Speech to the State of Delaware International Trade Week Luncheon:
Wednesday, May 24, 2000Thank you very much for the warm introduction, Barbera. It gives me great pleasure to be here this afternoon. I want to begin by commending you and the Federation for your commitment to partnership 2000. The success of the program - not only at the economic level, but the social and cultural levels as well -- is a great tribute to the community. I know that Arad and Tamar have really flourished as a result of your involvement.
I would like to acknowledge Governor Tom Carper and Director of Economic Development Darrel Minnot, who have made great efforts to forge economic ties with Israel. It seems that as each month passes the Atlantic Ocean becomes narrower and our relations grow stronger.
I would also like to acknowledge Consul General Dan Ashbel - who has been a central figure in strengthening the relationship between the mid-Atlantic region and Israel.
Our late Prime Minister, Golda Meir, was known for her quick wit. There is a legend about a conversation that she had with Lyndon Johnson. Apparently, Johnson was impressed with Israel's military abilities and joked about borrowing some of Israel's Generals. To this, Golda Meir responded, "You can have some of our generals if we can have some of yours - General Electric, General Dynamics and General Motors."
When Israel was created -- and during the first twenty years of our existence -- our overall national security was measured by military power: the number of combat aircraft, tanks and battleships. Israel's very existence was in danger and our military ability was dominant in ensuring our survival.
In later years, our military power and achievements in the wars after '67 set aside the issue of our physical survival. At the time, the assessments of our overall national security began including additional elements such as technological ability, education and economic strength.
Today, however, the economic dimension has become dominant in our national security thinking. Our GDP is larger than all of our neighbors' combined. In per-capita terms, it is approaching that of the United Kingdom.
We are a thriving nation: socially, culturally, and indeed economically. In a mere fifty-two years, we have risen from dirt roads to the information superhighway and turned our desert sand to silicon chips. We are a high-tech hub, not just for the Middle East and Europe, but for the entire world.
It is reassuring to know that the leaders of the business community and your state government recognize our vast economic potential. Initiatives like the technology and trade mission that Governor Carper led to Israel this past July have further elevated our economic ties and yielded benefits on both sides of the ocean. We are encouraged to hear that Director Minnot will be leading another mission to Israel in January. Our mutual interests are broad. There truly is a great deal we can learn from each other.
Like you, we do not have the vast geography of our neighbors. In Israel, we have no forests to harvest or oil to pump. We have human resources and we have invested heavily in them. Our workforce - much of which is fluent in English -- is among the most highly educated in the world. And, we have more scientists and engineers per capita than any developed country.
Another factor in our relative success is that our government is committed to the hi-tech sector. Israel has had great success finding civilian uses for military technology. As Yossi Vardi, one of Israel's leading internet entrepreneurs, recently joked, "We shall beat our swords into Sony play-stations."
Our commitment is not only to Israeli companies. We offer government grants and tax-breaks for foreign investors. Microsoft and Cisco Systems have built their only R and D facilities outside of the U.S. in Israel. The government and Intel were partners in building a 1.6 billion-dollar microchip factory in Southern Israel. Per capita, we have more hi-tech start-ups than any other county in the world and only the United States has more companies than Israel on the Nasdaq. Motorola, Sun Microsystems, Hewlett-Packard and EDS - to name only a few major hi-tech companies -- have all prospered from relationships with their Israeli partners and our prospects for the future look even brighter.
I know that the State of Delaware has been pursuing a similar strategy - investing in education and hi-tech. With 300 thousand businesses incorporated in Delaware, it seems as though you have an environment that is - to say the least -- business friendly. We are firmly committed to increased privatization and structural reforms. However, I am sure that we still have a great deal to learn from you to create a similar climate for corporations.
In today's globalized economy, investing in education and high-tech, and reforming the domestic economy is not enough. We must look outward and forge partnerships with trading blocks, to penetrate new markets and bolster our growth.
Situated at the center of three continents, we have the advantage of being able to look in every direction. Our free trade agreements with the U.S., Canada and Mexico, the European Union and countries in Eastern Europe, offer an excellent opportunity for exporters to reduce tariffs. And, increase profits.
Recently, the Minister of Industry and Trade of Israel, Ran Cohen discussed his vision for the future of the country. He believes that our GDP per-capita will rise from sixteen to twenty-five thousand dollars within the decade. We can achieve these results, if we follow the policies that have brought us this prosperity and react quickly to the ever-changing and competitive global economy.
To paraphrase Prime Minister Barak, Israel is no longer in a permanent state of emergency, but rather in an exciting state of emergence. Emerging from the shadows of war into the light of possibilities. We are determined to reach peace agreements with our neighbors, so that we can end the hundred years of conflict in the region and realize the true potential of our great country. I am confident that you will join us as together -- we can reach "the light of possibilities".
Thank you.
