Zürcher Nachrichten - At 75, Israel's economy offers success or inequality

EUR -
AED 4.241003
AFN 73.32143
ALL 96.264457
AMD 435.49084
ANG 2.066822
AOA 1058.764604
ARS 1597.949484
AUD 1.676973
AWG 2.078272
AZN 1.967396
BAM 1.962489
BBD 2.325728
BDT 141.683564
BGN 1.973561
BHD 0.435685
BIF 3427.417086
BMD 1.154596
BND 1.486969
BOB 8.008298
BRL 6.067751
BSD 1.154731
BTN 109.448969
BWP 15.919471
BYN 3.437216
BYR 22630.074075
BZD 2.322286
CAD 1.604831
CDF 2635.36902
CHF 0.921971
CLF 0.027055
CLP 1068.301597
CNY 7.980392
CNH 7.989998
COP 4249.2467
CRC 536.225485
CUC 1.154596
CUP 30.596784
CVE 110.98555
CZK 24.603629
DJF 205.195187
DKK 7.496448
DOP 68.95827
DZD 153.879614
EGP 60.780401
ERN 17.318934
ETB 180.838585
FJD 2.609838
FKP 0.868614
GBP 0.870276
GEL 3.094767
GGP 0.868614
GHS 12.666364
GIP 0.868614
GMD 84.867224
GNF 10137.349919
GTQ 8.837161
GYD 241.720221
HKD 9.035924
HNL 30.608778
HRK 7.557064
HTG 151.366612
HUF 390.276858
IDR 19617.503194
ILS 3.622683
IMP 0.868614
INR 109.529794
IQD 1512.520257
IRR 1516272.693223
ISK 144.047794
JEP 0.868614
JMD 181.759555
JOD 0.818654
JPY 185.080568
KES 149.986359
KGS 100.96983
KHR 4632.238016
KMF 494.167328
KPW 1039.005581
KRW 1741.130593
KWD 0.355512
KYD 0.962293
KZT 558.235579
LAK 25285.644395
LBP 103394.037822
LKR 363.741444
LRD 212.012665
LSL 19.813301
LTL 3.409221
LVL 0.698404
LYD 7.360592
MAD 10.789123
MDL 20.282399
MGA 4820.437097
MKD 61.637435
MMK 2427.526343
MNT 4123.646826
MOP 9.31702
MRU 46.322813
MUR 54.000874
MVR 17.838939
MWK 2005.532983
MXN 20.922547
MYR 4.530678
MZN 73.836825
NAD 19.813296
NGN 1597.337286
NIO 42.397186
NOK 11.20288
NPR 175.114145
NZD 2.009741
OMR 0.444613
PAB 1.154721
PEN 3.994328
PGK 4.975197
PHP 69.911197
PKR 322.367369
PLN 4.298271
PYG 7549.734427
QAR 4.218027
RON 5.111746
RSD 117.558661
RUB 94.006614
RWF 1686.864195
SAR 4.332448
SBD 9.285301
SCR 16.659944
SDG 693.912357
SEK 10.938258
SGD 1.492666
SHP 0.866246
SLE 28.345751
SLL 24211.30527
SOS 659.855623
SRD 43.413994
STD 23897.798134
STN 24.650616
SVC 10.103439
SYP 129.111885
SZL 19.813287
THB 37.940438
TJS 11.033396
TMT 4.041085
TND 3.37839
TOP 2.779989
TRY 51.302613
TTD 7.845709
TWD 36.998328
TZS 2974.800639
UAH 50.614226
UGX 4301.662877
USD 1.154596
UYU 46.739318
UZS 14091.83988
VES 540.268027
VND 30409.162038
VUV 138.27014
WST 3.204592
XAF 658.200578
XAG 0.0165
XAU 0.000256
XCD 3.120353
XCG 2.081103
XDR 0.816058
XOF 655.810693
XPF 119.331742
YER 275.490657
ZAR 19.766671
ZMK 10392.750198
ZMW 21.737094
ZWL 371.779317
  • RBGPF

    -13.5000

    69

    -19.57%

  • GSK

    -0.1000

    53.84

    -0.19%

  • BCE

    -0.2200

    25.25

    -0.87%

  • NGG

    -0.4800

    81.92

    -0.59%

  • CMSD

    -0.0900

    22.66

    -0.4%

  • RELX

    -0.1000

    31.97

    -0.31%

  • BTI

    0.3749

    57.8

    +0.65%

  • RYCEF

    -0.5900

    14.65

    -4.03%

  • CMSC

    -0.0500

    22.77

    -0.22%

  • RIO

    0.8500

    86.64

    +0.98%

  • BP

    0.5100

    46.68

    +1.09%

  • JRI

    -0.2700

    11.8

    -2.29%

  • BCC

    0.1400

    74.43

    +0.19%

  • AZN

    5.0200

    188.42

    +2.66%

  • VOD

    -0.1400

    14.49

    -0.97%

At 75, Israel's economy offers success or inequality
At 75, Israel's economy offers success or inequality / Photo: MENAHEM KAHANA - 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."

L.Rossi--NZN