The Fort Worth Press - At 75, Israel's economy offers success or inequality

USD -
AED 3.6725
AFN 64.999454
ALL 81.216919
AMD 362.051328
ANG 1.789785
AOA 916.999838
ARS 1522.745168
AUD 1.435421
AWG 1.80125
AZN 1.70432
BAM 1.739803
BBD 2.01708
BDT 123.195303
BGN 1.747831
BHD 0.378775
BIF 2997.464751
BMD 1
BND 1.281146
BOB 11.69239
BRL 5.065098
BSD 1.001468
BTN 95.050483
BWP 13.720589
BYN 3.015879
BYR 19600
BZD 2.014233
CAD 1.412065
CDF 2313.468877
CHF 0.825695
CLF 0.024881
CLP 979.255437
CNY 6.691205
CNH 6.68528
COP 3173.953654
CRC 455.099408
CUC 1
CUP 24.035938
CVE 98.087444
CZK 21.756002
DJF 178.33919
DKK 6.683675
DOP 61.433083
DZD 133.824668
EGP 53.792394
ERN 15
ETB 163.585998
EUR 0.894175
FJD 2.26765
FKP 0.750253
GBP 0.75131
GEL 2.589642
GGP 0.750253
GHS 11.695058
GIP 0.750253
GMD 73.458051
GNF 8810.21216
GTQ 7.652004
GYD 209.527198
HKD 7.847875
HNL 26.885202
HRK 6.703794
HTG 131.147978
HUF 324.970499
IDR 18053
ILS 3.09465
IMP 0.750253
INR 94.965495
IQD 1518.213762
IRR 1795877.499323
ISK 121.179731
JEP 0.750253
JMD 159.195837
JOD 0.708991
JPY 157.902199
KES 130.098296
KGS 87.449944
KHR 4070.631144
KMF 440.000123
KPW 899.999961
KRW 1334.739814
KWD 0.31082
KYD 0.834586
KZT 453.195748
LAK 22534.359294
LBP 89683.40524
LKR 331.690611
LRD 170.751234
LSL 16.462394
LTL 2.95274
LVL 0.60489
LYD 6.431526
MAD 9.729662
MDL 17.966464
MGA 4507.405595
MKD 54.836988
MMK 2100.071343
MNT 3596.488264
MOP 8.096339
MRU 40.037362
MUR 47.229668
MVR 15.459767
MWK 1736.600987
MXN 18.472665
MYR 4.083204
MZN 63.899361
NAD 16.462394
NGN 1331.210065
NIO 36.854512
NOK 9.46656
NPR 152.081128
NZD 1.767941
OMR 0.382413
PAB 1.001468
PEN 3.444825
PGK 4.547436
PHP 62.985968
PKR 277.237468
PLN 3.907535
PYG 5719.877241
QAR 3.660721
RON 4.730601
RSD 104.461148
RUB 84.54834
RWF 1478.183516
SAR 3.752837
SBD 8.064647
SCR 13.905529
SDG 601.498789
SEK 9.95633
SGD 1.280497
SHP 0.754745
SLE 24.679936
SLL 20969.504398
SOS 572.343548
SRD 37.794501
STD 20697.981008
STN 21.794245
SVC 8.763065
SYP 13001.999685
SZL 16.455989
THB 33.444981
TJS 9.228751
TMT 3.51
TND 2.98768
TOP 2.40776
TRY 49.526505
TTD 6.798915
TWD 32.4536
TZS 2646.44398
UAH 44.920874
UGX 4136.458658
UYU 40.314905
UZS 12073.121914
VES 878.910602
VND 25894.5
VUV 119.385856
WST 2.787824
XAF 586.54035
XAG 0.017551
XAU 0.000240063761
XCD 2.70255
XCG 1.804919
XDR 0.707052
XOF 586.54035
XPF 106.089045
YER 236.149507
ZAR 16.49995
ZMK 9001.201083
ZMW 20.049815
ZWL 321.999592
SSP 5750.775019
MXV 2.085747
  • RIO

    -0.3300

    97.04

    -0.34%

  • CMSC

    -0.0400

    20.67

    -0.19%

  • RELX

    0.0000

    33.41

    0%

  • RBGPF

    0.0000

    67.95

    0%

  • BCE

    -0.0700

    21.99

    -0.32%

  • BCC

    -0.0300

    75.66

    -0.04%

  • GSK

    0.8600

    51.08

    +1.68%

  • JRI

    -0.0300

    11.52

    -0.26%

  • NGG

    -0.1200

    76.68

    -0.16%

  • CMSD

    0.0900

    20.54

    +0.44%

  • BTI

    -0.0800

    55.75

    -0.14%

  • AZN

    2.0200

    168.1

    +1.2%

  • BP

    -1.4200

    43.16

    -3.29%

  • RYCEF

    0.4600

    19.7

    +2.34%

  • VOD

    0.0700

    17.02

    +0.41%

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."

T.Harrison--TFWP