Israel's Post-War New Deal
The events of October 7th and the ongoing war since then mark one of the most challenging moments in the history of the State of Israel. The repercussions spared no sector in the country, affecting the south, the north, Israeli society, the economy, and the Israeli high-tech industry. It is essential to remember that this is not the first time the Israeli high-tech sector has faced significant crises, both domestically and globally.
During the collapse of the U.S. stock market in 2000, the Second Intifada, and the immediate aftermath of the Twin Towers attack, Israel grappled with global and domestic crises. The financial crisis of 2008 and the wars in Lebanon and Gaza posed significant challenges, serving as crucibles for the Israeli high-tech sector to strive for new heights in the world.
However, recovery does not happen on its own. It requires a combination of robust government and public policies that intersect with private sectors where they can thrive and exert substantial influence. While our army and soldiers courageously fight within Gaza to remove Hamas's rule from the southern border and against Hezbollah on the Lebanese border, restoring the Israeli economy and high-tech industry to a leading position globally necessitates a comprehensive national and economic plan in addition to the military force Israel deploys.
Without a comprehensive and strong governmental plan, Israeli high-tech risks falling behind by two decades. Israel must execute a strategic move based on a new security, diplomatic, and economic paradigm to propel the country back onto a growth trajectory where more citizens, diverse sectors, and regions actively participate.
Security Paradigm – No Coexistence with Terror Organizations
Israel needs a new security paradigm. Coexistence with a terrorist organization like Hamas must be removed from the equation. Israel is obligated to eradicate Hamas and other terror groups. Israel's decisive action against Hamas is not just a self-defense measure; it is a stance against terrorism that threatens global peace and security.
To eliminate Hamas, it is not enough to target its leaders and physical infrastructure or destroy its tunnels and rearming capabilities. Neutralizing Hamas requires hitting its economic infrastructure. Establishing an international coalition and engaging the world to designate the organization as illegal and collaborating with global bioweapon organizations is imperative.
To strangle Hamas economically – cutting off its financial lifeline, disrupting its money production machinery, and intercepting the dollars flowing into the Strip – Israeli high-tech, armed with AI-based technologies like THETARAY, embedded in banks and fintechs worldwide, including Arab countries, is essential. Without funds, terrorism cannot thrive. Blocking the money flow hampers Hamas's sustainability, preventing it from paying salaries to over 40,000 terrorists monthly.
Diplomatic Paradigm – One Hand for Military Action, the Other Requires State Diplomacy
In addition to the military paradigm, a diplomatic paradigm based on a new alliance with moderate Arab states such as Egypt, the UAE, Bahrain, and Saudi Arabia, backed by the U.S., Europe, NATO, and Britain, is crucial. This alliance, supporting the Palestinian Authority in its new form, can rebuild and manage Gaza post-conflict, ensuring a future for its residents.
Such a strategic alliance can create a united front of moderate states against the extremism demonstrated by Iran and its proxies, including Hezbollah in Lebanon, Hamas in Gaza, Syria, and the Houthi rebels in Yemen. Over time, additional nations such as Morocco, Tunisia, Jordan, and Turkey can join this diplomatic front under different leadership.
New Economic Paradigm – A New Deal, akin to Roosevelt's Leadership in the 1930s
Israel must adopt a new economic approach – a New Deal. Massive government investment, significant incentives for the private sector in both the north and the south, and a large-scale initiative encompassing the Israeli high-tech sector are required to bring it back on the path of growth and investment in line with the expected global recovery in 2024.
Following the severe depression in the United States during the 1930s, known as the "Great Depression," President Franklin D. Roosevelt initiated the New Deal, a comprehensive economic plan. It included building roads, dams, government projects, and substantial investment in infrastructure that upgraded the American economy, created a welfare program supporting many unemployed citizens, generated employment opportunities, and propelled the American economy into substantial growth.
Roosevelt believed in mutual dependence among citizens, social commitments, and the political leaders' duty to take meaningful steps to advance their people. It seems that the current Israeli leadership has much to learn from him.
Israel faces a critical juncture, demanding a comprehensive approach involving security, diplomacy, and economics. A New Deal can not only rebuild Gaza but also reshape the future of Israel, ensuring growth, prosperity, and security for its citizens. The time is now for visionary leadership and strategic planning to pave the way forward after the war.
As part of the "Day After" strategy, appointing a Chief of General Staff and a General-Economic Headquarters for the State of Israel is imperative. This leader must steer necessary initiatives to drive economic growth, ensuring that Israel invests economically in its social and geographical spheres. This approach aims to involve populations and regions in the forthcoming significant growth of Israel.
1. The South: The southern region requires a renewed economic-security approach, facilitating substantial investments in meaningful topics for Gaza's surroundings, Be'er Sheva, the eastern Negev, and the entire area. Government support should concentrate on expanding the cyber center in Be'er Sheva and transforming it into a regional hub for the entire eastern Negev, encompassing Yeruham, Mitzpe Ramon, Ofakim, and part of the Bedouin population. Additionally, a national plan for the western Negev and around Gaza, focusing on agriculture and fostering a creative industry, can transform the entire Negev into one of Israel's thriving regions.
2. The North: Ensuring economic and security perspectives for the residents of the north is crucial for their return and attracting thousands of young individuals to settle in the Galilee as part of Israel's new frontiers. The state needs to offer a national plan for kibbutzim, moshavim, and cities along the entire border, from Metula, Kiryat Shmona, Safed, and up to Shlomi, Rosh HaNikra, returning residents home and stimulating economic, cultural, and social life in the north.
In the eastern Galilee, a large-scale plan for food tech and agtech has already been implemented. This plan, centered around the international innovation hub established in Kiryat Shmona, should expand to the western Galilee, which boasts successful agriculture. Moreover, cities in the western Galilee, including Carmiel, Tefen, Nahariya, and others, should embrace Industry 4.0 and focus on significant areas Israel aims to promote, such as climate tech, led by the northern regions.
3. Israeli Hi-Tech: The Israeli hi-tech sector is currently undergoing a crisis due to attempts at institutional transformation that have pushed away many international investors. To recover, Israel needs to declare a set of topics receiving top national priority for massive governmental backing. Cybersecurity, climate tech, agtech, fintech, digital healthcare, artificial intelligence (AI), and renewable energy should be prioritized, with a particular emphasis on the southern and northern regions receiving greater national preference. A comprehensive plan, akin to the one implemented during the cyber transformation of Be'er Sheva in 2011, is necessary for sectors like agtech in the north and broader topics nationwide, including around Gaza.
The Innovation Authority's budget should be tripled, making it a relevant, contemporary, and significant tool in the awakening technological economy, as it was in the 1990s. Additionally, Israel must address institutional obstacles related to pension and insurance funds, increasing the allocation percentage for investment in developing technology companies.
4. Small Businesses in Israel: Establishing a national fund for small businesses in Israel is crucial. A green track should be created so that businesses in the south and north receive full compensation for their income loss, not just their expenses. They need to be restored to a sustainable existence.
Programs like "Maof" – the Agency for Small and Medium Businesses in the Ministry of Economy, and similar initiatives, must be granted a significantly larger budget than they currently possess. Support funds providing approval for compensating these businesses need to act swiftly and efficiently. Leaving residents or business owners alone to face the situation is not an option. Initiative must be taken now to provide them with a genuine lifeline.
5. Cooperation with Arab Countries: Collaboration between Israeli hi-tech and Israeli businesses with Arab countries has created a new economy and a new horizon in Israel's relations with the Middle East. This must be supported, encouraged, and heavily invested in by the state. Egypt, Saudi Arabia, the UAE, Bahrain, Morocco, Tunisia, Jordan, and Turkey – these are the nations with whom we will build our security strategy against regional terrorist states and strengthen economic partnerships. Our economic infrastructure vis-a-vis Arab nations will ensure our security infrastructure in the region.
The image of Israel's victory will not only be captured on the battlefield. Months after the war, we wish to see the same soldiers, reservists, young individuals growing up here, businesses struggling to survive, and technology companies fighting for their continued existence – all operating, creating, developing, and integrating both within Israel and globally, as part of the new Israeli economy.
We hope to capture this victorious image in the Galilee and the Negev, witnessing the north and south becoming the new realization frontier for Israel's youth, with families living securely and prosperously. We envision Israelis actively participating in Arab countries in the region, collaborating on climate, water, agriculture, healthcare, cyber, food, and new technologies that will propel our region forward. The victory image will be complete when Israel has a new leadership steering us honestly, collaboratively, connecting our communities rather than creating divisions. A leadership with a shared vision that can unite people for significant actions even in times of peace, not just in times of war.
