Ezekiel 38:13 records that “Sheba, Dedan and the merchants of Tarshish, with all the young lions thereof” will voice concern over the spoil that the invading forces have come to capture. It is interesting that their concern is for the “spoil” and not for the safety and security of the citizens of Israel.
What spoil?
In looking at the impoverished condition of Israel over the centuries, many a Bible reader has wondered how there could be much spoil in the land. Even with the revival of Israel in these latter days, we have had to strain our imaginations to find a great spoil. Now, however, the pieces seem to be coming together.
In the July, 1991 Tidings, we reported on a blossoming high-tech industry in Israel. At the time, we noted the industry was being augmented by the incredible influx of educated Jews from the former Soviet Union. Yair Tsaban, the Israeli Minister for Absorption, said that before 1989, about 15,000 Israelis were classified as scientists but Soviet immigration had, at that point, raised the number by 50%. “Fortune 500” companies such as Intel, Motorola, National Semi-Conductor and Digital Equipment had established research and manufacturing operations in Israel as a direct result of the brainpower available there.
It is now three years since that article was written and during that period Israel has undergone tremendous changes. These on-going developments allow for the continued growth of the Israeli economy, particularly the high-tech sector.
The peace plan
While the peace plan between Israel and the Palestine Liberation Organization is a political matter, it has tremendous economic impact. This accord not only establishes the groundwork for a homeland for the Palestinian people, but it also ends the secondary boycotts applied by Arab countries against international companies carding with or investing in Israel.
In Midstream, May ’94, A Monthly Jewish Review, it was noted that “the Chamber of Commerce of Israel estimates that Israel has lost some $20 billion in exports because of the boycott, and at least $16 billion in forfeited foreign investment. Some economists believe that termination of the boycott will engender a four-to-five-fold increase, over five years, in Israel’s trade with its existing major trading partners, (the US and Europe).”
The petrochemical industry is sure to benefit. Major international oil companies have been unable to openly invest in Israel since 1948. Prior to the peace accord being signed, the Saudi government disallowed investments by the same company in their oil industry and in Israel’s. International oil conglomerates had to choose either Saudi oil fields or Israeli. The decision was easy. Saudi Arabia has billions of barrels of proven reserves while Israel is largely an unexplored area. Today, the either-or proposition is history and exploration is now expected to commence in Israel on a significant scale.
Privatization and free trade
Over the past several years, Israel has been implementing an economic reform program aimed at bolstering the already surging economy. The single most important aspect of the program is the privatization of government-owned industry. Today, the Israeli government owns about 150 companies. Of these 80 are deemed business oriented and they produce about 20% of Israel’s gross national product (Economist, Jan. 22, 1994).
To date, privatization has been so hampered by the trade unions that not a single state-owned industry has been sold to the public. In order to circumvent some of the problems, Prime Minister Yitsak Rabin has set up a privatization committee which is allowed to bypass the Israeli cabinet in their efforts to sell off companies and proceed with economic reforms.
Although efforts at privatization have gone slowly, other areas of reform have fared better. According to the Economist article alluded to above, “Until recently, Israel’s trade policy consisted mainly of negotiating with traditional partners in western Europe and North America. It has free-trade agreements with the United States, the European Union and the European Free-Trade Association. But over the past three years, it has been dismantling important barriers unilaterally. The aim is to spur competition by increasing trade with third-world countries and particularly with the fastest growing economies of Asia and Latin America.”
Another area of economic reform has been the liberalization of the capital market. For example, public savings funds can now invest in something other than government bonds. This change has contributed to the sky-rocketing value of the stocks listed on the Tel Aviv Stock Market.
Tourism
Prior to the peace accord, tourists to the Middle East could not openly visit Israel and virtually any Arab country on the same trip. Many took chances, of course, but if the Israeli portion of their itinerary was discovered, they would not be permitted into Jordan, Saudi Arabia, etc. In addition, direct flights between Tel Aviv and places such as Jedda and Damascus did not exist. The peace accord, however, has changed all that. Borders have been opened so that now the average tourist can visit Jerusalem, Damascus, Petra and the pyramids on a single holiday.
“As a result, Israel is expanding its main airport. The $850 million project will increase capacity at Ben Gurion International Airport four times to accommodate 16 million passengers a year.
“Construction of a new terminal in the shape of the six-pointed Star of David will begin this year and is scheduled for completion by 1998” (Dispatch from Jerusalem, June, ’94).
As the fortunes of Israel surge, we realize that scripture is once again being fulfilled before our eyes.
The Origin of the Organic World – Part One