Putting the Cart Before the Horse

There is a growing trend among Jews around the world, particularly within the younger generation, to feel some sort of lack of comfort and embarrassment about Israel's policy towards the Palestinians, and even towards Arab Israelis in general.  Their feeling stems from a view that Israel is responsible for human rights violations against the Palestinians, and they have not been shy to air their protest.  The recent "taking a knee" action by students at Herzliya School in Cape Town, South Africa, during the singing of Hatikva, is just the latest in a long line of incidents where Jewish youth have felt the need to to express the freedom of their choice to openly criticise Israel.  Other incidents have included the Palestinian flag being flown at a Jewish youth camp and the wearing of a "keffiya" Palestinian scarf to make a public protest.  Statistics show that Jewish youth in the US are feeling less connected with Israel than before, and that this disconnection is growing.  I find this a sad and unfortunate phenomenon, and have tried to understand the causes of it.

When the idea of the creation of the Jewish state was discussed and voted upon at the UN back in 1947, there was surprise in certain camps that the UN passed the resolution that effectively created Israel.  While there was clearly political motivation in the votes of some countries and financial motivation that drove others, there was almost certainly a sympathy factor that came into consideration.  In the wake of the Shoah that saw the annihilation of 6 million Jews, the Jewish people at that time were considered helpless victims.  Victims always seem to garner sympathy, no matter how it is that they became victims.  So the Jews were viewed as the victims, and the world did show some short-lived sympathy at that time.  Moreover, the world Jewish community was highly supportive of the Jews living in Israel.  Not only did Jews around the world give their unwavering support to Israel, Israel also allowed Jews around the world to feel a little more pride in being Jewish.

Israel and the Jews living in Israel were determined to shake off their label as victims as soon as possible.  The idea of being supported because of sympathy, rather being respected as equals, never sat comfortably with the Jewish culture.  Instead of waiting for Arabs and anti-Semites to attack and then being forced to respond, there was a determination to build a nation of proud people who were not simply going to wait for the enemy to attack and risk further annihilation.  Instead of a band of amateurs who relied upon the sympathy of others, Israel has built a professional army and built the country into one of the strongest and most respected.  No more victims, no more sympathy votes.  Now, a powerful army and a powerful country that could take on and beat the strongest.  And with it, we have managed to escape the label of victims.  We never wished to garner sympathy as victims.  Instead, we wanted to plant fear in the hearts of those who dare to attack us.  We have finally succeeded in this quest.

Unfortunately, the world seems to view situations in binary terms where conflicts are concerned.  Either you are the victim, or you are the perpetrator and the bully.  So, as we managed to escape the label of downtrodden victim, we have increasingly been painted as the bully.  This is in spite of the situation remaining essentially unchanged in that the same Arabs and anti-Semites are still trying to wipe us out only because we are Jews.  The fact that there would be no battle or conflict if they were prepared to live side-by-side in peace instead of trying to wipe us out, seems not to diminish our newly-acquired status as the bully.  And, even though our military activities are solely designed to protect us to allow our people live in peace, this seems not to help to present the situation in its truest light.  The real bullies are now considered to be the victims, even though they are the ones trying to drive the Jews into the sea.  And the real victims are now painted as bullies, even though their only wish is to live in peace and build a positive future for their children.

In order to offer maximum protection to Israelis and to secure the future of the Jewish state, Israel has been forced to be proactive in preventing terrorist activities being perpetrated.  Part of this involves sealing Gaza to prevent terror equipment from entering the area that presents a risk to the survival of Israel.  At the time that Israel withdrew from Gaza, the intention was to allow Gazans to get along with building a positive future for themselves.  Instead, Gaza has devoted its time to finding ways to destroy Israel.  The Israeli government cannot simply stand by and watch this happen, hence the "blockade" that has been imposed on Gaza.  Conveniently, the rhetoric has been twisted to reflect that Gaza justifiably launches attacks against Israel to protest against the blockade.  Apparently, according to a view accepted in international circles, launching hundreds of missiles randomly into populated areas is entirely justified by the need to break free from the "blockade".  The cart has truly been put before the horse.

Just as the world at large views the situation in a binary way, so our fellow Jews around the world are influenced to do the same.  Now, instead of Jews hanging their heads for fear of being singled out and attacked for being Jews, they choose to hang their heads in shame at Israel for being labelled as a bully and transgressor of human rights.  And they insist upon showing their shame in public places in order to be allowed to exercise their right to object to Israel and her policies.  The irony is that this shame is really imposed upon us by outsiders who view Israel as the transgressor, and has been absorbed by Jews who wish to fit in comfortably to their local environments,  Moreover, this view appears to have been adopted by many Jewish educational institutions around the world that have been blinded into accepting the contrary twisted rhetoric about Israel's position in the conflict.

I find it not only unfortunate that the story has been twisted to such a degree that the protagonists have switched roles, it hurts that diaspora Jews find it necessary to be so vocal and public in their criticism of Israel.  While I do not expect that all Jews should blindly support Israel under any circumstances, I do hope that they will express their criticism in a manner that is constructive and useful.  Just as in Israel where each person has more than one opinion on most subjects, I expect that diaspora Jews will also hold a variety of opinions of Israel, not all of them positive.  This is entirely within the realms of what is acceptable.  I don't accept, however, that "taking a knee" is constructive or useful.  And I don't believe that flying a Palestinian flag is constructive or useful.  Instead, it is important to promote the notion that Israel is fighting for its right to exist as a Jewish state, and to protect Jews around the world.  Support for Israel's tactics to survive, wherever it may come from, is welcome.

It may come as a great surprise to many to hear that most Israelis strongly support the idea of a creation of a Palestinian state alongside Israel.  And that most Israelis are very sensitive to the issue of acting humanely and the issue of human rights.  Most Israelis wish to see Palestinians living constructive lives with a great deal of hope for the future.  There is, however, a condition attached to the support for the Palestinians.  The condition is that the Palestinian state will promote peaceful co-existence with Israel, and allow Israel to survive as a Jewish state along the border of the Palestinian state.  Unfortunately, this condition has yet to be acknowledged and agreed upon.  In the absence of this acknowledgement, it is understood that the objective is to destroy Israel and the Jews.  Until this is agreed, Israel will continue to protect herself and the Jews.  Inevitably, the international community will conveniently use this to promote their criticism of Israel as a violator of human rights.  We should not be sucked into their point of view that is entirely without justification.

We cannot expect Israel's enemies and anti-Semites around the world to ensure that the rhetoric that they are promoting places the horse before the cart.  Their agenda means that this does not serve their purpose.  It would be welcome, however, if at least Jews around the world help to place the story in its correct order, without pandering to the views of those who wish to destroy us.

Damned If You Do, and Damned If You Don't

Much has been written and discussed about Marwan Barghouti's article in The New York Times, trying to explain why prisoners in Israeli jails have embarked on a hunger strike.  Most of the comments have surrounded the factual inaccuracies in Barghouti's statements and accusations against Israel.  Or they have questioned why The New York Times had the audacity to allow such subversive trash to be published at all.  My question is a different one.  I ask whether it is right that Israel should allow its prisoners (whether they are criminal or political prisoners) the freedom that it does, and that allows people like Barghouti to make such ludicrous claims in public?

It is somewhat ironic that Barghouti accuses Israel of operating an "inhumane system" in its attempt "to break the spirit of prisoners" and of "grave breaches of the Geneva Conventions against the Palestinian people", while still having the freedom to publish these accusations in The New York Times.  Surely this is a contradiction in terms?  If Israel was so intent on breaching the Geneva Convention, it would surely do more to ensure that prisoners do not have access to publish their articles in international publications.  Or at least opppose violations more vehemently than it has.  It is common knowledge that prisoners in many systems, even in countries that pride themselves on their democracy, are not allowed access to go unpunished when they publish their complaints and accusations in public.  And yet, Israel has hardly responded to Barghouti's article to punish him.

In many countries around the world, even in democratic countries, prisoners have significant restrictions placed on them.  This is even more true of those convicted of terror-related crimes, or who are considered the most dangerous after committing very extreme crimes.  In some cases, these restrictions can result in the opposite outcome of the one that the authorities hope to achieve.  In the case of Nelson Mandela who spent 27 years as a political prisoner in South Africa, his popularity grew substantially while he was in prison and isolated from the outside world.  He had no access to the media, and his likeness was not allowed to be published at all by the press.  Despite this, the campaign for his release only grew more over time.  The same was true of Prisoner of Zion Natan Sharansky when he was imprisoned in the Soviet Union.  Despite these examples, the act of isolating prisoners seems, in the most part, to keep them out of the public view.  This raises the question as to whether a stronger reaction to Marghouti would not be in Israel's best interests?

In spite of accusations of Israel acting in a racist way towards Arabs, and even being called an "Apartheid country", Israel values its democracy and freedom of speech almost above everything else.  And while security considerations are always of paramount importance in every situation, the notion of preserving democracy and freedom has a very high priority.  The Jewish people have suffered so much discriminatory behaviour over the generations that it would be anathema to have a Jewish country that does not embody democracy and freedom in every respect.  Even if it means being tolerant of those who seek Israel's destruction.

It seems as though the furore over the article has died down, and the hunger strike in the prisons has been abandoned by large numbers of prisoners.  It is ironic that some of the most important facts about the treatment of prisoners in Israeli jails seem to have been kept low-key in the whole uproar.  The system of housing prisoners in jails is well demonstrated in the list of the improvements that the prisoners are striking for.  These include;
- increasing family visits from the current 45 minutes a time, to 90 minutes a time
- increasing the frequency of family visits from once a month to twice a month
- allowing the prisoners an increased selection of TV channels in the prisons
- allowing the prisoners greater education facilities.
Comparing this to the way in which Israeli prisoners have been held by Arab states over the years seems a joke.  And yet, The New York Times sees it fit to cover this matter.  This hardly points to the systematic violations of the Geneva Convention that Barghouti accuses of.

With the story having almost burnt itself out, perhaps it was the right decision by the Israeli government not to respond more actively to the article that was published.  In Israel's case, the criticism seems to come whether she has done something, and equally when she has not.  Ultimately, we need to feel good with ourselves that we are doing what allows us to feel good when we look at ourselves in the mirror.  I believe that this is what has been achieved in this case.

Poacher Turned Gamekeeper

New Israeli finance minister Yair Lapid is learning that it is much easier to be criticising from the sidelines, than it is to be taking action from within the government.  Having spent much of his life as a journalist and TV presenter which had him criticising governments and government policy, his switch into politics has given him the opportunity to prove his own credentials.  The poacher turned gamekeeper is discovering that life in the political goldfish bowl is not quite as easy when he is having to fend off the arrows, as it was when he was shooting them.

Lapid has finally presented his budget for 2013-2014 for government approval.  When he was playing politics from outside governmental circles as a journalist, he was mostly focused on what the government was doing to improve social equality, and to address the needs of the weakest elements of Israel's society.  In his position as the minister of finance, he now knows that this nut is a tough one to crack.  How does a responsible government work to improve social equality, while also working to close the huge budget deficit and finance the mountain of government debt all at the same time?  The resulting budget prepared by Lapid and approved by the Knesset is much more about fiscal responsibility, than it is about helping the poor and the weak in Israeli society.  It includes increased tax rates, increased VAT, increased taxes on alcohol, tobacco and other luxury goods, and huge swathes cut from government spending.  Even the hallowed defense budget had three billion Shekels cut from it.  The result of this is that Lapid's popularity has dropped dramatically since he assumed his job as minister of defense.  In mid-April, Lapid was the most popular politician in Israel, topping even Prime Minister Netanyahu.  By the time May rolled around, Lapid found himself the target of anti-government street protests promoting social equality.  His popularity has steadily plummeted in the process.

The job of Israeli finance minister is something of a thankless task.  This is especially true for a finance minister who wishes both to promote economic stability and growth, while also helping the weak and vulnerable.  The difficulty was emphasised by reports that were published recently about key aspects of Israel's economy.  A report published by the Organisation for Economic Cooperation and Development (OECD) has placed Israel first in poverty rate amongst developed nations.  The report said that one in five Israelis live in poverty, and one in three Israeli children live in poverty.  Israel's State Revenue Administration of the ministry of finance published its own report which showed that half of Israeli wage-earners do not earn enough to pay tax.  Given that the tax threshold in Israel is NIS 4,700 (less than US$ 1,300) per month, this is a sad statement about the conditions that people are forced to work in.  When considering that unemployment in Israel is at a relatively low 6.9%, there is not a great deal of hope that the economic situation can improve dramatically by some miraculous boost to the number of people in work.  The Boston Consulting Group published a statistic of its own when it said that Israel has the 10th highest number of millionaires in the world, when measured as a percentage of households.  Fully 3.8% of Israeli households are millionaires.  This simply reinforces the huge gap between rich and poor in this country.

Many point to the huge military burden that Israel has had to carry over the years as the main contributing factor to the current economic challenges.  It is true that with a defense budget of NIS 50 billion (approximately US$ 13.5 billion) and making up around 6% of GDP, Israel does indeed carry a huge defense spending burden.  This is exacerbated by the fact that the ultra-Orthodox and Arab sectors have significantly lower employment than other sectors of society, and earn substantially less than other groups.  This places a heavy burden on the social services for these population groups, who boast larger families and much lower income.  While addressing the earning power of the ultra-Orthodox and the Arabs will not be a magical solution to heal all Israel's economic woes, this must certainly be one of the actions to help the economy back to full health.

There is no easy fix to the Israeli economy that will give an answer to all the questions in the short-term.  The solution is longer-term austerity and responsible fiscal policy.  Even this will not answer all the economic questions that are being asked of our finance minister, but it is important to create an environment for economic growth.  This will give the best possible platform to provide as many possible answers to the numerous questions being asked.

In 65 short years, Israel has built its economy from zero to one which is now in the elite club of the most developed economies in the world in the OECD.  This is nothing short of a miracle, and has been constructed with no help from natural resources, and with maximum exploitation of human capital.  The enormous economic growth and success that Israel has experienced can be attributed in no small way to the hard work and innovation of the average Israeli.  The time has now come to re-examine this approach, and to reinvent it in order to move forward with the new set of realities.  Israel stands on the verge of a natural gas boom which is set to provide noticeable impetus to the economy.  The ultra-Orthodox community once numbered a few tens of thousands, but is now 10% of the population and growing.  The model adopted by the modern Orthodox community, that allows them to live a traditional Jewish life and work to contribute economically, needs to be expanded to the ultra-Orthodox community as well.  Attention needs to be paid to the growing Arab sector to ensure that it makes its fair contribution to the economy.  Weaker people in our society need help, and those who spend their days working to make a living should be entitled to make a living from the work that they do.  The country needs to be able to continue to protect itself, without the defense budget crippling the economy.  These are only a few of the enormous challenges that need urgent addressing.

With all of this in mind, there are some who wonder why Yair Lapid was so eager to take on the role as minister of finance.  Is he really up to this enormous task, and can he make a real difference?  Time will only tell.

The Social Protest Risks Self-Destruction

The social protest movement has been making a come-back over the past few weeks, after capturing the imagination of the citizens of Israel during their summer demonstrations in 2011.  Having decided that the progress made by the government over the past 12 months has not been sufficient to satisfy the demands made a year ago, the protest movement has taken to the streets once again.  But things are very different now than they were a year ago, and this summer’s protest can never be the same as the one that was held last year.  This creates a risk for the protestors that they will not be able to continue to carry the support of the general public with them.

The biggest difference this year when compared to last year, is that the government and the authorities are ready for the protest.  This means that they will not allow the establishment of the tent cities that sprang up in towns and cities across Israel in the summer of 2011.  These served as constant reminders to the general public of the ongoing protest.  This act, more than anything else, captured the hearts and minds of Israelis and succeeded in gaining the vital support of the press pack.  In order to keep the protest in the public eye this year, more ingenuity will be required to replace the constant reminder that the tent cities represented.  The protestors will also have to continuously outfox the authorities, who are determined to avoid having the constant irritation that the government was forced to endure last year.

The first clashes have already taken place, and have not necessarily helped the protest movement in the eye of the general public.  A small group of protestors took to the streets of Tel Aviv on a busy Friday morning.  Police were quickly on the scene to force the demonstrators off the streets.  Some protestors who refused to cooperate were arrested, and the press was filled with pictures depicting aggressive police arresting peaceful demonstrators.   These scenes mobilised other protestors to take to the streets of Tel Aviv on Saturday evening.  This time, the demonstrations were not only focused against the government’s economic policies, they also vented anger against treatment received by the protestors at the hands of police and officials of the city of Tel Aviv.  Illegal demonstrations turned into sit-down protests in various locations in Tel Aviv, disrupting traffic and causing general chaos.  Once again, police and city officials removed protestors by force.  Some protestors also vented their rage at banks in the street near to the protest location, and rocks were hurled into bank windows causing damage to property.  The stand-off between the parties escalated further when sympathisers of the protest movement decided to disrupt activities in Tel Aviv’s “White Night” annual street party.  These attempts were only partially successful, with “White Night” proving to be a success albeit with a few less activities than were originally planned.  By this stage, however, the press started losing their positive spin on this story and the general public were displaying less sympathy for the cause.  It seems as though the protestors may have scored an own-goal through their actions, by losing the support of their greatest group of supporters.

Around the time that these events were taking place, the Minister of Finance announced that the government decided to increase the budget deficit in 2013 from the previous target of 1.5% of GDP to 3%.  This is in addition to tax increases that are anticipated next year.  The extra money is required to fund some of the concessions that have been granted in response to the social protests.  Bank of Israel Governor, Stanley Fisher, came out immediately in opposition to these steps.  It is predicted that the increase in the budget deficit will cause interest rates to rise and will weaken the Shekel even further.  The general public is not enthusiastic at all about these measures, and has realised that the social concessions do not come without cost.  These measures will hit the average person in the pocket in no uncertain terms.  Suddenly the social protest movement is having to bear responsibility for this cost, causing it to look increasingly isolated.

One of the greatest successes of the social protests in the summer of 2012, was the extent to which the general public supported their action.  Demands for cheaper housing, tax and welfare improvements and cheaper prices for consumer goods seemed to strike a chord with all members of the public.  This was true as long as the price of these concessions was not yet been factored into the public’s considerations.  Now that there is a realisation that there is a price to pay, the public is regarding the concessions with much less enthusiasm and the social protestors are carrying the responsibility for the costs involved.

The combination of the violent protests and the economic measures introduced by the government has certainly caused damage to the protest movement.  The press is not nearly as supportive of their efforts as they were last year, and the general public is scrutinising the protests with a much keener eye.  Further damage to the protest movement’s cause was done when it became obvious that many of the demonstrators were not quite sure what they were protesting against.  When asked for details of the cause and its objectives, some of the demonstrators seemed to be participating for reasons not remotely linked to the main social cause.  They were made to look more like rent-a-crowd than a unified group of people with a common objective.

Israel’s economy is sending out mixed messages.  Things seem to be very stable at a macro-economic level.  The banking system has held up well while the banks in countries all around have collapsed or required public funding to stay afloat.  Israel is the only country to have its credit rating raised (to A+) by S&P in the past year.  Germany is the only western country which has a lower budget deficit than Israel.  For individuals within the economy, however, things don’t look so rosy.  Approximately half of the citizens of Israel live on or below the bread line.  Despite the fact that employment is currently at one of its highest levels in recent years (meaning that whoever wishes to work has a job), families are still not managing to cover their ever-increasing costs.  This is almost worse than people not being able to make a living because they are out of work.  It is clear that attention is required to correct this situation.

The social protest movement has done a good job of bringing the issue of social justice to the top of the public agenda.  Now, the protest leaders will have a tough path to navigate in encouraging the government to implement the changes without losing the public’s support.  In addition, the protest movement will need to continue to take the moral high ground, and not allow its organisation to be hijacked by those with unrelated causes, and those intent on causing chaos, disruption and damage.  Indications are that they are not succeeding.

The African Migrant Problem Needs to be Solved Quickly

Israel has become inundated with African migrants, and this has raised some very difficult questions for the government about how to deal with them.  The problem started out as a humanitarian one.  Individuals and groups of people began turning up along Israel's southern border with Egypt.  They were filled with horrifying stories about the countries that they had run away from, and the murder and destruction that was taking place there as part of the series of ongoing civil wars that are plaguing the African continent.  The experiences that these individuals were forced to endure along their route to Israel was equally as horrendous.  Marauding groups of thugs in the deserts and soldiers from national armies, most notably the Egyptian army, stripped these poor people of the few belongings that they had, and raped and murdered many of those with them.

The Israeli authorities remembered too well the experiences that Jews were forced to endure during the Holocaust, when few nations were prepared to accept Jewish refugees who had nowhere to go to escape the evil Nazi extermination camps.  The African migrants were admitted across the border, given food shelter and basic medical treatment.  They were also allowed to seek out employment despite their exact status being unsure.  Children were sent to local schools, and policies regarding how to deal with this new phenomenon were being established on the fly.  It is astonishing how quickly the desert telephone works.  Word soon got back to Sudan and to Eritrea that the pot at the end of the rainbow is buried somewhere between Eilat and Tel Aviv.  Within no time at all, thousands of migrants were clambering across the border in search of the pot of gold.  Although they were running from horrendous situations in their home countries, these people could be classified more as economic migrants than as asylum seekers.

Fast-forward a few years to the current time, and the situation is extremely complicated.  In some areas like Southern Sudan, the civil war is over, a new country has been established and Israel was one of the first to move to recognise the new country.  Despite this fact, the citizens of Southern Sudan seem to have no intention of leaving Israel and returning to their newly-established homeland.  Instead, more and more seem to be arriving at the borders.  They have established communities of their own in towns and cities around Israel.  They are working in hotels, running coffee shops, Internet cafes, bars, restaurants and market stalls and their children are attending Israeli schools.  Their presence is becoming increasingly permanent in spite of the fact that the government has still yet to determine their legal status.  Suddenly, the African migrant community numbers 60,000 people and is beginning to make its presence felt in Israeli society in every possible way.

An undercurrent of dissatisfaction has been building below the surface about the newest of Israel's immigrant communities.  Economic times are tough, and there is a feeling amongst the weaker members of Israeli society that the African migrant community is receiving resources that should be channelled towards Israeli citizens instead.  Many charities have decided to route their efforts to help African migrants, often at the expense of Israeli citizens.  Cheap housing units are occupied by African migrants and often lead to price rises, making it difficult for others around.  There are accusations that school places that should be available to Israeli children, are being occupied by African children.  The character of some of Tel Aviv's oldest neighbourhoods is reported to have changed dramatically to reflect the increasing number of Africans living there.

The situation came to a head in the past few weeks with a number of incidents of violence having been blamed on African migrants.  A few rape accusations have been made against Africans, while reports have surfaced from areas where they live accusing them of burglary and other violent crimes.  While none of these accusations have yet been proven, it has allowed the undercurrent of dissatisfaction amongst some Israelis to boil over into full-blown rage.  Protests have taken place across Israel to demonstrate against the continued presence of African migrants, and the government is now being forced to take a stand.  Unfortunately, the protests have turned violent showing a really ugly side to Israeli society.  African migrants and their businesses and homes have been attacked as part of these protests, some of which were also attended by members of Knesset and other politicians.

In the first instance, the violence against others living in Israel should not be tolerated.  It is right that the police have arrested some of the perpetrators of this violence, and that they should be prosecuted under the law.  In the second place, it is right that the government should be held to account for the lack of policy on the migrants.  While the migrants had no alternative safe haven, it was acceptable and desirable for Israel to give them shelter.  Now, however, they have place to return to, and Israel should insist that they do so.  No visitor to Israel should be allowed to outstay their welcome, particularly if they will be utilising scarce resources that should be made available to the weakest in Israeli society.  The fact that the economic and social conditions in Southern Sudan or Eritrea are not quite up to the same level in the State of Israel is not the consideration.  If they are able to return in a manner that does not risk their personal safety, this should be enough to justify their repatriation.

Over the years, Israel has been forced to deal with a number of migrant communities.  There are thousands of Filipinos working to look after the elderly and the weak who require close care.  There are also thousands of Chinese workings employed in agriculture and construction.  Once these people have lived and worked here for a few years, and even had families here, the decision to deport them becomes much more difficult.

I feel really proud that Israel was willing and able to open its doors to people in desperate need, and in immense physical danger.  This reflects our empathy as a nation for the homeless and the weak in the world.  Now that the job has been done and the charity administered, the migrants should return home to allow Israel to put her own house in order.  After all, we wish to be there again should the need arise in the future.  By sending the migrants to their places of origin, it will mean that Israelis will be able and willing to help again if required.  By allowing them to remain indefinitely, it puts this help at grave risk, and risks a great deal in our own society.

A Worthwhile Strike

Israel is back on strike after an announcement last week by the main workers' union, the Histadrut, that it has ordered its workers to stay home.  The Histadrut is an umbrella organisation for hundreds of thousands of workers across Israel, and a strike by its members has the ability to paralyse the Israeli economy.  It is estimated that this strike is costing the economy more than NIS 300 million a day, the equivalent of almost US$100m.

For the average Israeli who is not a member of the Histadrut and is trying to get on with his daily life, the strike is a gross inconvenience.  Banks, public transport, government ministries, municipal services and Ben Gurion airport are all suffering closures, disruptions and delays arising from this strike.  Prime Minister Netanyahu is on record calling upon the Histadrut to cancel the strike, and has said that he believes that it is possible to find a responsible and just solution to the problem.  I believe that he is right that a solution is within the hands of the relevant authorities.  But who has the responsibility to take the first steps in finding the solution?  Despite the fact that many people on the streets of Israel blame the strikers for inconveniencing their lives, are the strikers the ones at fault in this case?

The strike revolves around the terms and conditions upon which temporary workers in the public sector are employed.  There are an estimated 250,000 temporary workers whose working conditions are under the spotlight in this strike, many of whom fulfil roles as cleaners and security guards at their places of employment.  It is common practise for these types of workers to be "temporary workers" on a permanent basis.  The employees are usually provided by agencies, which are hired by the government and other companies to provide appropriate staff.  Even though there is often an attempt to rotate staff between different locations, it is quite common for individuals to serve in the same job at the same location for many years - essentially acting in the capacity as a permanent member of staff.  The only difference between these individuals and permanent members of staff, is the fact that the agency staff continue to earn their money on an hourly basis for indefinite periods of time.  Not only does this affect their rights to take sick leave or to go on holiday without having go be concerned about paying their rent, it also has a substantial impact on their social benefits during the time that they are working and when they finally leave their positions.  The main beneficiary of this combination deal is the government, which is by far the largest employer of these temporary workers.

This is not the first time that the Histadrut has raised this issue.  A short-lived strike was already held during the middle of last year.  This strike was called off on the promise that the issue would be resolved.  Needless to say, no substantial progress has been made towards rectifying the status and the rights attached to these workers.  Although I am not a great supporter of all actions taken by the Histadrut in the past, it is my view that the union would not be fulfilling its obligation towards its members if it did not take a strong stand on this issue.  If the Histadrut does not act strongly where this is concerned, what is its main role in our society?

Naturally and unsurprisingly, there are ulterior motives at play which serve to partially cloud the matter.  The temporary workers are not actually members of the union.  This is one of the rights that is denied them in their capacity as temporary workers.  If the Histadrut is able to succeed in convincing the government to change the status of these employees to give them a permanent contract, the Histadrut stands to gain a substantial number of new members.  Additionally members bring additional membership fees through the coffers of the union, and additional strength in the political arena.  Whereas the Histadrut is presenting its actions as entirely altruistic in the interests of the temporary workers, there is another side to their actions which needs to be considered.

Israel's "summer of discontent" saw strikes and protests against increasing economic hardship for the average Israeli.  The cost of living continues to soar, while earnings levels fail to keep pace with these increases.  Ironically, the main group of protestors who camped for months in public areas across Israel come from the middle class.  The main population of lower paid workers were not well represented at all in these protests.  The reasons are clear.  Many of them are new immigrants, coming from countries where this type of social protest is unheard of, and runs the risk of being rounded up by government authorities who will not tolerate public protest.  Most of all, they are unable to take even one day off work to protest, for fear of not being able to feed their children at the end of the month.  The message from the social protest movement to the government is that Israelis of all levels are finding the already tough economic conditions increasingly unmanageable.  When unscrambling the myriad of messages that the government received from the social protests, the key message relates to the weakest members of society, particularly those who could not even afford to be involved to express their hardship and suffering.  I see the latest strike as representing these people.

One of the messages of humility that I have learned since moving to Israel, has come from watching people strive to make ends meet.  Watching people who are accustomed to living in sprawling comfortable homes in their countries of origin choosing to adjust their lives to live in small apartments and work unbelievably long hours for little pay, shows an incredible level of commitment to this country.  Equally, seeing people who are highly educated unable to find jobs in their own professions and willing to take on menial low-paying tasks to feed children and assure their education, has been a life-lesson for me.  These people, many of whom don't even have a moment to raise their heads in order to protest for fear of foregoing an hour which can produce a little more family income, need every protection that our society can offer them.  This is why I do support the strike that is currently causing enormous economic damage to our country.

Prime Minister Netanyahu should make his haughty statements about causing economic damage into a nearby mirror, for he is the one who should be taking further action to bring the strike to an end.  In so doing, he should be taking active steps to help and protect our society's most vulnerable people.  We all understand and appreciate the fact that the government is under immense pressure to reduce its spending, and that cuts need to be made across the board.  These cuts should also be felt by those interest groups who Netanyahu is trying to court in anticipation of a general election later in the year.  The message from the country is clear.  The correct solution is not to spend more, but to spend more responsibly.  Take money that is being diverted to electioneering, and help those who really need it.

If the social protest movement really believes in the message that it has been sending to the government, most Israelis will support this strike.  Although there is always a political undercurrent to social actions, this strike could bring about substantial and sorely-needed changes to those who really need it.  It is for this reason that I am willing, albeit reluctantly, to suffer the consequences of the strike.  It is my hope that others will join in this view.

Postscript:  Not long after this blog was written, the strike was called off.  No details are yet available of the deal that was agreed upon.  Despite this fact, I feel that the statements made in the blog are still worthwhile publishing.

Assad Keeps Fighting, But Cannot Survive

The uprising in Syria has continued unabated for the past 8 months.  Despite the fact that thousands of people have already been killed in the process, the uprising shows no signs of being quelled by the strong-arm tactics adopted by President Bashar al-Assad.  Despite Assad fighting the civilian uprising using all military options available to him, he cannot survive this challenge to his leadership.  In the interests of preventing further loss of life, Bashar should accept the inevitable as soon as possible and leave office.

The Syrian uprising has progressed in a substantially different way to the uprisings that took place in Tunisia, Egypt, Yemen and Libya.  The biggest difference in Syria is the fact that the regime has managed to survive for as long as 8 months, despite constant protests by the opposition and Syrian civilians over this time.  We all know that the long-ruling and well-established governments of Gadaffi, Mubarak and others were unable to survive the attacks that they came under for more than a few months.  So what is it about Assad and Syria that has allowed him to survive for this period of time, despite having already killed more than 3,000 civilians (according to the UN) in his attempt to put down the uprising?

Despite the fact that the uprisings in other countries in the region proved to be the catalyst for the demonstrations in Syria, Assad has benefited from the fact other countries have been suffering unrest.  This has diverted the attention of the world and the international media elsewhere, while he tries to take care of his own back yard.  So far, he has managed to escape the fates that Mubarak and Gadaffi suffered when the world's leaders and media were focused on the events in these countries.  While there have been a few reports and international condemnation of events in Syria, these have not been anywhere as directed as those that were directed at Mubarak and Gadaffi before the demise of these two leaders.  In Assad's case, there are indications that this is about to change over the coming weeks and months now that Syria has been brought into target by the international community.

In the case particularly of Libya, oil had much to do with the decision by NATO to take an active part in Libya's uprising.   There can be no doubt that Gadaffi would probably still have been in power, if it was not for the role played by NATO war planes.  Even though oil exploration and export is an important part of the Syrian economy accounting for as much as 25% of the government's income, Syrian oil only makes up about 0.5% of the world's oil production.  As such, the world has not looked upon Syria with the same concern for its stability as it did when chaos ensued in Libya.  It also means that NATO has no interest in getting involved in Syria.  It enjoys little strategic relevance to the world, either in terms of its location or in terms of its production of oil.  The only possible point of strategic relevance relating to Syria is its ongoing dispute with Israel over the Golan Heights.  It is clear that the world would wish for this issue to be resolved in order to reduce the threat of a war between Syria and Israel which would, undoubtedly, drag other countries in the region into conflict.

Perhaps the most important reason why the world has not come down more harshly on Syria until now, relates to its connections with Iran.  Despite not sharing a common border, Syria and Iran have forged extremely close links over the past few years.  Ahmadinejad's Iran has proved to be the "catching net" for those countries seeking international links, but which have been rejected by countries in the west.  As one of the world's major sponsors of terror, Iran has cast its influence far and wide.  It has also stood up to huge criticism by the international community over its nuclear program, thereby showing itself as a leader of the renegade countries which oppose the influence of the USA and other western powers.  In this respect, Iran has shown itself to be quite an attractive ally for Turkey, Syria and other countries that are struggling to gain acceptance into international circles.  The world has realised that any action against Syria, effectively equates to action against Iran.

On the basis of the close links between Syria and Iran, it is difficult to separate action against Iran's nuclear program from action against Syria's extreme crackdown against protestors.  There is a view that says that the world, by escalating Iran on its nuclear program, is trying to divert Ahmadinejad's attention away from Syria in order to allow the world to take a separate position on this.  There seems to be an attempt to divide and rule.  The Arab League has taken a bold and significant stand against Syria over the past week, by suspending it from the organisation, and threatening to take further diplomatic actions against Syria if Assad does not pull his military forces out of civilian areas and halt the violence.  Although there is no love lost between the Arab League and Iran, the Arab League has taken its time in adopting this stand against Syria in view of the fact that it clearly represents taking a stand against Iran at the same time.

Despite Assad's closeness with Ahmadinejad, he will not be able to survive this uprising against his leadership.  He is destined to go the same route as Gadaffi, Mubarak and other casualties of the Arab Spring.  The question is whether he has learned any lessons from those that have fallen before him.  By hanging on to power longer than he should have, Gadaffi issued a death sentence for himself.  When his demise came, the hatred against him was such that he was never going to survive being captured by the opposition forces.  If Assad is sensible, he still has the opportunity to remove himself from power, thereby saving his life and that of his young family.  Continuing to direct his military forces to kill more civilians will make this outcome less likely, and will endanger his life further at that moment when he is driven from power.

Israel is watching carefully to see where events in Syria will lead.  The fall of Assad's regime will surely weaken Ahmadinejad's influence in the region.  Equally, any action taken against Iran's nuclear program will weaken Syria.  Assad has warned that any action taken by the international community against Syria will cause an earthquake in the region.  He knows that this is likely to drag Iran into a broader war in the Middle East, and the international community knows this too.

Ahmadinejad, it seems, is the big winner in all of this.  Leaders like Assad are running to him like little puppies in order to gain his acceptance and support.  He is standing up to the international community with his continued defiance of their calls against his nuclear program, and by continuing to fund international terrorism.  His name is on everyone's lips in the international press, and at organisations like the UN and the IAEA.  He is the modern-day version of Stalin that all seem to fear.  Even Ahmadinejad, however, cannot save Assad's head.  Assad will need to decide whether he is prepared to jump, or whether he is waiting to be pushed.  The latter option will not be without its consequences for him and his family.  Either way, Assad's eventual downfall can only be good for the region and the world by weakening Iran's influence.

Israel's Half Million Man March

It started with a call for a million Israelis to take to the streets in a demonstration that would serve as the culmination of the social protests that have been taking place for the past two months.  For a country with a population of only 7 million, this was always going to be a tall order.  Ultimately, the call for a "million man march" to protest against economic hardships, struck a chord with enough people to mobilise more than 400,000 people.  This, in itself, was a record number of demonstrators that have ever attended a protest in the history of the State of Israel.  The equivalent in the USA would see 22 million people coming out to protest, and the equivalent in the UK would be more than 4 million.  I doubt very much that these numbers could be seen in demonstrations.

The social protests have the sympathy of most Israelis, including those who are not living below the breadline in the way that so many people are.  This was in evidence last Saturday evening, when many of those who took to the streets were not necessarily struggling to pay their monthly rental.  The notion of social justice impacts all aspects of Israeli society, and does not only affect those who are coping with financial difficulties.  Services such as health and education are provided by the government for all sectors of society, and have been used even by those who could afford to pay separately for private services.  Until now, the government-funded services have been of sufficiently high quality to satisfy all sectors of our society.  For me, this has been one of the most pleasant aspects of Israeli as a country, and one which contributes to one of the flattest societies in the western world.  There is nothing more pleasing than to see the rich and poor of the country receiving the same level of medical treatment and education, all provided by the government out of tax contributions.  Although this has been the case in Israel to now, the quality of services provided by the government have deteriorated in recent times.  This has contributed to all Israelis feeling the need to come out in protest to demonstrate their dissatisfaction at this situation.

It is true that many of those in the upper income brackets are able to buy these services privately.  Private schools and health centres have begun to appear in recent years to satisfy this demand.  I feel that a great deal is lost in the process.  It is not only the fact that a two-tier system arises where the wealthy can buy what they need, and those who are in tougher financial circumstances are forced to take what they are offered.  For me, it is also the connection that one sees at schools and medical health centres between different sectors of our society that will be lost.  This will serve to enlarge the wealth gap that is already making itself evident in Israel.  I feel that this lost connection will be harmful to Israeli society.  In this respect, I was heartened to see the number of people who took to the streets, and to note that they were not only restricted to one sector of society or another.  It is a credit to the event organisers that they succeeded in appealing to so many different Israelis, and managed to entice them out of their homes to demonstrate their displeasure to the government.  All ages of the Israeli people could be seen together, including men, women and children of all ages including those in pushchairs and on the shoulders of their parents.

One of the most surprising aspects of the demonstrations, was the good atmosphere in which the gatherings were held.  At the main event in Tel Aviv's Kikar Hamedina which attracted almost 300,000 people, a stage was constructed on which some of Israel's biggest names in music and entertainment appeared during the course of the evening of protest.  Not only did this demonstrate their identification with the important cause, it also lent something of a party spirit to the event.  So, while anger was in evidence against the government's seeming lack of willingness to engage with the protestors and their cause, there was also a great spirit in evidence when the entertainers took to the stage.  Once the show was over, everybody returned quietly to their homes without any major incident or violence.  The traffic may have been heavy, but crowd never got out of control, and always remembered the reason that they had come out on that evening.

I could not help comparing this event to some other protest events that have taken place around the world in recent months.  The protest events in countries around the Arab world comprising the Arab Spring all resulted in violence and deaths or injuries initiated either by the protestors, or the authorities against which they were protesting.  The recent riots which took place in London got completely out of control, and resulted in extensive damage to personal property affecting many hundreds of people.  In contrast to these events, we saw real democracy at work.  The rule of law was exercised by both the protestors as well as by the authorities, while people were afforded their democratic right to have their say.  There could be no greater display of mutual respect of personal and social rights, than was seen during the course of this protest.  Israel is a stronger country for having experienced these demonstrations.

The protest movement has decided to take down their tents, and move to a different phase of negotiation and lobbying to bring their demands to fruition.  The fact that the tents will not be visible on the streets any longer does not mean that the protest is not continuing.  Whether or not their aims are ultimately achieved, it would be safe to say that Israel will not be the same country after the protests of the summer of 2011.  These protestors have forever changed the face of Israeli politics, protest and demonstration.  They have also unwittingly chosen an excellent time to demonstrate this.  It could not be more stark how the Arab spring and the Israeli summer have contrasted each other.

Learning Lessons From the Doctors' Strike

After 158 long days of strikes by Israel's doctors, a deal has finally been reached with the treasury over their pay and working conditions. An agreement was signed between representatives of the doctors' labour union and government officials on Thursday which changes dramatically the humiliation that doctors in the public sector have been subject to in the past. The agreement is retroactive to 2010 when the last agreement ran out, and will govern pay scales for a nine-year period.

It is shameful that it took five months of strikes by the doctors to finally convince the treasury to agree to the new deal. Under its terms, hospital doctors will receive an average pay increase of 49%. Doctors working in the periphery of the country, and doctors working in specialities which suffer an acute shortage of personnel, will receive a substantially higher increase. These increases give an indication of how far behind market rates, doctors pay scales have fallen over the past few years. In return for the better salary levels, doctors have agreed to clock in and out of their shifts. A further 1,000 positions have also been added by the government to reduce the shortage of manpower that has been plaguing Israeli hospitals. Overall, this agreement is set to change the face of Israeli medicine and medical treatment in the country over the next few years.

The Israeli medical health system is one of the best that I have come across. One does not find the phenomenon here like in the USA and other countries around the world, that people who are at an economic disadvantage are unable to receive medical treatment. In Israel, all citizens have the right to have access to basic medical treatment which is of a high standard. One does also not experience the issue which the UK's National Health System suffers from of lengthy waiting lists for treatments to be carried out. In Israel, even though it may require some patience, treatments are usually available within a reasonable period of time. Now that pay scales have been rectified, it will ensure that those delivering this service will be remunerated accordingly. It will also mean that high quality individuals will be attracted to the medical field, and will be incentivised to practice their art in Israel as opposed to seeking more lucrative opportunities abroad.

For me, the main lessons to be learned from the new deal are the ones arising from the process that it took until the time that it was agreed. One can learn many things from the behaviour of the doctors in this process, as well as the way in which government officials acted. One of the toughest lessons that new immigrants to Israel are forced to learn, frequently via the most difficult route, is that there is no such thing as automatic entitlement in this country. Even if you have a caste-iron agreement in place which says that you are entitled to a certain increase in salary or other entitlement, you will not receive this unless you are prepared to go in and demand what you are entitled to. Whereas in other countries, companies usually have a date upon which salaries are reviewed and pay increases are awarded (or not as the case may be), this type of behaviour is not typical for Israel. Companies will award pay increases to those who shout the loudest, and may completely overlook those who are not willing to make a big noise. The doctors' strike was one of necessity. It should be clear that, without the industrial action and public relations exercise that went with it, the doctors would not have achieved a small fraction of what they deservedly achieved.

The way that the action was taken, is of equal importance. Emergency services were never interrupted. Instead, the doctors professionally separated the cases into those whose treatment was essential, and those whose treatment could be delayed. Any treatment that was essential went forward without consideration of the industrial action. Doctors administering chemotherapy and psychiatric treatment did not interrupt their regular work day in the interests of taking best care of their patients. The strike was immediately lifted ten days ago in the area of the terror attacks in the south until such time as all casualties from these attacks had been taken proper care of. Although there is now a substantial backlog of non-emergency treatments that have been delayed, the doctors have somehow managed their medical responsibilities under their Hippocratic Oath, while also succeeding in placing the required pressure on those who only understand the language of industrial action.

The behaviour of the government officials in this sorry story have less sympathy and respect from me. To begin with, the demands of the doctors were completely ignored. Even when the industrial action was initiated, the treasury refused to give sufficient consideration to the effects of below-market pay rates to the country's medical professionals. It eventually took a hunger strike on the part of the chairman of the Israel Medical Association, and a complete walkout of all medical residents from their hospitals until the proper attention was given to this important issue. When the agreement was finally signed last week, the treasury officials did their best to keep the signing low-key and behind doors.

It is true that the government has an obligation to keep its spending under control, especially at the current time when inflation threatens to increase. With huge security obligations, Israel's government spending is always tough to keep under control. This should not, and cannot serve as an excuse for not allocating the correct public money to build the future of this young country. Education, medical services, infrastructure and many other services cannot be ignored due to the military and security requirements. It does mean, however, that public officials have extra responsibility to ensure that each Shekel of tax money goes as far as it possibly can. In this, unfortunately, our country fails miserably. The amount of waste, corruption and unnecessary spending of money that is evident is a huge disappointment to the citizens of Israel. Why should the defense minister feel justified to request a new Audi A8 at a cost to the taxpayer of 2 million Shekels, when his current A6 is more than adequate. The state comptroller's reports are regularly critical of unnecessary wastage of tax money. Such lack of consideration to where the money really needs to go, should not be tolerated.

I feel that citizens of the State of Israel owe a deep debt of gratitude to our medical professionals. For many years, they have provided a high quality service in line with the most recent developments in technology and treatment, while being paid far less than their real value. When the moment came to bring this situation to a head, they did so in the most respectful way possible, while still insisting upon the maintenance of their own rights and dignity. If some of our government officials and elected politicians behaved in this way, Israel would be in a much better overall state.

Being Uplifted From a Most Unlikely Place

I am sure you all know the feeling when a seemingly insignificant event or comment has a marked impact on your spirits. This is exactly what happened to me last week. I had a particularly exhausting week through a combination of increased pressure at work and the effects of the summer heat. I went along to the supermarket late one evening with my wife and son to pick up a few items of groceries. Once my wife had found all that she needed (and more), we headed to the checkout counter.

In Israeli supermarkets, the checkout counter is usually a place to increase your tension levels. Queues are long, other shoppers are rude and inconsiderate and the checkout clerks usually slow and uncaring. On this occasion, our checkout clerk was an Ethiopian lady with a big welcoming smile. We recognised her from a few weeks ago when she also checked us out, and we immediately got chatting. She remarked on how tired I looked (I guess that she figured this out from the fact that I sat down on the chair of the next checkout counter that was not in operation, and let my wife and son get on with bagging our goods). She was interested in the fact that we spoke English amongst ourselves, and asked where we came from. I told her that we originate from South Africa, and she remarked that we are cousins by virtue of our common African heritage. I asked how long she has been in Israel, and she told me that she came on aliyah from Ethiopia 27 years ago in 1984. This means that she has lived in Israel for most of her life, and probably came as part of Operation Moses that airlifted some 8,000 Jews from the Gondar region of Ethiopia.

I asked about life in Ethiopia. She said that now, life in Ethiopia is not too bad. This is in contrast to the starvation that was being experienced at the time of her immigration in the mid 80's. Despite the improvements in the situation in Ethiopia, she said that life there is not good for the Jews. Tongue in cheek, I responded by saying that life in Israel is also not good for the Jews. My comment was a throw-away line which referred mainly to the massive demonstrations against economic hardships. I knew that she would almost certainly not have things easy. The immigrants from Ethiopia have been forced to endure a great deal of hardship during their time in Israel. Many of them were not recognised as Jews and were not extended the rights available to Jews under Israel's Law of Return when they arrived. A great number have been forced to convert to Judaism to be recognised as Jews by Israel's Ministry of the Interior. Their gentle character and system of respect has been taken advantage of in the aggressive rough-and-tumble that is prevalent in Israel. The fact that so many of the Ethiopian immigrants have been through the Israeli education system, completed their army service and integrated themselves fully into Israeli society is a huge achievement. I was also aware that this lady, as a checkout clerk, is probably earning the minimum wage of approximately 24 Shekels an hour. If people earning twice this amount are camped out in tent cities across Israel protesting economic hardships, how much more somebody like her. My expectation was that she would simply agree with my comment that things are not easy.

Instead, she looked at me, smiled and said, "but this is our country". She told me how good she feels that she can identify freely as a Jew in Israel, and eat kosher food without worrying about who may be watching her. Despite having lived in Israel for so many years, she clearly still values and appreciates the freedom that she has a Jew in the Jewish homeland. I left the supermarket still feeling tired, but really uplifted from my short conversation. In the space of a few sentences, the Ethiopian lady had really made me appreciate again what it is to be a Jew in Israel despite all the hardships. The truth is that I am usually aware of this fact, and how privileged I am to be able to live as a Jew in a Jewish country. One only has to go back one generation, to the time of my parents, to know how Jews were forced to live "under the radar" in order to survive. With anti-Semitism rife in many countries, this is still the case today in some parts of the world. The checkout clerk helped to remind me of this at a time that I was thinking more about how tired I felt, and about the economic hardships that people are feeling in Israel at the current time. She somehow managed to focus on the half full part of the glass, rather than the half empty.

Life is certainly not easy these days for many of Israel's citizens. Many people are working hard simply to stay on the bread line. Thousands of people are camped in tent cities across Israel protesting against economic hardships. The fact that fully 5% of the population were involved last nght in demonstrations against the economic situation in Israel, is evidence of the hardships being experienced by so many. Despite all of this, our Ethiopian checkout lady was able to keep smiling, and radiate her positive energy in a way that really lifted my spirits. On my next visit to the supermarket, I will definitely lookiout for my Ethiopian friend.

What is the Answer to the Tent City Protests?

It is somewhat ironic that Israel's housing crisis has run in a completely opposite direction to the crises that have taken place elsewhere around the world. House prices have dropped dramatically in the USA and Europe over the past few years. With this decrease in prices has come a wholesale collapse in the entire housing sector, as mortgage banks have found themselves unable to cope with clients not making their repayments, and the value of their collateral suddenly much lower than that of the loans. Governments have been forced to step in to save these institutions in order to prevent some of the biggest financial names going into liquidation. As opposed to this, house prices in Israel have continued to rise beyond the pockets of many ordinary citizens.

The phenomenon of oversupply and lack of demand seen in the rest of the world has not taken place in Israel, with prices somehow remaining fairly constant over the time that the bottom has dropped out of the market elsewhere. This means that Israelis, who have also suffered significant financial hardships over the period of the economic downturn, are not enjoying any relief from lower house prices. This fact extends itself into the rental market where rentals for ordinary apartments cost a great deal, and add to the financial woes of the average Israeli citizen. After experiencing price rises on a range of goods and services without commensurate increases in earnings, the Israeli consumer has eventually decided that he cannot tolerate the situation any further, and has spilled out onto the street in protest. The main target of the protest has been the inflated prices that citizens are required to pay for housing. Tent cities have sprung up in the central areas of many Israeli towns and cities, and protestors are sleeping on the street to demonstrate against the government for not paying sufficient attention to providing cheaper housing options.

In the 13 years since I moved to Israel, house prices have increased dramatically. Somehow the Israeli housing market has not seen the same ups and downs that have been evident in other markets. An apartment that cost approximately 800,000 Shekels back in 1998 will cost around 1.2 million Shekels today, an increase of 50%. Admittedly, there were years in which house prices did drop. Overall, however, the increase in the price of housing and of rentals has outstripped inflation by some distance. The reason for this comes from a number of different sources.

The most obvious issue driving house prices, is the fact that land in Israel is scarce. The entire area of the State of Israel is approximately 20,000 square kilometres, a similar size to the US state of New Jersey. Even the land that we have is not secure, with continuing demands by the Palestinians for Israel to relinquish further land claimed by them for a Palestinian state. With so little land available, it is inevitable that this will contribute to higher land prices. Attempts to build higher to use land more intensively have also not helped much to reduce the land cost element of the cost of property.

Along with the lack of supply, demand for property in Israel seems to be ever-increasing. Some of it is being fuelled by the upper classes who are not sensitive to the economic downturn, and who are constantly searching for bigger, better and more ostentatious properties. This is particularly true of the Israeli nouveau riche, some of them hi-tech and Internet millionaires. Demand is also being driven by Jews from outside of Israel who are looking for a piece of the Holy Land to use as a holiday pad. This demand has increased in recent years, and has contributed to parts of Jerusalem turning into ghost neighbourhoods with holiday apartments remaining empty between holiday visits. In addition, with approximately 20 years having passed since the gates of the former Soviet Union opened to allow Jews to leave for a new life in Israel, we are now seeing the effects of the children of these immigrants leaving the nest. A surprisingly high number of these new immigrants have succeeded in buying their own homes over the years, and now their children wish to emulate this example as they set out on their own paths. I recently attended an interesting seminar which showed that this generation will be driving demand for property and other major expense items for some time in the future.

All of this does not look optimistic for the man in the street. Israeli unemployment is currently at an all-time low of approximately 5.7%. For the economists amongst us, this means that Israel is nearing full employment, a situation where all those who wish to work are working. The problem is that this is not helping to reduce poverty. Salaries have remained so low despite increasing inflation, that Israel is increasingly becoming a nation of working poor (see my blog A Country of Working Poor). Most of those who are inhabiting the tent cities across Israel are not unemployed and homeless. The vast majority have jobs and homes, but are finding it impossible to keep making the rent or mortgage payments despite long working hours. For many people, the cost of keeping a roof over their heads is costing 50% and more from the money they bring home each month. Surely, this is an intolerable situation.

More than a hundred thousand people took to the streets last night in towns and cities from Rosh Pina to Eilat to protest the lack of action on the part of the government. The slogan being shouted at these protests is "an entire generation demands social justice". The feeling is that the government is pandering to the Israeli tycoons at the expense of the man in the street. This has enabled the tycoons to build and live in luxury developments which are under construction across Tel Aviv. Some of these sites have become targets for the protest0rs. The government has been unable to express what they have done so far to provide more affordable housing for young couples and lower income earners. The prime minister has been unwilling to come out to meet the protestors on the streets. This is contributing, not only to the feeling that the prime minister has done nothing, but also to the feeling that the government is unwilling to do anything to fix this situation.

Unfortunately, there are no simple answers to this serious and far-reaching problem. Many respected market watchers are predicting a significant drop in Israeli home prices in the near future. The problem is that it would take some time for rental prices to follow any correction, and I have my doubts that rental prices would fall in any significant way. I remain highly doubtful that a drop in house prices is on the horizon at all. Any action that the government may take now to provide lower cost housing is likely to take years until it comes to market. So what can the government do in response to this protest?

While the protest is focused on rising house prices, it is really about the general increases in the cost of living, while incomes remain static. The first step to fix this has already been taken by the government when they decided to freeze the fuel price increase that was set for tonight. The decision to hold fuel prices steady is likely to have a significant knock-on effect by holding the prices of many other items steady. The next step is to increase earnings to level the playing field. Starting with the doctors who are fully justified in their strikes for better pay over the past three months, public sector and private sector workers need a bigger pay cheque to allow them to balance the budget at the end of each month. In tandem with this, longer-term measures should be put in place to provide sufficient lower-cost housing for those who simply cannot afford to pay the prices in the current market. Failure to act quickly and decisively risks financial ruin for many families. The future of the government could easily rest upon its ability to react to this problem.