Our destination for the night (and next day) was Kibbutz Ketura - home of the Arava Institute for Environmental Studies. Arriving in the early evening, the team quickly dropped our stuff off at our rooms before heading to a BBQ at the Kibbutz pool. There were all the essentials (i.e. hamburgers and hot dogs, as well as an enormous pool). The Kibbutz was also playing host to a bunch of British birthrighters, who we (actually Asher in particular) challenged to a game of football. We lost a close match - but it was still good times.
"Our living quarters for our one night at Kibbutz Ketura"
Photo by Jessica (at Israelity)
After getting back to our rooms everyone brought drinks to the roof of the lodge to watch the stars and talk. In the desert, the sky at night is really something to behold. Early the next morning, we were up and out of our rooms by 7am. After a breakfast and a quick tour of the kibbutz, we proceeded to the conference room at the institute, where we heard from from the first of a few speakers regarding Arava's mission and activities.
Each of our meetings lasted about an hour. Our first meeting of the day was with Dr. Tareq Abu-Hamed, who is the head of Arava's Center for Renewable Energy and Energy Conservation. Following this meeting, we heard from Roy Kagan of the Arava Power Company. Our third visit was with Noam Ilan at the Regional Energy Commission. Each of these three visits highlighted a different aspect of the Arava mission and some of the pioneering research they are conducting on site at the kibbutz.
"Exploring the Aora Solar Energy Installation"
Photo by Kristin Thompson
In the afternoon we had a visit to the Aora Solar Energy Installation at Kibbutz Samar. The Aora installation is interesting in that it is an experiment in providing a modular point source solar power system - though at this point the power outputs are still negligible. Before returning to lunch at Kibbutz Ketura, we stopped for a small ice cream snack at the Yotvata. The ice cream was good - but for me the real highlight was their chocolate milk. So good!
Upon return to Arava we had a final afternoon meeting with Miriam Sharton the Associate Director of the institute. Altogether, our brief visit was a great experience. With this portion of the trip complete we left the kibbutz to head down to Eilat. As we entered into Israel's southernmost city, we said goodbye to our fearless leader, Asher, who boarded a plane to head back to the US via Tel Aviv. Goodbye Asher!
Our next visit on Tuesday was to the Shafdan Rishon Wastewater Treatment Plant. The world's largest wastewater treatment plant, the Shafdan plant treats almost 500 million cubic feet of water annually - serving a population in the Dan Region (which includes Tel Aviv) of over 2 million people. Operated by Mekorot, this plant's reused water is transferred in large quantities to the agricultural regions in the Negev.
"Exploring the model of the Shafdan Watewater Plant"
Photo by Kristin Thompson
As we came to find out during the tour - Israel reuses almost 75% of their water. The next closest country is Spain at 12%. The USA only reuses a little under 1% of our water. What makes these figures the most appalling is that most wastewater is 99.9% water, and only 0.1% waste. We obviously have a lot to learn from Israel in terms of water management.
"Inside an exhibit on the Shafdan facility"
Photo by Kristin Thompson
On Wednesday, the team had a final class with Dr. Gilad Axelrad, another professor in residence at the School of Agriculture. Over about two hours, Dr. Axelrad discussed the various innovative structures for creating partnerships between government and private industry in order to address public infrastructure projects. Following this class, the team was accompanied by Dr. Axelrad to Palmachim Desalination Plant - the second largest desalination plant in Israel - and one of the largest desalination plants in the world. Our on-site host at Palmachim was Avram Tenne the head regulator for water plants in Israel.
"The team dons hardhats at the Palmachim Desalination Plant"
Photo by Kristin Thompson
The visit to the desalination plant was for me the most interesting of the water company visits we had while at Hebrew University. As we had at the previous facilities, we were given a full tour of the plant, seeing the entire operation from start to finish. At the end of the tour, we got to taste the end product (i.e. purified salt water) which had been in the ocean only 20 minutes previously. Interestingly, the taste wasn't quite what I expected - apparently having to do with the fact that many minerals that are normally in drinking water hadn't been added back yet. Still it was very cool!
"Dr. Yoram Porat lectures on the structural models of global development"
Photo by Kristin Thompson
Our first visit of the day was with Dr. Yoram Porat, a distinguished faculty member in the field of international strategic planning and project management. Over the course of two multi-hour sessions, Dr. Porat provided a dynamic overview of the models and frameworks that provide the foundation for most global development initiatives - and particularly those in the realm of water management. At times, Dr. Porat lingered on conceptual ideas more than I would have liked, but in total his instruction was useful in providing meaningful dialogue within the team and raising issues we otherwise wouldn't have considered.
"On the roof Ra'anana's offices overlooking their facility"
Photo by Kristin Thompson
On Monday morning we awoke early for a day of company visits. The first visit of the day was to the Ra'anana Wastewater Treatment Plant. Our host, Avital Dror-Ehra - the on-site manager, provided the team with a comprehensive presentation on water issues in Israel, as well as a functional overview of the wastewater treatment system. Afterward, we received an hour long tour of the facility in order to see the system in operation. The Ra'anna plant is not overly large, though the small size was helpful putting the full process into context.
"The team looks at the bio-refiners at Ra'anana plant"
Photo by Kristin Thompson
That afternoon the team visited the Yarqon River Authority for a presentation by general manager (and University of Maryland graduate) Dr. David Pargament. The Yarqon is the major river and watershed in the Tel Aviv metropolitan area. Over the past few decades, as population and industry have increased, both water quality and water volumes have declined precipitously. The Yarqon River Authority is a semi-private, independent body, that was set up to combat the challenges to the Yarqon. It is amazing the success they've had in such a short amount of time - especially due to the multi-layered government bureaucracies.
"Dr. Pargament presents on the history of the Yarqon River"
Photo by Kristin Thompson
On Tuesday the team visited the Ayalon Institute - which though actually non-water related - was still of interest for its cultural (and entrepreneurial) history. Located on Kibbutzim Hill in Rehovot, the Ayalon Institute was the primary (clandestine) ammunition factory for the Haganah (Jewish militia) in the time before and during the 1948 Independence War.
"The exit to the underground bullet factory of the Ayalon Institute"
Photo by Kristin Thompson
Between 1946-1948, over 2+ million bullets were manufactured here. These were nine-millimeter bullets, for the Sten sub-machine gun, which was the primary personal weapon during the war. In many respects, this factory was a precursor to the defense industry and contractors that would arrive after the war. What was most interesting about this factory was that it was hidden almost 30 feet below the floor of the laundry. Very cool!
We're currently in Southern Israel - having just visited Rehovot and now the Negev. As I've been on the bus for a while I've had time to reflect on the trip. Since arriving in Israel back in May, one topic that hasn't received a significant amount of attention (either from the speakers we've talked to, the companies we've visited, or on this blog itself) has been the issue of the business and economic conditions of both Israeli-Arabs and Palestinians. This is not to say that we haven't covered this issue generally, but this is an issue that (for a variety of reasons) hasn't always been the most comfortable or ready area of discussion.
"Some typical graffiti in the West Bank"
Photo by Stephen Kushner
To a large degree Israel's rapid economic progress of the past twenty years has been directed primarily towards Israel's Jewish communities. Oftentimes, Arabs (both Christian and Muslim) have been on the outside looking in (sometimes by choice and sometimes not) and even more so for the Palestinian populations of the West Bank and Gaza Strip (especially now that they are physically cut off from Israel by the Barrier Wall). This separation is clear when you drill down on the numbers. Income per capita among Arab-Israelis is one third that of the national average. For the Palestinian Territories, income per capita is one tenth that of Israel. It is not inconceivable to think that the future success of the peace process hinges on rapidly improving the economic conditions of these groups.
"A Palestinian woman in the city of Bethlehem"
Photo by Stephen Kushner
Regarding the Israeli-Arab population, Israel is looking to emulate the success of the government backed Yozma venture funds of the early 1990s. As such, they have launched the Al-Bawadir ("buds" in Arabic) fund in cooperation with Pitango Capital (see here). Al-Bawadir will invest approximately $50 million in Arab-Israeli ventures. The government provided $20 million, and Pitango general partners Nechemia Peres, Rami Kalish and Zeev Binman, along with various other private investors, provided the rest. When we met with Chemi Peres last week (see here), this was an area he talked about as being the most critical component of Pitango's strategy going forward - and also an essential path to continued prosperity in Israel over the coming decades. Jerusalem Venture Partners and Viola Partners are also launching similar funds, which will begin investing in the next year.
In terms of the Palestinian population, Thomas Friedman of the New York Times recently discussed (here) the ongoing economic renaissance in the West Bank - which is paralleling the slow, but improving, economic improvements within the Israeli-Arab community - commenting that the changes ...
"initiated in the West Bank in the last few years under the leadership of Prime Minister Salam Fayyad, the former World Bank economist ... has unleashed a real Palestinian “revolution.” It is a revolution based on building Palestinian capacity and institutions not just resisting Israeli occupation, on the theory that if the Palestinians can build a real economy, a professional security force and an effective, transparent government bureaucracy it will eventually become impossible for Israel to deny the Palestinians a state in the West Bank and Arab neighborhoods of East Jerusalem."
One example that Friedman points to highlight the economic revival is the Palestine Exchange Board in Nablus, which was established in 1996 with 19 companies. It now has 41 with 8 more joining by the end of 2010. More to the point, this year the Al-Quds Index, which tracks this market has outperformed most other markets in the Arab world, as well as many markets in Europe and the United States. Hopefully - as I optimistically agree - this recent success - driven in no small part by the reforms of Salam Fayyad - offers positive signs for the rest of the Palestinian economy as a whole.
Over an over this summer, we've heard about the amazing "Start-Up Nation" that is Israel. Further, we've discussed and debated the characteristics that have enabled Israel to achieve its success. This prosperity and success though has been limited in its effect. The political and military conflicts are inextricably linked to economic conditions. For peace to ever succeed, it is in Israel's best interest if they look for ways to export their model to both their own Arab population, as well as to the Palestinian areas. Ultimately, the true success of the start-up nation may actually come in the next twenty years.
Obviously this issue raises many heated opinions on all sides - which I can't even hope (or have the ability) to address on this blog. That aside, I think from an economic standpoint there is a major question both sides need to address. For Israel, they must ask whether they have the desire and willingness to commit resources to improve the economic standing of the Arab populations (both in Israel and the occupied territories), even as they face resistance and hatred. For the Arabs and Palestinians, the question is, can they find positive purpose in a program of concerted economic growth and the building of a functioning economy and government, free of graft and corruption, rather than an existence centered on the negative (i.e. the destruction of Israel).
In both cases, I think the answer is yes. Perhaps I am naive or optimistic. Maybe, but I don't think so. There are at least groups like The Center for Jewish-Arab Economic Development, initiatives like Pitango Capital and Al-Badawir, and success stories like the Al-Quds Index. In the long run, I honestly believe that if Israel's economic success can be replicated (even partially), this will go a long way towards solving a lot of the regions problems.
The views expressed on this site are those of Daniel Branscome, hereafter referred to as "the owner", and do not necessarily represent those of the University of Maryland, the Robert H. Smith School of Business, or the Technion. All content provided on this blog is for informational purposes only. The owner makes no representations as to the accuracy or completeness of any information on this blog or found by following any link on this blog. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.
