The rapid vaccination process raises hope for the decline of the coronavirus pandemic in Israel and for an economic recovery. However, preparations for the recovery phase appear to be quite limited. Despite the tenuous political situation, the government, in cooperation with the relevant elements, must accelerate economic preparations for a recovery period in order to bring about rapid growth of GDP, and in particular, to reduce unemployment and its severe social consequences.
The United States Director of National Intelligence recently cast China as the number one threat to the US, described Beijing’s modus operandi, and called on Washington’s allies to wake up to the challenge and respond appropriately. For its part, Israel should enhance its intelligence resources dedicated to China and develop an independent and well-founded estimate of the challenges it presents to Israel, drawing on lessons learned around the world; identify gaps in Israel’s current response; strengthen the risk management...
The Regional Comprehensive Economic Partnership (RCEP), signed under the auspices of the Association of Southeast Asian Nations (ASEAN), has created the largest free trade zone in the world, which includes nearly a third of the world’s population and global GNP. China appears to be the winner among the member countries, particularly given the absence of the United States from the framework and India’s decision to withdraw from the negotiations. Considering the changes to the world map, at least economically, and the...
In September 2020 the fifth generation communications network (5G) was launched in Israel based on Western infrastructures, with no Chinese infrastructure. With that development, Israel effectively joined the United States Clean Network program. A Chinese initiative, launched in response to the US program, shows that there are signs in the international system of a trend toward technological decoupling, which is expected to have strategic consequences – political, economic, and technological. Israel would do well to identify the...
In mid-October 2020, the two main international financial institutions, the World Bank and the International Monetary Fund, updated their assessments regarding the implications of the coronavirus crisis for Middle East economies. Previous estimates were published in April this year; the update paints both a pessimistic picture and expectations of improvement, contingent on the discovery of medical solutions to the pandemic. Yet despite the hopes for improvement, estimates are that it will be several years before the economic effects...
The peace agreement between Israel and the United Arab Emirates and the declaration of peace between Israel and Bahrain (the Abraham Accords) represent the first step in a regional peace process since the peace treaty with Jordan, and an opening for other Arab countries to join the trend of normalization with Israel. The agreements are founded on national security considerations and sharp awareness of the shared Iranian threat and the countries’ common ally, the United States. At the same time, these agreements also embody economic...
Israel has lost control over the spread of coronavirus, and the government has decided to impose a second nation-wide lockdown. The economic and social crisis caused by the virus affects a large group of people, especially among the middle class working in the private sector. The impact of the crisis on healthcare, the economy, and society is also affected by political instability, erratic management, and non-compliance with the regulations among some of the public. The Covid-19 virus is a natural disaster, but to a large extent the...
The State Comptroller recently criticized the way Israel operates regarding foreign involvement in national infrastructure. He said that the lack of mandatory consulting by regulators with the advisory committee could lead them to prioritize economic considerations over considerations of national security. The need to implement the State Comptroller’s recommendations intensifies as the rivalry between China and the United States heats up, and the US administration exerts pressure on allies to establish or strengthen investment...
Since early 2020, the IDF has operated according to the “Tnufa” (“Momentum”) multi-year plan for the years 2020-2024. However, the plan has still not yet received the official approval of the Israeli cabinet and is not anchored in a multi-year budget agreement. With no other choice, the IDF has put the program into action using the resources at its disposal. This problematic situation is a function of the current political instability. Now, in the midst of the coronavirus crisis, approval of the defense budgets for the...
The defense industries are one of the cornerstones of Israel’s security. They were born of an understanding that Israel could not rely on external sources for procurement of needed materials and systems. Local production goes hand in hand with research and development in Israel, enabling the tailoring of unique weapons systems to the IDF’s changing needs, giving it advantages on the battlefield.
The IDF is widely seen as the defense industries’ central customer, and its use of the industries’ products enhances their reputation when...
In January 2020, the Institute for National Security Studies (INSS) hosted its 13th Annual International Conference. Entitled “Strategic Assessment for Israel: A Look at the Coming Decade,” the conference included discussions, simulations, and lectures on strategic issues important to Israel’s national security. The conference was attended by decision makers, opinion leaders, and leading researchers from Israel and abroad. We invite you to read the digital version of the booklet that summarizes the conference...
On July 20, 2020 the American oil giant Chevron Corporation announced its acquisition of Noble Energy, also an American company, which is a partner in the consortium that owns the Leviathan natural gas field, the site of two-thirds of Israel’s natural gas reserves. The official announcement of the acquisition states that Chevron was acquiring profitable assets in Israeli waters and strengthening its status in the Eastern Mediterranean Basin. The involvement of a large US corporation like Chevron will raise Israel’s standing in the...
