, the other weeping, gave the child over to the other to spare its life. Solomon then knew the truth. It is the same with the Jews today concerning Jerusalem. Something interesting about the Jews in Israel is that as they returned from the Diaspora, they brought with them the different cultures they lived in far away. "Edot", refers to Jewish ethnic subgroups living in Israel. “ Ashkenazim”, refers to Jews from France and Germany and later Eastern Europe and Russia.. “Sephardim”, refers to Jews from Spain and later Bulgaria and Turkey. “Oriental Jews”, these are Jews with no real connection to European ancestry. This can include ancient Jews from Babylon in Iraq, after the first Diaspora and destruction of the first temple in Jerusalem and also North African Jews and those from Iran, Afghanistan and other Muslim states occupied under the Soviets. http://jafi.org/JewishAgency/English/Jewish+Education/Compelling+Content/Eye+on+Israel/So ciety/1%29+Introduction+The+Diversity+of+Israeli+Society.htm Each of these Jewish groups bring their own traditions from their Diaspora to these lands as well as still being completely Jewish in tradition as well. Jewish Israeli’s celebrate seven holy feast days as appointed by Moses. They also celebrate their independence day as we do here in
  • 10. 10 Israel America, complete with good food, flags and fireworks. Arab Israeli’s celebrate their Muslim holy days like Ramadan and Hajj. http://islam.about.com/od/holidays/f/holidays.htm Legal/Bureaucratic Environment Israel’s legal system and government is based on western culture. Israel uses a parliamentary mix system with a prime minister elected by the people and a president elected by the parliament. The Knesset is the name of this legal body. http://www.llrx.com/features/israel.htm Israeli law courts do not directly follow common law or civil law principles as we have in America, it’s more of a mix. They don’t use juries either in trials. It is all controlled by the judge. Their modern laws have evolved from mixed laws formed by the Ottoman Turks and later the British. It has evolved into a very sophisticated system, but effective as well. Israel does not have a single document “Constitution” as we have here in America, or the “Magna Carta” as Britain has. The Knesset has been developing a constitution chapter by chapter, now numbering eleven. They have a strong basic law, human dignity and freedom and basic law, freedom of occupation. Their courts are divided into the labor courts, to settle “tort” disputes, military courts, divided into six jurisdictions to provide law for military personnel and prisoners of war, and lastly the religious courts. The religious court is divided into rabbinical law dealing with marriage and divorce and laws of the Torah. This court can oversee matters of other religious jurisdictions such as Christian and Druze complaints if both parties agree to proceedings. There is a court of Sharia law for the Muslims as well. http://www.llrx.com/features/israel.htm
  • 11. 11 Israel The bureaucracies of Israel are similar to here in America and Europe as well. There are special interests on the corporate and religious fronts. We have the EPA in America, Israel has the Israel Union for Environmental Defense (IUED). More and more regulations are being created to control pollution and environmental issues in Israel. This has an effect on business as much as the EPA does here. The courts routinely uphold decisions in favor of the IUED, forcing costly action by the defendants to clean up their acts. In America, we have lobbyists for the state of Israel. We have been intimately tied to Israel since 1948. Most of our Middle East policy is directly tied to our commitments to Israel. There are special interests in the Knesset as well. Under the Obama administration, this policy of singular friend to Israel has seen a dramatic change in the last few years in the opposite direction. Israel is seeking out other partnerships. One in particular is India. There will be a trade agreement with India this year. Israel is the second largest arms supplier to India after Russia. Traditionally Indians have viewed Israel as Imperialistic like the British Colony rule of old over India. This has changed over the last eight to ten years. It will be interesting to see what direction this partnership will continue to move. http://online.wsj.com/articles/revealed-the-india-israel-axis-1406133666 Economic Climate The economic climate in Israel is amazing when it comes to new technology. For over thirty years Silicone Valley in California has been the leader in computer tech. Israel is poised to overtake this position. Israel is providing the world with what it needs in terms of military defense and offense, computer security for the personal user and the business user, ecological and agricultural developments shared with international partners, etc. There is so much going on
  • 12. 12 Israel in Israel now with new developments. Here in America, there still is a sense of stagnancy and fear of another economic meltdown. We are so wrapped up in political foolishness and internal social problems, we are quickly falling off of the world stage as a global leader. People may talk about China the rising dragon, but realistically they have just borrowed or outright stolen what America has already done. Israel on the other hand, is reinventing the wheel. One company Mobile Eye Vision Technologies has developed a reliable and more inexpensive system to drive personal vehicles by computer at highway speeds. This technology is here and will be readily available to new car purchasers before 2016. Water-Gen is another Israeli company that has perfected water development and purification from thin air. They have developed portable systems that can create water out of the humidity in the atmosphere, air conditioning evaporation and even purification of the smallest and dirtiest streams. They can even make a poisoned water source safe to drink. Another company Pythagoras Solar Systems has developed the first clear see through photovoltaic solar panels in the form of windows. There windows are installed in homes and businesses to generate energy. They also create a light source to light the rooms they surround, instead of using traditional CFL’s or incandescent light bulbs. Argo Medical Technologies of Israel has developed the ReWalk system for handicap individuals. The initial public offering opened at around $13 and soared to about $25 per share just two days ago, Friday September 12, 2014. This device will eradicate the wheel chair. Control modes are standing, sitting, and walking and are very user intuitive. On the computer side of upcoming offerings are security programs by CyActive and CyberArk Security. CyActive has claimed 94% of all computer viruses are based on old viruses that are adapted and rereleased. They claim to have the end of viruses with a program that identifies all previous viruses adapts and counter codes the
  • 13. 13 Israel new viruses even as a hacker is changing code to prevent detection. CyberArk has a system that does similar things with networked systems that are compromised by stolen passwords. A company called SCiO has developed a small portable device that can quickly scan an object to determine its physical make up. It has been called a “tricorder” by aficionados of Star Trek. That is essentially what it is. This next company StoreDot is pretty amazing too. It has created a revolutionary new bio-nano technology that can be used for screen displays and batteries. The nano batteries can be charged in less than a minute and the nano screens provide amazing image viewing and response time without being poisonous like cadmium screens on smart phones currently are. These are just a few of the amazing inventions coming out of Israel that are going to change the world. http://www.businessinsider.com/20-hottest-startups-from-israel-2014- 6?op=1 http://www.store-dot.com/ http://nocamels.com/2014/06/the-six-israeli-startups-on-forbes-top-ten-health-tech-changing-the- world/ I would encourage individuals to look into what is coming out of Israel now and in the next decade. Investing in these companies may be a smart move for your portfolio. These are short breakdowns of the sectors of Israeli economies, agriculture 18.5%, industry 23.7%, services 50%, other 7.8%. http://www.nationmaster.com/country-info/stats/Labor/Labor- force/By-occupation Many people think of Gaza and the West Bank as dirty third world slums with very little resources. That may have been the case just ten to fifteen years ago, but not today. “Many American firms have established agencies and distributorships, and Palestinian consumers have a strong preference for a wide variety of U.S. goods and services.
  • 14. 14 Israel http://www.export.gov/westbank/doingbusinessinthewestbank/index.asp Many American companies have targeted these territories as culturally and significantly different than target markets inside of Israel main. Businesses are encouraged to use Palestinian distributers and agents as opposed to Israeli distributers. “In 2012 the GDP of the West Bank and Gaza (WB/G) reached an estimated $10.30 billion with $7.70 billion in WB and $2.6 billion in Gaza. In 2012 the Palestinian population was 4.29 million with 2.65 in the West Bank and 1.64 million in Gaza. Despite relatively low incomes, there is a sizeable middle/upper-middle class in the West Bank and Gaza. The West Bank and Gaza boast one of the highest per capita rates of university graduates in the Arab world. Palestinians have a long-standing tradition of spending generously on higher education, regarded as an asset.” http://www.export.gov/westbank/doingbusinessinthewestbank/index.asp Managerial and Labor considerations Most successful businesses in Israel are owned by Jews or Jewish venture capital firms like Jerusalem Venture Partners or Carmel Ventures. They fund and provide multiple levels of support for new start-ups such as those mentioned in the economy section above. Labor is provided to these companies by a very viable and educated skilled workforce. These are those age 24-29 and college educated. Unfortunately, even Israel faces future problems with their workforce. Like America today, many people don’t want to work. They want “social entitlements”. Free food, shelter, t.v., transportation, etc. In Israel today, a rising population of Ultra Orthodox Jews and Arabs who are not skilled is on the rise. UO Jewish men do not work
  • 15. 15 Israel and spend all of their time studying the Torah. Most Arab men are uneducated and can only perform unskilled work in construction or agriculture. Palestinian women however are enrolled in college at the rate of 65% for Arab women in Israel. There are only two working people for every retiree over 65 in Israel and this is not sustainable. If you take into consideration the constant defense costs of a nation at war, many of Israel population live in poverty. http://www.haaretz.com/news/national/israeli-economy-unsustainable-if-haredim-arabs-don-t- join-workforce-experts-warn.premium-1.524651 Financial posture (Currency and Banking) The situation in Israel is the same the world over. An ever aging population, not enough skilled workers, too much debt, and growing threats of war and terrorism because of these situations. At the time of this writing one New Israeli Shekel is worth .28 cents to $1.00 U.S. dollar. http://www.xe.com/currency/ils-israeli-shekel. “As of February of 2014, Israel’s banking outlook has been changed from negative to stable. Moody’s forecasts a real GDP of 3.4% growth in Israel this year.” https://www.moodys.com/research/Moodys-Israels-banking-system-outlook- changed-to-stable-from-negative--PR_292561 Here in America, our first quarter growth was at 0.1%. With Israeli household income strong in assets and European exports continuing, Israel will maintain a strong financial posture. Israel is a strong exporter economy. From Europe to India, Israel delivers. Israeli citizens take savings seriously. Bank management is in charge of issuing loans and lines of credit. They prefer strong savings assets before handing money out. As of 2013 customer savings accounted for 76% of total banking assets and a loan to deposit ratio of
  • 16. 16 Israel 89%. https://www.moodys.com/research/Moodys-Israels-banking-system-outlook-changed-to- stable-from-negative--PR_292561 Even with the value of the Shekel below that of the Dollar, the determination of Israeli’s to save and invest is strong. It is difficult for Americans to put money in a savings account beyond our 401k’s and Roth IRA’s. If you want a loan in Israel, you have to have cash collateral. Not just a car or your home or a co-signer. As of September 16, 2014 new Shekel designs, starting with the denomination of 50 will be released. “The new banknotes have a standard of security, innovation, and accessibility that is among the most advanced in the world, and they incorporate a range of leading edge anti-counterfeiting security features, created through various technologies. In addition, the new banknotes include special features to aid the blind and vision impaired.” http://www.bankisrael.gov.il/en/NewsAndPublications/PressReleases/Pages/10-09- 2014-New50BankNote.aspx Many foreign banks partner with Israeli banks. “Large international banks, such as Bank of America, Deutsche Bank, HSBC and PNB-Paribas also have establishments in Israel. Their branches are located in large cities like Jerusalem and Tel Aviv.” http://www.justlanded.com/english/Israel/Israel-Guide/Money/Banking A State of War In 1947, the U.N. passed the “Partition Resolution” to divide former British Palestinian territories into Jewish and Arab plots. The Arabs disagreed and protested. The division was to be finalized in May of 1948. Attacks on Jewish settlements began almost immediately by arab militias from Palestinian territories supported by surrounding Arab nations. The Jews formed
  • 17. 17 Israel Haganah, Irgun, and LEHI. These were Jewish militias for the protection of Jewish lands. As fighting intensified, The Jews declared independence on May 14, 1948. On the evening of May 14, 1948 Tel Aviv was attacked from the air, but thwarted by Jewish forces. Lebanon, Iraq, Syria, Egypt and Saudi Arabia sent forces to eradicate the Jews. Two cease fire attempts were brokered by the United Nations, but fighting continued until February of 1949. Israel gained some Arab territories awarded under the original “Partition Resolution”. Final armistice lines were created, including the West Bank and Gaza controlled by Egypt and Jordan. This remained so until 1967. https://history.state.gov/milestones/1945-1952/arab-israeli-war June 5-10, 1967, war came again to Israel. After months of “terrorist attacks”, military build-up, shipping blockades in the Gulf of Aqaba and extermination rhetoric by the same Arab countries involved in the war of 1948, Israel took the offensive. On the morning of June 5, 1967 Israel destroyed the Egyptian air force, then later in the day Jordan and Syria’s air power as well. Over 250,000 troops from Arab nations were amassed in the Sinai, with over 500,000 involve on the Arab side. Israel had over 250,000. Israel decimated this force overwhelmingly and gained new territory in the Golan Heights of Syria, The Sinai Peninsula in Egypt, Gaza, the West Bank, and most importantly to the Jews, all of Jerusalem. The decisive and swift victory in six days by a greatly outnumbered and under equipped Israeli force has been called no less than a miracle. West Point Military Academy does not study this war because as a West Point general once said “we are interested in strategy and tactics not miracles”. I would encourage anyone to research the battles fought by the Jews and stories and accounts from both sides of the fight, describing unreal and strange occurrences. http://www.britannica.com/EBchecked/topic/850855/Six-Day-War
  • 18. 18 Israel October 6, 1973, Egypt and Syria began attacking Israeli forces in the Golan Heights. They wanted territory returned to them taken in the 1967 war. This time, Israel wasn’t succeeding on the war front and came to the U.S. for aid. The Arabs were allied with the Soviets. The U.S. began airlifting military equipment and aid to Israel and the tide changed. Most people don’t realize this conflict brought the U.S. close to a nuclear confrontation with the Soviet Union. Thank God it didn’t, but what it did bring were several years of oil embargos by Arab nations. This actually changed the global economy, by forcing auto makers to produce better fuel efficient cars. First in Japan, then in the U.S. There have been dozens of attacks and small wars between Israel and terrorist groups like Hezbollah, PLO and Hamas since 1980. No Arab country will directly attack Israel because they historically cannot win. So they circumvent direct attack by supplying and funding these terrorist groups. The cost of these wars are terrible in financial and human aspects. This never ending conflict has cost the U.S. over 3 trillion dollars in direct and indirect loss from military aid costs to trade and sanction embargos. http://www.wrmea.org/2003-june/the-costs-to-american- taxpayers-of-the-israeli-palestinian-conflict-$3-trillion.html The last conflict earlier this year, cost Israel billions of dollars. Over $585 million in just twelve days of fighting. This is only one battle. There is still no resolution because the groups that attack Israel want to completely annihilate them. What is Israel to do? I read about all of the innovations that are coming out of Israel and how much money the U.S., and Israel has lost and what could have been created to help the Middle East and the world. I think of all the aid these terrorist controlled areas receive from the E.U., the U.S. and others and how they use the money
  • 19. 19 Israel to build paved tunnels with electric and HVAC to move weapons and personnel inside of Israel, instead of real infrastructure that could help their communities. Who has the answer? Summary In reading a host of sources concerning the nation of Israel, my notions of Israel as a fortress of democracy and industry were strengthened. I don’t want to believe in my personal bias towards this little nation, but whenever I see or hear anti-Semitism or pro-terrorist organization rhetoric my stomach churns. I want Palestinians to enjoy prosperity as much as I want Americans to enjoy it. I found underneath this layer of conflict, a desire for Jews to want to promote development of communities and business in Palestinian areas. Creating factories in Palestinian controlled areas to employ Palestinians or promoting and providing for Palestinian women to attend Israeli universities is a noble thing. Israel is in a fight to survive its very existence. Many still remain from the days of the Holocaust and remember it well. Israel fights against the death and anti-Israeli rhetoric from its enemies by being generous in aid, education, jobs, land and especially patience among its enemies. Would America tolerate missiles launched across our borders into our towns?, no way. Israel has been attacked ceaselessly for over 66 years. So it still remains a fact, that Israel is loved and hated by those around her and around the globe. What would happen if the hate was removed? How would the world benefit from not just the Jews, but the Arabs as well?
  • 20. 20 Israel References http://nocamels.com/2014/06/the-six-israeli-startups-on-forbes-top-ten-health-tech-changing-the- world/ http://www.jewishvirtuallibrary.org/jsource/Society_&_Culture/demtoc.html http://www.jewishvirtuallibrary.org/jsource/Society_&_Culture/Minority_communities.html http://www.historylearningsite.co.uk/palestine_1918_to_1948.htm http://jafi.org/JewishAgency/English/Jewish+Education/Compelling+Content/Eye+on+Israel/So ciety/1)+Introduction+The+Diversity+of+Israeli+Society.htm http://www.llrx.com/features/israel.htm http://online.wsj.com/articles/revealed-the-india-israel-axis-1406133666 http://www.businessinsider.com/20-hottest-startups-from-israel-2014-6?op=1 http://www.haaretz.com/news/national/israeli-economy-unsustainable-if-haredim-arabs-don-t- join-workforce-experts-warn.premium-1.524651 http://www.xe.com/currency/ils-israeli-shekel http://www.nbn.org.il/aliyahpedia/finances/banking/12771-a-guide-to-navigating-the-israeli- banking-system-some-practical-tips.html https://www.moodys.com/research/Moodys-Israels-banking-system-outlook-changed-to-stable- from-negative--PR_292561