Dan Singer - Start-up Nation

It took a year before the group managed to lay a six-inch pipe that would supply water from an area forty miles away. During the 1948 War of Independence, the kibbutz was attacked and its water supply cut off. Even after the war, the soil proved so salty and difficult to cultivate that by 1959 the kibbutz members had begun to debate closing Hatzerim and moving to a more hospitable location.

But the community decided to stick it out since it became clear that the problems of soil salinity affected not only Hatzerim but also most of the lands in the Negev. Two years later, the Hatzerim kibbutzniks managed to flush the soil enough so that they were able to start growing crops. Yet this was just the beginning of Hatzerim’s breakthroughs for itself and the country.

In 1965 a water engineer named Simcha Blass approached Hatzerim with an idea for an invention that he wanted to commercialize: drip irrigation. This was the beginning of what ultimately became Netafim, the global drip irrigation company.

Professor Ricardo Hausmann heads the Center for International Development at Harvard University and is a former minister of development in the Venezuelan government. He is also a world-renowned expert on national economic development models. All countries have problems and constraints, he told us, but what’s striking about Israel is the penchant for taking problems—like the lack of water—and turning them into assets—in this case, by becoming leaders in the fields of desert agriculture, drip irrigation, and desalination. The kibbutz was at the forefront of this process early on. The environmental hardships the kibbutzim contended with were ultimately incredibly productive, much in the same way Israel’s security threats were. The large amounts of R&D spending deployed to solve military problems through high technology—including in voice recognition, communications, optics, hardware, software, and so on—has helped the country jump-start, train, and maintain a civilian high-tech sector.

The country’s disadvantage of having some of its area taken up by a desert was turned into an asset. Looking at Israel today, most visitors would be surprised to discover that 95 percent of the country is categorized as semi-arid, arid, or hyperarid, as quantified by levels of annual rainfall. Indeed, by the time Israel was founded, the Negev Desert had crept up almost all the way north to the road between Jerusalem and Tel Aviv. The Negev is still Israel’s largest region, but its encroachment has been reversed as its northern reaches are now covered with agricultural fields and planted forests. Much of this was accomplished by innovative water policies since the days of Hatzerim. Israel now leads the world in recycling waste water; over 70 percent is recycled, which is three times the percentage recycled in Spain, the country in second place. 10

Kibbutz Mashabbe Sade, in the Negev Desert, went even further: the kibbutzniks found a way to use water deemed useless not once, but twice. They dug a well as deep as ten football fields are long—almost half a mile—only to discover water that was warm and salty. This did not seem like a great find until they consulted Professor Samuel Appelbaum of nearby Ben-Gurion University of the Negev. He realized that the water would be perfect for raising warm-water fish.

“It was not simple to convince people that growing fish in the desert makes sense,” said Appelbaum, a fish biologist. “But it’s important to debunk the idea that arid land is infertile, useless land.” 11The kibbutzniks started pumping the ninety-eight-degree water into ponds, which were stocked with tilapia, barramundi, sea bass, and striped bass for commercial production. After use in the fishponds, the water, which now contained waste products that made excellent fertilizer, was then used to irrigate olive and date trees. The kibbutz also found ways to grow vegetables and fruits that were watered directly from the underground aquifer.

A century ago Israel was, as Mark Twain and other travelers described it, largely a barren wasteland. Now there are an estimated 240 million trees, millions of them planted one at a time. Forests have been planted all over the country, but the largest is perhaps the most improbable of all: the Yatir Forest.

In 1932, Yosef Weitz became the top forestry official in the Jewish National Fund, a pre-state organization dedicated to buying land and planting trees in what was to become the Jewish state. It took Weitz more than thirty years to convince his own organization and the government to start planting a forest on hills at the edge of the Negev Desert. Most thought it couldn’t be done. Now there are about four million trees there. Satellite pictures show the forest sticking out like a visual typo, surrounded by desert and drylands in a place where it should not exist. FluxNet, a NASA-coordinated global environmental research project, collects data from over a hundred observation towers around the world. Only one tower is in a forest in a semi-arid zone: Yatir.

The Yatir Forest survives only on rain water, though only 280 millimeters (about eleven inches) of rain fall there each year—about a third of the precipitation that falls on Dallas, Texas. Yet researchers have found that the trees in the forest are naturally growing faster than expected, and that it soaks up about as much carbon dioxide from the atmosphere as lush forests growing in temperate climates.

Dan Yakir is a scientist at the Weizmann Institute who manages the FluxNet research station at Yatir. He says that the forest not only demonstrates that trees can thrive in areas that most people would call desert, but that planting forests on just 12 percent of the world’s semi-arid lands could reduce atmospheric carbon by one gigaton a year—the annual CO 2output of about one thousand 500-megawatt coal plants. A gigaton of carbon would also amount to one of seven “stabilization wedges” that scientists argue are necessary to stabilize atmospheric carbon at current levels.

In December 2008, Ben-Gurion University hosted a United Nations–sponsored conference on combating desertification, the world’s largest ever. Experts from forty countries came, interested to see with their own eyes why Israel is the only country whose desert is receding. 12

The Israeli Leapfrog

The kibbutz story is just a part of the overall trajectory of the Israeli economic revolution. Whether it was socialist, developmentalist, or a hybrid, the economic track record of Israel’s first twenty years was impressive. From 1950 through 1955, Israel’s economy grew by about 13 percent each year; it hovered just below 10 percent growth annually into the 1960s. Not only did Israel’s economy expand, it experienced what Hausmann calls a “leapfrog,” which is when a developing country shrinks its per capita wealth gap with rich first-world countries. 13

Whereas economic growth periods are common in most countries, leapfrogs are not. A third of the world’s economies have experienced a growth period in the past fifty years, but fewer than 10 percent of them have had a leapfrog. The Israeli economy, however, increased its per capita income relative to the United States’ from 25 percent in 1950 to 60 percent in 1970. That means Israel more than doubled its living standard relative to that of the United States within twenty years. 14

During this period, the government made no effort to encourage private entrepreneurship and, if anything, was rhetorically hostile to the notion of private profit. Though some of the government’s political opponents did begin to oppose its heavy economic hand and anti–free market attitudes, these critics were a small minority. If the government had valued and sought to ease the path for private initiative, the economy would have grown even faster.