Foreign Investment In Israel Has Dropped By 50% Since The Last War In Gaza
The most pressing question about the Israeli-Palestinian conflict is what can possibly be done to end it. For the past decade, many in the international community have come to back the Boycott, Divestment, and Sanctions (BDS) movement, which aims to use economic pressure to compel Israel to end the occupation of Palestinian territories, the key issue that keeps the conflict going.
Some have questioned the efficacy of BDS, arguing that the movement is fringe in nature and incapable of bringing significant pressure to bear on Israel. A new report from the United Nations Conference on Trade and Development (UNCTAD), shows that the movement may have actually started to take a real toll on the Israeli economy.
The UNCTAD report finds that “only €5.7bn was invested into the country in 2014 in comparison with €10.5bn in 2013, a decrease of €4.8bn, or 46%. Israel's FDI in other countries also decreased by 15%, from €4.2bn in 2013 to €3.5bn last year.”
Dr. Ronny Manos, who works at the Open University of Israel, credited BDS with the dramatic drop in foreign divestment. “We believe that what led to the drop in investment in Israel are Operation Protective Edge and the boycotts Israel is facing,” he told the Israeli news outlet Ynet.
This huge decrease in foreign investment should send a message to the Israeli public – that continued wars with their neighbors and an inability to resolve the issue in a just way will have real impacts on the paychecks and pocketbooks of average Israelis.