Kelly B pointed to this entry in CommonDreams:

Gaza: Not Just a Prison, a Laboratory

Here’s another theory: Israel’s economy isn’t booming despite the political chaos that devours the headlines, but because of it. This phase of development dates back to the mid-nineties, when Israel was in the vanguard of the information revolution – the most tech-dependent economy in the world. After the dot-com bubble burst in 2000, Israel’s economy was devastated, facing its worst year since 1953. Then came 9/11, and suddenly new profit vistas opened up for any company that claimed it could spot terrorists in crowds, seal borders from attack and extract confessions from closed-mouthed prisoners.

Within three years, large parts of Israel’s tech economy had been radically repurposed. Put in Friedmanesque terms: Israel went from inventing the networking tools of the “flat world” to selling fences to an apartheid planet. Many of the country’s most successful entrepreneurs are using Israel’s status as a fortressed state, surrounded by furious enemies, as a kind of twenty-four-hour-a-day showroom-a living example of how to enjoy relative safety amid constant war. And the reason Israel is now enjoying supergrowth is that those companies are busily exporting that model to the world.

We need to start having a conversation about this.

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