We
were lucky. There was no way to know it at the time, but the fourteen of us, MBA
students from five different schools, four different countries and three
different religions, all took a chance visiting Israel. We were lucky because
despite the four suicide bomb attacks that occurred within the15 days prior to
our departure, and the escalation of violence that began just after our return,
our trip was fascinating, beautiful, and, perhaps most striking of all,
peaceful.
The
trip was organized with a three-fold purpose: to study the economy, learn about
the political situation, and show our support for the country. We found a
country only 53 years old, but wizened by unrelenting opposition and near
constant physical and psychological battle. We found the spirit of Israel’s
founding fathers deeply alive in the people, whose continuing hope for a
peaceful homeland shines brightly despite persistent political and military
tension. We found a strong and proud country, anxious for success and yearning
for peace.
We
visited many Israeli businesses in a wide range of industries and learned of the
challenges they face. While trying
to be internationally competitive in a country with a home market of just six
million, many Israeli companies rely heavily on sales outside their borders.
Rightfully proud of their ability to innovate and create leading edge
products in high technology, pharmaceuticals, biotech and other industries, the
companies we visited all seemed to face an uphill battle in building business
relationships with the rest of the western world.
One company we met with told their story of incorporating in the US so
that their success would not be limited by the political constraints often faced
by Israeli companies abroad. Others
talked about the constant challenge of convincing investors and customers of the
long-term stability of a relationship with their company.
We
visited Israel’s version of Silicon Valley, fondly called “Silicon Wadi.”
Although small, like Israel itself, it is a powerful driver of technological
innovation. Given Imaging, whose IPO was the first after the September 11th
tragedy, and other Israeli high-tech companies such as Checkpoint and RAD
Communications have already established themselves as global players and were
reassuringly optimistic in their outlook for the future of Israeli business.
Israel
is well known for its success in the high-tech sector but numerous other
industries also strive. We visited
the beautifully green northern part of Israel and tasted the dairy produce of
Strauss, a company that was started by refugees and now has $900 M in revenues
and international partnerships with Unilever and Danone.
On
the political front, we visited an air force base and met with army officials.
We toured historical battlefields and paid our respects at the gravesites of
fallen soldiers. Reminders of
Israel’s ongoing struggle for peace were all around us.
In Tel Aviv, across the street from our hotel was the “Dolphinarium,”
was the nightclub where many young people were killed or wounded in a horrifying
terrorist attack in the year 2000.
At
night we went to bars and clubs, as we would have in any other country and on
any other vacation. We shopped in the malls, swam in the Dead Sea, visited the
Western Wall and did not allow the threat of terrorism to deter us from enjoying
the beauty and culture of the country.
Some
parts of the trip were difficult. It was painful to see the nearly desolate
hotels and to hear CEOs, shopkeepers, and friends thank us for visiting the
country at “a time like this.” In addition to ongoing political conflict,
Israel was also suffering from the economic downturn whose greatest effect was
felt in the high-tech and Internet related sectors.
But despite these tough times, there existed a quiet optimism,
characteristic of the Israeli people. We
were elated to hear a colleague recommend the purchase of a particular Israeli
stock for a long term, 30-year investment. Hearing the words “long term,”
“30 year investment” and “Israel” in one sentence was an affirmation
that the State of Israel and its democracy were here to stay.
Special thanks to Leora S. Salzhauser for her
contributions to this article.
