The 15th "Globes" Israel Business Conference opened last night at the David Intercontinental Hotel in Tel Aviv . The conference, the most important annual event for the Israeli business community, has as its theme this year the truing point after the great economic crisis.

In his opening remarks, Tel Aviv mayor Ron Huldai gave a warning about social gaps, saying, "In the battle between social solidarity and a free market we have gone too far. The gap between rich and poor is too wide, and the middle class is being eroded."

Afterwards, Nochi Dankner, who controls the IDB group, was named "Globes" person of the year for 2009. Dankner, who correctly estimated on the eve of the crisis that it was about to break, took care to boost the IDB group's liquidity, contrary to many other business people. He took a defensive stance, and then, at the height of the crisis, adopted a policy of expansion overseas, making huge gains on his investment in Credit Suisse.

"I'm happy to be one of you," Dankner told the conference participants, "and to be among the leaders of the Israeli economy. I feel grateful that it has fallen to my lot to lead the IDB group."

Dankner related how a young man stopped him as he was walking on the beach at Herzliya, and asked him how he took decisions and whether the economic crisis was over.

"What I told that young man was this," Dankner said, "We characterize our business management as hourly management. You have to be highly alert to any change. Every hour, some issue arises, sometimes in areas you were not previously familiar with. Sometimes the challenges are an opportunity. Timing is critical. On the one hand, you don’t want an opportunity to slip away, but on the other hand, you mustn't act too soon. In the end, intuition plays a big part. In your decisions and actions you sometimes make mistakes, and you can't always foresee the consequences of what you do. Then you pay the price of your error and try to learn the lessons.

"In July 2007, the sub-prime crisis foreshadowed the start of the global economic crisis. Today we can see that turning the world into a global village has its disadvantages. The Chinese peasant has an impact on the American consumer. An economic slump in one place affects another place. Globalization turned the crisis into a huge tidal wave that swept countries and continents. At the same time, a massive transfer of power, influence, and wealth has occurred from the US and the West to China and the East and other developing countries. This process makes it imperative for us to review our strategy and our relationships with countries and companies."

On the economic recovery, Dankner said, "I feel that the joy is premature. I don't know what direction the emergence from the crisis will take. There are many risks. The basis scenario is an exit from the crisis accompanied by gradual, moderate improvement and a return to growth. Under that scenario, China and the developing countries will continue to push the global economy forwards, alongside an improvement in the US economy. But surprises could happen. I'm an optimist by nature and believe that the positive scenario will materialize, but the work isn't over yet. All leaders must continue to join forces to ensure that their economies reach safe shores."

Dankner spoke about IDB's contribution to society, and set out his vision, "My goal is to turn IDB into a global group, but its headquarters will remain in Israel. We will always see ourselves as a patriotic, Zionist group identified with the Israeli economy and Israeli society. The fate of each one of us is dependent on the fate of the State of Israel, and the fate of the state depends first and foremost on the ability to harness our efforts to fortify Israeli society and strengthen its staying power."

Published by Globes [online], Israel business news - www.globes-online.com - on December 13, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009