Why Israel's economy doesn't need 'peace' to grow
Yoram Ettinger explains why - BDS notwithstanding - the Israeli economy doesn't 'peace' to grow.
In fact, Israel's unique economic growth – from $1.5bn GDP in 1949 to $300bn in 2014, from $50mn annual exports in 1949 to $97bn in 2014, and from no foreign exchange reserves in 1949 to $92bn in 2014 – has been driven by Aliyah (Jewish immigration), fiscal responsibility, brain power, cutting-edge commercial and defense technologies, exports, military posture of deterrence and (most recently) natural gas; not by the peace treaties with Egypt and Jordan, or the Oslo Accord with the PLO.
For example, Israel's GDP surged by 8%-14% annually following Israel's victory in the Six Day War (1967-1972), and by 9% upon the launching of the Aliyah wave of one million Olim from the USSR in 1990. On the other hand, the post Oslo (1993-1996) economic growth of 4%-7% was triggered, mostly, by the Aliyah ripple effect, but was marred by rapidly worsening budget and trade deficits.
In addition, Israel's 42.5% annual inflation in 1977 - when the Begin-Sadat peace initiative was launched - galloped to 111.4% in 1979 and 445% in 1984. Inflation was reduced to 19.7% in 1986, and to the current low single digit levels through an unprecedented policy of fiscal responsibility; not through the Israeli-Egyptian peace treaty.
The BDS impact on Israel's economy is minor as demonstrated by the improved trade balance between Israel and Turkey and Britain, independent of the Turkish government and British Parliament support of BDS. Moreover, Israel's vulnerability to BDS is highly constrained since 90% of Israel's exports are business-to-business, enhancing the cost-effectiveness and the level of health, medicine, irrigation, science, education and national security of Israel's trade partners. Furthermore, Israel's trade is trending away from Europe – the epicenter of BDS – towards India, China, Russia, Japan, South Korea and the former Soviet Republics.Read the whole thing.
If anything, I would argue that 'peace' would pose a danger to our economy because of the vastly increased risk of terrorism - including rockets - emanating from a 'Palestinian state.'