Reasons for Resilience of the Zionist Regime’s Economy after Operation Al-Aqsa Storm

2024/11/16 | Economy, Note, Top News

Strategic Council Online - Guest Note: Although the Zionist regime was an economy focused on agriculture and basic kibbutz until the 1970s, after the economic crises in the 1970s and the political affinity of this regime with the United States, economic governance in occupied Palestine witnessed a change and the focus switched to investing in new technologies. During the last two decades, the Israeli regime developed an exogenous economy based on technological industries to such an extent that, contrary to the desire of its traditional ally (America), this type of cooperation expanded to a close bond with China in the technology field.

Mehran Maldari – Secretary of the Think Tank of Zionist Regime Studies, Imam Sadegh University (AS)

After a year of fighting in the aftermath of the events of October 7, Israel’s economy has been able to overcome the recession and inflation caused by the war due to its extroversion and being based on technological industries.

 

Statistics of the Central Bank of the Zionist regime

point-by-point monthly inflation of the Zionist regime from January 2023 to October 2024 ([1]

Of course, financial and non-financial aid from Western countries, especially the United States, has had an important impact on keeping the Zionist economy alive. [2]

In continuation of the report, some factors affecting the economic resilience of the Zionist regime during the war are examined.

 

Technological Industries

Foreign investment is used as a bilateral tool in line with the goals and interests of developed and developing countries. On the one hand, developed countries are investing because of the abundance of capital and with the purpose of putting it to work, and on the other hand, developing countries are largely dependent on attracting capital for their economic development and prosperity.

In the last two decades, the Zionist regime preferred contracting with foreign investors instead of borrowing from international financial and monetary institutions to attract foreign capital. The Israeli regime has always listed the amount of foreign investment attraction as one of the main benchmark indicators of its economy. This influx of capital in the past years with the economic policies of the Israeli regime caused the capital market of occupied Palestine to have a significant added value in the economy in the fields of military, communication, and information technology.

The above table is the official statistics of the SIBAT Institute regarding the growth of the Zionist regime’s foreign income in the field of military technologies from 2000 to 2023.

 * The mentioned statistics are in billion dollars.

 

The extent of business partners

The economy of the Israeli regime is always considered one of the main areas of this regime for export due to its absolute advantage in the field of ultra-advanced or ultra-modern industries compared to other commercial areas. One of the properties of ultra-advanced or ultra-modern industries is not limited by geographical borders and sanctions. This caused the Israeli regime to choose countries such as China as its strategic business partner, contrary to its deep political relations with the United States.

Another feature of ultra-advanced or ultra-modern industries in the commercial portfolio of countries is the high penetration rate among developing or even developed countries, which, due to the existence of a relative advantage over the importing country, the products of ultra-advanced industries will be difficult to replace.

Financial assistance from strategic partners

Since the beginning of the announcement of the existence of the illegitimate Israeli regime, this regime has always resorted to security-oriented logic and approach due to the lack of strategic depth and the elements that consolidate its sovereignty and sum up all aspects of the society in the form of the army. The economic field is also one of these dimensions that the Israeli regime has always tried to revive its small and cellular economy with the help of its strategic partners.

Since the 1970s, after the significant political closeness of the Israeli regime and the United States of America, this country looked at the Israeli regime as a strong fortress of the West in Southwest Asia – known as the Middle East – which is needed for its continued role in the geopolitical arena of the region. Weapons and financial assistance have been given to it. Even today, the strategic relations between the United States and the Israeli regime are no exception to this rule because the United States has granted a series of military support packages worth 17.9 billion dollars to the Israeli regime in one year of the Al-Aqsa storm battle from October 7, 2023, to October 7, 2024.

 

Conclusion

Since its formation, the Zionist regime has always looked at the issue of war as a solution to get out of its problems. It has defined its official governing institutions, including the institution of economy, as an element to support war logistics. In other words, the weakness of the Israeli regime in its strategic depth and strengthening elements of sovereignty caused the Zionist war machine always to have a small, cellular economy and rely on its strategic partners. So, if financial artificial respiration from the West is not blown into the economic body of the Zionist regime, the Israeli regime will not be able to be resilient based on the model of the resistance economy of the countries involved in the war.

 

[1] . [1] . https://tradingeconomics.com/israel/inflation-expectations#:~:text=Inflation%20Expectations%20in%20Israel%20increased,percent%20in%20December%20of%202008

2???

 

[3] . Bilmes, Linda J.; Hartung, William D.; Semler, Stephen (7 October 2024). “United States Spending on Israel’s Military Operations and Related U.S. Operations in the Region, October 7, 2023 – *September 30, 2024

 

 

Mehran Maldari | Operation Al-Aqsa Storm | Palestine | Resilience of Economy | USA | Zionist regime

https://scfr.ir/en/?p=305824

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