Monday, June 02, 2014

Israeli defense budget under pressure...

Read the entire article here but this is what stood out to me....
In response to mass social protests in the summer of 2011, the Israeli Cabinet approved an annual 3 billion shekel drop in defense spending, beginning in 2012. At the time, Prime Minister Benjamin Netanyahu scored political points from a restive public by his ostensible brass-tacks determination to tamp down the defense budget.
“I promised and I delivered [a response to social protests],” Netanyahu boasted of the mandated defense spending cuts.
One out of every four Israeli dollars is spent on defense...the Israeli people are well aware of the dangers in their neighborhood, yet they still want defense cuts.

Is this a sign that the Israeli's see peace about to break out?

No.

Its another sign that economies around the world are in a hurt locker.  I wasn't onto the idea that protests are signs of economic distress that can be seen worldwide when this happened.  Now?  It seems obvious to me. I know I have some Israeli audience members and I can't wait to get their take on the issue. 

5 comments :

  1. perhaps the Islamic lockstep on self destruction to and by each other is a sign the danger is less, or, Iran's possession of a nuke force or permission to build and employ one has made any credible defense beyond M.A.D. useless.
    A two nuke to destruction Nation doesn't have the options of fielding a large military force, just a Sampson option.

    ReplyDelete
  2. Israel spends about 20% of the budget on defense, according to the Israeli press; or about 6% of the GDP according to the World Bank. Defense spending has always been a tough choice, as everyone would prefer to spend the money on education, healthcare, etc. Personally, I think much of the social protests in Israel (and the US, for that matter) have more to do with immaturity and irresponsibility than with hard economic factors. Times are indeed tough, but there's an awful lot of folks who feel entitled - a feeling encouraged by sociological fashions (neoMarxism?) and government policies. During the Great Depression there were fewer protests, I believe; but a lot more people who wanted to find honest work. And the gov't response in the US was to provide jobs, even if contrived; rather than simply give them handouts. Israel's early years were kind of similar; but there was a widely shared ideology of commitment to building and supporting each other. In both countries, much of the present young generation lacks those values.

    In Israel it is particularly difficult to change the social expectations because from its founding in '48 until '77 the official economic and social policies were liberal socialist. Only in 1977, with the election of Mr. Begin, was a more capitalist approach given a chance. It has gone back and forth since then, depending on who forms each government. The Israeli economy is actually doing pretty well compared to many around the world. About 6% unemployment, about 3.75% GDP growth - but about 20% living below the poverty line. Fully half of those impoverished come from two specific groups notorious for not participating in the national economy or other aspects of national life, such as military service - Israeli Arabs and the so-called 'ultraOrthodox' Jews. That kind of skews the picture.

    The social protesters that Netanyahu tried to appease were, like in the US, mostly young people who are naive, ideologically confused, and think they shouldn't have to work as hard or fight as their grandparents and parents have. But the biggest issue really is the ongoing tension between liberal socialist and more capitalist schools of thought. Some people still don't realize that Marx is long dead.

    ReplyDelete
  3. Further illustration of the severity of the Israel defense spending crisis:
    http://www.jpost.com/Defense/PM-promises-to-solve-defense-budget-debacle-355142

    ReplyDelete
  4. An additional problem with the defence spending is the bloated and wasteful Ministry of Defence and the Army. There are lots of departments that should be pared down and a lot of command jobs deleted - too many Generals, just like in the US Armed Forces. The IDF is also thinking of lowering the retirement age and not paying the full pension to those that are retired. A big part of the defence budget goes for 45+ year old retired soldiers who get full pensions. Additionally there are a large number of retired soldiers that have significant disabilities from injuries during their Army service; they get full financial and healthcare support, subsidised transport, etc. The Army is considering reform to cut these costs with some reform.
    The threats of war with a state entity has diminished greatly since the Syrian Civil War and also from lesser organisations. Hamas in Gaza is also in dire staights and Hizballah is very much entangled in the Syrian quagmire. Iran is the only real threat to Israel for the future with their nuclear program. They WILL carry on with their bomb development whatever agreement the West will have with them. And they will hoodwink the west easily. They are an extreme religous regime, so the usual human rules and values do not apply to them and they will do whatever will further the greatness of Allah, who is on their side. I am not even sure if the MAD rules (of nuclear retaliation) will apply to them. A Shaheed has 72 virgins waiting for him in Paradise. They love death more than the Israelis love life.
    Iran is also dengerous for the Sunni regimes in the Gulf and it seems to me that they have more to fear and are closer to the Lion's den.
    So what it boils down to is the need to cut the defence expendituresat this time and spend more on education, healthy, and infrastructure for the next two-three years.
    If America can cut defence spending (and very painfully) the Israeli Government can do the same.

    ReplyDelete

Note: Only a member of this blog may post a comment.