.
MARK: WELCOME TO "LIFE, LIBERTY
& LEVIN."
IT'S AN HONOR TO SEE YOU,
MR. PRIME MINISTER.
>> IS THAT IT?
"LIFE, LIBERTY & LEVIN"?
MARK: THAT'S IT.
>> GLAD TO BE HERE.
MARK: EMPHASIS ON THE LEVIN.
>> GOT IT.
MARK: YOU'VE BEEN HERE SEVERAL
DAYS, YOU'RE RELATIONSHIP WITH
THE PRESIDENT OF THE UNITED
STATES SEEMS TO BE VERY UNIQUE,
VERY PERSONAL.
IS IT UNIQUE AND PERSONAL AND
HOW DID IT GET THAT WAY?
>> IT IS, AND IT BEGAN THAT
WAY.
THAT'S THE WAY IT BEGAN, I
CAN'T EXPLAIN IT.
JUST LIKE THAT.
MARK: YOU HAVE SHARED VALUE
ANDS BELIEFS AND THAT SORT OF
THING?
>> I THINK SO, BUT THERE'S ALSO
A CERTAIN CHEMISTRY.
PRESIDENT LIKES TO CUT THROUGH
--
>> NOISE.
>> I DON'T WANT TO CALL IT
NOISE.
THERE ARE TWO INITIALS IN
ENGLISH, YOU KNOW?
HE CUTS RIGHT THROUGH IT.
MARK: YES.
>> AND IT'S REFRESHING WHEN WE
TALK ABOUT SERIOUS THINGS, HE
CUTS RIGHT TO THE POINT.
AND I APPRECIATE THAT.
I ALSO REMEMBER HIM WHEN I WAS
AMBASSADOR OF ISRAEL TO THE
UNITED NATIONS AND HE WAS A
VERY PROMINENT BUSINESSMAN IN
NEW YORK AND WE OCCASIONALLY
BUMPED IN THE SAME CIRCLES, BUT
WE MET YEARS LATER, AND IT'S
BEEN A DIRECT AND VERY POSITIVE
RELATIONSHIP FROM THE GET-GO.
MARK: AS A MATTER OF FACT, WHEN
YOU SERVED AT THE EMBASSY HERE,
YOU SPENT A LITTLE CHUNK OF
YOUR LIFE IN AMERICA.
IN FACT, YOU AND I WENT TO THE
SAME HIGH SCHOOL, NOT TOGETHER,
BUT THE SAME HIGH SCHOOL,
CHELDANHAM OUTSIDE OF
PHILADELPHIA WHERE.
IT D IT START AND WHERE DID IT
GO?
>> I CAME HERE FOR THE FIRST
TIME WHEN I WAS EIGHT YEARS OLD
ABOUT A YEAR.
DIDN'T KNOW A WORD OF ENGLISH.
MY FATHER CAME HERE TO EDIT THE
-- HE WAS A GREAT PROFESSOR, A
GREAT HISTORIAN, BUT THE WAY HE
MADE HIS LIVING IS EDITED
ENCYCLOPEDIAS.
THEY WANTED HIM TO EDIT A GREAT
JEWISH ENCYCLOPEDIA WHICH HE
DID FOR A YEAR AND SAID IT'S
NOT GOOD ENOUGH, I DON'T WANT
MY NAME ON IT.
DURING THE YEAR WE LIVED IN
MANHATTAN, I CAME HERE, GOD,
DIDN'T KNOW A WORD OF ENGLISH,
IT WAS BIZARRE AND DIFFICULT
FOR ME.
THERE WAS A GIRL THEY PUT NEXT
TO ME, THEY CALLED HER JUDY.
I REMEMBER JUDY, SHE TAUGHT ME
ENGLISH, SHE TOOK OUT A BOOK OF
PICTURES THAT HAD A DOG, HIS
NAME WAS SPOT.
SEE SPOT RUN.
RUN SPOT RUN.
AND JUDY, BELIEVE IT OR NOT,
AND MY DEARLY -- MY DEAR
MOTHER, THEY'RE THE ONES WHO
TAUGHT ME ENGLISH.
SO THAT WAS MY FIRST YEAR, 8 TO
9.
THEN I CAME BACK HERE FROM THE
AGE OF 13 TO THE END OF HIGH
SCHOOL AND ACTUALLY, AND THAT'S
IT.
THEN I WENT BACK TO THE ARMY
AND CAME BACK TO STUDY AT
M.I.T.
MARK: YOU STUDIED AT M.I.T.,
WHAT DID YOU STUDY?
>> FIRST ARCHITECT, AND YOU ARE
THEN I WENT TO THE BUSINESS
SCHOOL AND GOT BASICALLY AN
MBA.
MARK: AND YOU TOOK A JOB IN
AMERICA FOR A PERIOD OF TIME?
>> YEAH, I WENT TO WORK FOR
ABOUT A YEAR AT THE BOSTON
CONSULTING GROUP.
MARK: IS THAT WHERE YOU MET
ROMNEY?
>> YEAH, HE WAS AHEAD OF ME, HE
WAS STAR MANAGER, ACTUALLY.
YOU KNOW THE HORRIBLE THING
ABOUT MITT?
HE LOOKS EXACTLY THE SAME!
HE HASN'T CHANGED AT ALL.
MARK: HE HASN'T MOVED.
>> NOTHING, HE LOOKED THE SAME,
AND IT WAS A VERY GOOD PLACE.
TO BE HONEST, I THOUGHT THAT
YEAR THEY SPENT THERE, IN THE
PRESENCE OF THE FOUNDER OF THE
BOSTON CONSULTING GROUP WAS A
REAL GENIUS, HE WAS A VERY
ECCENTRIC GENIUS, NAMED BRUCE
HENDERSON, AND I REMEMBER I
CAME IN ON THE FIRST DAY, NEVER
BEEN TO A BUSINESS THING.
I SPENT FIVE YEARS IN THE ARMY.
I WAS AN OFFICER.
I WAS A SOLDIER AND A COMMANDER
IN A SPECIAL FORCES UNIT.
WENT TO M.I.T., FINISHED MY
UNDERGRADUATE, FINISHED MY
GRADUATE STUDIES.
GOT INTO THE CONSULTING FIRM,
AND THE FIRST DAY BRUCE
HENDERSON IS, YOU KNOW, VERY
IMPOSING FIGURE, MUST HAVE BEEN
IN HIS EARLY 70s, A VIRGINIAN,
HE TELLS ME, COME INSIDE, SHUT
THE DOOR.
SIT DOWN.
HE SAYS, YOU KNOW, YOU'RE NOT
GOING TO BE HERE VERY LONG,
BECAUSE YOU'LL GO BACK TO YOUR
COUNTRY.
SO STUDY EVERYTHING CAN YOU
HERE BECAUSE ONE DAY IT WILL
HELP THE STATE OF ISRAEL.
AND I THOUGHT THIS GUY IS
BONKERS!
WHAT IS HE TALKING ABOUT?
I'M 27 YEARS OLD, AND HE TELLS
ME TO PICK UP WHAT I CAN
BECAUSE IT WILL HELP THE STATE
OF ISRAEL.
HE WAS ABSOLUTELY RIGHT BECAUSE
I LEARNED SOMETHING ABOUT HOW
ECONOMIES GROW.
THEY GROW WITH THE FIRMS.
THE FIRMS MAKE THE ECONOMY.
YOU HAVE TO MAKE IT PROFITABLE
FOR THE FIRMS TO GROW THE
ECONOMY.
MARK: WHAT DO WE MEAN BY FIRMS?
>> COMPANIES.
ENTREPRENEURS.
MARK: COMPANIES.
>> BUSINESS PEOPLE.
THAT'S WHAT MAKES THE ECONOMY
GROW.
THE GUYS WHO PRODUCE THE ADDED
VALUE OF THE PRIVATE SECTORS.
GUYS WHO CONSUME MOST OF THAT
IS THE PUBLIC SECTOR.
IN ORDER TO HAVE THE THINGS
THAT THE PUBLIC SECTOR NEEDS,
LIKE AN AIR FORCE OR ROADS OR
THINGS LIKE THAT, OR OTHER
THINGS, OKAY, YOU NEED TO HAVE
A ROBUST PRIVATE SECTOR.
I LEARNED THAT MORE THAN
ANYWHERE ELSE AT THE BOSTON
CONSULTING GROUP.
MARK: AND PART OF YOUR CAREER
IN THE ISRAELI GOVERNMENT HAS
BEEN IN THE FINANCIAL SIDE.
>> YEAH.
MARK: WHEN MY FAMILY AND I CAME
TO ISRAEL, THE 50th ANNIVERSARY
OF THE LIBERATION OF JERUSALEM
AND THE UNIFICATION OF
JERUSALEM, I SAW ALL THESE
CRANES, I SAW ALL THIS BUILDING
GOING ON.
I SAW THE SKYSCRAPERS WITH THE
NAMES OF AMERICAN TECHNOLOGICAL
COMPANIES ON THEM AND SO FORTH.
AND YOU APPLIED THOSE POLICIES
AS PRIME MINISTER AND SO FORTH
IN ISRAEL?
>> I AM A GREAT BELIEVER IN
FREE MARKETS AND ONE OF MY
MISSIONS, TWO MISSIONS WAS TO
FREE UP THE ISRAELI MARKET,
ISRAELI ECONOMY, SO IT BECOMES
A FREE MARKET ECONOMY, TO
UNLEASH THE GENIUS EMBEDDED IN
OUR PEOPLE, THE SPARKS FLY OUT
THE MINUTE YOU OPEN UP THE
MARKETPLACE.
YOU ALLOW ENTERPRISE,
INNOVATION, RISK, TO FAIL OR
SUCCEED, AND I DO A LOT OF
REFORMS, I DID THAT AS PRIME
MINISTER.
AND SUBSEQUENTLY AS FINANCE
MINISTER AND SUBSEQUENTLY AS
PRIME MINISTER AGAIN AND AGAIN
AND AGAIN.
WE'RE STILL DOING IT.
THE ISRAELI ECONOMY HAS BEEN
GROWING UNDER THESE REFORMS
CONSISTENTLY AT BETWEEN 4% TO
5% PER YEAR AND THE GDP PER
CAPITA WILL PROBABLY CATCH UP
WITH JAPAN IN A COUPLE OF
YEARS, ISRAEL.
MARK: THAT'S A BIG DEAL.
>> THAT'S A BIG DEAL.
MARK: PARTICULARLY IN
TECHNOLOGY, THERE SEEMS TO BE A
HUGE GROWTH IN ISRAEL.
THE AMOUNT OF TECHNOLOGY THAT
HAS DEVELOPED IN YOUR COUNTRY,
IT'S A TINY LITTLE COUNTRY, AND
YOU SELL IT TO, YOU KNOW, YOU
WORK WITH MASSIVE COUNTRIES
LIKE INDIA AND SO FORTH.
THAT'S OBVIOUSLY PART OF YOUR
PLAN, RIGHT?
>> IT'S VERY MUCH MY PLAN.
IT SAYS -- FIRST OF ALL,
TECHNOLOGY BY ITSELF DOESN'T DO
ANYTHING.
YOU KNOW, YOU WANT A COUNTRY
THAT HAD GREAT SCIENTISTS,
GREAT MATHEMATICIANS, GREAT
PHYSICISTS, GREAT METALURE
GISTS, IT'S THE SOVIET UNION.
IF YOU TAKE ONE OF THE GUYS,
SMUGGLED THEM OUT.
PUT HIM IN PALO ALTO.
HE WAS PRODUCING ADDED VALUE,
HE WAS PRODUCING WEALTH.
SO TECHNOLOGY WITHOUT FREE
MARKETS DOESN'T GO ANYWHERE,
ISRAEL HAD THE TECHNOLOGY, BUT
DIDN'T HAVE FREE MARKETS.
HAD IT TECHNOLOGY BECAUSE THE
MILITARY, ESPECIALLY MILITARY
INTELLIGENCE, PRODUCED A LOT OF
CAPABILITIES, BUT UNLESS YOU
OPEN IT UP, SO PEOPLE CAN START
THEIR BUSINESSES, THESE
INCREDIBLY GIFTED YOUNG MEN AND
WOMEN WHO COME OUT OF THE ARMY
OR THE MOSSAD, THEY WANT TO
START THEIR START-UPS.
THEY CAN'T, IF YOU HAVE TO PAY
70% TAX, IT'S NOT GOING TO GO
ANYWHERE.
THEY'RE GOING TO GO ELSEWHERE.
ONE OF THE THINGS I DID THE
MINUTE I BECAME PRIME MINISTER
AND THEN FINANCE MINISTER WAS
ENACT AN ENORMOUS NUMBER OF
REFORMS, SEVERAL DOZEN REFORMS,
OPENED UP THE ECONOMY, REDUCED
TAX RATES, REDUCED SPENDING AND
CUT THE BUREAUCRACY.
I HAD TO -- IT WAS A BIG
CHALLENGE, YOU KNOW, HOW DO YOU
EXPLAIN THIS TO THE PEOPLE OF
ISRAEL, YOU KNOW?
I TOOK ABOUT TWO WEEKS TO
FORMAT AN ECONOMIC PLAN AND
EXPLAIN IT TO THE PUBLIC, AND I
SAID THIS, I DESCRIBED MY FIRST
DAY IN BASIC TRAINING IN THE
PARATROOPS, AND THE COMMANDER
LINES US UP IN A BIG FIELD, THE
WHOLE COMPANY, AND HE SAYS
WE'RE NOW GOING TO TAKE --
WE'RE GOING TO DO A SPECIAL
RACE.
YOU, HE POINTS AT ME,
NETANYAHU, YOU PICK UP THE GUY
NEXT TO YOU, PUT HIM ON YOUR
SHOULDERS.
AND THE NEXT GUY, YOU PUT THE
GUY NEXT TO YOU ON YOUR
SHOULDERS AND SO ON, AND I GOT
A FAIRLY BIG GUY ON MY
SHOULDERS, ABOUT MY SIZE, AND I
COULD BARELY TAKE TWO STEPS
FORWARD WHEN HE BLEW THE
WHISTLE.
THE GUY NEXT TO ME WAS THE
SMALLEST GUY IN THE COMPANY AND
HE GOT THE BIGGEST GUY ON HIS
SHOULDERS.
HE COLLAPSED ON THE SPOT.
AND THE THIRD GUY WAS A BIG GUY
AND HE HAD A RELATIVELY SMALL
GUY ON HIS SHOULDERS.
HE TOOK OFF LIKE A ROCKET AND
WON THE RACE, AND I SAID IN THE
INTERNATIONAL WORLD, ALL
NATIONAL ECONOMIES ARE PAIRS OF
A PUBLIC SECTOR SITTING ON THE
SHOULDERS OF THE PRIVATE
SECTOR.
IN OUR CASE, THE PRIVATE SECTOR
WAS COLLAPSING UNDER A PUBLIC
SECTOR THAT GOT TOO FAT, SO WE
HAVE TO PUT THE FAT MAN ON A
DIET, AND WE HAVE TO GIVE A LOT
OF OXYGEN TO THE THIN MAN
BELOW, THAT'S CALLED TAX
RELIEF, AND WE HAVE TO CUT ALL
THE BARRIERS TO THE
COMPETITION.
ALL THE REGULATIONS THAT
PREVENT THAT GUY FROM RUNNING
FORWARD.
THIS BECAME KNOWN AS THE FAT
MAN-THIN MAN TAXICAB, THEY
COULDN'T RECITE, IT THEY STILL
COULDN'T RECITE IT.
WHAT I DID WAS TRIM THE PRIVATE
SECTOR, HELP THE PUBLIC SECTOR,
I FIGHT REGULATION WITH
MACHETES, ALL THE TIME.
MARK: IN ADDITION TO THE
ECONOMY, I WATCH THESE VOTES IN
THE U.N., I SEE THE PRESIDENT
OF GUATEMALA, I SEE THE LEADER
OF INDIA, AND WHAT I NOTICE
OBSERVING ISRAEL OVER THE LAST
SEVERAL DECADES IS YOU
OBVIOUSLY HAVE A BIG PUSH GOING
ON WHERE YOU WANT TO TAKE
ISRAEL'S CASE ALL OVER THE
WORLD, INCLUDING IN OUR
HEMISPHERE IN AMERICA, AND
ASIA, INDIA AND SO FORTH.
HAS THAT BORNE FRUIT?
>> CERTAINLY HAS IN
INTERNATIONAL RELATIONS, HAVING
FORMED THE ISRAEL ECONOMY, WE
GOT THE PROWESS OF
TECHNOLOGICAL ADVANCE,
TECHNOLOGY WITH FREE MARKETS
DEFINITELY WORKS, AND WITH THE
-- THIS AMALGAMATION OF BIG
DATA, ARTIFICIAL INTELLIGENCE
AND CONNECTIVITY, ISRAEL IS
CREATING INDUSTRIES OUT OF THIN
AIR, LITERALLY OUT OF THIN AIR,
CAR INDUSTRY THAT IS AUTONOMOUS
LEADERS, WORLD LEADER DRIVING
THE WORLD ECONOMY, CYBER, WE'RE
A TINY FRACTION OF 1% AND GET
20%, 20% OF THE WORLD
INVESTMENT IN PRIVATE
CYBERSECURITY, HUGE.
ON THE OTHER SIDE, WE HAVE
SECURITY, WE HAVE SUPERB
INTELLIGENCE, WE'VE FOILED
DOZENS OF TERRORIST ATTACKS OF
ISIS, MAJOR TERRORIST ATTACKS
INCLUDING THE DOWNING OF AN
AIRLINER, YOU CAN IMAGINE WHAT
THAT WOULD DO.
MARK: AND FOR ALL COUNTRIES YOU
SHARE THAT INFORMATION?
>> NOT ONLY FOR US, WE SHARE IT
FOR DOZENS EVER COUNTRIES,
PREVENTED DOZENS OF TERRORIST
ATTACKS, MAJOR TERRORIST
ATTACKS.
WHEN YOU TAKE SECURITY
INTERESTS AND INTELLIGENCE THAT
COUNTRIES HAVE TO PROTECT
THEMSELVES AGAINST TERRORISM,
AND THAT'S PRETTY MUCH ALL
COUNTRIES AND TAKE THE NEEDS
FOR TECHNOLOGICAL INNOVATION,
THAT IS DRIVING THE WORLD RIGHT
NOW, BOTH OF THEM ARE PRESENT
IN ISRAEL, AND SO EVERYBODY
WANTS THEM, THAT GIVES MEET
THIRD THING, WHICH IS THIS
MASSIVE FLOURISHING OF ISRAEL'S
DIPLOMATIC RELATIONS WITH JUST
ABOUT EVERY COUNTRY IN THE
WORLD.
NOT ALL, BUT WE'RE NOT BIG ON
NORTH KOREA, YOU KNOW, NOT TOO