The News Behind The News
August 31, 2000

The Free Processing Zone - An Obituary
by Zev Golan, IASPS Associate Director

“An End to the FPZ Project,” announced Globes. “The Free Zones Council has cancelled the project tender.” The article explains that the group of investors headed by Mr. Larry Silverstein has withdrawn, no other investors were interested, and the government itself was not really trying to push this project that could have created 20,000 jobs in the Negev. Without, we might add, costing the Israeli taxpayer anything. 

In an accompanying commentary, Globes tell its readers that “everyone is right.” In other words, no one is to blame. But this is not “right” or correct. To find out what really happened to these 20,000 jobs and hundreds of millions of dollars worth of foreign investment in Israel, read David Yerushalmi’s account of the scandal in the IASPS Scorecard on the Israeli Economy: A Review of 1998, “Resurrection.”

 But the greatest commentary on the sad story of how the government of Israel, or actually several administrations and one bureaucracy killed the free zone is told by the latest obituary itself.  But to appreciate this commentary, one needs to keep in mind that the killing of the zone was indeed the product of a mob lynching in that the Knesset, the Government, the various prime ministers and finance ministers, the many bureaucrats in the Finance and Infrastructure Ministries, the Histadrut, the Industrialists and the journalists of Israel all had a hand in this killing of the Free Zone), which was in fact a killing of freedom itself in Israel – as freedom was the meaning of the Free Zone and freedom was the reason the above institutions and individuals decided to kill it. 

 But this was more than just a spontaneous mob lynching; rather a premeditated murder. Witness: Sever Plocker, economics editor of Yediot Aharanot, who was quoted in Globes on Nov. 22, 1994 saying, “We journalists will pursue the FPZ till the end…”)

 The greatest commentary is brought by Globes itself at the end of the “obituary.”  Here is Israel’s final word on a free zone:

 “[Infrastructure Ministry legal advisor] Ben Ari presented the finance minister, Avraham Shohat, a draft law, according to which the State will carry out the project, if it wishes to revive it. According to the proposal, the State and the Free Zones Council will be responsible for the entire project, including construction and marketing of the territory, and there will be no involvement of a private concessionaire.”

 In Hebrew, the question is haratzachta vegam yarashta? Which means, “have you murdered and also claimed the inheritance?”

 Indeed they have.


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