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Tarikh Episode 816

Tarikh is a daily program in which we present you with incidents and stories of noteworthy persons and events of History in Hindi. In this edition of Tarikh, Nikhil talks about Israel's economic journey.
Israel's transformation into an economic powerhouse is a remarkable story of innovation and resilience. In the 1980s, facing severe economic crisis with inflation reaching 450%, Israel implemented bold reforms. They introduced a new currency, the New Shekel, and adopted a five-point plan that included cutting government spending, reforming the tax system, and granting independence to the Bank of Israel.
The discovery of natural gas in 1989 marked a turning point, making Israel energy independent. However, the real driver of Israel's economic success was its focus on research and development. Israel consistently invested about 4.5% of its GDP in R&D, double that of many developed nations. This investment turned Israel into a global hub for high-tech industries, especially in semiconductors, weapon systems, and diamond processing.
A unique government program in the late 1980s encouraged private investors to fund Israeli startups, offering tax breaks and zero-interest loans. This strategy, coupled with an influx of highly skilled Soviet immigrants in the 1990s, further boosted Israel's innovation capacity. Today, Israel ranks as the world's 29th largest economy and 15th most productive country, with a per capita GDP surpassing many developed nations, showcasing its remarkable economic transformation.

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