Analysis from Israel

Yesterday, Jonathan Marks dissected the lie of the BDS movement’s alleged commitment to nonviolence–a lie underscored by the South African chapter’s launch of a “fundraising tour” starring Palestinian airline hijacker Leila Khaled. But another lie about the boycott, divestment, and sanctions movement was also exploded this week: the lie that it is having an increasing impact on Israel. The truth, according to a new study released yesterday by the Knesset Research and Information Center, is exactly the opposite: Not only has BDS not dented Israel’s economy overall, but Israeli exports have surged even in places where the movement is most active, like Europe.

Overall, the study reports, Israeli exports rose by 80 percent from 2000 to 2013, with exports to Europe rising even more sharply, by 99 percent. But the bulk of this increase has taken place since 2005–i.e., in the years when BDS was most active. From 2005-2013, despite a sharp drop during the global financial crisis of 2009, annual exports to Europe averaged $15.6 billion. That’s almost double the preceding decade’s annual average of $7.8 billion.

Foreign direct investment in Israel has also risen steeply, posting an increase of 58 percent over the last four years alone–precisely the years when BDS was supposedly having its biggest impact.

Most surprisingly, exports from the West Bank and the Golan Heights, which are the primary focus of boycott efforts, rose even faster than exports overall. Consequently, they constituted 3.1 percent of total exports in 2013, up from 0.5 percent in 2000–and the overwhelming majority of that increase also stemmed from exports to Europe. A handful of industries, like Jordan Valley date farmers, have taken a hit, but the impact on Israel as a whole has been negligible.

As the report acknowledged, this is largely because “A major portion of Israeli exports are intermediate products, like electronic components, that sit inside the final products of well-known global companies.” That makes them hard to boycott: How do you boycott the insides of your computer or cellphone?

But it’s also worth noting that even in Europe, where BDS has gained most traction, the movement’s strongholds are found among academics, trade unionists, and unelected EU bureaucrats–i.e., people with no responsibility for the performance of national economies. In contrast, BDS has few champions among elected politicians in national governments, because these politicians are responsible for delivering economic growth to their constituents and view Israel’s innovative tech sector as a potential contributor to this effort.

Consequently, while BDS was making noise in the press, European governments were quietly working to deepen economic ties with Israel. A particularly notable example is the British Embassy Tech Hub, brainchild of British Ambassador to Israel Matthew Gould. Founded in 2011, the Hub essentially functions as a matchmaking service between British and Israeli firms, giving the former access to Israeli high-tech and the latter access to partners who can help them grow their businesses and enter new markets. It’s been so successful that other ambassadors in Israel are now consulting Gould on how to replicate his model at their own embassies.

The bottom line is that for all the hype about BDS, its efforts to strangle Israel have been a total failure. BDS may be thriving in the media and on college campuses, but out in the real world, what’s thriving is Israel’s economy.

Originally published in Commentary 

One Response to BDS Hasn’t Hurt Israel’s Economy, New Report Shows

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to Evelyn’s Mailing List

The U.S. Must Show Iranians That They Can’t Have It All

The fact that Iran’s anti-regime protests appear to have died down is not a reason to relax the pressure on Tehran. On the contrary, it’s a reason to increase it through serious sanctions on Iran’s ballistic missile program as well as its support for terror and regional aggression. The protests will only become a truly mass movement if enough Iranians come to realize what the protesters already have: Contrary to the promise held out by the nuclear deal, Iran can’t have it all. Terror and military aggression are incompatible with a thriving economy.

To understand why more pressure is needed, it’s worth revisiting a New York Times article from November that has been widely but somewhat unfairly derided. In it, reporter Thomas Erdbrink wrote that “The two most popular stars in Iran today—a country with thriving film, theater, and music industries—are not actors or singers but two establishment figures: Gen. Qassim Suleimani, the leader of Iran’s regional military effort, which is widely seen as a smashing success; and the foreign minister, Mohammad Javad Zarif, the symbol of a reasonable and measured Iran.”

The derision stems from the fact that the protesters assailed both Suleimani’s military adventurism and the government of which Zarif is a pillar, proving that neither is quite as popular as Erdbrink thought. Like many Westerners reporting from abroad, he committed the cardinal error of thinking that the fairly narrow circles he frequents represent the country as a whole. Yet within those circles, his analysis of the status of these two men appears to be accurate. That was made clear by the fact that Tehran’s educated middle classes, who formed the core of Iran’s 2009 protests, largely sat this round out.

And in truth, Suleimani and Zarif deserved star status. Together, they seemed to have severed the inverse relationship between military adventurism and economic wellbeing. Thanks to the nuclear deal Barack Obama signed with Iran in 2015, it seemed as if Iran really could have it all. It could maintain an active nuclear program (enriching uranium, conducting research and development, and replacing old, slow centrifuges with new ones that will make the enrichment process 20 times faster); expand its ballistic missile program; become a regional superpower with control, or at least major influence, over four nearby countries (Lebanon, Syria, Iraq and Yemen); and still receive sanctions relief worth billions of dollars and have European companies lining up to do business with it, resulting in booming 12 percent growth and plummeting inflation.

That’s precisely why this status was accorded equally to both the “moderate” Zarif and the “hardline” Suleimani, defying the “moderates versus hardliners” prism through which many Westerners misread Iran. Iranians understand quite well that “moderates” and “hardliners” are both part of the ayatollahs’ regime and, in this case, they worked together seamlessly to produce the best of all possible worlds.

Read more
Archives