Mideast, Particularly Israel, Will Achieve Peace By Becoming Economic Powerhouse, Gilder Says

During the civil rights struggle, Atlanta prided itself on being a "city to busy to hate." Indeed, one can argue that racial hatred and segregation were defeated less by moral arguments than by the prospect of economic opportunity. Segregation and bigotry kept the South POOR. By the same token, war in the Middle East and religious hatred keep the region poor. War is not generally in one's economic self-interest -- it is horribly destructive of human resources and manpower. Smart Arabs and Israelis, Muslims, Jews and Christians are realizing this and recognizing that it is in their economic self-interest to get along.

For all the pessimism about Israel being surrounded by enemies and not populating as fast as its Muslim neighbors, George Gilder is optimistic about Israel's future. Author of The Israel Test, he asserts in a National Review interview that Israel is "Hong Kong in the desert." "Just as Hong Kong eventually took over China by providing the model for the 'free zones' that revived the Chinese economy, Israel will take over the Middle East by achieving overwhelming economic, technological, and financial dominance. Hong Kong was a unique financial center. Israel is about to become one. Time is on Israel’s side. In time, the Arabs will prefer working with Israel to fighting it. By tapping resources of entrepreneurship and invention across the world economy, American entrepreneurs can collaborate with Israel to lead a new global boom.

"Can Israel teach us a lesson or two?" the interviewer asks.

"This is Israel’s moment," Gilder says. "They have privatized their economy, they have unleashed a new financial industry at a time when U.S. finances are in the doldrums, they have created a new Silicon Valley in the desert that promises to outperform the original Silicon Valley in California. They have elected the world’s most visionary and courageous leader. I hope we can take inspiration from this superb country in our time of trial."