Saturday, July 9, 2011

The Modern Miracle of Israel: The Economy

Regardless of political beliefs, one must appreciate the unlikely hood of the existence of a State of Israel. After the state's founding in 1948, Israel seemed doomed to destruction, before it could ever get off the ground. Invading Arab armies in 48, 67 and 73 seemed set to wipe Israel off the map; yet, against all odds, Israel survived.

The "Six Day War" of 1967 was particularly notable (In my attempt to keep this blog as a political as possible, I will try to keep to the agreed upon facts of this war.) Israel won a stunning and decisive victory on 3 fronts (Egypt, Syria and Jordan), nearly tripling the size of the country. This victory has been studied by military strategists and tactics employed in this war are taught in places like West Point. These were the miracles of Israel in its early days, however the miracles experienced by Israel today are of a different nature.

What was once a third world economy, is today one of the strongest and fastest growing economies in the world. In the 1980's Israel's economy nearly collapsed. Hyper inflation caused the Israeli currency, The Shekel, to become nearly worthless. Economic reforms were implemented and today Israel is the 24th largest economy in the world. Israel weathered the recession nearly unscathed, due to the conservative banking measures of Stanley Fischer.

Israel has the highest per capita venture capital in the world, with more start up companies than nearly any country. This is the modern day miracle of Israel: That, against all odds, a tiny strip of land in a very rough neighborhood, only 63 years old, is one of the major powerhouses of the global economy.

I am currently speaking with companies regarding positions at one of the countless start up companies in Israel. Whether it is serendipity or dumb luck, the direction of my job search now brings this blog full circle. I named my blog A New Beginning in The Start Up Nation, purely as a play on words; referring to the history of Israel as a new nation, coming from the ashes of the Holocaust, as well as the current economic environment. I didn't realize that I too would (hopefully) soon be an integral part of the actual "Start-Up Nation."