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Photo: Yaron Brenner
No Bolshevik - Amir Peretz
Photo: Yaron Brenner
Sever Plocker

He isn’t a Bolshevik

Amir Peretz doesn’t subscribe to radical leftist views

If we accept that the stock exchange serves as the barometer for the business sector’s mood, Thursday’s trading figures showed that even after Amir Peretz’ election as Labor party chairman, the business community is still in a splendid mood.

 

Overall, the party goes on.

 

After all, what will Peretz do as Labor party chairman? He won’t push it to socialist radicalization, he won’t initiate a class war, and he would most certainly not push for reckless abandon when it comes to the budget.

 

As Labor leader, he will hone the party’s social message, as Blair did with the British Labor party and Clinton did with the Democratic Party in the United States, but nothing beyond that.

 

Peretz is a social-democrat of the familiar, winning western model. Under Clinton and Blair, the American and British economies grew and flourished while the profits of corporations skyrocketed – but poverty and inequality were reduced, large budgets were invested in social causes, and unemployment disappeared.

 

As it turns out, those things can be combined. Late Prime Minister Yitzhak Rabin also succeeded on that front.

 

As we mark 10 years since Rabin’s assassination, it would do well to recall his economic doctrine, which was premised on two key words: Growth and justice. This doctrine has been adopted by Peretz.

 

Various elements are now attempting to portray Peretz as a Bolshevik demon. There, Labor picked a leader who backs radical leftist economic and social policies, wants to get rid of the free market, stifle competition, put control of the economy back at the ends of the government, boost the power of professional unions, raise minimum wage through legislation, impose taxes on the rich, and renationalize commerce, industry, and services.

 

In short, Amir Peretz intends to - the horror - turn Israel into the Soviet Union in its bleakest hours.

 

Half way to PM’s Office?

 

Such remarks are of course utter baloney. Peretz is not bringing back to Labor a Soviet economic worldview, which was never his cup of tea. Rather, he is bringing back Rabin’s economic worldview, that is, a competitive economy with a human face.

 

To outside observers it sometimes appear that Peretz, the head of the Histadrut labor federation, is calling for strikes whenever he feels like in order to further his own personal ambitions and that of large union leaders.

 

In fact, Peretz has conducted himself responsibly, cautiously, and moderately. The strike weapon has been used (with the exception of one or two cases) only when all other public influence means failed. The unions were restrained by him, not incited.

 

Indeed, Treasury officials of all people are full of appreciation for the manner in which he managed the large crises around port privatization, public service salaries, municipalities, single mothers, and the sale of Discount Bank.

 

Peretz, they say, is influential and placating. We can do business with him.

 

True, during the upcoming elections campaign, Peretz will demand a minimum wage raise, but not beyond what the industrial sector can afford to pay. He may consider symbolic taxation of inheritance – but only by a tiny margin, as not to undermine foreign investment. He will not ask to stop the privatization of Bank Leumi or military industries. After all, he already said the government had no business running them.

 

In an interview published in the special Passover section of Israel’s leading newspaper Yedioth Ahronoth, where Peretz first announced his intention to run for Labor leadership, he said: “I, too, support the privatization of businesslike government companies. The government’s job is not to run businesses in competitive sectors.”

 

In the same interview, Peretz vowed to be a prime minister within a year. Six months have passed, and he is already half way there.

 

Sever Plocker is a regular political and business commentator for Israel’s leading newspaper Yedioth Ahronoth

פרסום ראשון: 11.11.05, 14:34
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