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ISRAEL'S NEW ECONOMY AND THE INTIFADA: A note on the boycott
campaign. 
 
by Naxos 
 
This article is Copyleft [see below] 
 
December 2001. At one end of London's Oxford Street the Palestine

Solidarity Campaign has mounted a picket on Selfridge's department

store, to persuade the management to stop selling produce from

Israeli settlements in the Occupied Territories. 
 
A similar campaign has been organised [March 2002] by Ya Basta
in 
Italy (http://www.yabasta.it). 
 
In this article I take these actions as the starting point for
a 
discussion of the radical transformations that have taken place
in 
the Israeli economy during the past decade, and Israel's very

specific location within the global knowledge economy. 
 
To Summarise: 
 
I would argue that Israeli capitalism of today offers a precious

microcosmic possibility for the study of immaterial labour in
action. 
It is also crucial that we understand this economy, because in
a real 
"world war" sense our futures depend on what is happening here.

 
In recent years the Israeli economy has undergone fundamental

changes. An entirely new class composition was created by the

ex-Soviet migrations of the 1990s. Markets for traditional Israeli

produce became more restricted. The Internet created the conditions

for transnational exports of high-value immaterial labour (knowledge)

products to replace previous low-value products with high transit

costs. And the nature of the new knowledge economies opened new

interstitial possibilities for insertion. A new and technically

skilled workforce proves capable of creating the flows of innovation

that are the precondition for the survival of the large capitalist

firms of this and the preceding era (head-hunting of promising
new 
start-ups). Among other things, Israeli companies are particularly

well-suited to meet the new demand for biomedical products. They
also 
have a powerhouse of R&D represented by the Israeli Defence Force's

high-tech academies. And they have a guaranteed point of entry
into 
the US military-industrial complex by virtue of lines of 
communication between "Silicon Valley" and the "Silicon Wadi"
of 
Northern Israel. More than this, Israel also exports models of

behaviour ñ biopower ñ in the form of knowledges of how to limit,

constrain and eventually crush dissident behaviours. This is
marketed 
as "methods for defeating terrorism", but is in fact a set of
methods 
for the creation and freezing of an adversarial "other". 
 
I shall deal with each of these aspects in turn. In passing I
would 
say that this conjunctural shift in the Israeli economy, this
radical 
change in the composition of both class and capital in Israel,
have 
been the necessary precondition for ñ and partial explanation
of ñ 
the Israelis' radical break with the Palestinian labour-power
which 
had served previous phases of production (notable in agriculture
and 
construction). Put briefly, the inflow of Soviet ("Russian")
Jews 
made possible the break with Palestinian labour power. And 
simultaneously the Soviet Jews have turned out to be the electoral

bedrock of the Israeli government's "final solution" for the

Palestinians. 
 
Thus the political and economic precondition for Israelís radical

break with Palestinian labour-power was the shift from traditional

forms of agriculture and manufacture into the arena of immaterial

labour which took place in the 1990s. 
 
But more than that, I would argue that the Israelis' war with
the 
Palestinians operates as a "factory of immaterial labour export

possibilities". This war is, in a real sense, productive for
the 
Israeli economy. 
 
Calls for boycotts of Israeli produce are symbolically significant

and completely worthwhile. A necessary element of ethical hygiene.

They should be supported. But the way in which the campaign is
framed 
is simple-minded to the point of naivety. We are not talking
a few 
packets of pretzels, a crate of Jaffa oranges and a face-pack
of 
cosmetics. Two things need to be said. First, Israel's new immaterial

economy and its immaterial-labour products are organically integrated

into the very highest levels of the globalised high-tech 
communications, military and security economy. Second, and perhaps

more importantly it appears that the trade-mark Israeli model
of 
suppression of opponents has been exported and projected onto
the 
world stage, to become the dominant paradigm of US foreign policy.

 
The characteristics of this model are (a) radical negation of
the 
Other (for several decades, in Israeli discourse the Palestinians

have always and only been "the terrorists"; (b) Preventive security

strikes, extending increasingly to assassination; (c) micro-level

capillary monitoring of populations at all levels, and installation

of administrative and technological means to that end; (d) 
intransigent and defiant unilateralism. 
 
We are at a crucial turning point. After the first phase of the

Afghan war world opinion seemed to be expecting a Powellisation
of 
Israeli policy (towards negotiation). Instead we have seen a

Sharonisation of American policy [Note 1]. 
 
1. The necessity of leaving the old economy. 
 
A large part of Israelís ìold economyî consisted of agricultural

products. Citrus fruits in particular. ìTwenty years ago Israelís

main industry was oranges.î 
 
By the early 1950's, fuelled by mass immigration and large capital

investments, the citrus subsector grew rapidly. Hectarage rose
from 
14,000 to over 40,000 hectares. With the well respected "Jaffa"
label 
Israeli oranges and grapefruit dominated many markets. However,
by 
the late 1970's stiff competition from Spain, Morocco and Cyprus
and 
changing consumer tastes led to a levelling off of demand. The
1980's 
saw a major decline in international competitiveness and 
profitability with more than 20% of its planted citrus area uprooted,

packing houses mothballed and volume levels falling to 1930's
levels. 
Several factors led to Israel's decline. These included:- a)
rapid 
cost inflation in the mid 1980's; b) the strength of the $US
vis ý 
vis European currencies; c) a rise in international shipping
costs in 
the early 1980's; d) financial crisis within Israel's agricultural

settlements. [Note 2] We may also adduce the resulting dependence
on 
Palestinian or foreign migrant labour; the use of agricultural
land 
for housing (eg in Jaffa); susceptibility to international trade

boycotts; and the fact that water is a military resource in the

Middle East. Exporting oranges is to export water. 
 
I shall not deal here with the question of the diamond trade,
except 
to note that it lies at the heart of some of the warmongering
which 
is destroying a good part of Africa. For example the gangster
economy 
in Sierra Leone, and in Liberia "a major centre for massive 
diamond-related criminal activity, with connections to guns,
drugs 
and money-laundering throughout Africa and considerably further

afield. Diamonds are a key part of Israel's economy. [Note 3]

 
2. The material precondition for a new economy 
 
The first precondition for the ìnew economyî is highly skilled

technical labour-power. That was provided by the mass arrival
of the 
ìRussianî Jews emigrating from the Soviet Union. Coming in two

distinct waves, with the second in the 1990s. Upwards of 600,000

arrived, and many of them were highly skilled personnel ñ doctors,

lawyers, musicians, scientists and computer programmers. More
than 
13,000 doctors arrived in Israel, more than half of them women.
The 
health service could only absorb 20%, leaving the rest excess
to 
requirements and needing to be redeployed elsewhere. The ìRussiansî

constituted 15% of the 4.5 million electorate, had their own

political parties, and were notoriously hostile to any negotiation

with the Palestinians. 
 
A further 600,000 went to the USA and settled in the Los Angeles

area. In 1999 an article in the Los Angeles Magazine spoke of
an 
emerging Russian underworld in the LA region: ìThey come from
a 
dog-eat-dog ëdemocracyí where the shortest books in the library
are 
the ones on business ethics and criminal justice, theyíre not
only 
tougher and slyer, but their crooks, according to our cops, are
the 
smoothest thing since iced vodka.î [Note 4] In LA there was talk
of a 
Russian mafia, with organised gangs involved in kidnappings,

financial fraud and Internet crime. Some of this talk has since
been 
denounced as racist. However the newly emerging transnational

diasporic Israelo-American nexus constituted by "the Russians"

clearly invites analysis. A job for another time. 
 
3. Conjunctural factors in the promotion of high-tech sectors

 
The global ìknowledge economyî took off in the 1990s. Special
factors 
applied in Israel, assuring the rapid growth of a networked society.

During the Gulf War the threat of Iraqi rockets and gas/biological

weapons set in place ìnational emergency planningî, whereby 
communities used Internet and related technologies as a means
of 
civil defence, thereby turning Israel into one of the worldís
most 
wired societies. 
 
By law, all Israeli houses built since the Gulf War are required
to 
have a secure room that can function as a shelter against terrorist

attack. Israel is also dotted with ìneighbourhood response centresî

ìLocated in the basement of a community center, the command room
is 
staffed by citizen volunteers and army conscripts. Radios and

ubiquitous cell phone links, as well as homing beacons and 
microphones built into settlersí cars, allow travellers to be
closely 
tracked, and let authorities know right away when trouble is

developing.î [Note 5] 
 
The presence of excesses of skilled and unemployed immigrant
labour 
was a pressure in the direction of innovation. By its nature
the 
emerging immaterial sector of the Internet and communications
was a 
huge, lumbering thing, open to experimentation, but most of all

subject to the pressures of its own growth. In growing very big
very 
fast it opened interstitial possibilities for small start-up

companies. There was a huge need for innovation. Small start-up

companies could get big very fast. And intelligent applications
were 
required in order to clear the blockages imposed by the scale
of the 
sectorís growth. 
 
ìWith revenue growth for PC chips slowing, communication chips
have 
become the hottest growth area in the semiconductor market [...]
ëThe 
driving force is the increased demand for bandwidth in every
aspect 
of communications, whether itís home users accessing the Internet,

providing a corporation, or the emerging demand in the third
world. 
The demand is literally everywhere.î[Note 6] This sector has
a strong 
presence of start-up companies in Israel. The US-based giant
Intel, 
suffering from the drop in demand for PC chips, moved to buy
up 
communication-chip companies. By 2002 Intel-Israel, with 5,0005

employees in Jerusalem, Haifa and Kirya Gat, had exports of $2

billion, compared with $810m the previous year, a growth deriving

from the opening of a new plant at Kiryat Gat.[Note 7] The Israeli

government provided favourable terms and conditions for high-tech

start-up companies, creating ìtechnological incubatorsî in areas
such 
as Yokneam. The Israeli company DSP, which has developed chips
used 
in wireless and mobile phone communications, was recently sold
to 
Intel for $1.6 billion.[Note 8] 
 
At this point a large part of Israeli intervention in the high-tech

sector was interstitial ñ seeking emerging niche possibilities
within 
the overall growth of the sector: 
 
For instance when ìYear 2000î (Y2K) emerged internationally as
a 
problem area, Israeli company Sapiens International [Note 9]
built a 
Year 2000 remediation niche and staffed it almost entirely with

immigrant Russian programmers. These were people who had worked
for 
Soviet governments building computer systems for the railway,
oil and 
auto industries. About 70 of Sapiensí s 100-strong staff were
emigrÈ 
Soviet Jews. The firm also applied itself to another window of

conjunctural opportunity ñ Europeís changeover to the euro currency.

And it built a specialisation in converting computer systems
from old 
languages into new languages (converting assembler code into
C 
code).[Note 10] Remediation was a key word at this stage ñ upgrading

and problem-solving in older computer systems. 
 
This new Israeli high-tech sector operated through the extended

networks of the Jewish diaspora, seeking opportunities for 
fleet-footed action and innovation. In a sense the diaspora offers
a 
metaphor for the new realities of the cybertariat within immaterial

labour. Networks and connections meant that the ìSilicon Wadiî
which 
emerged in Israel became a fundamental, necessary and integrated
part 
of the ìSilicon Valleyî operating in the USA. 
 
The technology park at Yokneam, for instance, has a twinning

relationship with St Louis. The American-Israel Chamber of Commerce

organises trade visits of small Israeli companies to St Louis,
where 
future trade relations are developed with the likes of Boeing.

Similar trips were organised by the AICC of Minnesota, which
has the 
four largest medical devices companies in the world (and the
Israeli 
immaterial labour sector is developing a strong presence in 
biomedicals and high-tech healthcare ñ see below) [Note 11].

 
4. Israel as a military economy 
 
Israel is a highly militarised society. Decades of war (against
the 
British, against the Arabs, and internal war against the 
Palestinians) has created a powerhouse of military techniques
and 
technologies. These include hardware (rockets, bombs, guns and

ammunitions) and systems (integrated battlefield computer systems),

and also the ìbio-powerî spin-off of the production of mindsets,

philosophies and ways of being in the world. 
 
Israel Military Industries was founded in 1933, producing munitions

to fight the British. In 1990 it became a government owned 
corporation. A 4,000 workforce, of whom over half are engineers,

scientists and technology experts. It recruits top-level skilled

personnel, the product of Israelís prestige military academies.
As 
well as traditional armaments, it also has a telecomms subdivision,

IMI Telecom, which ìspecialises in the field of telecommunications

and electronic commerceî.[12] Capitalising on its unique experience

as a wired society geared to daily disaster mitigation and capillary

counterinsurgency, it was well placed to exploit the niche offered
by 
Americaís vulnerability to the attacks of September 11. On 5
February 
2002 it organised an international ìNational Emergency Managementî

seminar for foreign local and national governments and private

companies. In a real sense this is an Israeli export of imaterial

labour. As is the output of another of its ìfactoriesî ñ the
IMI 
Academy for Advanced Security and Anti-Terror Training, a large

campus with an interdisciplinary team of instructors who are
ìall 
former commanders from elite Israeli security unitsî.[Note 13]

 
To this extent we can say that the Israelisí war against the

Palestinians is effectively a productive sector, a factory of

expertises and techniques which are then marketed worldwide.

 
Another case in point is Krav Maga. This is a self-defence martial

arts technique. Created and developed by the Israeli Army, Krav
Maga 
is not only the official combat system of the Israeli Army, but
is 
also taught in Israeli schools as part of the curriculum. It
has a 
characteristically Israeli vocation of democracy: "It is our
belief 
that everybody, no matter what age, weight, gender or body type,
has 
the right to defend themselves and their loved ones." The method
was 
developed to suit everyone ñ men, women, children, old people
ñ as a 
way of saving their own lives or minimising harm from attack.
It 
developed originally in the 1940s, in training elite units of
the 
Hagana and Palmach, and embodies "preventive self-defence". It
is a 
stance, a whole way of being in the world, based on objective

paranoia and pre-emptive preparedness. Ariel Sharon (formerly
of the 
Hagana) is of this school. I suggest that as well as being exported

to the world as a martial arts technique, this stance is being

marketed as a geopolitical product.[Note 14] 
 
5. Israelís integration into the US military-industrial complex

 
The Gulf War provided moments of both tension and cooperation
between 
Israel and the US military-industrial complex. As the price for

Israeli restraint and inactivity in the face of incoming Iraqi

missiles, the US and Israeli military collaborated in the production

of anti-missile devices. One of these (designed to combat Katyusha

missiles incoming from S. Lebanon) was the Tactical High-Energy
Laser 
(THEL). However there are also tensions. Ehud Barak was forced
by 
Bill Clinton to renege on a contract with China, already signed,
for 
supply of Phalcon AWACS surveillance systems.[Note 15] 
 
The business opportunities accruing to Israel from the September
11 
attacks includes interest in a ìrevolutionary explosives sniffer

deviceî ñ again a spin-off from Israelís war with the Palestinians.

The MS-Tech company developed the ìMini-Nose for Detectionî with
80% 
of the funding being provided by the US Department of Defense
and 
theMinistry of Defense. Company founder Moses Shalom is also

negotiating with Ion Track Instruments, which provides security

systems for the perimeters of jails.[Note 16] 
 
What is more interesting than these public manifestations of

collaboration is what happens behind the scenes in universities
and 
research institutes. 
 
One of the new paradigms of military thinking is C3I ñ command,

control, communications and intelligence ñ operating in cyberspace.

"The rapid progress in computer power and miniaturization in
the 
1980s and 1990s made it possible to think of introducing computers

and computerized systems into every element of combat, including
the 
complex and often incoherent environment of gound battlesÖ Every

component of US military forces is now being designed and rebuilt

around computerized weapons, systems, and C3I".[Note 17] 
 
It is no surprise that the Israeli military plays a role in the

development of these US military systems. Intelligence Online

reported in 2000 that "The US concern Mercury ComputerSystems,
a 
leading manufacturer of computers able to gather and analyse
signal 
intelligence, has just signed a $1.2 million contract with Israel's

defence ministry" for research collaboration.[Note 18] 
 
Israel is known for its military academies which provide advanced

research bases for the cream of the countryís high-tech personnel.

However this ìnationalî personnel operates within the global
context 
of the diaspora, and is equally at home in the military-industrial

complex of the USA. A detailed search through lists of US university

personnel would throw up many people who trained initially in
Israel 
and then moved to the US to pursue further studies. One person
whose 
research has both an Israeli and a US dimension is Professor
Ouri 
Wolfson of the University of Chicago at Illinois. His project
funding 
ranges between the US Air Force Office of Scientific Research
and the 
Isaeli Academy of Sciences and Humanities. He has developed a
DOMINO 
software, designed for tracking cars and aircraft, which was

developed with the US Army Research Laboratories. Wolfsonís early

research was in computer science at the Technion University of
Haifa. 
(In a civilian spin-off from this, a company has been set to
provide 
systems for lorry freight companies to track their vehicles).

 
I suggest that this would be a good time to return to the 1960s
US 
radical methodology of charting interlinking directorships between

companies in order to establish the true nature of Israel's 
involvement in this newly-emerging global military-industrial

economy. Some of this information can be gleaned from NASDAQ
share 
flotation documents.[Note 19] 
 
6. A medieval model 
 
The history of intellectual and scientific development of the

medieval West cannot be written without acknowledging the key

contribution of the Jewish intellectual diaspora in Andalus,
Provence 
and elsewhere. The Ibn Tibbon family, with their translations
of 
Greek scientific texts mediated through the Arabs, and the school
of 
Jewish mathematicians, c.1250-1350. Their contribtion the productive

and military techniques and technologies of their time was immense.

The Prophatian Quadrant (a remodelling of the complex Arab astrolabe

onto a device that was simply a piece of card and a bit of string)
is 
one example, as theorised by Jakob ben Mahir Ibn Tibbon.[Note
20] 
 
There are tantalising parallels with the globalised diasporic

intelligentsia of today. One observer has suggested that the
medieval 
Jews, with the daily realities of comercial life in the diaspora,

were in a real sense the precursors of globalisation. As I suggest

above, the Israeli capitalism of today ñ the extent of its global

reach, the deterritorialised space in which it operates and the

merceological nature of the commodities it produces ñ offers
a 
precious microcosmic possibility for the study of immaterial
labour 
in action within globalisation. 
 
7. Visionics Inc ñ Biometrics as a growth sector 
 
The unexpected domestic vulnerabiliy of the US revealed by September

11 mant that fast responses were needed at the level of security.

Paranoia, xenophobia and the fear of dying provided a massive
market 
opportunity. The Airport Security Improvement Act (2001) was
passed, 
requiring a dramatic upgrading of security systems. Into the
picture 
steps Visionics Inc. This company produces face-recognition and

fingerprint recognition equipment, based on the new science of

ìbiometricsî. 
 
The chairman of Visionics Inc., Joseph Atick, lived in Israel
(on the 
West Bank) till he was 15. He dropped out of high-school and
set 
about writing a large textbook on physics ñ in Arabic. He was

accepted into the Maths programme of Stanford University in the
US. 
And moved on from there to become professor at the Rockefeller

University. The elements of diaspora, movement, Arabic, mathematics,

university, radical conceptual innovation leading to new technologies

are strikingly reminiscent of the medieval predecessors.[Note
21] 
 
Here science and mathematics are used to generate a police-state

technology. The software and technology involved in these products

have a strongly Israeli dimension. Biometrics is one of the fields

being explored by Israeli software companies, and these in turn
have 
a symbiotic relation with the Israeli military. One of the earliest

uses of Visionics face recognition technology was to monitor
the 
faces of commuting Palestinian day labourers at Israeli army

checkpoints. 
 
An article describing this Israeli-American productive node as
it 
operates in Minnesota speaks of "high-tech companies joining
in a mad 
dash to develop and market a dazzling new generation of security

devices". It is worth noting the extent, the depth of intellectual

labour that has gone into this venture. We are just now at the
point 
where our entire picture of the physical composition of the universe

is being revised way from particles to superstrings. This is
frontier 
science. Atick's work on biometrics and facial recognition derives

precisely from his earlier work as a physicist at the Institute
for 
Advanced Studies, Princeton, where he researched superstrings
and the 
related theories of supersymmetry.[Note 22] 
 
8. Loosening up the lumbering monster 
 
I referred above to the success of Israeli companies in the 
"increased growth in the demand for bandwidth in every aspect
of 
communications". Characteristically, the boom new-technology
economy 
has internal problems created by the very speed of its growth.
A 
large, lumbering monster creates for itself blockages and 
restrictions which need to be overcome. This has proved a 
characteristic area of intervention by small Israeli start-up

companies monitoring and removing problems of blockages of delivery,

bottlenecks, restrictions of bandwidth etc. Speeding up the flow
of 
information-as-capital. The following is a small list of such

ventures: 
 
Foxcom Wireless: Makes an RFiber optic-fibre product, which enables

wireless technologies to operate in hard-to-reach urban and shadow

areas such as railway stations, tunnels etc. 
 
Chiaro Networks: Uses the scalability of optic fibre to remove

capacity bottlenecks from intersections of optical carrier backbones.

Unique optical switching technology. These expand the availability
of 
bandwidth. 
 
Xact Technologies: of Ramat Gan and Santa Clara: "A Santa Clara

start-up" which monitors Internet customers' usage of the network
on 
the basis of how much bandwidth they use. Like estimating a gas
bill. 
The crucial aspect of Xact software is that it enables Internet
usage 
to be monetised. 
 
Mavix: Produces a multimedia streaming system for monitoring
and 
security. It routes all security inputs into one control unit.
Can be 
used for surveillance of football stadiums, metros, ferries,
prisons 
etc. 
 
Mercado Software: A product entitled Intuifind which adds more

refined searchability to e-commerce search engines. Integrated
search 
and browse facilities. 
 
Sapiens International: Specialises in programmes that gather
discrete 
packets of information and shuttle them around at speed. For

instance, remediation of insurance quotation systems, where 
installation of new systems would be hugely expensive. Operates
via 
internetted cyberspace conferencing for its global marketing.[23]

 
9. Biomedical production 
 
As we know, the concept of immaterial labour extends far into
the 
fields of the caring and the corporal, and here too Israeli companies

have made major interventions. This development is driven in
part by 
commercial spin-out interests of teaching-hospitals in Israel,
and in 
part by the excesses of medical skilled labour-power in-migrating

from the Soviet Union in the 1990s.[Note 24] 
 
"The evolution of new medical device companies in Israel continues

its unabated growth, spurred by the influx of highly trained

immigrants in the physical, biological and engineering sciences,
and 
expanding sources of capital from venture firms in Israel and
the US, 
as well as from corporate strategic partners." [Note 25] 
 
This growth is so marked that the multinational pharmaceutical
giant 
Johnson and Johnson maintains a permanent office in Israel to
search 
for start-up companies in which to invest. The following is a
small 
list of such ventures. As is the case with the companies cited
above, 
most of these companies have one foot in Israel and the other
in the 
USA, clearly catering to the massively emerging US market for
health 
products. 
 
Applied Spectral Imaging: Techniques for treating retinal eye

diseases that otherwise might lead to blindness. 
 
Biocontrol: An electronic device to control urinary incontinence.

 
Vision Cure: Implantable telescopic lenses for treatment of macular

degeneration. 
 
Or Sense: A non-invesive technology to measure cholesterol levels
and 
blood viscosity. 
 
Novamed: Clinical diagnostic tests. 
 
Transdermics: Through-the-skin non-invasive drug delivery technology.

 
Advanced Monitoring Systems: Home-use salival testing techniques,
to 
monitor safe levels of drug administration. 
 
It is important to stress that in no sense are these "caring
and 
sharing" technologies separate from the military industrial complex

outlined above. For instance: 
 
Given Imaging has delivered a pill-sized capsule for transmitting

pictures as it passes through the patient's intestine. This is
a 
spin-off from a CMOS device developed by NASA. 
 
Galil Medical: Cryosurgery techniques which enable minimally
invasive 
treatment of prostate cancers. This is an outgrowth of the Rafael

Development Corporation, the largest R&D organisation in Israel,

which seeks commercial applications of defence technologies.

 
We should also be in no doubt about the radicality of some of
these 
interventions. They will affect our lives fundamentally. For

instance, I have spoken of Israeli start-up projects involving
the 
monitoring and resolution of problems of blockage and delivery.
In 
this vein, Labour Control Systems of Nesher, Israel, has produced
a 
vaginal electronic monitor which will reduce the need for frequent

examination of dilation during child-birth. Such a process is
likely 
to contribute immensely to the ongoing factoryisation of the
birth 
process. 
 
10. Back to the start 
 
In a moment it will be time to return to Oxford Street, December
2001. 
 
But first we should look at the case of one of the most famous

Israeli new-technology start-ups. Mirabilis, founded by "legendary

high-tech entrepreneur Yassi Vardi" produced an internet messaging

system which identifies which of your Internet correspondents
are 
on-line at any given time, and enables you to exchange messages
with 
them.[Note 26] I imagine that this is a direct spin-off of Israeli

electronic battlefield technology. The product was known as ICQ

("I-seek-you"). In a very short time Mirabilis built a community
of 
users of over 50 million, covering most of Western Europe. In
1998 
Mirabilis was bought by AOL.com, and the system became an industry

standard in messaging technology. It is now part of the operating

system of AOL, the world's biggest Internet, e-mail and chatroom

operator. 
 
The most notable political characteristic of this Israeli 
export-product is that it disappears, it becomes invisible, it

becomes grafted into the very flesh and bone of the operating
systems 
of today's capitalism. In short, it is more or less immune from
being 
boycotted. And that characteristic is shared by many of the products

described above. 
 
Which brings us to Mercado Software, a company with Israeli roots
and 
a Palo Alto headquarters. Mercado produces the Intuifind software

system. This product is the outcome of advanced studies in 
psycholinguistics combined with new search-engine technologies.
In 
provides an "intuitive and easy to navigate on-line shopping

experience". Put briefly, on-line shopping is developing very
fast. 
But the systems are stupid, monolithic and lumbering. A shop's

catalogue may have many "lamps" in store, but if you search on-line

for a "light" you will get no result. Therefore, teaming up with

technology 
>from Backweb.com (Ramat Gan and San Jose), Intuifind has built
a system 
"utilising more that 50 powerful linguistic knowledge banks,

including stemming, spelling and thesauri, which help customers

define requests in their own words." A truly immaterial labour

product. This system has been installed at Macy's, Caterpillar,

Sears, Blockbuster Video etc. 
 
And now the irony. At the same moment that the Palestine Solidarity

Campaign was picketing Selfridges Store against the sale of Israeli

goods, at the other end of Oxford Street the John Lewis store
(much 
frequented by Britain's liberal middle classes) was installing
a new 
Israeli export product ñ Mercado's "Intuifind" search-and-shop

technology ñ as a central part of its operating system. Grafted,

invisible, immune to boycott. 
 
11. A note on Jaffa Oranges 
 
To end, I would merely add that many people in the Internet community

have had the experience of using the opportunites for anonymity
which 
the Internet affords. Israeli capitalist companies are no exception.

They begin their life as small locally-based Israeli start-ups.
In no 
time at all they set up their websites. They provide themselves
with 
a nominal HQ in the leafier high-tech glades of the USA and UK.
They 
market their produce on-line, often by offering on-line cyberspace

teleconferencing facilities which transcend national border problems.

Then, very quickly, these companies merge, blend, are bought
up by 
bigger non-Israeli companies. There is a tendency to conceal
their 
"Israeli-ness", which anyway becomes effaced in the merger process.

Thus they become a neutral capitalist product, free of the taint
of 
association with the country in which they were produced. 
 
Incidentally, those among us who are boycotters of Jaffa oranges

might note the following. On 27 December 2001 the Jerusalem Post

reported that the Chinese government is negotiating "to market
its 
own fruit under the Jaffa brand name and purchase the rights"
from 
the Israeli Citrus Marketing Board. Jaffa is now playing the

logo-game. So it could turn out to be a Chinese orange that you
are 
boycottingÖ[Note 27] 
 
 
NOTES 
 
1. Interview with Alain Joxe, Multitudes No. 7, Paris, December
2001. 
2. S. Carter, Global Agricultural Marketing Management, FAO,
Rome, 
1997. Available on-line at http://www.fao.org. 3. "Criminal diamond

trade fuels African war, UN is told", by Victoria Brittain, Guardian

online edition, 13 January 2000. I cannot say whether Israeli

companies are involved in the dirty side of this trade, but in
2000 
the American Drug Enforcement Administration sent a team to train

Israeli police in how to detect and seize money from drug dealing.

Article in Intelligence Online, at 
http://www.indigo-net.com/intel.html. See also Note 19 below.

4. Thomas Cornay, in Los Angeles Magazine Internet edition, March

1999. 5. Eli Lehrer, in The American Enterprise Online, December

2001, p. 2. 6. "Specialty chips find their niche", by Wylie Wong,

http://news.cnet.com, 5 April 1999. 
7. Article at http://www.start-ups.co.il, 12 February 2002. 8.
ibid. 
9. The name itself suggests a vocation for globalised immaterial

labour. http://www.sapiens.com 
10. Article at http://www.cnn.com, 19 September 1999. 11. 
http://www.aiccmn.org 
12. http://www.imi-israel.com 
13. ibid. 
14. http://www.krav-maga.com. There was a similar export of "stance"

in Britain's global marketing of Margaret Thatcher's privatisation

agenda in the 1990s. 
15. Articles in Pravda On-line, 20 December 2001 and Arabicnews.com,

14 May 1999. 
16. Dror Marom. ìUS Cos interested in Israelís MS-Tech explosives

snifferî, http://new.globes.co.il, 18 December 2001. 17. Rochlin,

Trapped in the Net, Princeton University Press, 1997. Online
summary. 
18. Article at Intelligence Online, at www.indigo-net.com/intel.html.

19. Where are they now? For instance, Tamir Segal, whose "Truster"

technology featured in the Guardian On-line on 21 January 1998:
"How 
much would you pay to know when people are lying to you? How
about 
$149? Because that's what Israeli based Makh-Shevet is asking
for a 
software package that turns your multimedia PC into a lie detector."

The technology was "originally envisaged for the security forces
at 
entry points into Israel (a military version is undergoing tests)".

http://www.truster.com. And "Danny Yatom, who was forced to resign
as 
head of Mossad last April following an abortive attempt by Israeli

agents to assassinate Khaled Meshal, the political boss of Hamas,
in 
Amman in September 1997, has switched to making a living in 
business." Yatom, "infamous for his creative torturing techniques
and 
well known to many Palestinians who were tortured under his 
supervision" (Ghazi Saudi, article at http://star.arabia.com,

November 2000) is cited in an exemplary article by Christian

Dietrich, in connection with the firm Strategic Consulting Group,
and 
its involvement in Kazakhstan, Algeria and "a large security
project 
in Angola". Angola, significantly, is diamond country. Christian

Dietrich, "Blood Diamonds: Effective African-based monopolies",
in 
African Security Review, Vol. 10, No. 3, 2001, available at 
http://www.iss.co.za/Pubs/ASR/10No3/Dietrich.html. 20. 
http://www.astrolabes.QUADRANT.HTM 
21. International Herald Tribune, 23 January 2002. 22. Superstrings
ñ 
http://www.sciam.com 
23. Other Israeli high-tech companies which can be search-researched

via the Internet include Opticom (integration of biometric 
technology), Shonut ñ Probabilistic Solutions Ltd (voice recognition,

fingerprint analysis), TeKey (biometrics and human recognition

simulation), Tadiran Co. ("over 40 years experience in military

communications technology"), Proneuron, Net2Wireless, Batm Advanced

Communications, Luz Industries, Mercury Interactive, Team Computers,

and SAFe-Mail.. 
The strength of the Israelo-American diasporic nexus in 
military-security technologies can be gauged from the following.
On 
27 November 2001, BIO-key International (formerly the Israeli
company 
SAC Technologies, optical fingerprint scanning, founded 1993)

announced from its US headquarters in Minnesota that it was taking
on 
former prime minister Benyamin Netanyahu as its Senior Strategy

Advisor. "The current addition [sic] of his book "Fighting Terrorism"

is a terrific example of the insights he possesses to combat

terrorism and secure freedom for us all". Article at 
http://biz.yahoo.com/bw011127/272262_l.html. 24. See Note 10
above. 
25. Jeffrey Berg, in The BBI (Biomedical Business International)

Newsletter, September 2000. 
26. Article at 
http://www.malibutel.com/mobilemediaworld/features/israeli.html.
The 
AOL buy-out of Mirabilis was "an event which spurred Israel's

high-tech frenzy". 27. Jerusalem Post Internet edition, 27 December

2001. 
 
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