Israel’s Bridge to Developing Economies
Earlier this decade, economic output in developing markets surpassed developing markets. By 2030, the middle class of the developing world will represent about one-third of the global economy. In short, developing markets are the key drivers of the global economy.
Despite its success as a startup nation, Israel has not realized its potential to transfer technology and experience to the developing world. Israeli exporters and tech companies continue to miss out on development project opportunities abroad because initial project and trade financing at home is either too costly or impossible to obtain. Additionally, development finance programs along with programs that help coordinate trade, investment, and technology transfer are largely nonexistent.
This policy brief shows that Israel must create a full-service and integrated development finance platform. This new mechanism will provide flexible financing tools to mobilize private and public capital for development ventures, and build a pipeline of investable projects.
The Israeli development finance platform, run as a public authority or a public-private corporation will be built upon three pillars:
1. Financial Capital;
2. Capacity Building: Social and Human Capital; and
3. Project Development.
Israel’s growth exemplifies how ingenuity overcomes adversity. For seventy years, necessity, deprivation, and isolation pushed Israel to pioneer innovation. Israel is well positioned to transfer tech solutions to new start-up nations. Israel must waste no time in building the necessary development finance platform to bridge the Israeli economy to the developing markets.