Peace And Prosperity Don't Always Go Hand In Hand

While you draw a connection between the peace process and the growth of the Israeli economy, you neglect to mention other factors ("Bibi has business biting its nails," International Business, June 17). These include a restructuring of the economy, making it far more efficient, the arrival of 500,000 immigrants; and liberalization of trade policy, which was a major factor for the increase in trade with Eastern Europe and the Far East. In addition, since 1992, Israel has benefited from $8 billion in U.S. loans

Then, there is the influence of the peace process on the Tel Aviv Stock Exchange (TASE). Although Israel's capital markets were once among the most vibrant in the world, that ended in February, 1994, after the signing of the Oslo Accords in Washington. If the peace process has been so helpful to economic growth in Israel as your report implies, why hasn't TASE bounced back?

Joel Bainerman

Beit Shemesh, Israel

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