Decolonization Models for America’s Last Colony: Puerto Rico

Israel

97 Israel A small country in the desert that has managed to establish a high-tech economy and an agricultural program to supply all its food needs and also export farm products. —Ángel Collado-Schwarz Israel in 2010 Population: 8 million Territory: 22,000 square kilometers Population density: 359 per square kilometer Gross domestic product (GDP): $217.3 billion Gross national income (GNI): $207.2 billion GNI per capita: $27,170 Unemployment rate: 7.6 percent (2006–2009) Internet users: 65.4 per 100 people Source: World Bank, World Development Indicators (Washington, DC: World Bank, 2011). Israel  99 Updated Comments Israel’s economy grew better than 5 percent per year during 2004–7. After a 4 percent gain in real GDP in 2008, Israel felt the global recession in 2009, when growth slowed to virtually zero (0.6 percent). Unemployment peaked at 7.6 percent in 2009. The global recession did not hit Israel as hard as it did other countries, and its effects were felt mostly as a drop in exports to the United States and the EU. The Israeli government countered the global lull with a fiscalstimulus program and a fairly aggressive monetary policy. By 2010, real GDP was already growing at more than 4 percent. Such growth is projected to continue during 2011–15. Francisco Catalá-Oliveras Juan Lara Interview Interview aired on La Voz del Centro, Univision Radio Puerto Rico and New York, June 24, 2007. ÁNGEL COLLADO-SCHWARZ: Israel is a country that has been involved in controversy ever since it was formed in 1948. Its creation provoked war with its neighboring countries. In spite of this complicated situation and the fact that it is largely a desert country, it has managed to establish a successful economic model, in manufacturing and high technology as well as in agriculture. Not only do [the Israelis] supply all their local food needs, but they also export agricultural products. Paco, let’s give our radio listeners some background on Israel. FRANCISCO CATALÁ-OLIVERAS: Well, the whole area where Israel is located has been described as a place of conflict and a land of hope, which seems somewhat contradictory but I think pretty well describes Israel’s circumstances. In 1947, the partition of Palestine was brought about through Resolution 181 of the United Nations, under the leadership of the United States, 100  Interviews and other nations. Immediately afterward, that same year, the State of Israel was founded, and in 1948 its status was formalized. You will remember that we have described other nations here that came into existence through struggles for independence, some in one way, some in other ways. Slovenia took one path, Ireland another, and Singapore yet another. Well, this case is also very particular. At the time [the State of Israel was born], in Palestine there were nearly three hundred Israeli or Jewish communities, around half of which were collectivefarming settlements called kibbutzim. At the time, Israel’s population was about 800,000. Today it is nearly 7 million, which tells us that from the time Israel was founded to this day, there has been a great flow of immigration. If one were to describe Israel in broad strokes, one might say that it has been defined by three elements: immigration, the importation of capital, and the constant of war. Perhaps I should add a fourth element because [Israel] was very innovative. When no one was talking about free-trade agreements yet, Israel had one with the European Union (EU) [in 1974]— which back then was known as the European Community—and another with the United States [in 1984]. Before the United States signed its famous free-trade agreements with Canada and Mexico, it had one with Israel; and Israel had a second one besides, with the EU. So it was linked to two centers of economic activity. That was for starters. JUAN LARA: Comparing Israel to Puerto Rico is a very interesting idea. Obviously, we must leave aside the enormous differences between the two with regard to Israel’s political and military situation, which contrasts so sharply with ours. But observing its economic evolution and thinking about how its economic policies and strategies might serve as models for Puerto Rico are a fascinating exercise. The impression you get when you make this comparison is that in Israel they have managed to do what we intended to do here, but what we never managed to...