Under threat, Israel as geoeconomics powerhouse

Gaza uprising followed by militant attacks from several countries has opened a Pandora box for Israel. More than anything, it is her status as geoeconomics power house in terms of technology that is under threat. Read for more:

Exporting more than 25 Billion USD worth of sensitive technology materials Israel is the vital node for most countries in the western hemisphere and to the east  countries that are locked in disputes such as China & India. True enough about 25% of the techno exports go to USA and slightly less than that, to the EU.  But the moot point is China & India put together is one big solid market for more than 15% of the volume and still ticking upward.

The bulk of the tech items are produced in number of silicon valleys. Yogneam in north is one such centre. Many others are distributed in the coastal belt abutting the Eastern Mediterranean. Between Haifa in north to Ashqelon in south are wedged four more port cities Natanya, Herzeliya, Tel Aviv & Ashdod that cater to not only production per se  but for import of raw materials and export of processed goods. Chiefly amongst these are cyber security, intelligence systems, artificial intelligence and quantum computing products.

In sum this coastal region is gateway from Israel to the outside world. All these six ports are heavily guarded in terms of electronic surveillance fitted with extensive defensive military hardware. These expo zones have substantial stake in terms of Israel’s techno exports. For the domestic economy techno exports account for 15% of jobs, 18% of gdp and about 50% of total value of exports. In fact outside USA only Tel Aviv boasts the widest & highest high tech clusters located within.

Gaza uprising brought a new dimension that Israel was not ready for. From Gaza alone rockets could be fired to Ashdod, Tel Aviv and perhaps as far as Herzeliya. Militants from South Lebanon can easily fire mortars, rockets, missiles and other arsenals to Haifa down to Ashqelon locking in all six ports under their nozzles.

Already the export of techno items is facing severe stress in terms of sourcing raw materials and transporting finished goods to the ports. If and when hostilities intensify too many militants are expected to join the fray from far as Iraq & Yemen to make these ports and expo zones unviable to operate. This is the first time in the history of Israel, her existence as a country and geoeconomics power house in exporting sensitive products has come under enormous threat.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist