Sunday, July 12, 2009
Israel Economy - Independent, American Ties, Worldwide Ambition
Dead Sea cosmetics store in Dizengoff center: Israeli firms learned to depend less on the USA and develop customer demand all over the world, see article.With the global economic downturn spreading into many smaller economies everyone wonders what will happen in Israel. The Israeli Economy has been dependent much more on the US economy and the strength of the dollar in the past. Economic downturns due to this dependence has sent many Israeli companies looking for customers all over the world, specially during the last ten years. This is not a sign of Israelis retreating from US markets, just more emphasis on expansion in other places. Take the Israeli Dead Sea cosmetics company. A relative newcomer to the retail sector in Israel they were known as strong marketers to the US starting to sell there in 1999. Today their products ship to the whole world and have loyal customers in places like central Asia and Africa. This focus on selling globally is unique and still not seen in most Israeli consumer product companies.
On larger end of the spectrum Teva Pharmaceuticals is one of Israel's largest company. It has expanded in the last ten years to become a truly international company with many more plants and distribution centers in Europe than anywhere else in the world. This trend to serve new markets is also seen in construction and engineering. Israeli architects, building construction and real estate investors have focused their efforts in Europe and Asia for more than fifteen years.
Let's get back to the Israeli economy. Israel has been distancing itself from the US dollar since the drop of the dollar to shekel from around 4 to 3.2 two years ago. Real estate transactions which were all quoted in dollars are now quoted in shekels. The US financial downturn, started with the sub-prime credit crash events and moving to mainstream financial institutions, than the credit markets and finally hitting US automakers did not influence Israeli companies and investors directly. Also, what the American managers were doing in the US was not duplicated in Israel. This isolation in financial and managerial behavior is probably the single most crucial difference between the economies now suffering and Israel's economy. On the positive side, stronger Euro and Asian denominations are strengthening the economy here while there is drop in business from the US. Some would like to think that government or the private sector planned in some way a cushion from the global financial downturn. This is not the case. Israel has been in a slow economic period for the last few years (some say ten years or even longer). The high-tech bubbles of 2001 and 2005 hit the job market hard. This has slowed down foreign investment and the local real estate sectors. So while US, Europe and China were celebrating strong economies and high consumer demand through the 1990s, Israelis were spending less and getting used to living at a lower economic standard.
While the dollar has weaken against other denominations, the Israeli shekel has held well in the 2008/2009 A brief history of what makes the Israeli economy so unique and independent. The Israeli economy is an anomaly among countries. One of the only country to advance steadily over the last 60 years. As a Jewish community emigrating from Europe, private Jewish agencies started organizing economic institutions such as banks, insurance companies and mortgage programs. The Jewish agency backed by individuals and communities realized the need to duplicate economic structure of Europe as far back as the 1880's. The British mandate in Palestine from 1917 to 1948 brought further economic structure in the forms of legal and financial organization and professional structure. Up to the 1980's banking and accounting standards in Israel have been tightly based on British laws and practices. On the ground Isarel's economy has been isolated from the Arab world since the founding of the country in 1948. This with a combination of few resources and small internal markets has forced the economy to develop foreign markets for it's goods and services. The Israeli economy goes through a change in character every twenty to thirty years. From the 1930's to the 1960's the local economy was based on agricultural exports and internal real estate development. In the 1950's to the 1990's the diamond polishing industry was the main engine of growth. Since the 1970's technology companies, both foreign and domestic have been the strongest contributor to the economy.
Today the Israeli economy is certainly feeling the American and global financial downturn. But unlike other economies there are no rioting workers and no food lines (Israel does have a strong socialist support system, this also helps in bad economic times). Why? Simply because the sectors making up the economy, agriculture, technology, services are not on the brink of collapse. The financial sector is also not suffering from dept or bad credit problems. Israelis like to live a little beyond their means but the average Israeli has not taken credit in the amounts seen in the US. Finally, Israeli companies have gone through the ups and downs of dependence on a single market and a single financial partner. In the mid 1980s Israel suffered from hyper-inflation and everyone remembers what happened. This has given them the insight not to put all their eggs in one basket. It also gives people the drive to succeed especially in hard times.
Friday, July 10, 2009
Tel Aviv Travel - Saturday Afternoon in a Quiet Cafe
Levi's Dockers are the unofficial Tel Avivian's work dress. Israeli dress code is less formal than EuropeansOne of the biggest misconceptions about Saturday's in Tel Aviv is how secular Jews keep the shabbat* (the sabbath for Christians). To some, Jews keep the sabbath by congregating and praying in a synagogue or a traditional Friday night meal with blessings and candle lighting. Another misconception, also an extreme view of secular Judaism is the belief that secular Jewish shabat means a day spent on the beach or driving around the country, completely ignoring traditional Jewish tradition. This view also associates the non-traditional shabat observation with being opposed to Judaism altogether (throwing the baby out with the bath water). Tel Avivians actually do not take sides in a religious tug of war between secular and religious followers. Shabat is spent here probably like secular Jews have been doing for centuries, in Tel Aviv there are a few nice modern amenities to make life better one day a week.
In the early afternoon hours on Friday, as if an invisible conductor lifting a baton, Tel Aviv's residents' urgency slows down. Tel Aviv's shabbat is quiet. Streets go silent as a few cars move slowly, a cafe here a kiosk there stay open the rest close down turning busy sidewalks into empty spaces. People who normally rush and shove slowly take a layed back posture, the rudeness turns into courtesy. Stores, boutiques and malls slowly empty and are closed for a day and a half. Buses and trains stop running. Weekday casual dress is toned down more: T-shirts and rumpled polos instead of ironed and starched shirts, Levi's 501's instead of crisp creased Dockers. Women in sun dresses and halter tops instead of matching outfits from Fox, Castro or Honigman's (latest fashion is a must in Tel Aviv, a halmark of a woman in this city). On weekdays Tel Avivians are always in a hurry, buzzing everywhere nonstop, there is definitely a New York hurriedness here. Secular Israel really does come to a rest, this makes Israel a unique place, American's the first time here, used to seven days of shopping wonder what happened. Nothing really happens, it's shabbat.
A walk with friends on a shaded boulevard just off King George street in central Tel Aviv On a warm July afternoon north Dizengoff street is quiet. There are a few cafes and restaurants open between Dizengoff circle and Arlozorov. A mix of groups finds it's way to Etnachta, a small bar-restaurant at 190 Dizengoff. Two Dutch businessmen spending a weekend away from home ordered a complete meal one item at a time (a la carte), one could not decide on roasted eggplant with yogurt or tahini so the waitress bought him a sample of tahini. A few couples on dates, maybe even the awkward blind date, trying to look cool and composed (nice wicker chairs and shade make this a comfortable place to meet). A young couple with a stroller situated just outside the delineated tables area, Etnachta has tables under beach umbrellas on the side street, a regular arrangement for most busy street cafes in this part of town. Groups of friends come and go, coffee and a croissant on a warm shabbat afternoon is a great way to catch up and feel connected. Some seem to be comfortable enough so this is a weekly ritual, with the slow economy restaurant business is slow, but the pleasure of sitting an hour with a cup of coffee is not such a luxury item (25 to 45 shekels for coffee and a baked item per person - about $6 to $11). Etnachta serves a light menu, this is true of most places open on Saturdays, Tel Avivians are not eating the main meal just snacking about with friends. Strangely enough there are not many tourists in this part of town. They tend to be on the beach or in nearby beach restaurants. There, the nonstop international time schedule infiltrated Tel Aviv giving the beach a resort feel. The beaches are noisy and busy, summer is the high season and tourists like to lie on the beach. This is another part of the city... next time... the beach life in Tel Aviv, a tourist attraction!
*shabat in Hebrew literally translates to rest or to strike (work stoppage) or to stop working (not necessarily as a work stoppage in an organized or unionized context).
Wednesday, June 24, 2009
Why is the World Silent? (Iran's supression of freedom)
The United States, England, France, Germany and most western developed countries act like they have no interest in protecting freedom against the worst tyranny on earth. Freedom is of no interest to the so called free world. The United Nations just sites quietly, not even debating the issues on TV. Who cared when the Nazis killed innocent Jews and the weak minorities of Europe? NO ONE in the free world! These are the same countries that don't give a damn that thousands of freedom fighters are being slaughtered by the 21st century version of the Nazi party in Iran, cloaked under the guise of religious purity. (The NAZI party also called "National Socialist German Workers' Party" gussied their intentions behind socialism for workers).
Only Israel has called on the United Nations to halt this slaughter and show support for freedom. Benyamin Netanyahu said on what is going on in Iran:
"I cannot tell you how this thing will end up. I think something very deep and very fundamental is going on... There is an expression of the deep desire amid the people of Iran for freedom. ... This is what is going on."
While president Barack Obama waited a week and more to "toughen up" on Iran (until June 23rd). It's time for the free world to stand up for what they say they believe in. The leaders of these countries should hang their heads in shame. Perhaps they should all resign and go live with the mullahs.
We should all fight for freedom
Cast off your chains
sam-d-man @ TLV tomorrow blog
Monday, June 22, 2009
Iran Election Demonstration from Tel Aviv Perspective
Soldiers from battalion 52, givati brigade, after taking the bank in Ness Tziona, 1948-1956, photographer: unknown, [www.pikiwiki.co.il] Attribution: ארכיון לתולדות רחובותThere is an unwritten agreement among countries when it comes to internal political strife: "don't tell me what to do and I will not tell you what to do". I guess this goes for these developed and civilized countries. The ones which fought hundreds of years ago when gentlemen made the rules and stuck by them. When it comes to political media sniping and gentleman's agreements its pretty safe to say that Israel and Iran are on the other side of this "don't tell me what to do" spectrum. Iran's leaders have used the media to attack Israel's politics so much that when you see a crowd of chanting Iranians following a leader's chant "... death to America, death to Israel..." most people just ignore this, after 30 years of the Iranian revolution it's not news any more. International TV news channels (CNN, BBC, Al Jazeera) run these videos as if they are meaningless. But in Tel Aviv it is not meaningless. Americans and Britons can take some comfort in distance and strength in numbers. It seems improbable that Iran would carry out on the chants 'death to America'. But with intermediaries like Hezbollah in Lebanon, it does not seem such a far fetched idea to be attacked - even if not killed by extremists in Iran. So the idea of "I am not going to tell you what to do" does not fit here. Israeli leaders have shied away from voicing their opinion in public. Many here think that this is a big mistake.
Why should Israeli leaders incite Iranian demonstrators? Why should Israel be on the side of changing a government in Iran? Because the election demonstrations in Iran is the best news Tel Avivians have heard from Iran in a long time. Why should it seem to most of us that fighting Hezbollah in Lebanon is OK but speaking out in the media is not? Does this make sense? No, it does not make sense. It also does not make sense to be silent about an oppressive Islamic government exporting it's hatred to Israel's borders left unchecked. Words may not influence Iran during peaceful times but these are not peaceful times in Iran. Israel wants to stay neutral, so far that has been one sided and it does not seem like Iran is going to stop using international media against Israel. Even without absolute proof, Iran has been supplying Hezbollah and Hamas with arms to use against Israel. It seems that this "I will not tell you what to do" equation is not balancing in the side of Israel. On the streets of Tel Aviv there is a split between these who think of achieving peace by simply being peaceful and these who feel that we need to defend ourselves against Iran and it's Palestinian intermediaries (Hezbollah and Hamas.)
The situation is a little more complex since US President Obama entered the scene. He was elected with the agenda of bringing a solution to the Israeli - Palestinian problem. To most outsiders that seemed like a good idea. From an outside perspective of US or Britain the situation here seem trivial. Obama probably thinks: [A] let the Palestinians declare a state, [B] give Israel more support in case the Palestinian government loses control over militant factions, [C] everybody goes home happy => [D] Obama/Clinton look great, take the credit, make the American public happy. What's wrong with this picture? A reality test in face of the fierce split among Palestinian factions and basically the Iranian support of Hisbollah and Hamas. No Arab leader, government or organization can be credible in assuring control over extreme factions' terrorizing Israel. So we are back to the first point, should Israel wish for Iranian government fall or even change in policy? If Iran's government falls or even alters it's support of intermediaries terrorizing Israel, than we can have the Obama scenario. Well, at least this is one scenario, hey a Tel Avivan can dream can't he? Let's wait and see what happens with the second Iranian revolution - oh sorry, election demonstration.
Saturday, June 20, 2009
Sports in The City - European RS:X World Championship ~ Windsurfing
Shahar Zubari just won the European windsurfing championship. Nice going for this young Israeli! [results] [Zubari - Wikipedia]
The 2009 European RS:X Championship (windsurfing finals) is in Tel Aviv this week. But for most beach goers on Tel Aviv's beaches this is just a jumble of sails on the horizon. Not that windsurfing is not a big thing here, after all Shahar Zubari was Israel's only Beijing Olympic medal winner (bronze). Not that Tel Aviv ignores international events in the city, they are announced weeks and months in advance and televised and reported in the national media (Haaretz article). So what is it? Tel Aviv simply has too much things to offer, the city is buzzing with activity specially summer on the beach, there is too much to do. Everyone has their own packed lives and weekends are for sunning on the beach for some Tel Avivians, there are just so many hours in the day tans have to be maintained and bikinis to watch and be watched. Anyway, the windsurfing event was here and a few fans gathered on the marina breakwater to watch on Friday and Saturday (June 19th and 20th). I can't tell you about the other days.
Friday, June 19, 2009
Rest in the City - Lots of Good Coffee and Nice Cafes
Tel Aviv is 100 - so what is so good about being here? Some say it's the coffee. Actually cafes and the race to make the best cup of coffee in the world. Well, we have some competition from Paris and Rome, but when it comes to a good table to sit, a nice espresso or cappuccino and a friendly place to meet for a chat - Tel Aviv is ready for a coffee reality show contest any time.It is not clear when Tel Aviv became a cafe city. This is a new trend which goes back no more than 20 years. Recently as the picture show, we have seen "the attack of the cafe chains": Aroma, Cafe-Cafe, Ilan's, Arcafe, Cafe Joe, Cafeneto... there are a few other ones, smaller or regional (Cafe Greg is mostly in Haifa with one branch in Dizengoff Center). International chain The Coffee Bean has a few cafe locations in Tel Aviv and surrounding towns. Still the local independent cafes of Tel Aviv are what makes the coffee here special. Independent cafes represent a tradition brought from Europe over the years. New French and British immigrants the last few years invigorated this trend. The Landware and Elite are coffee roasters with cafes bearing their names. In malls and public places you will also find kiosks bearing Elite and chain cafes names (branding is a big here now). If this was not enough, in most public buildings (government centers, hospitals, universities) and malls you can find coffee vending carts from all the large brewers and roasters. Cafe Elite is the oldest and most popular coffee brand. It's Turkish coffee, a dark roast ground to a fine powder is Israel's traditional coffee.
Cafes in Israel would be considered medium size by European standards. They seat 20 to 50 people with the low end of 20 to 30 for most of the locations (10 to 25 tables). You will be hard pressed to find a 5 seat counter only cafe in your neighborhood in the tradition of Paris, Madrid or Rome. These Europeans come for a drink, pay and move on with their daily routine. In Miami and New Jersey Cubans even have tiny windows in cafes facing the street where you can simply buy an espresso, drink it in one gulp and disappear. Tel Avivian's prefer a takeout paper cup if the 'daily dose' does not allow for time to sit and chat (American style). Also, coffee drinking does not take the style of a pub in London. You do not drink coffee with the barista you drink it with a friend or a newspaper. With the popularity of laptop computer use in public, we see how some cafes turned into virtual offices. The Gan Ha'yir (city hall complex on Iben Gvirol) Coffee Bean location seem to be half populated by students, digital entrepreneurs and salesmen of one type or another (from architects to insurance) with computers, notebooks full of notes and headphones to drown out noise. Some take a spot for hours for a 14 shekel cup of coffee. Not a bad deal for free wireless and electricity, a leather upholstered chair and decent temperature controlled room (in the summer air conditioning is nice to have). In most locations this new behavior is perfectly acceptable. The staff seems to be perfectly willing to be the "office away from the home office hosts". Not so in other locations where the cafe is dependent on customer flow they tend to push you out or ask for an order every hour or so. This is true for the none digitally equipped book and newspaper readers as well. So the digirati are not a prosecuted minority in any way just a part of everyday life here.
The coffees served in most cafes are dominated by the classic Italian espresso, capuchino and latte. Israeli old fashion Turkish coffee, essentially a dark brew ground to a fine powder mixed with steaming water than allowed to sit (the grounds settle to the bottom) - or the real classic finjan, a small copper pot used to brew strong coffee. Americano is a basic drip coffee but don't be alarmed if you actually get a french press coffee instead. French press coffee, the glass container with a plunger is also available but is less common in Tel Aviv. Most cafes also serve snacks, sandwiches and salads. This is a new trend specially in the smaller locations. The cafe chains offer uniform menu across locations, some are good enough to compete with fast food and restaurants. Independent cafes have snacks and light dishes and sometimes specialty baked goods, some are excellent specially croissants which are popular lately.
Sex in The City - Sweaty Soldiers Out of Uniform
The soldiers were in the middle of a run across the country. This was the biennial (every two years) run across the country from the northern border to the red sea. Since Israel is a small country you can actually run the whole country if you are a fit soldier. The run takes a week and the soldiers need to be in top shape and put in all it takes. Even with the support of a strong team and great support, each soldier still needs to run the country.
You can imagine the sweaty palms, goo-goo eyes, moist lips and stares from most women under 30. The older ones probably sweat just much but imagine brothers or children more than lovers. Wearing yellow T-Shirts with the olive tree troop insignia most Israelis feel pride when they are running through the streets. This would not be a good time to pick one up, but can't a woman dream? day dream??
Subscribe in a reader
