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Go Home Forget About “The New Middle East.” Israel Belongs To...

THE SPINE MAY 11, 2010

Forget About “The New Middle East.” Israel Belongs To The First World, And Its Neighbors To The Third.

BY MARTIN PERETZ

Everybody actually knows that. “The new Middle East” is a psychedelic fantasy of the perennially intoxicated peace processors. The dream will go on forever. And maybe it will be punctuated positively a tiny bit by practical arrangements on the ground. But probably not through the “proximity talks,” which the Obama administration has somehow convinced itself is a great achievement, which I have argued in print it is not.

In any case, yesterday, the Paris-based Organization for Economic Cooperation and Development, a consortium of the most industrially and technologically advanced countries (with a few not so advanced), unanimously voted to admit Israel to its ranks. This was reported more or less everywhere. 

But Aluf Benn in Ha’aretz got the story not only straight, but also with its important collateral meanings. It is true that Switzerland, Norway, and Sweden raised some objections to the statistical inclusion of productivity from the West Bank settlements in Israel’s application. Having so cheaply salved their conscience, they went on to vote for admittance of the Jewish state into the Organization. 

Now, one of the European foreign policy establishment’s great heroes in would-be Palestine is Salam Fayyad, the prime minister of the Palestinian Authority, who is certainly more popular in Sweden than in his own homeland. He spent the last week on the phone calling the political leadership of the OECD and also of its member countries to plead for overturning what was actually the inevitable outcome of the process. 

Benn attributes the relative ease of Israel’s OECD entry to the politics of Bibi Netanyahu (whom Benn doesn’t like at all): 

Until yesterday, only Netanyahu had given and given. He agreed to a Palestinian state, a freeze on settlement construction and an undeclared construction freeze in East Jerusalem. Now he's also receiving. "The world" rejected the Palestinian demand to leave Israel outside the prestigious organization and use acceptance as a bargaining chip to end the occupation of the West Bank

[…]

Israel makes concessions to the Palestinians and receives something in kind from the West: more openness, more investments and more business. From Israel’s point of view, the political process is a means to be accepted in Europe, America and Asia, not to create a “new Middle East.” The Israeli economy faces west, not the neighboring countries.

[…]

Joining the OECD bolsters the approach of Netanyahu and Defense Minister Ehud Barak, who consider Israel "a villa in the jungle" - a small island of Western values and development in an Arab and Muslim sea. Now we're in the club and the Palestinians, Egyptians and even the Saudis aren't. They're not even on the waiting list. In the OECD they can't bother Israel with decisions condemning the occupation.

In Paris, even Turkey voted to admit Israel to the fraternity. What chances do you think Istanbul has for membership in the European Union?

 

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45 comments

Peretz's wet dream, now national as well as personal... to be accepted by all of those rich, white, advanced folks, and to be able to leave the lesser peoples, the human dross, in the dust behind him. The 'third world'? Who really cares about them? Not Marty!

- SMacEachern2

May 11, 2010 at 12:29pm

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“The OECD praised Israel's scientific and technological progress as having "produced outstanding outcomes on a world scale". But it has called on Israel to improve education standards, and levels of poverty and inequality - particularly among its ultra-orthodox Jewish communities and the Israeli-Arab minority.” Leaving aside the facetious tone of the BBC news story, I do agree with above and I also hope that Israel will now tackle social and educational issues which are vital to its survival. Dealing with poverty in the “ultra-orthodox Jewish communities” will be a challenge since these communities don’t want to educate their daughters and they tend to eschew the study of sciences.

- jdyer

May 11, 2010 at 12:36pm

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Here comes the other vile Mac! He is back no doubt from Montreal where he spent time bullying Jews with his Muslim friends. "Peretz's wet dream, now national as well as personal... to be accepted by all of those rich, white, advanced folks, and to be able to leave the lesser peoples, the human dross, in the dust behind him. The 'third world'? Who really cares about them? Not Marty" SMacEachern2 Israel is not a "white" country, but never mind. What of MacEachern’s own wet dream of destroying the Jewish State?

- jdyer

May 11, 2010 at 12:42pm

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jdyer: I was thinking of Naftali Tamir here, in his role of Israeli ambassador to Australia: "Israel and Australia are like sisters in Asia. We are in Asia without the characteristics of Asians. We don't have yellow skin and slanted eyes. Asia is basically the yellow race. Australia and Israel are not - we are basically the white race." That just about sums up Peretz's view of Israel and its neighours, as well... so very happy that Israel is part of the 'First World', and not that dirty 'Third World'.

- SMacEachern2

May 11, 2010 at 1:16pm

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And I was thinking that Israel is the first "white" country to welcome black African immigrants as citizens instead of as slaves. So who's the racist, MacEachern?

- NR114746

May 11, 2010 at 2:12pm

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Is it too pedantic to point out that Australia is not, in fact, in Asia? Or that Israel's part of Asia is nothing like the part of Asia with "yellow skin and slanted eyes"? Oy and double oy.

- wildboy

May 11, 2010 at 2:15pm

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Theodore Herzel's prophetic "The Jewish State" anticipated Israel's inclusion in the so-called "First World." He characterized the future Jewish State as an outpost of European Civilization in the Middle East. He believed that the establishment of the Jewish State would benefit the entire region, economically. Herzel advocated the establishment of the seven hour day in the Jewish State and a more equalized distribution of wealth.

- LawrenceGulotta

May 11, 2010 at 3:04pm

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SMacEachern2 “jdyer: I was thinking of Naftali Tamir here, in his role of Israeli ambassador to Australia: "Israel and Australia are like sisters in Asia. We are in Asia without the characteristics of Asians. We don't have yellow skin and slanted eyes. Asia is basically the yellow race. Australia and Israel are not - we are basically the white race."” So, you were just sitting around thinking about a comment made years ago by some envoy who is a bore and who was full of himself, and which had been condemned by the Israeli foreign ministry: “Foreign Ministry slams envoy's comments about 'yellow race'” 15.10.06 http://www.haaretz.com/print-edition/news/foreign-ministry-slams-envoy-s-comments-about-yellow-race-1.201437 Besides he was wrong: Israel is not a “white” country and Jews in Europe for most of their two thousand year sojourn there were not considered “white.” Ask your friends in the Parti Québécois. “Quebecois crisis over 'anti-Semitism'” By Mike Fox in Montreal “The separatist party in Quebec is in the midst of a deepening political crisis over comments made by a parliamentary candidate which have been described by his critics as anti-Semitic. Yves Michaud, a veteran member of the Parti Quebecois, started the controversy when he said last week that Jews are not the only people to have suffered. “ http://news.bbc.co.uk/2/hi/europe/1080790.stm But never mind that despicable reality, “That just about sums up Peretz's view of Israel and its neighours, as well... so very happy that Israel is part of the 'First World', and not that dirty 'Third World'.” How do you know that it is “sums up Marty’s view?

- jdyer

May 11, 2010 at 3:04pm

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LawrenceGulotta “Theodore Herzel's prophetic "The Jewish State" anticipated Israel's inclusion in the so-called "First World." He characterized the future Jewish State as an outpost of European Civilization in the Middle East. He believed that the establishment of the Jewish State would benefit the entire region, economically.” He did but he was speaking to a European audience. The truth is that Israel resents not the first world or the second world or any other world. It represents the possibility of Jews achieving something worthwhile under self governance. This was what was denied it in captivity and in exile. Marty has every reason to be proud of what it achieved. It’s also true that many third world countries for political, religious, and economic reasons hate the Jewish State which was what Marty was addressing. Some people here hate the country because they say that they are on the side of the Palestinians. In truth they are on the side of the Palestinian because they hate the Jewish State.

- jdyer

May 11, 2010 at 3:11pm

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NR114746/jdyer: There's a fairly straightforward parallel between Tamir's musings on Israel as an outpost of the 'white race' in Asia, and Peretz's musing on Israel as an outpost of the 'First World' in the 'Third World' (surrounded by the Arabs for whom he has such contempt). That doesn't imply, NR114746, that Israel is a racist society. It implies that any society may contain racists and bigots, with both Tamir and Peretz being good examples.

- SMacEachern2

May 11, 2010 at 3:30pm

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The nations that founded the OECD in 1961 included Portugal, Ireland, and Turkey, so it wasn't exactly a rich guys' country club (and the Salazar dictatorship in Portugal plus the military influence in Turkey meant that rigorous democratic standards weren't a significant yardstick). But they were countries with potentially growing economies that would see major changes in the 1960s. Also, Israel acceded to OECD alongside Estonia and Slovenia, so it's not an event charged with absolute uniqueness. It is possible that an Arab nation might be invited to join, but that seems unlikely in the very near future, for a number of reasons.

- ironyroad

May 11, 2010 at 3:35pm

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jdyer: "He did but he was speaking to a European audience." It is impossible to observe anything positive about Israel without jdyer and noga1 moving the goal posts around. Yes, Herzel was speaking to an European audience. There must be a reason why he was speaking to an European audience, you think? Herzel's prophetic vision of the Jewish State improving itself and the economies of the peoples surrounding it remains central to the State's security. Herzel understood this, why can't you?

- LawrenceGulotta

May 11, 2010 at 3:49pm

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an unnecessarily polarizing title from Mr. Peretz. Russia, Brazil, India, and China are NOT OECD members. The significance, beyond the unanimous vote and former IMF economist Fayyad's embarassment, is that Israel is officially a LEGITIMATE DEMOCRACY, a major setback for the U.N. and all the delegimitizers and boycotters. I am still kvelling. some details from JPost (you have to read the whole article): "...Israel’s impressive accomplishments are best appreciated when scrutinized by a forum of highly developed countries committed to democracy, liberalism, equal opportunity and the market economy using objective socioeconomic criteria. In contrast, negative misrepresentations of the “Zionist entity” as a repressive, racist apartheid state belong to the fairy-land world of hateful propaganda and a well-developed Palestinian victimization complex. ..." http://www.jpost.com/Opinion/Editorials/Article.aspx?id=175199 btw irony, all it takes is ONE no vote. I think it is a great day when Israel is treated the SAME as Estonia and Slovenia, two small countries with vibrant economies, and, in the case of Slovenia, wonderful food. No double standards here. Thank you, Angel Gurria of Mexico, for smoothing the way. today, Israel's Central Bank started buying dollars as the shekel rose against the Euro. OECD member list: http://www.oecd.org/countrieslist/0,3351,en_33873108_33844430_1_1_1_1_1,00.html

- K2K

May 11, 2010 at 4:01pm

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Peretz should not be so hostile to Turkey by ending with "What chances do you think Istanbul has for membership in the European Union?" Guess we shall have to wait because a major hurdle has been Greece's fierce opposition to Turkey, in addition to general EU fear of Eurabia. Turkey could have voted no in Paris, but they did not. I want to thank Turkey for behaving responsibly in the OECD, and remind them they do not need to join the EU, a sclerotically meaningless entity if the common (Euro) currency continues to display the real divisions in the post-national fantasy.

- K2K

May 11, 2010 at 4:08pm

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LawrenceGulotta point taken.

- jdyer

May 11, 2010 at 4:38pm

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Comments & corrections as is my wont: Israel's Central Bank has been buying dollars on and off for a couple of years now in order to keep the Sheqel in the 3.7-3.9 range. Too high a sheqel hurts exports and the Israeli economy is highly dependent on exports especially to the EUniks. Those of us here whose pay is tied to the dollar (most patent att'y's bill out in $$ especially those like myself whose clients are mostly foreign entities filing patent applications in Israel) miss the "good old days" of 3-4 years ago when the Sheqel traded mostly in the 4.5-4.9 range. WRT Turkey, analysts here and elsewhere see the country getting back to its Islamic roots and loosing interest in the EU. And the Euro crisis (in my opinion the Euro is in the beginning of its end) just strengthens the disincentives. The ever erudite Bret Stephens has a good piece on Turkey in today's WSJ (here). Jackson - with all due respect (and you know I do respect) you got the issue of ultra-orthodox secular education all wrong. The women DO get a decent to good secular education; and an increasing number of them go on to get professional degrees in accounting, computer programing, architecture, etc. etc. Indeed a number of colleges (Israeli style) have opened up in recent years aimed at ultra-orthodox women and even some aimed at ultra-orthodox men (which is the more significant). And overwhelmingly the ultra-orthodox women work. The real problem in the ultra-orthodox world is that a very large percentage of the men (something like 50-60%) do not work but are full time learners, studying Talmud & related texts all day, living off of small stipends and their wives' earnings. Furthermore their limited secular education formally ends in elementary school and even what they do learn is not very extensive. All this so that they could devote more and more time to sacred texts. Hence even when they do go out to work, their earning power is far more limited. Ironically when the u-o men do manage to get more extensive secular studies they tend to be very good workers especially in areas that require extensive logical analysis and self-discipline to get it "right" (e.g., computer programming or other mission critical technical jobs). The IDF has discovered this and now has several ultra-orthodox oriented tracks involving technical work in the air force and now increasingly in various branches of military intelligence. The socio-economic issues surrounding the Hareidi world are complex and undergoing a quiet, gradual, but definitive sea-change. It may take some time but I think the numbers will change there. By contrast the problem in the Arab sector is the non-working women. Generally Israeli families are two-income families, mostly because it's needed to survive. Because of sociological reasons that is far less common among Arabs but here too that is changing, albeit gradually. More Israeli Arab women are getting more education which in turn is improving their earning power. But here too that will take time. Hershel Ginsburg Efrata / Jerusalem

- ginzy

May 11, 2010 at 4:56pm

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-- Israel Belongs To The First World, And Its Neighbors To The Third. Technically, the USA doesn't belong to the First World - it is the New World as opposed to the Old (or First) World.

- ndmackenzie

May 11, 2010 at 5:01pm

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SMacEachern2 "NR114746/jdyer: There's a fairly straightforward parallel between Tamir's musings on Israel as an outpost of the 'white race' in Asia, and Peretz's musing on Israel as an outpost of the 'First World' in the 'Third World' (surrounded by the Arabs for whom he has such contempt)." Sorry but there is no "fairly straightforward parallel between Tamir's musings on Israel as an outpost of the 'white race' in Asia, and Peretz's musings" Peretz was a life long supporter of the US civil rights movement as well as a strong life long Democrat who supported Obama early. If he is blunt in his criticisms of Obama’s foreign policy he was no less blunt about his criticism of Begin when he was PM of Israel. Mary never called Israel “an outpost of the 'First World.” He did call Israel “a small island of Western values and development in an Arab and Muslim sea” and if you don’t believe that than you have to deny that woman, for example, have no rights in Arab countries, nor do most minorities. Now, the fact that you have to lie about what he said says more to discredit your views than anything anyone else can say. Finally, what is really racist and antisemitic was “Salam Fayyad calling …. the political leadership of the OECD and also of its member countries to plead for overturning what was actually the inevitable outcome of the process.” Your denial of Arab and Palestinian antisemitism is parallel to the Parti Quebecois antisemitism.

- jdyer

May 11, 2010 at 5:04pm

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"Herzel's [sic.] prophetic vision of the Jewish State improving itself and the economies of the peoples surrounding it remains central to the State's security. " You can lead a horse to water but you can't make it drink. The Arab states view this as a threat. When Shimon Peres' utopian The New Middle East was translated into Arabic by an Egyptian publisher (and keep in mind that Israel has a peace treaty with Egypt) during the halcyon days of the Oslo Accords, the translator's or publisher's forward to the book pointed to Peres' vision of Israel's technical prowess being used to benefit Arab economies as a prime example of the Jewish plot to dominate the world as "documented" in the Protocols of the Elders of Zion. BTW, to this day the Protocols remains a best-seller in the Muslim world in general and the Arab world in particular. hg

- ginzy

May 11, 2010 at 5:05pm

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ndmackenzie "Technically, the USA doesn't belong to the First World - it is the New World as opposed to the Old (or First) World." Technically, the Britonazi Muckenzie belongs to the old world in sympathy with the antisemitic Arab world.

- jdyer

May 11, 2010 at 5:07pm

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-- What chances do you think Istanbul has for membership in the European Union? There is no immediate prospect of Turkey joining the European Union but then there never has been any prospect of it joining before 2020. The EU is clearly in the early stages of consolidation following the creation of the EuroZone and the accession of many countries from Eastern Europe. It is going to take years for this consolidation to near completion. Of course, these are years where the American right will gloat over the continued failure of the EU project - easily the most successful foreign policy project by any nation in the last 65 years. How much better would the World be today had the USA managed to create in its own backyard a successful political union in the way France and Germany managed in their backyard? The EU is a mockery of decades of failed US foreign policy. Imagine how things would in the USA were relations with Turkey to be its biggest foreign policy issue.

- ndmackenzie

May 11, 2010 at 5:08pm

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What motivated Turkey to vote "yes" to Israel's accession to the OECD? I thought that Erdogan was campaigning to keep Israel out. Was there a deal? Ginzy seems optimistic about prospects for integrating the Haredim into Israeli society and state.

- amidut

May 11, 2010 at 5:17pm

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Typical muckenzie nonsense: ndmuckenzie “How much better would the World be today had the USA managed to create in its own backyard a successful political union in the way France and Germany managed in their backyard? The EU is a mockery of decades of failed US foreign policy. Imagine how things would in the USA were relations with Turkey to be its biggest foreign policy issue.” This doesn’t make sense and it’s certainly not true that “The EU is a mockery of decades of failed US foreign policy.” Europe is a BIG BOY and they do represent sovereign States. Had the US intervened in European affairs it would have been accused of Imperialism! In fact the US had been accused of Imperialism every time it tried to help European countries like Greece or France.

- jdyer

May 11, 2010 at 5:28pm

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"Ginzy seems optimistic about prospects for integrating the Haredim into Israeli society and state" Cautiously optimistic and not every sector within the Hareidi society (it's far more heterogeneous than many realize) to the same degree if at all. But overall, I think the trend is there if only because of economic necessity. hg

- ginzy

May 11, 2010 at 5:38pm

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More evidence of antisemitism in the not so great land of Britania, the land of Muck: "Deir Yassin coverup trumps peace talks in The Independent" http://hurryupharry.org/2010/05/11/deir-yassin-coverup-trumps-peace-talks-in-the-independent/#comment-472310

- jdyer

May 11, 2010 at 5:48pm

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This blogpost is #1 hit for news.google search of "explain Turkey vote OECD Israel" I am as curious as Amidut for the background story. Guess we have to wait. Thanks Ginzy, for the heads-up on Bret Stephens. I suspect some part of Erdogan's increased cosiness with Syria and Iran is because their Kurds all live on their water source. Your description of the u-o dynamic where the women work while the men study Torah is no different from anywhere else. While I usually ignore ndmack, I guess he has not noticed that the United States is still working on our own 50-state plus colonies political union experiment that started in 1776-87. And we all mostly speak English. While Great Britain still stumbles with it's four country political union. Watch to see if the Scottish Nationalist Party MPs in London's parliament withdraw as the next step to devolution.

- K2K

May 11, 2010 at 6:05pm

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Oops! I thought I was clicking on Chait. Instead I got the nasty old guy.

- bufatutu

May 11, 2010 at 6:56pm

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ginzy, interesting stuff on the ultra orthodox men, thanks. I am happy that Israel is part of the OECD, and actually am surprised it already hasn't been part of it, I am just amused after Marty bashing OECD member Greece that he would be touting membership in it.

- blackton

May 11, 2010 at 8:35pm

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jdyer: "...Mary [sic] never called Israel “an outpost of the 'First World.” He did call Israel “a small island of Western values and development in an Arab and Muslim sea” Wonderful. I stand corrected: Israel is not an outpost, it is an island. The hydraulic metaphor changes everything, of course.

- SMacEachern2

May 11, 2010 at 8:44pm

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ginzy: There is a reasonable amount of trade, both illegal, secret and legal, between Israel and the Arab countries. Forbes Magazine estimated in 1984 that the trade was in the range of $500 million. I am sure there is an expert in this crowd that will enlighten us. Herzel supported trade within the neighborhood. He also strongly advocated a seven-hour day, something which has not been achieved, even with all the fancy scientific breakthroughs. I recall a talk give by Prime Minister Golda Meir at the Madison Square Garden's "Felt Forum" in the early 1970s which I was fortunate to attend. She was commanding on stage and shared her wonderful humor with the audience. She stated that "of all the places which Moses might have led us to, he picked the one place in the Middle East without oil." Does Marty have a solution? Israel has moved from growing oranges to growing high technology. This is good news.

- LawrenceGulotta

May 11, 2010 at 9:24pm

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"The hydraulic metaphor changes everything, of course." SMacEachern2 will never change that is the only "of course" here.

- jdyer

May 11, 2010 at 9:31pm

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"He also strongly advocated a seven-hour day." Lucky Herzl never came near the United States in that case. Here, the child labor that the Victorian reformers crusaded against is being reborn as a conservative ideology that looks back nostalgically to when immigrants were worked to death in the Chicago meat packing plants and all health care was charity.

- ironyroad

May 11, 2010 at 10:14pm

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Lawrence: I imagine Israeli scientists will be in the lead for a substitute for oil. In the meantime, Houston based Noble Energy has helped Israel solve their hydrocarbon needs for the transition, which also includes a commitment to Better Place electric car program. OECD membership will help Israel raise even more capital for what is becoming the technology innovation country for so many global problems. on Israel's offshore natural gas: "...The culmination of years of significant study of a previously, highly underexplored region, and of investment, the Tamar discovery was drilled by Noble Energy and its Israeli partners Isramco Negev 2, Delek Drilling, Avner Oil Exploration and Dor Gas. It was drilled in the Matan License, offshore Israel, in approximately 5,500 feet of water and was drilled to a total depth of 16,076 feet to test a lower Miocene subsalt structure in the Levantine Basin. It was characterized by Davidson as “one of the most significant prospects we have ever tested,” and as “the largest discovery in the company’s history.” Further testing and appraisal of the discovery has identified natural gas resources of 6.3 trillion cubic feet, enough to supply Israel’s energy needs for at least two decades or more. Noble Energy and its partners are moving forward with plans to bring first production from Tamar to Israel by 2012. A publicly traded company listed on the New York Stock Exchange, Noble Energy is a leading independent energy company, which has been engaged in the exploration and production of oil and gas since 1932. The company operates primarily in the Rocky Mountains, Mid-Continent and deepwater Gulf of Mexico areas in the United States, with key international locations in Equatorial Guinea and Israel. ..." copied from the Jewish Herald Voice, the "Jewish community newspaper serving the Houston and Texas Gulf Coast area since 1908."

- K2K

May 12, 2010 at 12:22am

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"Golda Meir ... stated that "of all the places which Moses might have led us to, he picked the one place in the Middle East without oil." " As K2K noted (and took the words right out of my keyboard) there seem to be extensive off-shore deep water natural gas deposits here in Israel which given the price of energy and technological improvements are economical to tap. What is lacking here is the infrastructure to exploit the natural gas but that is being developed with emphasis on using the gas to power electricity generation and maybe water desalinization. hg

- ginzy

May 12, 2010 at 3:27am

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And speaking of Turkey, there was an interesting and telling report on the radio news here today. According to a Turkish newspaper (whose name I don't remember) Turkey has stationed US made Hawk anti-aircraft missile batteries along its border with Syria with the intent of blocking the US or Israeli aircraft from using that route to attack Iranian & Syrian (which apparently are now being rebuilt) nuclear facilities. Food for thought, especially in light of the Bret Stephens piece in yesterday's WSJ to which I linked above. hg

- ginzy

May 12, 2010 at 3:38am

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a thought-provoking read on "the Middle East Peace Industry" by Walter Russell Mead, who has now completed his two week visit with Aaron David Miller to Israel, and adjacent geography. Mead moderates all comments, open to all: http://blogs.the-american-interest.com/wrm/2010/05/11/the-middle-east-peace-industry/

- K2K

May 12, 2010 at 12:49pm

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It appears that Turkey IS getting some progress on EU accession, based on Spain's promise to open new chapters of accession (there are 18 chapters) during Spain's tenure of the EU presidency. And, Erdogan is visiting Greece on Friday. Still failing to find any source that connects the dots on Turkey's yes vote on Israel and OECD. None to be found even at Hurriyet. Too many dots on Turkey these days! Benn's Haaretz article missed a few of Netanyahu's strategic moves, noted by Leo Rennert at American Thinker without source, in his wonderfully scathing review of NYT's Jerusalem bureau chief Ethan Bronner's story, which mostly focussed on the Palestinian campaign to block the unanimous vote. From Rennert: "...--Netanyahu accused Fayyad of engaging in "economic warfare not compatible with peace and we view it very gravely. It is a very provocative action." --Netanyahu also called the PA's lobbying efforts against Israel "incompatible with Israeli attempts to build economic peace with the Palestinians." --Most significantly, Netanyahu informed the Obama administration about Fayyad's attacks on Israel at the very time when the Americans warned both sides not to engage in actions that might undermine mutual trust just as proximity talks are getting under way. ..."

- K2K

May 12, 2010 at 2:38pm

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Israel is first world from standard of living, culture, economics, etc. Unfortunately, many on this board want Israel's behavior toward its neighbors to be judged on a erd world standards. "we're more humane than the arabs" seems to be the cry to lay off Bibi and his policies. Can't have it both ways. It's not just Israel...we see that in the U.S. from the numerous advocates of torture chambers: "at least we aren't beheading them."

- OscarPeck

May 12, 2010 at 5:32pm

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Israel is a nation state that has transformed it's economy since the 1990's. PM Netanyahu's statement on Israel's admission to OECD, and why he sees Israel as the Fourth World. I hope reading this helps a few more people see Israel, AND former Finance Minister Netanyahu, with a wider lens, translated from Hebrew into English, copied from a French website jssnews.com: "This is a momentous occasion and good news for Israel’s economy. Israel has joined the elite club of world economies, the OECD. I would like to thank Minister of Finance, Yuval Steinitz, Governor of the Bank of Israel, Stanley Fischer, Minister of Industry, Trade and Labor, Fouad Ben-Eliezer and my colleagues here: Eyal Gabbay, Eugene Kendall and Uri Yogev, as well as many others who worked to make this happen – past Ministers of Finance, Prime Ministers and other ministers, past and present, who advanced this goal. When I served as Minister of Finance, I defined it as follows: Israel’s accession to the OECD has strategic importance for the process of positioning Israel’s economy as a developed and advanced economy, as well as in attracting international investments. My predecessors understood this as well. The process began in 1994, when a delegation of observers was sent to the OECD. We weren’t members, but they provided us with the status of observers. The official decision to establish a committee to examine the repercussions of joining the OECD was made by my previous government on December 7, 1997. Ten years later, a negotiation team was established. It took us ten years to reach a position in which we were negotiating Israel’s active accession to the OECD. These negotiations found expression in very intensive activity over the past year in all the ministries and ended today with the vote that Israel was accepted into the OECD. This is a process that has taken upwards of 15 years, a process with one clear goal – to upgrade Israel’s economy so that it becomes known as a leading economy among the world’s 31 leading economies. Today, three more countries joined and now it is 34 economies. This has three advantages. The first is receiving a “degree”. In the labor market, if one has a university degree, it provides one with openness, accessibility and recognition in a great number of spheres. In the economic sphere, this “stamp of approval” is important. The second advantage is that it sets standards that we are expected to implement here. The OECD has standards. Not everyone meets all the standards, but the members try to meet most of them. This organization represents what is referred to as “best practice” – the policy that must be implemented in central fields. Over the past year, the OECD surveyed each and every field, including education, government procurement and economic activities and made constructive comments, most of which were very important. This stabilizes national consensus through international consensus regarding various actions and reforms that we have yet to implement. The third advantage is that it opens new horizons for investments which were previously closed to us. Part of the definition of investment funds, which bring together a vast portion of the world’s investment capital is that the fund’s managers must invest a certain percentage of the fund in developed economies. Until now, we couldn’t be a part of this, and therefore Israel was prevented from receiving an enormous source of investments. Today it is open to us. Of course, they could have invested in Israel as an awakening economy, but then we are in competition in those same funds that invest in economies that grow much faster. All at once, a new investment horizon has opened up to us, and this is extremely important. Our goal is to move ahead. We are ranked in the thirties when it comes to per capita income and our goal should be to rank among the top fifteen countries in per capita income. If we indeed achieve this, our economy will no longer be so small – in fact it will be quite large. I am setting this as our target. I spoke of it when I was Minister of Finance as well. I tell you today – we will reach this target. We will reach it if we continue on the path we have followed since we defined joining the OECD as our goal. The reason we were accepted by the OECD is that above all we had to prove that were a developed economy with a free market, but also a responsible economy. This is a mandatory condition. We could not have achieved what we did if we had not developed a high economic ability and accelerated growth that increased our per capita product that raised us to a level where we weren’t at the bottom of the list anymore. We were among the leading group, and the question was asked why Israel didn’t join the OECD – given that we were a rising economic force and a primary technological force. This led to our development. Our accession will allow us to continue our development. I must also mention that I expressed my gratitude to our many friends who helped make this happen. I must thank Angel Gurria, Secretary General of the OECD. He took this on as a personal mission. His involvement was tremendously important. I must also thank the 31 countries, any one of which could have vetoed our accession. They did not. This event, of course, has very important international repercussions. Alongside the ongoing criticism we hear about Israel’s status, I mention the fact that 31 countries voted today to accept Israel as a member of this international organization, when any one of them could have stopped it. I think this is a very important development for Israel and for its economy. I said before that we are in the process of developing our economy. This process is one that has ten central steps. Six of them have already been accomplished. Two are being implemented this year and two more will be launched in the coming year. I would like to describe these steps. The first step was controlling government expenditure. In other words, according to the fat man/thin man model, there was an essential need to “go on a diet” as the fat man nearly overwhelmed us. In relation to the OECD, our government expenditures were very high. It was very difficult and it cost us politically. But it was necessary and included the very important curbing of expenditure by moving from allowances to employment. This is a subject we will return to as it is a critical one. If we had not done this, we would have found ourselves in crisis, and in my opinion, much worse off than other countries, even today. The second step was to reduce tax rates. In the fat man/thin man model, this provided the thin man with oxygen. People invest and work and start initiatives because it is worthwhile to do so. There is no economic activity for the long-term if it is not worthwhile. If marginal income tax is 65%, and corporate tax is 36%, it is simply not worthwhile to invest, to work, to make an effort or to conduct any economic activity. On the contrary, it is worthwhile not to do anything or even to commit fraud. The reduction of taxes is a mandatory condition. I would like especially to mention the reduction in corporate taxes. It was 36% is 2001, and this year it was reduced to 24%. By 2016, it should be 18%. This is mandatory. We cannot stay an average country. Not with regard to corporate tax and not with regard to income tax. We must be better. The reason we joined the OECD it not because we are in 34th place. It is because we are in a much better place. Our competing in global markets obligates us to be more attractive. Therefore the outline for reducing taxes is a mandatory condition that created growth. If our marginal income tax had remained 64% and our corporate tax was still 36%, we would not have reached the place we are in today. Not only in terms of the OECD, but in general our international status would be completely different. When we put forward our plan to reduce taxes, there was a great deal of arguing. We were told that we would cause tremendous deficits and reductions in tax revenue. We thought otherwise, and I believe that it has been proven beyond a doubt that reducing taxes increased our tax revenue – it certainly did not harm it. On the contrary, the tax base and growth have in fact created tremendous revenue with lower tax rates. Lowering the tax rates provided oxygen to the thin man – and this was critical. The next thing we needed to do was, of course, remove obstacles. The most important thing we did to this end was during the 1990’s – in fact from the end of 1989 through 2000. It was an ongoing process of opening up the economy to competitive imports. This meant reducing the prices of everything – shoes, clothes, food. In turn, this led to an increase in the standard of living. If a citizen has money in his pocket and he can buy the products and services needed for his existence cheaper, he will receive more. The standard of living increases. This obligates and requires focusing on the advantages of Israel’s economy. Opening the economy to importation was carried out by a number of governments. This was a very important part of the process, as was joining Israel to the global economy through its primary medium – money. This was accomplished by easing the limits on foreign currency. It is hard to believe that only 12 years ago, it was impossible to remove money from this country, and money could not be brought in without reporting it to the officials in the Bank of Israel. Without this step, we would not have been able to participate in the growth, and we could not have become a dynamic and successful force in the global economy. This was a fundamental reform that we implemented. We did so in 1998. There was a small addendum added in 2003, which I did as Prime Minister. So we have a fat man who has gone on a diet; we have a thin man who received oxygen and he’s trying to move forward but is facing all kinds of obstacles. This was the next step. We had to remove more obstacles in order to increase our competitiveness and the economy’s ability to move forward and to release the government’s tight grip on economic assets. We had to privatize these assets, and do so while ensuring competition. For example, we divided up the refineries so that they would compete with each other. We privatized El Al, banks – Bank Hapoalim in 1998, then Bank Discount and we still have to privatize Bank Leumi, although we are in the process. We privatized the communications industry: we added cellular carriers, introduced competition in international calls, multi-channel television services. Of course, we also started the process of privatizing the ports, and will complete the process. This is a very important goal. It was important to private communications and the movement of goods, products, information and raw materials so that we could create this clearing of obstacles. This step was critical. We cannot take a step back. Competition is welcome and necessary to advance the economy, increase our reserves, increase our GDP and lower prices. These reforms in the capital market are critical. We faced a situation in which the pension system had no coverage and we needed to guarantee it. This involved complicated steps and the promise of government money, but also an increase in the age of retirement – something which very few countries have done to date, but they are dealing with this problem now. We already dealt with it. This is important because life expectancy is increasing – happily – but there was no corresponding increase in the age of retirement. We did these things in the State of Israel. Many developed countries have not done this yet. They are starting to look to us, as they do with regard to our two-year budget. They see that we are taking action. It is true that they tell us what to do, but maybe we are also signaling the path they should take. It is another reason we were accepted to the OECD. When implementing the reforms of the capital market, we had to decentralize the sources of credit. It was very, very difficult to receive credit in the State of Israel. Seventy percent of all credit was concentrated in banks; 70% of credit was granted to 1% of clients. Try to build an economy like that; try to grow it by 5% per year, year after year. It was impossible, and therefore we had to implement a comprehensive reform of the capital market of the banks’ retirement funds and trust funds. We did so. We took one-third of their assets and put them out in the market. It was not easy. But it helped create credit, and without credit there is no oxygen. Taxes must be lowered and credit must be given. These are six steps we have taken over the past several years, but there are still four steps we must take which are essential to continue our climb in the rankings of countries in economic terms. Two of them were taken in the government’s first year. They are related to housing and transportation – the reform of the Israeli Land Administration and the reform in planning and construction that we recently launched. One has been completed, but we must ensure its full implementation. The Israel Land Administration controls a tremendous economic resource – land – and it is strangling the State of Israel. Nothing is moving. Because of this, people pay outrageous housing costs, which are higher than they need to be because in desirable areas, 40% to 50% of housing costs are land and there is no land because we cannot free up the land. The procedures to do so are so complicated and cumbersome, and that puts us somewhere outside the OECD, outside the First World, outside the Second World and even outside the Third World. We are in a special category – the Fourth World. In terms of bureaucratic red tape, land, planning and construction and obtaining construction permits, we are more or less at the bottom of the list of nations, in 147th place or 120th place. Right now, registering assets and the time to obtain construction permits is undergoing a revolution. The second is of course the national transportation network. We do not want to be trapped in the narrow and short area between Hadera and Gadera. We are opening up the Galilee and the Negev. There is tremendous work being done in paving roads and laying train tracks, including a national train network that we intend to implement in the next decade. We allocated the appropriate funds for the planning stage – NIS 2.5 billion. This opens up the country and allows for the movement of people and goods, but also of ideas, information and money. This will open up the State of Israel and of course greatly increase its economic capabilities. We have focused on these two steps over the past year, and we will ensure that they are implemented in the coming year. There are two more steps we will begin next year which are very important and imperative. They will obligate great efforts by the government. The first of these, the ninth step, is reducing centralization in the economy. The Israeli economy was highly centralized in the government and the Histradrut for the first decades of our existence. To a great extent, the first steps we have already taken have reversed this trend. However, the private sector is still too centralized. We intend to act vigorously, determinedly and wisely to reduce this centralization. I am not referring to traditional monopolies that exist in certain branches of industry or the economy. I am referring to lateral ownership of pyramids of control which reduce competition, because instead of equal competition, obstacles to competition are created by cross ownership that at times reaches levels that simply stop competition. There is no clear limitation to this phenomenon in our laws governing business restrictions, but I believe there are several steps we will have to take. Take, for example, the question of ownership of financial institutions. Can a business corporation also own financial institutions? We intend to deal with this. I intend to lead this step. I think it is a very important step in preserving competition. We want competition. We want to remove the obstacles to competition whether they come from the government or from the private sector. The final step, and one that is no less important by any measure, whether economically, socially or in terms of our national values and national unity, is to improve the education system so that it improves at all levels, including in public schools. We must improve our ability to deal with the global world in which we find ourselves in every sector of the population – especially the ultra-orthodox population and the Arab population. We must continue to encourage them to join the labor market and provide them with the appropriate tools to do so. Participation in the labor market means providing them with the tools to earn a decent living and do so in the existing market. You will hear a great deal about these two things over the next year. This is the plan we are working on. It is not a plan made up on the fly. It is a well-thought out plan with which we are moving forward. I described it in tremendous detail to the OECD officials, including Angel Gurria, during their visit here. I think these 31 countries were very impressed with how Israel was working clearly for all these years to become one of the most competitive nations – not just one of the developed countries, but one of the most advanced, competitive and responsible developed countries in terms of its economic and social administration. There is still work to be done. We have done a great deal. We are doing a great deal; and we will do a great deal to move towards the vision I described – so that we can be on the list of leading countries, among the 15 most advanced countries in the world. This goal is possible and it won’t take us too many years to accomplish. "

- K2K

May 12, 2010 at 6:32pm

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"Unfortunately, many on this board want Israel's behavior toward its neighbors to be judged on a erd world standards." No. Many on this board want Israel's behavior toward its neighbors to be judged on the same terms as any other legitimate, UN member country is judged. And if you insist on judging it in strict accordance with Western, democratic countries only, then even there you should judge it as other democracies in similar situations act: "We, Israelis, owe no explanations to the Europeans. They owe us explanations. The Taliban has not fired any rocket into any European city. Hamas shoots into Israeli towns. The Taliban does not proclaim a sacred desire to kill all Europeans. Hamas promotes the killing of Jews in its charter and Hamas leaders repeat this instruction religiously in their sermons. Yet Europeans continue fighting in Afghanistan, justifying their war on the grounds that they are at war against a central faction of Islamic fanaticism, just like Israel fights against the Hamas. Moreover, the Hamas' threat to Israel's security and future is far greater and more immediate than any threat the Taliban poses to Europe. So why are Europeans allowed to conduct a war on territory that is thousands of miles removed from their homes, kill hundreds or thousands of innocent civilians and claim that their cause is necessary, while Israel cannot do the same? By what right do they absolve themselves while condemning Israel? Proportionality Thousands of Taliban fighters die each year as compared with "just" a few tens of European soldiers. Hundreds or thousands of civilians die in Afghanistan, as compared to zero civilian casualties in Europe. So you, in Europe, purport to lecture to us, Israelis, about war ethics and "proportional responses?" Are you for real?" http://www.solomonia.com/blog/archive/2009/01/chapter-2-war-crimes-and-the-failure-of/index.shtml

- noga1

May 12, 2010 at 6:45pm

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-- So why are Europeans allowed to conduct a war on territory that is thousands of miles removed from their homes, kill hundreds or thousands of innocent civilians and claim that their cause is necessary, while Israel cannot do the same? And there I thought Europeans were assisting a NATO ally who had requested their assistance in a war initiated as a direct response to 9/11. It is certainly not the fault of Europeans that the active phase of the Afghanistan war was undertaken in the face of an utterly incompetent civilian management. How soon we forget.

- ndmackenzie

May 12, 2010 at 7:46pm

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"No. Many on this board want Israel's behavior toward its neighbors to be judged on the same terms as any other legitimate, UN member country is judged. ..." Exactly! "...And if you insist on judging it in strict accordance with Western, democratic countries only, then even there you should judge it as other democracies in similar situations act." I actually prefer the War on Drugs as an example of how "other democracies in similar situations act". One of the reasons NATO allies were willing to deploy to Afghanistan is because of the Taliban-heroin nexus that impacts Europe more than the U.S., who just arms and trains the Colombians and Mexicans to keep the most horrific bloodshed in their countries, while the U.S. media ignores the civilian bloodshed in American cities and prison populations.

- K2K

May 12, 2010 at 7:58pm

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Obviously, there is no monolithic "you" who are or aren't for real, so the question about a self-contradiction is directed to a presumed respondent that does not exist (or exist enough) in reality. I doubt it would be difficult to come up with a large constituency who vehemently reject both Israeli actions in Gaza (or similar) and U.S./Nato actions in Afghanistan. It's as if the contradiction is a sign on the door of an empty room that nobody feels themselves obligated to enter. Those who support both the Israelis and NATO don't need to be there, and neither do those who are against both. To that extent, the rhetorical approach is a little shaky. The question is one that needs asking nonetheless, but perhaps the matter of legitimate self-defense is tactically a better argument to go with than the Hamas/Taliban comparison.

- ironyroad

May 12, 2010 at 8:36pm

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Somewhat relevant: What does "making peace" mean to Palestinians: "In the most recent episode of the weekly program We Are Returning, this denial of Israel's right to exist led to a concrete demand. The PA TV narrator called for Jews to leave Israel and go to Europe and Ethiopia - "your original homeland." http://palwatch.org/main.aspx?fi=157&doc_id=2229

- noga1

May 13, 2010 at 12:30pm

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So important what children are taught. Counterpoint is Nathan Englander's short story "Free Fruit for Young Widows", a parable of what Israel means to those who, like 'Professor Tendler' DID go 'home' in 1945 Europe: "...He learned about all the wars his father had fought in—’73, ’67, ’56, ’48—though Shimmy Gezer still stopped short of the one he’d first been swept up in, the war that ran from 1939 to 1945. Etgar’s father explained the hazy morality of combat, the split-second decisions, the assessment of threat and response, the nature of percentages and absolutes. Shimmy did his best to make clear to his son that Israelis—in their nation of unfinished borders and unwritten constitution—were trapped in a gray space that was called real life. In this gray space, he explained, even absolutes could maintain more than one position, reflect more than one truth. “You, too,” he said to his son, “may someday face a decision such as Professor Tendler’s—may you never know from it.” He pointed at the bloody stall across from theirs, pointed at a fish below the mallet, flopping on the block. “God forbid you should have to live with the consequences of decisions, permanent, eternal, that will chase you in your head, turning from this side to that, tossing between wrong and right.” ... Here Shimmy’s face turned serious, the lightness gone. “In that first war, in that big war, I was the lucky one,” he said. “In the Shoah, I survived.” “But he’s here,” Etgar said. “He survived, just the same as you.” “No,” Etgar’s father said. “He made it through the camps. He walks, he breathes, and he was very close to making it out of Europe alive. But they killed him. After the war, we still lost people. They killed what was left of him in the end.” ... Read more: http://www.newyorker.com/fiction/features/2010/05/17/100517fi_fiction_englander?currentPage=all

- K2K

May 13, 2010 at 4:56pm

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