Deputy Industry, Trade and Labor Minister Orit Noked's speech at BASELWORLD

March 28, 2010 - PRLog -- "It is my pleasure to address all of you on this special occasion of the IDI's annual press conference.

"No country has been left untouched by the global economic crisis. The Israeli economy also felt the repercussions of the international economic downturn, with rising unemployment, decreasing exports and a total decline in productivity. After 4 consequent years with over 5% growth in its GDP, Israel finished 2008 with 4% growth and 2009 with only 0.7%.

"But there is also a bright side to this picture. Although the growth curve has gone down the past two years, it did not pass to the negative side of the chart and the forecast for 2010 expects a 2.5% growth.

"Faced with a global reception the Israeli economy has showed resilience. In the past criticized as conservative, the Israeli banking system was hardly exposed to toxic assets and can now be described as cautious. The Bank of Israel, the country's central bank, and the Ministry of Finance displayed swift and responsible reactions to the developing situation, without the need to resort to bailouts, takeovers or large scale stimulus plans.

"To combat the raising unemployment rate and the decline in exports, Israel's main economic engine, the Ministry of Industry Trade and Labor of the State of Israel launched a number of programs to prevent job losses and to assist the Israeli industry in coping with the decline in the international economic activity. In the last quarter of 2009, industrial exports have gone up in an average of 2.5% per month.

"The Israeli diamond industry, as the international diamond industry as a whole, has felt the full impact of the global economic crisis. Diamond trade, one of the main sectors of the Israeli economy, accounted for approximately 14% of its exports in 2009. The total net Israeli diamond exports in 2009 was 3.9 billion US dollars. Although this is a decrease of 37.1% in comparison with 2008, the 4th quarter of 2009 showed optimistic signs of a coming turnaround, softening the year over year decline.

"With the expected recovery of some of leading world economies, it is our belief that the international diamond trade will also make a comeback and we hope it will be a quick one.

"Since its establishment, the Israel Diamond Institute has played a curtail role in the promotion of the Israeli diamond industry in the international arena. Working in close cooperation with the Ministry of Industry, Trade and Labor, the IDI has implemented a number of campaigns and different tools in support of the Israeli diamond exporters.

"The ever growing globalization process has resulted, among other things, in increasing awareness of issues such as fair trade and responsible consumption. The current "Responsibility" campaign of the IDI is an important and welcomed initiative. The issue of responsible diamond consumption has been a subject for public debate for the last few years. As one of the leading international diamond trading centers, the State of Israel is aware of the moral obligation advanced economies have in promoting fair trade and in the attention that needs to be given to the sources of the commodities they consume.

"In the spirit of responsibility, Israel has the honor of serving as the Chair of the Kimberley Process in 2010. The Kimberley Process is a unique cooperation between governments, industry and civil society with a great humanitarian aim – eliminating trade in conflict diamonds and an important economic goal – transforming rough diamonds into a legitimate fuel for economic development. In an unprecedented pace the Kimberley Process has been able to reduce the illicit rough diamond trade from accounting for 15% of the international rough diamond trade down to less than 1%.

"Israel has been an active member of the Kimberley Process since its inception. As a leading force in the international diamond trade, the State of Israel attaches great importance to the Kimberley Process and will invest all the required efforts to continue its advancement and progress. On behalf of the Israeli Minster of Industry, Trade and Labor, Mr. Binyamin Ben Eliezer, I would like convey Israel's commitment to the Kimberley Process and the achievement of its objectives.

"As Chair of the Kimberley Process, Israel will host the Intersessional and Plenary meetings. The Intersessional will be held between the 21st and 23rd of June in Tel-Aviv, Israel's leading economic center. Between the 1st and 4th of November, Israel's capital, Jerusalem, will open its doors to the comers of Plenary meeting. I am confidant that these meetings will be fruitful and productive and will contribute to the attainment of the goals of the Kimberley Process.
 
"We regard the diamond industry as one the main driving forces of the Israeli economy and we invest efforts and resources to facilitate the continued growth of Israel's foreign diamond trade. Such growth, in our view, should be accompanied by an increasing awareness of issues as fair and responsible trade. As a leading diamond trade center and as Chair of the Kimberley Process, Israel considers itself obligated to stand at the fore of promoting growing responsible diamond trade.

"I would like to wish you all a pleasant and fruitful event.

"Thank you.

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The Israeli Diamond Industry organizations
Behind the Israeli Diamond Industry are a group of vital and dynamic institutions. Each one is responsible for a different aspect of the industry’s activities.