Israel is country is constantly mired in complex problems: the Palestinian issue, extreme political flux in neighbours like Syria and Egypt, nuclear threat from Iran. It has a population about the same as London's - 7.5m people - and occupies a tiny stretch of land not quite as big as the state of Vermont in the USA. But it has one heck of an economy. Economic growth has chugged along at an average of around 4% for many years despite an almost constant state of regional crisis. Inflation is low at around 2% and has fallen steadily over the past decade. The population is rising at around 2% pa. At the head of the central bank is Stan Fischer. Nowadays called an 'Israeli-American' he was actually born in Lusaka, Zambia (which was Northern Rhodesia at the time) - the same country as my Mom. He has an unmistakably southern African accent, even today. Over 130 Israeli companies are listed on Wall St and the country boasts it's own version of Silicon Valley which bristles with hi-tech start-ups. Where the US version has a high percentage of consumer product innovation, Israel is more into business solutions. It simply doesn't have the population to experiment on, like the USA. The next step in the economy is the proposed break-up of its extensive conglomerates to increase competition. Israel is testimony to the idea that a high state of tension is good for the creative juices. The QSL is from Kol Israel, heard on AM 657 in 2000 while I was on a business trip to Istanbul.
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