Israeli High Tech Is Not Just a Few Startups (int'l edition)

Regarding ''Violence may also leave scars on Israeli high tech'' (The Middle East, Nov. 13): The bulk of Israel's high-tech sector (at least in terms of sales and industrial output) comes from established companies such as Scitex, ECI Telecom, Converse, Orbotech, Tadiran, and many others. These companies supply the lion's share of employment in Israel's high-tech industry--and stimulate the economy each time a product is manufactured and exported. Unlike most of the hot startups, they are well-entrenched and not dependent on what foreign investors view each night on TV.

If, as your writer claims, ''instability could divert the recent influx of foreign capital,'' that might be a blessing in disguise for Israeli high tech. Because of the influx of more than $5 billion in venture capital since 1993, the focus of the industry has changed. From building world-class enterprises that sell worldwide, control their own means of distribution, and contribute to the local economy, it is shifting to startups that carry astronomically high price tags, sell or produce next to nothing, and operate as if they were one step away from being acquired by a U.S. high-tech giant.

As a result, Israeli high-tech companies have given up trying to grow, prosper, and build dynamic enterprises. Why bother investing in marketing if the goal is to have a Cisco Systems Inc. or Intel Corp. buy the company for access to its leading-edge technology?

A good slap in the face for Israel's booming startup industry may be just what the doctor ordered to get Israel's science-based industries back on track and have them start serving the needs of the country rather than lining the pockets of foreign investors.

Joel Bainerman
Zichron Yaacov, Israel

Why Filipinos Are Behind President Estrada (int'l edition)

''A power vacuum could engulf the Philippines'' (International Outlook, Oct. 30) says that President Joseph Ejercito Estrada, a former action-film star, needs a ''better script'' to stop a fresh clamor by his critics for him to resign--in the face of an expose on his alleged links to jueteng, an illegal numbers racket. The truth is, it is the anti-Estrada forces that must write a better script.

The latest survey by pollster Pulse Asia shows that a majority of Filipinos still support the Chief Executive and do not buy the yarn of Ilocos Sur Governor Luis Singson about alleged jueteng payoffs to the President. In the Senate investigation into Singson's charges, senators have found one inconsistency after another in his allegation of supposed wrongdoings.

Most business and political leaders are also seeking an end to this jueteng brouhaha, believing that it is hurting the country's economic turnaround. With strong fundamentals in place, the Philippines have rebounded from the two-year Asian crisis, as shown by robust exports, low inflation, low interest rates, a trade surplus, a healthy agricultural sector, and all-time high gross international reserves of more than $15 billion. Just recently, the International Monetary Fund expressed confidence that the Philippines can achieve its economic targets and attract more investment, particularly in the fiercely competitive electronics sector.

Such positive assessments show that opposition groups eager to grab power long before the 2004 presidential election could do the Filipino people a big favor by putting politics aside for a while and helping the government stimulate the economy instead.

Michael T. Toledo
Philippines Press Undersecretary
Manila

What Uganda Needs Now Is Electric Power (int'l edition)

A viable industrial base, modern communications, and well-equipped hospitals are the norm in the U.S., but in many parts of Uganda, such things are still considered luxuries (''Friend of the poor--or evil capitalist?'' People, Oct. 9). Many of our towns and villages do not have electricity. There is widespread unemployment, and patients have access to only the most basic medical care.

Uganda is working hard to attract investment so we can create jobs and take care of many pressing social needs. The biggest challenge the country faces is lack of electricity. Indeed, a 1998 World Bank survey of businesses in Uganda revealed that the lack of reliable power is the major deterrent to investment. Every year, nearly 12 weeks of production are lost to power cuts. That means Ugandan workers find themselves out of work--and unpaid--for 84 days a year.

The Bujagali Falls project will help meet the growing power demands of Ugandan business. It is also an integral part of the rural-electrification expansion under way. Even those who cannot individually gain access to power will benefit through the improved health care and education facilities made possible by this power source. While we acknowledge that the Bujagali project is not a panacea for all our problems, it is certainly a critical investment.

Edith Grace Ssempala
Ugandan Ambassador to the U.S.
Kampala