On Thursday the team arrived in the late afternoon to Eilat. Israel's southernmost city, Eilat is a popular resort town on the Red Sea. Everyone was really excited for some time at the beach - though the heat in Eilat (especially at this time of year) is particularly brutal.
Upon arriving at Eilat, Gil and I both went immediately to Marina Divers. Back before he left Israel for college at Maryland, Gil had been a dive master instructor there - so this was definitely the place to set up camp. I got my PADI open water certification back in 2004 in Koh Tao, Thailand, but I was a bit rusty so I needed to get re-certified before I could go out for dives. While I did the hour long course, Gil went out on his own for a solo dive. With my clearance, I was ready to go for the next few days. In the mean time the rest of the group either crashed back at the hotel and/or looked for shopping at the big mall down by the waterfront. Everyone reconnected a little later in the evening for dinner and nargila on the beach. All in all, it was a great first night in Eilat!
"The undersea beauty awaiting just off the coast of Eilat in the Red Sea"
Photo by Aqua-Sport
The following morning we all met at daybreak (6am) in the lobby to depart for an early morning hike up Mt. Zephachot. Adjacent to the coast, this mountain offered breathtaking views of the surrounding desert, as well as the Red Sea all the way from Saudia Arabia and Jordan, back to Israel. Given the heat (pushing 110 degrees that morning) the hike was not a picnic. We were all very sweaty and tired by the time we reached the peak. That being said, the view was well worth the effort.
"The team takes a much needed break after climbing Mt. Zephachot"
Photo by Kristin Thompson
Following the hike, we returned to the hotel for breakfast and a rest. Gil and I hopped a cab back to the dive shop and had a dive. Not more than a few hundred feet off the coast is the shipwreck of an old Israeli missile boat, which was intentionally foundered many years ago. We descended and swam through the boat before heading back to the surface via a coral reef. It was awesome! After our dive, we put away our gear and returned to the hotel where the group departed for a tour along the Egypt-Israel border fence.
"Steven looks out at the Egyptian guard tower near the Taba crossing"
Photo by Kristin Thompson
After the border tour everyone was excited to proceed to our next stop, the Kassui Sand Dunes. Straight out of a movie (think Tatooine or Dune), these otherworldly sand dunes were a lot of fun to play around on. We hiked up the side and found the perfect spot to dive off into the sand - and almost everyone took a turn leaping and jumping off the edge. The only downside to this little escapade was that the sand was hot as hell and stuck to everything. No matter, it was still a lot of fun!
"Brad showing some moves at the Kassui Sand Dunes"
Photo by Kristin Thompson
Post sand dunes, I once again went for another dive, before rejoining the group for our final acts of the evening - water sports at the Red Sea Sports Club. First the group took out the world's slowest motorboats (maybe 5 horsepower). We then got to ride the banana boat (being tugged behind a significantly faster boat). Lastly, some in the group opted to take out kayaks, while the rest of us got drinks at a bar on the beach. It being Shabbat, the group took it easy that night at the hotel. Another successful day in the books!
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!
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.
Friday was relaxed during the day. Mostly it consisted of recovery from the previous evenings shenanigans. That night however we went by taxi to the artist's colony, Ein Hod for drinks and dinner. Our first stop of the evening was at Danny Shlyfestone's Art Bar for some home made beer. Danny - who is quite a character - makes his home brews in giant vats and then bottles them in recycled soda bottles. Really good stuff.
"The brewmaster, Danny Shlyfestone, in his natural habitat"
Photo by Nadav Bloch
Our next stop was to the Argentinian steak house, Doña Rosa. This place is - to this point - the dining highlight of the trip. Steaks (we all shared a mixed grill) came perfectly prepared on mini charcoal grills at the table. If that wasn't enough, the wine was fantastic and desert was amazing. This is one meal I will remember for a long time.
"Hands down, one of the best meals ever"
Photo by Kristin Thompson
On Saturday, everyone had a relaxing and chill final day in Haifa. I spent the majority of the day at the beach - taking in the sun, drinking iced coffees and smoothies, and generally doing nothing of value. In the evening, we ate the remains of the lamb from our schecting (see here). Some we cooked as steaks, the rest as an Irish stew. Altogether, it was delicious. Afterwords, we watched the World Cup runner-up match between Germany and Uruguay.
"Sunset on Karmel Beach in Haifa"
Photo by Stephen Kushner
Sunday morning we left Haifa for the last time. In many ways, it was sad to say goodbye. That being said, the remainder of the trip sounds great! Southern Israel, here we come.
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.
