These are the paradigm shifts Israel urgently needs

The 7 October massacre committed by Hamas has shifted the ground beneath Israelis’ feet in profound ways. 

The terror onslaught on communities of mainly unprotected civilians has shattered the unwritten but imperative social contract between the state and its citizens, a contract by which citizens serve in the military, and in turn, we — particularly those of us who build their lives near enemy lines — are defended by the country’s security apparatus.

That contract came crashing down with the unprecedented, gruesome terror attack broadcast to the world, representing the single biggest intelligence and security failure since the establishment of the state.

To restore what has been lost, Israel must now usher in an urgent paradigm shift on multiple fronts: security, diplomatic, and economic.

On the security front, the devastating aftermath of the hours-long assault brought a disastrous end to the containment doctrine upheld for many years — that Israel can appease the neighbouring terror-run territory by helping transfer finances to it, hoping they are used to build the Gazan economy, and praying that indiscriminate rocket attacks on Israeli cities are minimal.

Action against Hamas is not just an act of self-defence

Over the years, Hamas has rolled in $2.5 billion (€2.27bn) annually in Gaza, with finances flowing through Iran, Qatar, and a network of global charitable organisations. 

Most of this money goes towards funding the lives of luxury for top Hamas leaders, building tunnels under Gazan cities, shoring up the terror infrastructure in the territory, and acquiring weapons and ammunition.

This apparatus was aimed squarely at Israeli civilians on 7 October, with catastrophic consequences. 

It must be clear now that coexistence with a terror group is impossible, and Hamas must be fought and defeated, just as Western powers fought and defeated the so-called Islamic State, and the US fought and defeated Al-Qaeda before that.

Israel has a duty to eradicate Hamas and other Palestinian terror groups as a security threat to its people. 

Citizens from across the gamut of Israeli society will no longer tolerate the danger posed by Hamas’ evil vision of terror, and Israel’s soldiers will fight this war until its conclusion. 

Israel’s decisive action against Hamas is not just an act of self-defence; it is a stand against terrorism that threatens global peace and security.

But war alone is not a policy. Adroit diplomacy must be at the heart of any winning strategy.

Moderate allies — including Palestinians — want to see a transformed Middle East

Indeed, by leveraging diplomatic ties and economic agreements with major moderate Arab states like the UAE, Morocco, Bahrain, Egypt, Jordan, and Saudi Arabia, Israel must craft an exit strategy for the war that would drive extensive reconstruction efforts in Gaza, in conjunction with robust economic development incentives for Palestinians.

Currently, however, it appears Israel’s plans for the day after the war are woefully underdeveloped.

Regional moderate allies, including Palestinians, have a stake in seeing a transformed Middle East and must be tapped as welcome partners for a solution to end the conflict, together with the US, NATO, Europe, and the UK. 

This sort of strategic alliance would not only bolster Israel’s security but also lay the groundwork for a united front against extremist ideologies that plague our region.

A Mideast re-alignment will have to include elements of existing cooperation and partnership between Israel and Arab allies in sectors like agriculture tech, water tech, cybersecurity, and healthcare. 

If we do so, Gaza could one day be a place where schools, hospitals and places of worship are free of the terror tunnels and the Hamas terrorists, where people can work quality jobs and have a chance at a better life in coexistence with Israel.

The PA is the only partner capable of administering Gaza

Critically, stakeholders should work together to boost support for the eventual Palestinian Authority-steered leadership of Gaza that would rebuild the Palestinian enclave and chart a new course for the Strip and the region. 

Moderate Palestinians in Jerusalem and the West Bank, with whom we and our portfolio companies have worked for years as colleagues, friends, and partners, are our allies for a future of peace and coexistence.

For this to take place in Gaza, the Palestinian Authority will need to be reformed to re-earn the trust of both the Palestinian and Israeli people, as well as the international community. 

It must rid itself of the crippling corruption that its leaders have let flourish and denounce once and for all any support for terror. 

But we must also recognise that the PA has been a key security partner for Israel, helping fight extremists for some three decades. It is the only partner capable of administering Gaza.

Victory for Israel lies in the shared desire for a better future

On the economic front, Israel must envision a transformation of its communities and capitalise on existing partnerships and programs developed by its robust tech ecosystem to draw talent, drive job creation, and build inclusive institutions. Innovation is ultimately the key to a collective future.

By fostering local and regional economic development, Israel has the potential to forge fresh opportunities across various domains — from professional fields and education to the military, high-tech sector, and on the ground — ushering in a new era.

Victory for Israel is not just on the battlefield; it is also through regional reconsideration and a shared desire for life, prosperity, creative development, and a better future.

The day after the war is Israel’s opportunity to reshape Gaza and the Middle East as a whole.

Erel Margalit is a former Knesset member, Israeli high-tech investor and social entrepreneur. He is the founder and Executive Chairman of the Jerusalem-based venture capital firm Jerusalem Venture Partners, and Margalit Startup City, the international collection of thematic socio-economic hubs.

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