The SECRETS of a remarkable economy
We have tried to find out the receipt of the Israeli Economic Success, so we have analyzed the core engines and the strength of the economic growth, but at the same time the weaknesses of a young economy constantly under challenge.
By Oana Voinea
“The miraculous story of the Israeli economy is a tale of necessity, audacity and continuing efforts for self-improvement. “ Bareket Knafo, Head of the Economic and Trade Mission to Romania
How do you build out of nothing a regional power, a startup nation, an entrepreneurial spirit and a remarkable economy, within a complicated geopolitical context with unfriendly neighbors?
We have asked the Head of the Economic Mission of Israel in Romania, what is the secret of the economic development of her country.
“Today the Israeli economy is rapidly growing, registering remarkable macroeconomic and fiscal performance and presenting diversified export trends. In accordance, the bilateral trade between Romania and Israel is flourishing and showing growing numbers of successful cooperation in cyber security, agriculture, energy and more” says Bareket Knafo.
“Although Israeli cutting-edge technology allows us these days to create water simply out of the air, the strength of the Israeli economy didn’t come out of the blue. It came thanks to a unique combination of 3 pillars:
First, the Israeli constructive approach towards failures. The understanding that failure is an inseparable part of the business model has been shaped risks management methods at the Israeli private sector and the incentives system within the public sector. For instance, the Israeli Foreign Trade Administration allocates special funding and offers mentoring and other assistance to Israeli companies that wish to extend their activities in international markets. This way the Israeli government becomes an experienced business partner with a broader overview on the market and with the ability to almost eliminate the paralyzing fear of failure.
Second, Israel’s strong commitment for international development is one of its most powerful growth engine. In Hebrew we call it “Tikkun Olam” – repairing the world. By sharing the Israeli knowledge and joining forces with international financial institutions (such as EBRD, World Bank and more) we contribute not only to the business environment, but also to the global arena and vice versa.
Last but not least, the unparalleled symbiotic structure of the Israeli eco-system. The Israeli government, private sector and academia are well synchronized and fully committed to the idea of “Startup Nation”. This might explain how some of the biggest Israeli inventions came out of academia or were supported by the government and also why Israel has the highest percentage of R&D personnel in the world. “