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MICHIGAN'S LARGEST BICYCLE FITNESS EQUIPMENT
New York (JTA) — After
years of being told that the
role of federations is philan-
thropy, not finance, ad-
vocates of greater American
Jewish involvement in
Israeli economic develop-
ment are gaining the upper
hand.
In the past two years, a
handful of communities
have established offices,
with federation funding,
devoted to creating jobs in
Israel by helping Israeli
businesses.
And in many more com-
munities, economic devel-
opment committees have
been established to look into
the role federations should
play in that endeavor.
"We've come a long way,"
Barry Schrage told a day-
long seminar on economic
development held here last
month as part of the General
Assembly of the Council of
Jewish Federations.
Mr. Shrage, president of
Boston's Combined Jewish
Philanthropies, has been a
longtime advocate of the
idea that some of the money
raised by federations for
Israel should be spent on de-
veloping jobs in Israel.
"History will show that
this aliyah did get hung up
on the economic develop-
ment issue," said Mr.
Shrage, referring to the
slowdown in immigration of
Jews from the former Soviet
Union.
He added: "It's not great to
be right about something
like that."
But Mr. Shrage is getting
some satisfaction in the way
his federation's model of
economic development is be-
ing copied, most notably by
Atlanta, Baltimore and
Minneapolis.
These and other local
efforts are in addition to
Operation Opportunity, an
economic development pro-
gram run by the Jewish
Agency • for Israel, the prin-
ciple recipient of money
raised for. Israel by the
United Jewish Appeal.
The idea is simple: rather
than have federations solicit
donations that would help
provide social services to
unemployed Israelis, for in-
stance, they would en-
courage American Jews to
do business with Israel, and
thereby help create job op-
portunities there.
For nearly 20 years, ad-
vocates of this approach
have fought an uphill battle
against the traditional belief
that the Jewish philan-
thropic system should stick
to funding social services
and immigration and leave
business to the businessmen.
But now the discussion is
shifting to which types of
programs produce results
and which don't.
"We've arrived at the age
where the organized Jewish
communities should go the
extra mile, and look at Israel
as an opportunity to do busi-
ness, and create much more
business," said Shlomo
Harel, head of the Israel
Economic Mission to the
United States.
Federations, he said,
should "use their traditional
philanthropy as a spr-
ingboard toward economic
development."
Mr. Harel singled out the
pioneering program in
Boston, and newerprograms
Federations
should "use
philanthropy as a
springboard.
in Baltimore and Atlanta, in
which a professional, sup-
ported by the federation,
works to find opportunities
in Israel for local business.
"We believe these kinds of
ambassadors for economic
development should be there
in all the major federations,"
he said.
What makes these new
efforts different, said Mr.
Shrage and others involved,
is that in the past, attempts
to promote Israeli businesses
have involved bringing
together Israeli and Ameri-
can businessmen, and hop-
ing for the best. Other pro-
grams would attempt to per-
suade Jewish businessmen
in America to buy Israeli
products.
Today's focus "is not about
the Israeli chamber of com-
merce going to a Jewish
supermarket owner and say-
ing, please sell our oranges
in the U.S.," said Mr.
Shrage.
When the Boston federa-
tion decided to get involved
in economic development,
"we asked, what is the value
added of federation?"
The answer was its con-