Why Israel Should Invest More in Developing Countries: The Political Benefits

of Development Aid

Of all the countries that compose the OECD (Organization for Economic Cooperation and
Development) group, hardly anyone displays a history as impressive as Israel’s when it comes to
development. In fact, when the first Jewish people came to Eretz Israel in the 1880s, they soon found
that the Biblical land of milk and honey was actually an arid and harsh territory lacking any relevant
natural resource. However, of all the qualities that one must recognize to those earliest and later
comers, determination and hard work certainly stand out and it was indeed thanks to them that the
country’s economy has since been developing and thriving.
Today, Israel is one of the OECD countries with the fastest-growing economy, the lowest
unemployment rates, and the most sophisticated technological and cyber sectors. Additionally, it is
renowned worldwide for its irrigation systems, desalination plants, greenhouse technology, military
technologies, cybersecurity, start-up companies, R&D thriving environment.

As the protagonist of such unparalleled and impressive success story, Israel has the instruments (i.e.
the manpower, the know-how, the infrastructures) to make a significant contribution to the growth of
those countries in Africa, Asia and Latin America that are still in their development phase. At the
same time, Israel not only has the means to promote development, but it also has the incentive to do
so: in fact, looking at the Development Goals set by the UN for 2030, it emerges that Israel has a
relative advantage in at least five of the 17 goals: water management, advanced agriculture,
qualitative and universal health services, innovation and advanced energy.
However, what Israel seems to lack (with, of course, some happy exception) is the interest to take an
active role in the global effort for international development. Today, in fact, Israeli exports are
concentrated in a reduced number of target countries: as reported by the Israel Export Institute, 61%
of all exports are targeted to developed countries, while only approximately 25% of exports is directed
to developing countries. Similarly, the OECD has reported that Israel’s net official development
assistance (ODA), which is government aid designed to promote the economic development and
welfare of developing countries, amounted to merely $ 374.8 million in 2016, that is to 0,111% of
the country’s gross national income.1 Conversely, the United States’ ODA in 2016 was of $ 35,075.2
million, Germany’s ODA was of $ 25,603.2 million, the United Kingdom’s ODA was of $ 17,574.7
million, France’s ODA was of $ 9, 873.0 million.2

Unfortunately, this stands as a substantial missed opportunity for Israel, considering that the
developing world comprises approximately 55% of the global economy and is expected to comprise
almost two-thirds in another decade. Emerging markets, in fact, are already surpassing developed
ones.

1
https://data.oecd.org/oda/net-oda.htm
2
https://data.oecd.org/oda/net-oda.htm
Source: world development indicators, world bank 2017; MSCI classification of markets
In this context, if Israel became more actively involved in the developing world, it could reap
considerable benefits. Importantly, these benefits would interest not only the economic sphere (as it
is more easily and immediately expected) but also the political one.
In fact, in a historical moment in which Israel’s international image is negatively affected by political
issues such as the continuous expansion of Jewish settlements in the West Bank, the delicate status
of Jerusalem, the blockade over Gaza, and the recently-approved nationality law that de facto
relegates Israel’s non-Jewish population to a condition of second-class citizenship, a greater
participation of Israeli public and private companies in the effort for international development would
contribute to improving the country’s image worldwide, encouraging more positive political and
diplomatic ties with other nations and with international organizations.
To appreciate the extent to which this is true, it is interesting to look at the resolutions that the UN
has recently adopted against Israel and what countries voted in their support. Among the most recent
ones:

- Resolution A/C.4/73/L20 reaffirms that the Israeli settlements in the Occupied Palestinian
Territory, including East Jerusalem, and in the occupied Syrian Golan are illegal and an
obstacle to peace and economic and social development. Below, the countries’ votes:
- Resolution A/C.4/73/L21 reiterates that all measures and actions taken by Israel, the
occupying Power, in the Occupied Palestinian Territory, including East Jerusalem, in
violation of the relevant provisions of the Geneva Convention and contrary to the relevant
resolutions of the Security Council, are illegal and have no validity. Below, the countries’
votes:

- Resolution A/C.4/73/L.18 expresses grave concern about the critical situation in the Occupied
Palestinian Territory, including East Jerusalem, particularly in the Gaza Strip, as a result of
unlawful Israeli practices and measures, and especially condemns and calls for the immediate
cessation of all illegal Israeli settlement activities and the construction of the wall, the lifting
of the blockade of the Gaza Strip, as well as a complete cessation of the excessive and
indiscriminate use of force and military operations against the civilian population, settler
violence, the destruction and confiscation of properties, including home demolitions as a
measure of reprisal, the forced displacement of civilians, all measures of collective
punishment, and the detention and imprisonment of thousands of civilian. Below, the
countries’ votes:
The resolutions mentioned above added to Res. ES-10/L.22 that was adopted in December 2017
declaring the recognition of Jerusalem as Israel’s capital “null and void”. Among the developing
countries, affirmative vote was given by: Angola, Bangladesh, Bolivia, Botswana, Burkina Faso,
Burundi, Cape Verde, Chad, Comoros, Republic of the Congo, Costa Rica, Djibouti, Ecuador, Eritrea,
Ethiopia, Gabon, Gambia, Ghana, Guinea, Ivory Coast, Liberia, Madagascar, Mauritania,
Mozambique, Namibia, Nicaragua, Niger, Nigeria, Senegal, Sudan, Tanzania, Zimbabwe. Among
the developing countries, it was rejected by Guatemala, Honduras, Marshall Islands, Micronesia,
Nauru, Palau, Togo.
Prior to that, in 2016 the United Nations Security Council adopted Resolution 2334, that states that
Israel’s settlement activity constitutes a flagrant violation of international law and has no legal
validity. It demands that Israel stop such activity and fulfill its obligations as an occupying power
under the Fourth Geneva Convention. Among the developing countries, affirmative vote was given
by Angola, Malaysia, Senegal, Uruguay, Ukraine, Venezuela. There were no votes against and the
only abstention was the United States’.
On top of this, Israel’s isolation in the international arena is evident also in the UN’s condemnations
(in Hebrew: ‫ )גינוי‬against Israel. Since its foundation in 2006 until today, the United Nations Human
Rights Council has issued 62 condemnations against Israel and 55 against the rest of the world
combined. In 2018 alone, the UN issued a total of 27 condemnations, 21 of which were against Israel.3

3
https://unwatch.org/updated-chart-of-all-unhrc-condemnations/; https://www.trtworld.com/middle-east/in-2018-
israel-became-the-most-condemned-nation-at-the-un-22899
What the voting pattern investigated above reveals is that when resolutions regarding Israel are
proposed within the UN most developing countries in Africa, Asia and Latin America vote against
Israel. The only exception is represented by countries like Guatemala, Honduras, Marshall Islands,
Micronesia and, to a somewhat smaller extent, Nauru and Palau. Unsurprisingly, these are countries
with which Israel has established economic relations as donor. For instance, in 2017 Israel donated
to Nauru a $72,000 wastewater treatment plant that would serve a school in the country.4 That same
year, the Guatemala-Israel Development Fund announced that business leaders from Israel aimed to
invest $2 billion in farming, medicine and education.5 In 2018, Honduras and Israel announced
agreements that reinforce their bilateral relationship and that will benefit the Central American
country in areas such as education, agriculture, and tourism. Specifically, Israel is committed to
supporting Honduras through ad hoc programs which include resources and technology transfer.6
Therefore, it seems legitimate to argue that there is a positive relationship between intervention in
developing countries through development investments and diplomatic support on the international
stage: the more Israel uses its impressive human capital, know-how and technological advancement
to invest in those countries that are now on their road to development, the more those countries will
be likely to stand on Israel’s side when international bodies vote on Israel. In this way, Israel will
progressively move closer to achieving a crucial political goal that it has long been striving for: the
normalization of its image at the international level.

4
https://www.jewishpress.com/news/global/un/netanyahu-gifts-micronesian-island-country-that-supported-israel-at-un-
vote/2017/12/28
5
https://www.centralamericalink.com/news/israeli-business-leaders-week-to-invest-2-billion-in-guatemala
6
https://latinamericanpost.com/20900-what-did-honduras-gain-by-moving-its-embassy-from-tel-aviv-to-jerusalem