Free Israel prospers

Investors Business Daily is not on my subscription list, but I was sent an excellent article in it by Chuck Devore entitled How free Israel prospers as Islam remains in dark

Devore begins by noting that “Israel, a New Jersey-sized nation of 7.5 million people (1.7 million of whom are Arab) filed 7,082 international patents in the five years ending in 2007. By contrast, 28 majority-Muslim nations with almost 1.2 billion people — 155 times the population of Israel — were granted 2,071 patents in the same period.  Narrowing the comparison to the 17 Muslim nations of the Middle East from Morocco to Iran and down the Arabian Peninsula, the 409 million people in that region generated 680 patents in five years. This means that the Arab and Iranian world produced about one patent per year for every 3 million people, compared with Israel’s output of one annual patent for every 5,295 people, an Israeli rate some 568 times that of Israel’s neighbors and sometime enemies.”

He adds that “This phenomenon is manifested in other nations as well, where bad government begets poverty. Free South Korea, with 48.8 million people, filed 24,200 international patents from 2003 to 2007. The 24.5 million people in the North Korean slave state managed to produce 14 patents in the same period. But wealth isn’t the sole explanation for this disparity in intellectual innovation. Saudi Arabia enjoyed a per capita income of $24,200 in 2010. Yet the Kingdom averages an anemic 37 patents per year compared with Israel’s 1,416 per year — and there are 3 1/2 times more Saudis than Israelis, meaning that Israel’s per capita output of intellectual property is 132 times greater than Saudi Arabia’s.”

Devore then compares Israel with Egypt “The Egyptian Revolution of 1952 saw the overthrow of monarchy with the military running the nation’s economy. This invariably led to stagnation and a growing external debt. Egypt has launched two waves of economic liberalization since 1984, one under the auspices of an International Monetary Fund standby agreement in 1991 and another in 2004, when former President Mubarak appointed an economic-reform-minded Cabinet. The 1991 effort focused on the privatization of state-owned enterprises. The 2004 program reduced import tariffs, cut taxes and allowed the Egyptian pound to float. The reforms of the 1990s took some time to take hold, with the Egyptian economy seeing year-over-year growth in per capita income (purchasing power parity) rising an impressive 5.7% per year from 1997 to 2000. Mubarak’s 2004 free-market reforms bore even more fruit, with per capita growth averaging 6.9% from 2005 to 2008.  However, the demonstrators of Tahrir Square claim, with some justification, that the most recent round of reforms mostly benefited the nation’s elite. This crony capitalism is said to have generated a massive amount of wealth for the two sons of the former Egyptian president. And, with that wealth concentrated at the top, resentment mounted in the masses who saw their cooking fuel subsidies cut while the cost of basic necessities soared.”

Devore continues to the present “Now the Egyptian economy has been hammered by unrest. Crime has tripled since Mubarak’s ouster. A wave of child kidnapping has struck fear in wealthy and upper-class parents. Militant Islamists now operate in the open, brazenly attacking Egypt’s large Christian minority and moderate Muslims alike. Tourism, accounting for 11.3% of the economy, has dried up. Unemployment is surging. Adding to Egypt’s travails, the Muslim Brotherhood is calling for “modesty police” — mirroring the actions taken by Hamas, the Muslim Brotherhood branch in Gaza, after its 2006 electoral win and subsequent bloody purge of its more secular rival, Fatah.  These would-be mullahs of misery are also calling for the criminal prosecution of those who made money during the Mubarak era, coupling that call with a return to Egyptian socialism. This sure recipe for economic failure will inevitably cause Egypt’s new leaders to blame Israel, the Jews and America for Egypt’s problems. As the availability of bread declines, the index of hate will rise. This volatile equation is good for neither Egypt nor Israel.”

Devore also traces Israel’s path and notes that “Israel’s commitment to socialism wasn’t challenged until former Prime Minister Ariel Sharon appointed Benjamin Netanyahu as finance minister in 2003. Many thought Sharon made this move to bury rival Netanyahu’s career. Netanyahu sought to remake Israel’s economy, instituting reforms such as liberalization of the banking system.  Critics scoffed at these reforms as “Thatcherite,” worrying that Israel’s social safety net was being dismantled. But Netanyahu’s free-market reforms worked, causing Israel to see its longest sustained period of high economic growth, with per capita income (purchasing power parity) rising an average of 6% per year from 2004 to 2008. Israel is now considered a high-tech market economy. The telltale signs of Israel’s economic rise can be seen in the Tel Aviv skyline and the new office complexes around Jerusalem. International giant Teva Pharmaceutical Industries Ltd. was founded in 1901 by three pharmacists in Jerusalem. Today it employs 40,000 around the world.”

.. an article well worth reading.  It briefly brings to mind the contrast with the Marrickville council cronies who are plotting the expensive (almost 4 million dollar) removal of products such as Hewlett Packard with any connection to Israel.  The more the Marrickville Greens (and Lee Rhiannon) do and say, the more ridiculous they appear and the more BDS gets exposed for exactly what it is “BS and Dreck”.  Hopefully they’ll continue to ignore the homily “when you in a hole stop digging”.

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