Monday, June 22, 2020

How COVID-19 helped Netanyahu beat Benny Gantz for Israeli prime ministership

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Kanika Bajaj

Article Title

How COVID-19 helped Netanyahu beat Benny Gantz for Israeli prime ministership

Publisher

Global Views 360

Publication Date

June 22, 2020

URL

Benjamin Netanyahu and Benny Gantz

Benjamin Netanyahu and Benny Gantz | Source: US Department of State via Wikimedia

In March 2020, when COVID-19 was causing the near collapse of health systems across the world, Israel had just voted third time in the parliamentary election for the third time in less than a year. This was so because no political party was able to muster the majority in Knesset (Israeli parliament) after earlier elections in April 2019 and Sept 2019. Benjamin Netanyahu has been acting Prime minister since the time when he went for the dissolution of Knesset December 2018 with a hope of securing an extended majority for his right wing coalition. However he failed to secure even the simple majority in three elections on April 19, Sept 19, and March 20. Then came the COVID-19 and he sensed an opportunity to make a comeback from the brink of political disaster to reclaim the prime ministership of Israel.

The COVID-19 pandemic tested the Israeli citizens just like the other countries and  Benjamin Netanyahu kept on telling that unless it is effectively controlled, there will be devastation not seen since the Middle Ages. He also stressed that even the First world countries such as the US and UK are at the brink of losing control. Many Israelis expressed admiration towards Netanyahu’s quick response to the pandemic which helped to contain the pandemic in earlier stages. They flattened their curve by shutting down public places such as parks, schools, educational institutions, and the hotspot areas. He followed two stage strategies — first, to locate and isolate the infected population and then to engage the healthy population in economic activities during the conditions of a semi-lockdown. These steps were taken to save the economy. His plan also carried a huge amount of tests in the hope that it could be established that some people were developing antibodies to resist the virus and could safely be “freed” from isolation. Although the steps being acknowledged, they still raised a lot of questions against Netanyahu. He was supposed to be facing charges for breach of trust and bribery in the month of March. The court shutdown ordered by Israeli Law minister delayed Netanyahu’s charges by two months. Israel also used the cell phone of citizens to monitor their movement to track the spread of pandemic for which he was criticised for breaching the citizen’s privacy. Yohanan Plesner, the president of the Israel Democracy Institute said that Israelis trust the Shin Bet to protect them and not to abuse that trust, and the cellphone monitoring may have serious long-term effects on that trust. Netanyahu, however, defended himself with usual combativeness by stating that the courts were under a temporary shutdown and he has received permission from the General Attorney for cellphone usage data which was valid for 14 days. He also said “If the Shin Bet is to

infringe on our basic privacy, they could have done it many years ago”.

After managing to convince the citizens that he had handled the COVID-19 situation effectively, he quickly approached the rival Benny Gantz with a proposal to form an “emergency unity government”. As part of the deal he offered to share the power with Gantz’s Blue and White party for three years during which Netanyahu was to be prime minister and Benny Gants Dy prime minister for the first 18 months and the role reversal afterwards. He kept on harping the disastrous consequences of the virus and mentioned “It could affect 60-80% of the population” and said “nobody knows” how devastating the virus would ultimately prove. 

It was not easy for Benny Gantz to accept the proposal to align with Netanyahu as his whole campaign was on the issue of never supporting Netanyahu. However Netanyahu, who is acknowledged by friends and foes alike as a shrewd politician willing to go to any extent in safeguarding his own interest, finally won the war of attrition. Benny Gantz accepted the deal offered by Netanyahu and agreed to let him continue to be the prime minister for the first 18 months of the alliance period. The COVID-19 calamity has effectively turned into an opportunity for Netanyahu to hold on to the power and continue to be the prime minister of Israel.

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February 4, 2021 4:48 PM

Kenyans turning to mobile loans in times of COVID-19

The economic impact of COVID-19 is felt on the personal finance of people across the world who are looking for ways to tide over the situation. In Kenya, people are lapping the short-term credit in the form of digital loans by mobile money operators. The number of people taking digital loans has doubled during the COVId-19 induced lockdown period.

Boston Consulting Group's Consumer Sentiments Survey conducted in April and May 2020 reported that "In May, 29 percent responded that they had taken out a short-term loan, compared to 16 percent in April. Mobile money operators were the most common sources of this credit”

Kenya is a pioneer in using mobile money transfer services as the key tool for providing financial inclusion to its citizens. A simple money transfer service, M-PESA launched in 2007 has transformed the financial service industry in Kenya. Today mobile money operators are providing multiple services like digital loans, marketplace for small businesses and farmers.

Digital loans are easy to process and disbursed but there are concerns of shaming the defaulters and compromising the data security of clients. The Digital Lenders Association of Kenya (DLAK) which is a body representing the digital lenders of Kenya has distanced from two of their members, Okash and Opesa over unethical practices. These mobile apps have shared the details of defaulting customers with the moneylenders and asking them to recover the money.

DLAK also stated that Opesa and Okash are known for attacking a client's data privacy which is against the Kenyan data protection laws and has additionally spoiled the reputation of digital leaders in Kenya.

In April 2020, Central Bank of Kenya barred unregulated digital mobile lenders from forwarding the names of loan defaulters to credit reference bureaus. A huge number of Kenyans have been recorded on Credit Reference Bureaus by digital money lenders for loans as little as $5.

Central Bank of Kenya governor Patrick Njoroge told during a press conference in May 2020 that the central bank in consultation with the mobile money operators and digital lenders is presently working to develop a model where the borrowers are protected from mistreatment of online moneylenders.

The borrowers are looking up to the regulatory authorities and the industry bodies to come up with a mechanism which will protect their interest in times of such a health and economic emergency.

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