Hebrew teaching to be expanded in the Gaza Strip

Hamas say Gazans should "better know their enemy".

“Know Thine Enemy” wrote Sun Tzu in The Art of War. Children in classrooms across the Gaza strip will soon be putting this theory to practice by learning Hebrew, according to Hamas.

Teaching of the language will be expanded in government schools - around half the schools in Gaza. A faculty of Hebrew studies is being set up at the pro-Hamas Islamic University. Arabic is already compulsory in Israeli schools.

Soumaya al-Nakhala, a senior Hamas education ministry official, told Reuters: "Expanding [Hebrew] teaching comes as a result of our plan and meeting greater demand by students to learn Hebrew. They want to learn the language of their enemy so they can avoid their tricks and evil.”

Many of the 1.5 million Gazans used to speak the language of Israel, as they were labourers there. Since 1994, when Israel started preventing Gazans from crossing its borders, this number fell dramatically. Today only around 50,000 Gazans speak some Hebrew - often picked up from their experience as prisoners in Israel.  

“That question about language is very important. One can ask of the Israelis who learn Arabic. Language is a window to another person's/groups' point of view, and may promote peace as well as understanding the enemy,” commented Camelia Suleiman, author of “Language and Identity in the Israel-Palestine Conflict.”

Hamas may be realising the importance of languages in the “war of information” with Israel. During Netanyahu’s recent bombardment of Gaza, an Israeli social media campaign tweeted videos and statements on the conflict in many languages, including Arabic. Recently arrived migrants to Israel were recruited to spread support of the war in their own languages through the media. The Israeli Foreign Ministry already has a YouTube channel in Arabic. Prime Minister Benjamin Netanyahu has even started tweeting in Arabic.

“There is no doubt that one of the most salient elements of the recent changes in the Middle East has been the role of communications technology,” Public Diplomacy and Diaspora Affairs Ministry Spokesman Gal Ilan told The Algemeiner in December. “We believe that public diplomacy initiatives – by virtue of internet and social media – have the power to reveal Israel’s true face and reach people’s hearts and minds and to effect Israel’s image among the Arab communities.”

Ofir Gendelman, the Israeli foreign ministry's spokesman to the Arab media, talks about the ceasefire with Hamas

It seems Hamas agrees with Ilan. Teaching Hebrew is a foothold in shaping the narrative of Israeli media. Even the Ezzedine al-Qassam Brigades, Hamas's armed wing, now tweet in the "language of the enemy."

As for individual Gazans, hopefully they will have more of a chance to tell their own stories and engage with Israelis on an equal linguistic footing. At the very least, Gazan children toiling over Hebrew verb tables can take comfort that  their learning is easier than it was for its first student. Itamar Ben-Avi, the language’s first native speaker, was taught only modern Hebrew as a child in the late 19th century - a language his father had only just formulated. Unable to communicate with or understand other children, a dog was his only companion.

Palestinian students do their homework. Photograph: Getty Images
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The Asian Financial Crisis 20 years on

In the four years between 1993 and 1996 the tiger economies of Asia led the world in terms of gross domestic product (GDP) growth and stock market returns as foreign and local investors piled in and embraced the opportunity.

In the four years between 1993 and 1996 the tiger economies of Asia led the world in terms of gross domestic product (GDP) growth and stock market returns as foreign and local investors piled in and embraced the opportunity. But trouble was brewing and Thailand was the canary in the coal mine. Strong growth was being funded by ever increasing levels of debt and with offshore interest rates far more attractive than those available at home, US dollars became the funding currency of choice.

While currencies remained pegged to the US dollar risks were minimal but as a growing trade and current account deficit and rising inflation led to increasing overvaluation of the Thai Baht, speculation grew and short-term money started to move out of the Thai currency.

In July 1997, after a futile attempt to stem the outflow, the Thai central bank removed the peg triggering an immediate 25% fall in the currency - by the end of the year it had lost half of its value. The impact on the economy was devastating. Interest rates initially spiked making dollar debt significantly more expensive. Loans started defaulting, peaking at almost 50% of total loans in 1999. The figures reflect the severity of the downturn: GDP took five years to return to pre-crisis levels, consumption – the use of good and services by households - was four years, and private sector loan growth only returned to positive territory in 2002.

Although Thailand was the trigger, the ticking time bomb of unhedged foreign currency debt and a  prolonged period of over-exuberance prevailed across all of South East Asia.  The Philippines and Malaysia were also significantly impacted but the most significant downturn occurred in Indonesia, which, although running a current account deficit only half the size of Thailand, saw its currency go from 2000 rupiah to the US dollar to 16000, and bank loan books fill up with defaulting loans.

Contagion and a severe lack of confidence dented the whole region and although Hong Kong managed to hold on to its peg to the US dollar, a prolonged period of high interest rates and slower growth resulted in a 40% fall in residential property prices and a deflationary period that took many years to recover from. Even South Korea, which was the 11th largest global economy at the time, had to call in the International Monetary Fund (IMF) as interest rates ballooned and the currency weakened.

The recovery, which on average took more than 5 years, was supervised by stringent IMF requirements and has put Asian economies on a much firmer footing. With a few exceptions Asian currencies are free floating, meaning their value is determined by the foreign exchange (forex) markets through supply and demand, and as a result they have much more flexibility to reflect domestic economic cycles ensuring that pressures don’t build. Current and trade accounts, with the exception of India and Indonesia, are now in surplus, with the practice of unhedged foreign borrowing all but ended. Short term foreign debt in ASEAN (the Association of South East Asian Nations) nations has dramatically dropped from 160% to now less than 30%.

The Global Financial Crisis (GFC) in 2008 was borne out of exuberance in the West but not in the East and although Asian economies were impacted by the slowdown in global growth, Asian economic credibility was never called into question.

The only economy that is showing a worrying trend is China. A credit boom following the GFC has seen debt-to-GDP balloon from 160% in 2008 to 260% in 2017. The nature of this debt however is different from that accrued by South East Asian Countries in the late 1990’s. Firstly, most of the debt lies with state owned enterprises (SOEs) and is hence backed by the >$3tn worth of foreign exchange reserves, and most of it is denominated in renminbi. Secondly, although China operates a managed exchange rate regime against a basket of trading currencies, the capital account is closed which restricts the amount of speculative flows. Finally, a lot of the debt is owned by domestic institutions and is long term in nature which reduces the likelihood of enforced withdrawal leading to a liquidity crisis.

The impact of the Asian crisis lives long in the memory of Asian corporates. The days of rapid expansion and growth for the sake of growth have gone and been replaced by conservatism and a focus on cash flow and profitability. Corporate debt levels are at all-time lows while cashflow compares favourably to any other region of the world. Interestingly it is developed economies that are now showing the stresses Asia encountered and recovered from 20 years ago; Asia in comparison looks favourable.

1 Debt can be issued in a various currencies and because the value of these can shift around, hedging is process of protecting yourself against adverse movements, usually through the use of derivatives.

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