Today is budget day in Australia, and I was pleased to see the Australian Government have started to build on its relationship with Israel by trying to build stronger economic ties. While the rest of the world continues to struggle in recession both Australia and Israel appear to be two of the few countries in the world managing to achieve economic growth.
While, both countries survived the Global Financial Crises, thanks to having strong and stable banks, they also understood – especially in Israel under Benjamin Netanyahu’s leadership – that Government spending does need to be limited to ensure stable economies.
The relatively strong economic growth in the two countries appears though to be based on different foundations. Australia’s economic growth is based on developing its resources and mining potential by exporting its minerals to the world even becoming the main source feed China’s economic growth. Israel, though has achieved its growth based on innovation, educated citizens and risk taking.
I was therefore pleased to see that last week Bill Shorten Australia’s Finance Minister (and likely to be the next leader of the Governing Labour Party) led a Trade Mission to Israel to learn about Israel leading the way in Investment Super Funding, but I am sure also in other high-tech industries, including Israel leading the way high-tech innovation. Israel also had a chance to learn about mining and resource management, with the hopeful potential of its Liquid Natural Gas and oil finds.
Hopefully, the mission will be the start of what can be much stronger trade ties between Israel and Australia, from tourism, to resource management and even stronger investment ties, that will help both countries to lead the world through economic growth. While, of course continuing to maintain its political friendship.