The political posting was sent to the list by
mistake and I apologize.
Jonathan D. Safren
Dept. of Biblical Studies
Beit Berl College
----- Original Message -----
Sent: Friday, August 02, 2002 4:38
PM
Subject: Re: Only one economic program
can save us
I had thought that this list was for scholarship, not politics.
But to all those who want a ballanced source of information of the Middle
East:
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At
10:53 AM 8/2/2002 +0200, Jonathan D. Safren wrote: >Ha'aretz -
Article > >Ha'aretz Daily Newspaper >Friday, August 02, 2002
Av 24, 5762Israel Time: 10:41 (GMT+3) > >Only one
economic program can save us > >By Nehemia
Strasler > > > > >"What is needed is a
conservative, responsible policy that can increase >growth and
employment in 2003," senior Finance Ministry officials told >cabinet
members this past week in a campaign to convince the government
to >support the treasury's new cutback program. The program deserved
support, >and the government did the right thing in approving it, since
it is a rescue >plan designed to prevent the economy from sliding into
an Argentine-style >financial crisis. At the same time, the program is
not a plan capable of >shifting the Israeli economy from its current
crisis to a rosy horizon of >growth and a lower unemployment
rate. > >It should be pointed out that there is no economic
program on earth that >could prevent the deep economic crisis toward
which Israel is heading. The >economic situation is steadily worsening.
The hotels are miraculously >holding on, the building contractors are
recycling their debts with the >banks without any clear idea as to how
they will ever repay those loans, the >self-employed are facing the
prospect of a deep credit freeze that might >force them either to
downsize their economic activities or to shut down >their businesses
altogether, and the country's major companies are reducing >operations
and laying off staff. Given this situation, the unemployment rate >is
steadily climbing. > >If we took a close look at the press
releases received by a single >journalist during a single working day,
we would discover an entire series >of doomsday messages: the Israel
Export Institute reports a 20-percent drop >in the export of
manufactured goods to the European Union; the Israeli >Association of
Plastic and Rubber Manufacturers announces that the first >half of 2002
was the worst first-half period in a decade, with 400 layoffs, >a
four-percent dip in sales and an eight-percent slump in exports;
the >Central Bureau of Statistics reports that hotel accommodations in
the first >half of the year dropped by 13 percent compared to the first
half of 2001 >and by 37 percent compared to the same period in
2000. > >Our international stature has never been worse. The
Israel Philharmonic >Orchestra was forced to cancel a concert tour in
the United States and, a >month ago, 360 members of youth orchestras and
dance troupes had to unpack >their bags because the organizers of a
festival in Cyprus told them that >they were not welcome. Israeli
physicians and scientists are given icy >receptions at international
conferences. Cyprus was unwilling to host the >Maccabi Haifa soccer club
and only massive pressure led to a reversal of >that decision. The
response of Moshe Teomim, owner of Hapoel Tel Aviv: "The >problem is
only going to get worse. We are losing a large portion of the >moral
justification that we used to have, and we are slowly becoming a >pariah
that the world wants to distance itself from." > >This situation
generates fear and gloomy projections, which will mean that >the level
of the economy's activities will continue to drop over the next >few
months. Similarly, revenue from taxation will continue to shrink.
Which >will, in turn, mean that the Finance Ministry will have no
alternative but >to present an additional program of cutbacks in early
2003 to meet the >target of a three-percent deficit in the state budget
- a precondition that >must be in place in order to prevent an immediate
financial crisis - and the >next program of cutbacks will be tougher
than the present one. > >This inevitable process can be stopped
only if we place our finger on the >real problem: The war in the
territories and Palestinian terrorism. Israel's >economy can never hope
to recover as long as Palestinian terrorism hits deep >in the heart of
the country. This terrorism leads us to "keep our heads >down" and
causes a slump in business activity, generating yet a further >slump in
our standard of living and a further increase in the unemployment >rate.
However, the Israeli government is feeding the flames. Its answer
to >terrorism is to use more force and more bombs, to eliminate more
key >Palestinian figures, to impose more closures and to deport
more >Palestinians. In carrying out these actions, Israel is not
reducing >Palestinian terrorism; quite the contrary, Israel is merely
intensifying it. > >Prime Minister Ariel Sharon is not interested
in political negotiations with >the Palestinians. He is not prepared to
adopt the Clinton plan, or the Saudi >plan, or even the latest plan
formulated by U.S. President George W. Bush. >Instead, Sharon is saying
he will accept these plans only if certain >conditions are met -
conditions that will only prevent any form of peace >negotiations. When
the other side has no political horizon to look forward >to, when it has
no hope, and when it sees more and more poverty and >humiliation on its
turf, the terrorism will only increase and intensify. > >As long
as the Israeli public fails to understand - and to internalize -
the >direct link between peace and economics, it will continue to seek
miracle >cures in the wrong places. The impressive economic growth of
the mid-90s was >generated primarily thanks to the Oslo agreement of
September 1993, which >restored hope in our daily lives and channeled to
Israel billions of dollars >from foreign investors - dollars that
enabled the economy to enjoy a rapid >pace of growth and which caused
our standard of living to rise and our >unemployment rate to plunge
dramatically. > >Thus, the economic program that is really needed,
the only economic program >capable of extricating us from the present
crisis, is a political program >that will restore hope to both nations.
This program is possible even today, >despite the grave security
situation. The only problem is that this >country's leadership lacks the
courage to take the risks needed and to >navigate a new
course. > > > > > > > > > >--- >You
are currently subscribed to b-hebrew as: [Yigal-Levin AT utc.edu] >To
unsubscribe, forward this message to leave-b-hebrew-144306C AT franklin.oit.unc.edu >To
subscribe, send an email to join-b-hebrew AT franklin.oit.unc.edu. > > Dr.
Yigal Levin Dept. of Philosophy and Religion University of Tennessee at
Chattanooga 615 McCallie Avenue Chattanooga TN
37403-2598 U.S.A.
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