The boycott of Qatar by its neighbors in the Gulf is expected to affect the rate of its growth, but if Qatar succeeds in easing the capital flight, it will not result in a severe, long-term recession. As most of the costs incurred in the retreat from integration among the countries in the Gulf Cooperation Council affect the longer term and will not create immediate pressure on the countries boycotting Qatar, it is reasonable to assume that the costs also will not play a central role in shaping their policies in the crisis. These...
In the early morning hours of December 22, 2016, the Knesset approved Israel’s state budget for 2017-2018. Within this package, the defense budget component was the product of joint work by the Ministry of Finance and the Ministry of Defense, based on the Kahlon-Ya’alon agreement. Significantly, the defense budget was drafted without the wrangling characteristic of the dynamic between the ministries in previous years, and the significant improvements in the process of drafting the budget are highly commendable. Issues...
Even in changing regional circumstances, Hamas has consistently demonstrated resolute persistence in its struggle against Israel. The economics of the Gaza Strip has been a critical element in the events of the past month, and therefore, it is likewise a crucial piece of any lasting resolution. A fundamental change in the economic situation means a real improvement, not just the siege lifted and some border crossings opened. New international mechanisms, not under Hamas or Israel auspices, must be established to implement the change....
Strong currencies are evidence of strong economies, but a very strong currency weakens the economy, as is now the case in Israel. That is why many countries around the world work to weaken their local currencies as compared to other currencies, thereby giving themselves a competitive edge over other countries in the global marketplace. This phenomenon has been called the currency war. While Israel too is involved in this currency war, it is at a distinct disadvantage. The strength of the shekel will eventually lead to Israel’s defeat...
The Egyptian economy, currently in dire straits, is vital to the country’s stability, and stability in Egypt is a central interest of Israel. While in the long term, future governments can adopt and implement policies to improve Egypt’s economy, the short term impact of the recent political revolution exacerbates the current conditions. Adopting an outward strategy and reconnecting the Egyptian economy with the global economy is the only way to encourage growth and build a long term sustainable recovery.
The world is currently in the midst of a deep economic crisis, the first such crisis of the information age. Economic crises of this kind usually entail two components, a financial crisis and a real economic crisis developing in its wake. The financial crisis stems from a failure in the functioning of the financial system. It is manifested in tremendous monetary losses, in the crash of financial institutions, in the loss of trust in the system, and in low financial supply (a slowdown in the flow of money). The lack of financial...
The world finds itself in the midst of a major economic crisis, unprecedented in scale since the Great Depression of 1929. The financial upheaval of 2008 promptly spilled over to the real economy, generating a worldwide recession of frightening proportions. In 2009 the world economy will likely see a steep increase in unemployment, a reduction of world trade and investment, the massive shrinking of capital markets, and so on. These are the immediate manifestations of the crisis, yet we should also focus on its long term implications.
Severe financial crises are connected to national security. They impinge on a state’s national resilience and its ability to realize its national objectives: they impose budgetary constraints on the defense system, limit political maneuverability, jeopardize the public welfare, increase crime, and are liable to invite dangerous social processes. Therefore it is important to deal with them swiftly, firmly, and from a comprehensive systemic perspective.
Russia is one of the largest exporters of arms in the world. Its sales of arms and nuclear material in the Middle East are controversial and threaten its links with the US and Israel. Nonetheless, as long as the political price is not prohibitive, Russia will likely pursue lucrative arms, nuclear, and energy sales, even to the displeasure of the West. The Russian Economy and Arms Exports to the Middle East explores the delicate interplay between Russian economics and foreign policy, particularly regarding arms and energy markets.
For the first three months of 2005, Israel operated on the basis of last year’s budget. The Knesset only passed a new budget at the end of March, after much political wrangling based largely on the legislators’ positions with respect to the disengagement or various internal party calculations.
On 14 December 2004, the Egyptian and Israeli Ministers of Industry and the US Trade Representative signed an agreement to create eight “Qualified Industrial Zones” (QIZs) in Egypt. The agreement, which must be ratified by the Egyptian parliament and the US Congress, will permit goods made in Egypt but with a specified minimum Israeli content to enter the US duty free. Because there is no free trade agreement between Egypt and the US, Egyptian exports to the US are currently subject to duties and other restrictions. The...
Despite generally weak economic performances, Arab regimes have overcome the threat of domestic instability and the consequent threat to their own survival by implementing partial and makeshift economic reforms. This study includes two essays that analyze some of the strengths and weakness of Arab states from an economic perspective and examines the way in which Arab regimes have responded to acute socio-economic problems.
