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http://www.thenational.ae/apps/pbcs.dll/article?AID=/20100604/REVIEW/706039978/1008
Israel's silicon army
by Spencer Ackerman

As it retreats into greater indifference toward global opinion, Israel 
has come to rely on cynical appeals to American technophiles and 
evangelical Christians. Spencer Ackerman on Netanyahu’s last allies.


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Start-Up Nation by Dan Senor, the former aide to the US Iraq viceroy L 
Paul Bremer, and Saul Singer is a quintessential light airport read: a 
page-turner about how a country under external threat makes a virtue out 
of necessity. What makes Israel a good testing ground for a network of 
rechargeable electric-car batteries? The fact that its neighbours close 
their highways to Israeli motorists, and there’s not a lot of Israel to 
drive on. That spirit of defiance is similar to the one displayed by a 
Massachusetts man named David Khoury, who moved back to his family’s 
village in the West Bank to open a microbrewery as a demonstration of 
faith in the Palestinian economy.

But the broader message of Start-Up Nation is more problematic. There’s 
a cliche-fueled narrative early on about how an uncredentialled Israeli 
whizkid made millions by selling online-payment giant PayPal a reliable 
algorithm for figuring out a potential client’s financial solvency. How 
did Shvat Shaked, who “didn’t have the brashness of an entrepreneur”, 
outperform titans of industry? “Hunting down terrorists,” he explains. 
Shaked’s detective skills taught him that the frequency of a person’s 
online footprints was a sign of reliability: like a terrorist, someone 
looking to game PayPal isn’t going to leave an extensive Googleable trail.

That sort of anecdote forms the stock response to the book’s central 
question: why is the Israeli economy so dynamic? Their answer: because 
conditions of constant peril compel critical thinking in the military, 
and military service sets the tone for Israeli culture. The Israeli 
investor and “unofficial economic ambassador” Jon Medved presents the 
excited authors with a graph showing foreign business flowing into 
Israel during the Second Intifada. Singer and Senor are quick to inform 
us that he wasn’t suggesting “a correlation between violence in Israel 
and its attractiveness to investors”, because that would be absurd. What 
they show instead is that Israel can assert a kind of normality amidst 
perpetual war – with the help of the world’s premiere capitalists.

Senor and Singer present no explicit political agenda, but their 
presumptions are that the status quo within Israel will continue. The 
trouble with their book from a business perspective is that there aren’t 
many countries that live under conditions analogous to Israel. To really 
embrace Start-Up Nation as a road map for achieving national economic 
vitality requires a willingness to believe that your society, too, is on 
the cusp of ever-present perpetual war, since relentless conflict is the 
only engine Start-Up Nation identifies for Israel’s success. Who would 
want to live under those conditions?

Well, maybe there are people outside of Israel who believe such an 
unhappy fate confronts their country. Like the guy in the airport 
bookstore with his BlackBerry clipped to his braided belt. He’s not the 
most political guy in the world, but he thinks Israel is under attack 
from the Arabs, and that unlike the Arabs, the Israelis are 
Christian-friendly fellows who understand the value of the dollar. 
They’re not running around with their faces covered blowing up 
pizzerias, and he thinks they have to fight guys who do. He’s worried 
that this is the future of the United States. He’s worried that if it 
is, his small business may not survive. He’s worried that the socialist 
in the White House doesn’t understand that you enjoy peace only after 
winning victory. Whatever the authors’ intentions, Start-Up Nation is a 
book that presents Israel as safe for gentiles – or, at least, for those 
that can be persuaded to vote in Republican primaries.

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