Skip to main content

Economic Forces Contributing to Israel's Withdrawal From Gaza, Duke Professor Says

Intifada disrupts transfer of intellectual capital

One reason why many Israelis support the withdrawal of their country's military from the Gaza Strip next month is the prospect of a better business climate, says a visiting professor of business and public policy at DukeUniversity.

"The unarticulated pressure from the Israeli public to withdraw from Gaza is largely economic," said Bernard Avishai, who is in Israel this summer conducting interviews for an upcoming book on the country's political identity.

Israel's plan to withdraw has sparked strong public reaction for and against it.

"The Israeli economy as a whole depends on a high-tech sector that relies on global markets and foreign investment, which can't function in the chaos of an intifada," said Avishai, who holds citizenship in the United States and Israel. "Leaving Gaza at least leaves the door open for stability.

"It is not enough for U.S. venture capitalists to come trolling for technology, enriching a few, and leaving most Israelis in poverty," Avishai said. The fastest way for Israel's economy to grow, he said, is for more multinational corporations to set up operations in Israel and transfer intellectual capital to Israeli entrepreneurs.

"Of the 35 largest foreign companies that have invested here, the number who came after 2000 [the beginning of the most recent Palestinian uprising] is zero," he said. "And without U.S. loan guarantees, Israeli bonds would be junk. That's a sign that something needs to change."