CNBC Insight Continues to be hit by war, why can the Israeli people remain prosperous? Entrepreneur – 5 hours ago

Jakarta, CNBC Indonesia – In the history of mankind, battles have certainly left behind many subsequent problems. The people became victims, as did the state treasury which continued to go out to fund the armed forces. On this basis, the majority of countries that took part in the fighting experienced economic problems.

However, this premise does not apply to Israel. Instead of being poor and mired in economic problems, Israel has succeeded in becoming one of the richest countries in the world. Interestingly, Israel is different from other Middle Eastern countries which have important ‘treasures’ in the form of petroleum. In fact, Israel is not an oil-rich country. This Zionist country is more famous for its manufacturing industry.

So, how can Israel continue to progress amidst a prolonged conflict?

Refer to the report BBC International in 2022, the cause of industrial progress in Israel is closely related to the exodus of Jews during World War II (1939-1945). It should be noted that during the war period, Jews in Europe experienced discrimination due to superior German policies under Adolf Hitler’s regime. As a result, Jews scattered throughout the world.

Later, they then absorbed new knowledge and became drivers of industrial progress in various parts of the world. In the 1980s, for example, quite a few of them worked in companies located in the world’s technology center, Silicon Valley. Then, in the Soviet Union many Jews worked on technological development.

So, when Israel was advanced and they started to need a ‘home’ to live in, they immediately returned to their hometown. The return of many of the Jewish diaspora throughout the world is a blessing for Israel’s progress.

Later, they established research and development centers for US technology companies, such as Microsoft, IBM, and Intel. This wave of arrivals continues, making the country increasingly blessed with an abundance of skilled human resources.

Not surprisingly, after this return, new companies in the technology sector continued to mushroom. The technology sector, which previously only contributed 37% of industrial products, increased to 58% in 1985, and again increased to 70% in 2006.

The large number of large companies in the technology sector certainly contributes large revenues to the Israeli government in terms of taxes, foreign exchange sources, or employment. This does not include royalties from patents created in Israeli companies.

This advantage has not been added to the large amount of funding for research and technology development from other countries. Such as the US, Canada, Italy, Austria, France, Ireland, the Netherlands, Spain, China, Turkey, India, and Germany.

In the last two decades, Israeli industry has indeed produced results and achieved international progress, such as in the fields of medical electronics, agrotechnology, telecommunications, chemicals, computer hardware and software, and diamond cutting and polishing.

In the end, all these efforts had a positive impact on Israel’s Gross Domestic Product (GDP). Quoting Trading Economics data, Israel’s GDP will reach US$522.03 billion in 2022. This amount represents 0.23 percent of the world economy. Meanwhile, Israel’s GDP per capita was recorded at US$42,594 in 2022. This is up from US$40,802 in the previous year.

[Gambas:Video CNBC]

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