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PAGE 2A HERITAGE FLORIDA JEWISH NEWS, JULY 5, 2013 Which Waze next for the brand of 'start-up nation' Israel? By Ariel Nishli JNS.org Google's $1.3 billion acqui- sition of Waze, the Israeli-de- veloped traffic crowdsourcing app that has won the hearts of 50 million users in 193 countries, is perhaps now recognized more for keeping the company in its Tel Aviv headquarters than for its nine zeroes, and is being touted as a national victory for Israel. Yet, the pride that flowed from the agreement to keep Waze's talent put (Netanyahu himself called company heads to say "You've reach your destinationI') indicates an underlying concern that big foreign buyouts could even- tually erode Israel's brand as the "start-up nation," a term coined in the 2011 book by Dan Senor and Saul Singer. Waze has created a nar- rative as a quintessentially Israeli company (barring its October 2011 Chinese venture capital (VC) injection and partial ownership by four other American investors), evolving as an outgrowth of Israeli society's desensitiza- tion to sharing information, propensity to speak their minds, and aggressive drivers. But as Waze eventually folds into Google, the Israeli influences that organically shaped it--or at least its origins as a "Silicon Wadi" start-up--may fade away from collective memory. Will this harm the company, or more significantly, harm Israel's identity as the start-up na- tion? Not likely, says Grace Zimmerman, senior lecturer at Brandeis University's In- ternational Business School. "There are hundreds of products whose origins are in Israel that people all over the world use and enjoy without knowing that the technology originated in Israel," Zimmer- man tells JNS.org. "The same is true of products developed in other countries." Zimmerman cites innova- tion as the main deterrent against Israel's brand ero- sion. "Israel is easily in the top 10 places in the world for VC activity and investment," she says. "Clearly, the inter- national VC community sees the value and opportunity Waze on page 19A Flash 90 Uri Levlne, co-founder and president of the company that developed the Israeli traffic crowdsourcing app Braze, speaks during The Second Jerusalem International Tourism Summit at the Jerusalem International Convention Center on May 28. The futun -tech warfare and Israel's role within it By Ronen Shnidman JNS.org As technology grows by leaps and bounds, leading thinkers gathered last week at the 2013 Israeli Presidential Conference to discuss the future of warfare. Israel's cyberweaponswilleven- tually replace the pre-emptive strike role the Israel Air Force famously played in the 1967 Six Day War, according to Israel Defense Forces Brig. Gen. (res.) Yair Cohen, former commander of Israers much-vaunted signal intelligence corps Unit 8200. Cohen predicted that in the future, Israel would be able to neutralize enemy weapons systems and units with "a single keystroke." Unit 8200, besides serving as the Israeli equivalent to the America's Na- tional Security Agency (NSA), is also considered one of the breeding grounds for the tal- ent behind Israel's "start-up nation" society of innovators and entrepreneurs, which most recently made headlines with Google's $1.3 billion acquisi- tion of the Israeli navigation start-up Waze. "[Israel has] the potential to be the [world's] number one, number two or number three cyber superpower," Cohen said during the June 19 Presidential Conference panel titled "To- morrow's Wars--No Longer Science Fiction." Besides Cohen, Israeli pan- elists included IDF Brig. Gen. (res.) Daniel Gold, who won the 2012 Israel Defense Prize for his role in developing the Iron Dome battery to defend Israel against short-range missiles and rockets, and Dr. Ariel Levite, a nonresident senior associate in the Nuclear Policy Program at the Carnegie Endowment. The panel also featured two Americans, Prof. Edward Luttwak, a senior associate of the Center for Strategic and International Studies of Washington, DC, and Prof. Michael Walzer, co-editor of the magazine Dissent and contributing editor to The New Republic as well as Professor Emeritus of Social Science at the Institute for Advanced Study at Princeton University. Despite Cohen and Gold's presentations of the IDF's advanced technological ca- pabilities, American panelists LuttwakandWalzer agreed that wars--even in the future--will still be decided by infantry. Luttwak stated that based on Israel's experience fighting He- zbollah in the Second Lebanon War of 2006andAmerica's expe- rience in Iraq and Afghanistan, the actual trend for wars these days is to begin with the deploy- ment ofhigh-techweapons like drones, then revert to medium- tech weapons such as armor, and eventually employ light infantry to achieve war goals. Luttwak also expressed reserva- tions about over-spending and the political implications of over-reliance on new technol- ogy in the U.S., with particular reference to the NSA's recently revealed PRISM surveillance program. "The U.S. must decided whether to preserve individual liberties or kill three Mah- mouds," Luttwak said. "This, I would do with a gun," he added. During the panel, Levite predicted that the world was moving towards a state of constant low-intensity warfare along "physical, cognitive and cyber" dimensions. He stated that warfare was becoming like "a chronic disease with occasional flare-ups." Levite's implicationwasthatamidthese conditions, countries need to take active measures to defend against attack at all times and to handle large-scale confronta- tions when they occur. Middle East Internet usage and cyber threat expert Tal Pavel echoed and elaborated on many of the panel's points in an interview with JNS.org. Cyber warfare in particular should be considered as an enhance- ment to physical warfare, not a replacement to it, said Pavel, founder and CEO of Middlee- asternet, a consultancy that monitors and researches the Internet and cyber threats in the Middle Eastand the Islamic world. The major difficulties with cyber warfare, Pavel explained, are also present with tradi- tional, physical warfare--one has to determine who attacked and how to deter them. The change brought by cyber war- fare, he said, is its ability to make basic wartime questions incredibly difficult to answer and traditional limitations, such as the distance to a target, meaningless. During his presentation, Cohen gave a recent example of the problems caused by the dif- ficulty in determining the ori- gin ofacyber attack. In January 2012, Saudi hackers allegedly stole thousands of Israeli credit card numbers and personal details (originally itwas claimed that400,000were stolen). Some independent Israeli hackers then retaliated by unleashing a cyber counterattack on Saudi credit card holders. But accord- ing to Cohen, the initial attack actually did not originate from Saudi Arabia. Pavel told JNS.org a distinc- tion needs to be made when addressing cyber threats, be- tween attacks that only cause cyber damage, such as defacing websites, and cyber attacks that can cause real-world damage by disabling or taking control of computer systems respon- sible for managing tangible operations. Pavel explained the distinction as the difference of a hacker attack that takes the Tel Aviv-Jaffa municipality website off-line, and an attack that shut downs the computers that control Tel Aviv's traffic light system. One shuts down a website, but the other can paralyze the city and can cause physical injuries and fatalities as well as significant financial losses. Cohen, like Pavel, on the panel emphasized the need to distinguish between simple hacker attacks on websites and email accounts, and those aimed at bringing down com- puter systems that manage im- portant infrastructure. Cohen presented the vast size of this high-tech problem, saying that the IDF estimates that on aver- age "500 million cyber attacks take place per second." But while warfare is rapidly expanding onto new fronts, the consensus among experts at the Israeli Presidential Conference was that the rules of the game largely remain the same. "The Internet area didn't invent much," Pavel told JNS. org. "These problems exist in the physical world." Prime Minister:s quick exit exposes flawed framework By Felice Friedson and Diana Atallah The Media Line Prime Minister Rami Ham- dallah remarked when he was sworn-in to succeed Salam Fayyadat the helm of the Pales- tinian government last month that his government's life will by necessity be short-lived. It was intended to last until August, at which time it would be dissolved in order to pave the way for a long-awaited na- tional consensus government comprised of both Fatah and Hamas loyalists. Doubtless, not even Hamdallah expected his tenure to last merely 18-days. Following intense back- and-forth between the recently appointed prime minister and PalestinianAuthority President Mahmoud Abbas, Hamdallah on June 23 became the second "caretaker prime minister" in a month,when his resignation-- submitted on June 20--was accepted byAbbas. Meanwhile, a power struggle is playing out in the Palestinian Authority. At the heart of the political machinations according to sources inside the P.A. is the appointment by Abbas of two deputies to the prime minister: Muhammed Mustafa, director of the Palestinian Investment Fund (PIF) and the other name bandied about as a leading can- didate to replace Fayyad before Hamdallah was selected; and Ziad Abu Amr, a former foreign minister. While the pair of deputies was presumably a bid by Abbas to assert more control than he had when Fayyad held the post, the absence of clear lines of authority, responsibil- ity and procedure created an atmosphere described by one senior official as "conflicts and confusion." "There was a problem in forming the government from the beginning," Hani Al-Masri, head of the Ramallah-based think tank Masarat told The Media Line. "Assigning two close aides to [President] Abbas [to serve] as the Prime Minister's Friedman & Friedman Excellence in Real Estate "One Team. Twice the Knowledge, Service and Experience" deputies is against the law." According to the Palestinian constitution, each member of the cabinet has to have a port- folio or a specific topic in which to be in charge. In addition, the constitution affords the Prime Minister the right to appoint a deputy of his own choosing. "This time, Abbas assigned the deputies himself and he didn't assign them any department to oversee, which is in violation of the law," explained AI-Masri. "The classic power struggle between the president and the prime minister came between the prime minister and his [president-appointed] depu- ties," according to writer and political analyst Jihad Harb. He told The Media Line that, "The presidency is trying to concen- trate all executive powers and keep them in the hands of the Palestinian Authority practi- cally, but not legally." Palestinian media was rife with reports of the alleged dispute between Hamdallah and his deputies that lead him to resignation. A journalist who spoke to The Media Line on condition that he remain anony- mous explained that President Abbas gave Mohammed Mus- tafa, whom he appointed as the economic deputy to the Prime Minister, verbal approval to sign agreements with the World Bank without first referring them to the prime minister. Muhammed Abu Khdeir, a seniorjournalistwithAI-Quds, a leading Palestinian newspaper, opined that Hamdallah quit because he was "like a picture with no power." He described Hamdallah as being "upset," and not wanting to speak to anyone. Abu Khdeir said Ham- dallah left Ramallah for Nablus, where he has been serving as the president of An-Najah University. Masri blames the problem on the absence of a parliament and a viable system of account- ability. "Anyone in the position of the Prime Ministerwill do the same thing. All Prime Ministers need authority and powers to function. Hamdallah is an academic with minimal experi- ence, so it took him some time to understand the problem," Masri said. The position of prime min- ister was created by Yassir Arafat only a decade after the Palestinian Authority itself was established as the result of pressure to institute a series of reforms in 2003. That year, Abbas found himself in the same position Fayyad and Hamdallah now find themselves in when after only four months of leading the government under Arafat's rule he resigned as the result of a power struggle with Arafat, primarily over control of the security forces. In 2007, Abbas gave Fayyad the security and finance port- folios, but divisions between the two men intensified as Abbas tried to strip authority from the Prime Minister. "Abbas felt that Fayyad had political ambitions. Also, Fayyad refused to deliver a letter Abbas wrote to [Israeli Prime Minister Benjamin] Netanyahu," Harb told The Media Line. Al-Quds journalist Abu Kh- deir said that Abbas is under pressure from Fatah because they want to lead the govern- ment. During the last five years, Prime Minister Fayyad replaced Fatah members with people on the political left like Foreign Minister Riyad Malki and his chief aide Jamal Zakout. Senior Fatah members feel that Fayyad worked against both Fatah and Hamas. A consensus of three possible scenarios has emerged among observers in the Palestinian Authority, first among them that Abbas himself will lead a unity government thatwill pre- pare for national elections. But this is not seen as a priority for either Fatah or Hamas. Such a government failedtotakeshape despite being agreed upon in the 2012 Doha agreement. The second scenario sees Abbas appointing PIF head Mohammed Mustafa, a close aide toAbbas, and the candidate the president failed to appoint the first time around. Sources inside the PalestinianAuthority speaking off the record told The Media Line that the primary reason Mustafa was passed over is because the United States Administration didn't welcome his candidacy, fearing the Fatah-Hamas split might actually be ended. Political analyst Harb agreed, telling The Media Line that, "I believe the Americans rejected Mustafa's name as well as all other candidates because they didn't want the reconciliation to be achieved." The third option is thatAbbas will push for a Fatah-majority government led by a senior Fa- tah member. "There has to be cohesion and harmonybetween the President and the Prime Minister. A Fatah member will be less confrontational with President Abbas," according to Harb. Abu Khdeir of AI-Quds sees a fourth possibility in Dr. Mo- hammad Shtayyeh, a seasoned official who heads the Pales- tinian Economic Council for Development & Reconstruction (PECDAR).Abu Khdeir's option recalls the importance West- ern nations placed in Salam Fayyad's impeccable bona tides within the international finan- cial community. Abu Khdeir suggests that while Shtayyeh could possibly take the prime minister's portfolio, but if not, Abbas could opt to retain it for himself if it is not determined to be illegal for him to do so. The final scenario suggests that Abbas, too, does not want elections because Fatah is weak and either Hamas, as they did in 2006; or Islamist Salafis, could walk away with the electoral victory. This story originally ap- peared on themedialine.org.