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Growth, yes, but what social justice?

September 1, 2011 09:42

By

Alex Brummer,

Alex Brummer

3 min read

Nine months have passed since the start of the Arab Spring, when a 26-year-old Tunisian fruit seller immolated himself in front of a municipal building highlighting his frustration with red tape and living standards.

Since then, Israel has looked on with curiosity and apprehension as Arab state after Arab state erupted in violence over surging food prices, high youth unemployment and lack of political rights.

Israel bucked the economic trend. Its output rose faster over the last year than any country other than Australia – which was boosted by insatiable Chinese demand for its natural resources.

Indeed, almost every Israeli indicator looked to be pointing in the right direction. Unemployment, measured by international standards, was just 6pc of the workforce. The Tel Aviv 100 index soared to record levels on the back of vast offshore natural gas discoveries. And the highly regarded governor of Israel's central bank, Stanley Fischer, was canvassed as the successor to Dominque Strauss-Kahn at the International Monetary Fund.