Israel has tried nearly everything to fight the boycott, divestment, and sanctions movement that seeks to isolate it internationally: deporting BDS activists upon their arrival at Ben-Gurion International Airport, passing laws to allow civil suits against BDS activists and organizations, and mounting a well-funded government campaign, fighting the cause on the diplomatic front. But the most obvious, easiest solution has not been tried: making Israel more attractive economically.
Because what it BDS? An attempt to harm Israel diplomatically via economic pressure. Demonstrations, protests, and boycotts are supposed to cause companies to divest from Israel, causing the country to weaken and give in. But if we take the fight to the economic arena, rather than wasting public funds on fruitless efforts, thereby damaging the economy – why shouldn't we use the BDS movement's own weapons against it?
Unlike diplomacy or public relations, Israel has a few important advantages when it comes to economics. Moreover, it is a quantifiable field that is easily influenced and in which success can be seen.
Israel has marked a number of economic achievements – its per capita gross domestic product recently surpassed that of Japan. But when we want to assess how attractive Israel is for investors – the core issue for BDS – the key measure is the World Bank's Ease of Doing Business Index, which evaluates the level of bureaucracy and headaches that an entrepreneur or business investor is likely to encounter when doing business in Israel. And here the news is very bad. In recent years, Israel has consistently fallen, dropping from 26 in 2006 to 54 currently. Israel is ranked particularly problematic when it comes to the registry of property, taxes, and enforcement of contracts.
An investor considering putting money into Israel might be spooked by protests against the "occupation" or in solidarity with "the children of Gaza," but will be even more frightened by the fact that it takes 81 working days to register a piece of property in its name; that it takes 15 procedures to receive a building permit; and that if the investor sues anyone, it will need to kiss goodbye about 25% of any damages awarded. Not to mention that businesses in Israel have to pay at least 33 different taxes and fees, which also eats up time.
In contrast to the international campaign of hatred, our performance on this index is strictly up to us, and we can very easily influence it. There is no need to travel the world to meet with movers and shakers – we can make some simple changes here at home, in the Knesset and in the various government ministries: Lower taxes, reduce regulation, and smash irresponsible roadblocks and centers of power like the Histadrut labor federation and the Israel Electric Corporation. All that is needed is the will, the leadership, and a little politicking.
I remember the howls from the Left two years ago about how Israel's new natural gas resources could make it less sensitive to political pressure and economic boycotts. That's true; the stronger Israel is economically, the more ridiculous the campaign to demonize it becomes. Imagine a world in which Israel takes its place as one of the 10 easiest countries in which to do business, ranked not alongside Kazakhstan and Armenia, but with the U.S., U.K. and Singapore.
When companies from all over the world are flocking to Zion to enjoy a system that is convenient, accessible, and good for entrepreneurs, the childish activists with their pink hats will be left wracking their brains about how to get us.
