The border between business and politics is very thin – almost non-existent

Published by IVC J - DECEMBER 2007

The meshing of business and politics is a reality, but that is not necessarily a bad thing for Israel. In fact, it can serve Israel well. Charlotte Gutman, managing director of the pan-European public relations firm CGP Europe, provides her perspective.

In her speech at the Prime Minister’s  Conference for Export and International  Cooperation, Israel’s Foreign Minister Tzipi  Livni, who had just returned from China,  said: "Tiny, little Israel received an award for a  dairy company helping big China in agriculture.  Israel is there to help not only itself. Borders are  less and less important. However, it is a fact that  the global threat and economy are connected.  Israel will be able to position itself on the political  level thanks to its successful economy." 

It has been a difficult and lengthy road to  finally reach this approach by the Israeli  government. I remember a time, not so long ago,  when Israeli officials believed that there was a  clear distinction between thee Ministry of Industry  & Trade and the Ministry of Foreign Affairs. 

In the summer of 2006, when war broke out in  the northern part of Israel, I tried to interest Israeli  business leaders in a lobbying group at the  European Parliament. The idea was to get  successful businesses in Israel to support the  efforts of the "European Friends of Israel," a group  of parliamentarians from the EP and national  governments. Of the 600 global Israeli companies  contacted, only 10 companies understood that the  success of this group would have a direct influence  on business issues. I am sorry to say that Israeli  companies missed an excellent opportunity.

 We have seen economic embargos try to harm  countries, and we of course know about the  blacklist, which prevents Israel from being an  official business partner for some countries.  During the years of the intifada, we also saw many  tough propaganda campaigns, such as those in  supermarkets in Europe, which tried to damage  Israel’s economy, and the negative political reactions  that resulted in the cancellation of business  meetings. Israeli business people had to justify  themselves in some European countries where  anti-Israeli activities were, and still are, farreaching.  Today, looking at the amazing achievements  of the Israeli economy, it is hard to look back  and remember those times as being a permanent  threat to the country and its people. 

I have witnessed some major moves forward in  recent years. Planes and hotels are fully booked  with tourists, and the word "Israel" is not as taboo  as it used to be in the European market. However,  Israeli business people still have to defend the  moral values and dignity of Israeli society while  representing their companies abroad. Besides the  government, companies and individuals have to  combat the distorted image of Israel and Israelis.  The job of communications – to reduce the gap  between the reality of Israel and its image abroad –  is not over, and probably never will be. 

In the meantime, Israel is confirming its  position as a key player in the worldwide economy  by signing major strategic agreements with the EU.  Israel was welcomed at the Organization for  Economic Cooperation and Development (OECD),  next to 30 other countries. Thanks to its economic  achievements, Israel is now on board as a full  member of this prestigious organization. As an  observer in several committees, Israel has already  made important contributions in fields such as  taxes, science and technology. OECD Secretary-  General Angel Gurria summed it up when he said  succinctly: "The benefits of this accession process  are manifold. It is a triple-win partnership: Israel  wins, the OECD wins and the world economy will  win too."

EU-Israel business dialogue

The "EU-Israel Business Dialogue" was officially  launched at the Prime Minister’s Conference  in Tel Aviv on November 1, 2007. The conference  comprised 20 European and Israeli business  leaders in the presence of Günther Verheugen, VP  EU Commissioner for Enterprise and Industry, and  Eliyahu Yishai, Minister of Industry, Trade and  Labor. 

"This dialogue shall encourage European  companies to do more business with Israel and to  invest more in Israel. There is a huge economic  potential that is not yet fully exploited," said  Verheugen. The chairman of the European side is  Dr. Mathias Doepfner, CEO of the German media  group Axel Springer. The Israeli side is to be  chaired by Internet entrepreneur and investor  Yossi Vardi. 

In the first year of operations, the EU-Israel  Business Dialogue will focus on banking and  finance, energy and clean technologies, life  sciences, retail and manufacturing, telecommunications,  media and Internet, tourism and transportation. 

Israel is the first neighboring EU country to join  the Competitiveness and Innovation Program  (CIP), under which the European Commission  promotes innovation, entrepreneurship and  growth of small and medium-sized enterprises.  According to Verheugen, "Competitiveness and  innovation are joint challenges for Israel and the  EU. There are many areas of entrepreneurship and  innovation policy in which Israel and the EU havea lot to offer, and where cooperation in joint projects and business and innovation networks will create a win-win situation. In today’s world the key to success is not isolation but cooperation."

Growth in water

NEWTech – Novel Efficient Water Technologies – is a new government program launched at WATEC 2007 to promote the
Israeli water technology sector. Oded Distel, Director of Israel NEWTech, has forecast water technology industry exports to jump an unprecedented 28 percent in 2007 from the previous year. According to Distel, this sector will become a main engine of Israel’s growth in the coming years. WATEC 2007 welcomed 100 business delegations and 2,000 visitors. At the closing session, Israel’s President, Shimon Peres, discussed the Red Sea/Dead Sea conduit, a proposed joint project for Jordan, the Palestinian Authority and Israel that could provide a new peace channel for the Middle East.

Cause for optimism

Attending WATEC 2007, the Prime Minister’s Conference, and the Cleantech and Go4Europe conferences on my recent
visit to Israel and seeing the encouraging participation of foreign business people has given me strong hope for the future. The buoyant foreign interest was in stark contrast to the paltry foreign attendance at other Israeli conferences that took place soon after the burst of the high-tech bubble and during the Intifada days. While listening to the news occasionally causes apprehension, the present situation gives me cause for guarded optimism that Israel is solidifying its position as a leading technology nation.

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