OpinionTrust in the high-tech nation is gone, for good
Opinion
Trust in the high-tech nation is gone, for good
Trust is a component that takes a long time to cultivate and an even longer time to restore after a crisis. When citizens, entrepreneurs, investors, and the leaders of the international community lose faith in the country and those who stand at its head, the damage is permanent
The State of Israel will never be the same as it was before July 10, 2023, neither on the civil level, nor on the political level, nor on the economic level. It will take many more years, if ever, to repair the damage caused by the new set of laws promoted by the government. The judicial coup recklessly promoted by the government destroyed in a few weeks all the social, economic, political, and military values that were built for decades around the "Startup Nation" brand.
In its 75 years of existence, the country has gone through severe crises, some of them even on the verge of posing a tangible threat to its existence: bloody wars, economic crises, political upheavals, and international boycotts. But one thing distinguishes the current crisis that destabilizes Israeli democracy from all the other crises and disasters that have befallen it: the loss of trust. The collapse of trust of millions of citizens in the government and the collapse of trust of international bodies in Israel's ability to function as a democracy.
Trust is the most basic value that connects people, groups, and countries. Trust is the most important element in business and economics, and if, until July 10, 2023, there was still a glimmer of trust in Israel's ability to function as a democracy, then from that date it was completely lost. Confidence in the stability of the country, in the values it represents, and in the desire of its citizens to excel and contribute to their economy and the global economy is what attracted many investors here. Today, that trust is broken.
How will an American investor agree to put his money in a country when his president refuses to meet with its prime minister? Which financial body will risk pensions by investing in a country that the U.S. ambassador said has gone off the rails? What venture capital fund would risk its investments in startups that do everything to escape from the country in which they were founded?
And these are not the most serious problems because the crisis of trust between the tens of thousands of Israeli high-tech entrepreneurs and the government is a heavy weight that will quickly drag the entire industry into the abyss. Budgets and government aid will not arrive because they will be diverted to strengthen the dictatorship and governmental corruption. Companies will lose the rights to the patents they own. Thousands of entrepreneurs and programmers will transfer their operations to other countries. All of these and many other points of friction will dry up the high-tech industry, inflicting damage from which the industry will struggle to recover for many years.
Prime Minister Benjamin Netanyahu, who has defended and supported democracy for years and even promised only a few days ago in interviews with American media that he would not harm it, raised his hand against it this week. With this vote, he has erased the trust of millions of citizens, the trust of the country’s greatest allies, and the trust of foreign investors in the Israeli economy.
The destructive and anti-democratic legislation promoted by Netanyahu’s government is pushing the State of Israel into a dark period for many years to come. Trust is a component that takes a long time to cultivate and an even longer time to restore after a crisis. If the people do not believe their leaders, others have no reason to continue believing in the country and its economy. It's sad to say this, but today there is no solution in the toolboxes of the government, citizens, or high-tech industry, to bridge this crisis of confidence, certainly not in the coming years.
