Monday, February 20, 2017

Politics and Business: Oil and Vinager

Food is a fast growth sector in Israel, here government and business differ in opinion: imports are important
Local economic and global trade trends are changing enough to tear traditional government to business relationships. Israeli businesses relied on government to support and promote local industries around the world. So business and government worked together in making contacts around the world. Yet some changes are pushing the two apart. The changes are fast and slow, slow in the construction and banking sectors, but fast in technology and security sectors. Israeli government wants to promote local business, a balance between manufacturing, service and public workforce. Yet business and industry wants flexibility and the ability to move quickly as opportunities appear. This usually translate into moving jobs from manufacturing to service sectors. Today it also means moving workers or jobs from here to a foreign country. The movement of people out of Israel and even worst into Israel is not welcomed.

Israel exports most of what it produces (from technology products to call center services.) To investors and management interests selling a software products or a providing service calls is completely interchangeable. With technology and market consumer preference change, producers want to shift workers from one field to another. Recently they also want to move workers across state borders by both exporting and importing complete products divisions. But shifting from service to manufacturing or technology development has not been attractive to government. Here government places higher value over stability than flexibility. Usually the two don't mix well: oil and vinegar.

More on the changes in how business is changing here in Israel in future posts. 

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