Why did Israel become rich despite being surrounded by enemies?
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Why is Israel so rich despite being surrounded by enemies?
Israel is a small country located on the Mediterranean coast, with a population of about 9.5 million. Despite facing many challenges, the country's economy is still growing strongly and surprising many people. While many countries depend on regional cooperation for development, Israel has almost no such conditions. Neighboring countries mostly do not have direct economic cooperation with them. The lack of adjacent trading partners increases the burden on Israel, both in terms of defense budget and logistics costs. They are mainly connected to the world by sea - a smart choice but also limited by the lack of alternatives, such as oil pipelines. In addition, Israel does not possess many natural resources, fertile agricultural land or a large population that creates the advantage of cheap labor.
Yet Israel has become one of the world’s leading economies. Its economic performance far exceeds that of many of its neighbors, and surpasses that of Canada, Germany, France, and the United Kingdom. This is all the more remarkable given that just 40 years ago, it experienced a severe economic crisis.
From an economy on the brink of collapse, Israel has recovered and risen to the position of a global economic power. The question is how did they do it, what motivated them to transform so dramatically, and will Israel’s growth path continue to be sustainable in the future?