Shift Your Image of Tel Aviv: Buzzing & Financial ?
The last few posts' feedback bring up again the gap between image and reality of Tel Aviv. The main reason I write about this has nothing to do with "righting the wrong" in our world. There is no reason to prove CNN or NBC wrong about their reporting emphasis on the Israeli-Palestinian fighting. Mainstream media highlight of military skirmishes, storm casualties and political meetings among world leaders is their version of the news. Blogging specifically and the Internet in general has validated a whole different view of the news. One that is much more relevant to most people most of the time. There are so many other important issues to deal with on a daily basis. To most people the traditional news content has almost become irrelevant. I say almost because the older population and the consumers of TV news are not going to replace their cable TV with a laptop connected to the Internet. Commuters on the way to work are not going to turn off the radio and listen to podcasts on their iPods (MP3 players.) As radio survived all these years in the shadow of TV, so will TV continue in the shadow of the blogging, Internet sites, podcasts, video clips on YouTube, networking with FaceBook, Twitter and Linked-In... add your own favorite Internet format here.
Tel Aviv and Israel in general has never been treated fairly in the mainstream press. That is the average Israeli's opinion at least. In my opinion this issue has more to do with the openness of Israel to foreign media plus the ongoing skirmishes between Palestinians and Israelis. The Palestinians are simply stuck in limbo and have had bad luck with their leadership. It does not seem like this will change. The Israelis are simply strong militarily and have absolutely no place to go. So CNN TV reporters and London Times photographers are having a field day here. Israelis only see this part of the equation and are as mad as hell. OK, enough with the bad news... here comes the good news. (PLEASE do not write comments on the Israeli/Palestinian conflict, there are plenty of other blogs to do that.)
In my last article about the Lonely Planet guide to Israel and the Palestinian Territories the image of Tel Aviv as a den of laziness and coffee sipping loiterers came up. This simply reflects a tourists view. I wonder why the Lonely Planet Tour Guide does not describe the screeching hordes of mopeds taking off from intersections on Kaplan Street at Azrieli. Or the night time skaters daring life and limb on Thursday nights along Ibn Gvirol boulevard. I also wonder if tourists in Tel Aviv wonder who and what is going on in the high rise glass and aluminum buildings all over the city. Unlike the New York Stock Exchange, the Tel Aviv's tiny relative does not offer tours to anyone (some people come to New York just to tour the stock exchange.) Actually, most Tel Avivians do not know and never see this institution which brings in billions in foreign currency (its on Echad Ha'am street in a nondescript office building actually distinguished by the bar-restaurant at the entrance.) There is plenty of buzz in Tel Aviv, it is just inside businesses and malls mostly not something tourists are interested when on vacation. Most tourists also do not see the hundred of foreign companies with operations in Israel. They certainly do not see the business services (lawyers, accountants, marketers) which serve many of the most recognized global companies from Intel and Nike to Coca Cola and Toshiba. So let's get to these.
Tel Aviv's role in the Israeli economy has a financial element. The ATSE (Tel Aviv Stock Exchange) and most of the large banks and investment companies are based in Tel Aviv. The image above is of the turnover in trades of the TASE from 1992 to 2008 (center line.) As you can see, the TASE turnover (amount of trades in US$) was flat from 1992 to 2003 at around US$ 100 million. Then it started to grow to US$ 550 million by 2008. The Israel GDP (Gross Domestic Product) from 1995 to 2008 has increased linearly with 2001 to 2003 being flat (bottom line.) Israel's GDP for the period of the TASE rise was 800 billion NIS (200 billion US$) to 1 trillion NIS (250 billion US$.) The component of TASE turnover is a small fraction of the total Israel GDP (0.2%.) This gives the TASE market no significant influence over the Israeli economy in real terms. This may explain why the global financial crisis in 2008 did not influence the Israeli economy as in other countries. The TASE was sold off and dropped by 50% by the beginning of 2009, but the Israeli GDP kept on going up. The TASE has a role as a place Israeli entrepreneurs and investors raise capital especially in the high technology sector. The TASE is also a contributor to investment in large Israeli companies. As a small market, US and European mutual funds find the TASE a less volatile market than bigger countries' exchanges. The TASE 25 index includes banks, communication, Real Estate and technology companies. With the current financial market conditions globally there is not much interest in the TASE from the US and Europe. Therefore Israel has been turning to other countries and developing financial and business relationships in south America, eastern Europe and Asia. Keep your eyes on this change in business attitude in Israel. More information on the TASE in English on their web site here. If you are interested in the Israeli financial markets please leave a comment and I will write about these topics. Of interest around the world is the Israeli technology field. Many international companies and investors have made this sector one of the most visible small country sector.
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