Center for Governance and the Economy

The Center for Governance and the Economy aims to promote reforms in Israel's political system, civil service and labor market, in order to improve the functioning of these systems and increase public confidence in them.

Among other achievements, these programs have resulted in the repeal of direct elections for the Prime Minister, the establishment of Israel's National Economic Council, and the creation of the Knesset's Legislative Information Center.

The Center's flagship event is the Eli Hurvitz Conference on Economy and Society (formerly the Caesarea Economic Policy Planning Forum), which is widely recognized as Israel's most influential economic conference.

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    Daphna Aviram-Nitzan

    Director of the Center and of the Eli Hurvitz Conference on Economy and Society and Leader of the Climate Change Project

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    Daphna Aviram-Nitzan has held the position of Director of the Center for Governance and the Economy since 2016 along with serving as the Director of the annual Eli Hurvitz Conference for Economy and Society.

    Between 2002-2016, Aviram-Nitzan was the Director of the Economic Research division and the Chief Economist at the Manufacturers Association of Israel (MAI) and the economic advisor of the President of the business sector. Before that (1994 – 2002) Daphna served as an economist in several positions in the MAI's research and strategy department. She is the former chairman of the board of directors of Clal Finance-Mutual Funds and currently serves as an External Director of companies in the Israeli capital market.

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    Prof. Karnit Flug

    William Davidson Senior Fellow for Economic Policy

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    Prof. Karnit Flug completed her five-year term as Governor of the Bank of Israel in November 2018. In March 2019 she joined the Department of Economics at the Hebrew University. 

    As Governor, Prof. Flug oversaw the design and implementation of Israel's monetary policy and served as the Economic Advisor to the government. She was widely credited for maintaining stability and supporting growth in the Israeli economy.

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    Prof. Nathan Sussman

    Guest Senior Fellow and Consultant to Climate Change Project

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    Professor of Economics at the Graduate Institute Geneva. Leads the macroeconomic research as part of the institute's Climate Change Project.

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    Gilad Be'ery

    Head, Economic Reform Program

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    Dr. Assaf Shapira

    Head, Political Reform Program; Research Fellow, Civil Service Reform Program

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    Assaf Shapira received a PhD in Political Science from the Hebrew University of Jerusalem. He was a post-doctoral fellow at the Leonard Davis Institute for International Relations at the Hebrew University of Jerusalem, and at the Centre d’études européennes (Center for European Studies) at the Sciences po (Paris).

    His research largely focuses on political representation, political parties, the role of money in politics, and reforms in Israel's public service.

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    Adv. Rita Golstein-Galperin

    Head, Civil Service Reform Program

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    Rita is a senior practitioner in the fields of public policy and innovation. She joined the Institute after holding a variety of senior positions in public service. Rita founded Israel's Economic Attaché delegation to the OECD in Paris and led the exclusive training program, "Civil Service Cadets."
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    Prof. Gideon Rahat

    Senior Fellow, Political Reform Program

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    Professor Rahat is a faculty member of the Political Sciences Department at the Hebrew University of Jerusalem and an International Fellow at the Center for the Study of Democracy at the University of California, Irvine.

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    Prof. Yotam Margalit

    Senior Fellow, Economic Reform Program

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    Professor Margalit headed a large, experimental cross-national study of the investment decisions of multinational firms, a project that he developed and carried out in collaboration with the World Bank and the United Nations Industrial Development Organization.

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    Erez Sommer

    Head the Climate Change Project

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    Since 2019 Erez has been leading and coordinating the climate response initiative on behalf of IDI and in cooperation with the government. He is a member of the content team for the Eli Hurvitz Conference on Economy and Society. A graduate of the Heschel Sustainability Center fellowship program which trains young leaders for social, economic and environmental change. Holds a combined BA in sociology-anthropology and communication and journalism from the Hebrew University of Jerusalem.

     

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    Gabriel Gordon

    Researcher, Economic Reform Program

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    He holds a Master's degree in Economics and Environmental studies.

    His research focuses on demographics and trends within the Israeli labor force.

     

     

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    Yarden Kedar

    Researcher and Coordinator of the Future Labor Market Project in the Economic Reform Program

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    Yarden Kedar is a researcher at the Center for Governance and the Economy at the Israel Democracy Institute, and the coordinator of the Future Labor Market project. Has a bachelor's degree in PPE and a master's degree in Public Policy from the Hebrew University in Jerusalem. Yarden leads studies at the Institute concerning human capital, vocational training and skills in Israel, as well as the analysis of Israeli public policy in this field. In addition, he specializes in the field of employment of older workers, and also engages in topical analysis of the effects of current events (e.g. Covid and the recent war) on the labor market and the financial situation of the employed. Yarden is experienced in policy research, data analysis, and policy analysis. Past positions include serving as researcher and coordinator of the Economy and Society program at the Van Leer Jerusalem Institute.

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    Prof. Ofer Kenig

    Research Fellow, Political Reform Program

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    Prof. Ofer Kenig is a senior lecturer in Ashkelon Academic College and a research fellow in Israel Democracy Institute. His areas of research include comparative politics, political parties, leadership and candidate selection and Israeli politics. He co-authored the books Reforming Israel's Political System (2013)The Promise and Challenge of Party Primary Elections (2016) and From Party Politics to Personalized Politics (2018).

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    Prof. Ruslana Rachel Palatnik

    Guest Researcher at the Climate Change Project

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    Prof. Ruslana Rachel Platnik, Department of Economics and Management at the Yezreel Valley College (YVC), is a senior researcher at the Natural Resources and Environmental Research Center (NRERC) at the University of Haifa, at the IIASA Research Institute in Austria, and at the ATHENA Research Institute in Greece. Her research focuses on economic assessments of energy and environmental issues.

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    Roe Kenneth Portal

    Researcher, Economic Reform Program

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    Roe came to the institute with experience in policy research, data analysis, and report writing in both the public and private sectors. He conducted research for the labor force on future employment trends, characteristics of special populations in the workforce, and remote work. He also dealt with improving data infrastructure for the avodata website. Additionally, as part of his work at the economic consulting firm ERCG, he was a consultant for the Ministry of Finance regarding natural gas royalties.

    At IDI, Roe is involved in research on unemployment, social mobility, and remote work. He is responsible for current economic analyses based on the center's needs. Roe graduated with honors from the PPE, combined program in Philosophy, Political Science and Economics at the Hebrew University of Jerusalem.

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    Dr. Dana Blander

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    Research Fellow and Research Consultant

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    Dr. Dana Blander is a Research Fellow at the Israel Democracy Institute and an expert clinical psychologist. Her doctoral thesis - "ambivalence as a challenge to the political order" - which combines political philosophy with psychoanalytic insights won the Alex Berger Award of the Hebrew University in Jerusalem in 2008. She served as a guest lecturer at Tufts University in Boston in the years 2010-2011.

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    Dr. Chen Friedberg

    Research Fellow, Political Reform Program

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    Dr. Chen Friedberg has co-written many papers published by the Israel Democracy Institute.

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    Avital Friedman

    Researcher, Political Reform Program

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    Asaf Heiman

    Research Assistant, Political Reform Program

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    Asaf holds a bachelor's and master’s degree in political science from the Hebrew University of Jerusalem. His thesis presented on a comparative study of political parties in local government in Israel. At IDI, Asaf researches local politics in Israel and explores ways to promote local democracy in Israel. As part of this, Asaf focuses on studying the activities of political parties in Israel's local government and the local electoral system.

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    Ayala Goldberg

    Research Assistant, Local Authority Project at the Civil Service Reform Program

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    Research assistant in the Religion and State program at the Joan and Irwin Jacobs Center for Shared Society, and a local governance project within the Civil Service Reform program. Holds a Bachelor's degree in the PPE program from the Hebrew University in Jerusalem. Currently a Master's student in government and public policy at the Open University.

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    Liron Lishinsky Fischer

    Research Assistant, Civil Service Reform Program

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    Iddo Katoshevski

    Researcher, Economic Reform Program and Climate Change Project

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    Researcher at the Center for Governance and the Economy. Deals with environmental and climate economics. A second year MSc student in economics at the Hebrew University of Jerusalem and holds a BSc in philosophy, economics and political science. Has occupational background in health economics and in research of Middle East economy. In addition, has experience in managing inter-sector forums, analyzing data and conducting economic studies.

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    Dr. Libby Maman

    Guest Researcher, Civil Service Reform Program

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    Noa Shaked

    Researcher, Civil Service Reform Program

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    Nir Levi

    Coordinator of Public Sector Innovation Project, Civil Service Reform Program

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    Nir holds a BA in Political Science and Sociology and an MA in Public Policy from Tel Aviv University. He gained experience in public service, including a role as CEO assistant in the Ministry of Agriculture and Rural Development. Nir managed the "Monitor" project at the Center for Citizen Empowerment, focusing on developing implementation research on policy decisions. Additionally, he served as a strategic consultant at an international consulting firm and has expertise in developing policy research and strategy for civil society organizations and international bodies in areas of long-term strategic planning, future-oriented thinking, and innovation development in the public sector. Nir participated in training at the European Union's Joint Research Center for developing strategy and tools for citizen engagement in policy-making.

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    Raz Leibson

    Research Assistant, Economic Reform Program

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    Hillel Haruni

    Research Assistant

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    Gal Klein

    Research Assistant, Local Authority Project at the Civil Service Reform Program

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    Merav Steinfeld

    Research Assistant, Local Authority Project at the Civil Service Reform Program

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    Ofra Shani

    Researcher, Civil Service Reform Program

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    Ronni Rieger

    Research Assistant, Economic Reform Program

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Everything you need to know about what happens to the Knesset between the end of its summer session and the 2026 elections, scheduled for October 27, 2026.

Legislation that would give the study of Torah constitutional status may lead to a situation in which, given limited resources, the state might prioritize Torah study over the acquisition of skills needed for the modern labor market and a thriving economy.

This is an executive summary of a study published in Hebrew and presented at IDI's Eli Hurvitz Conference.

What is the process and timing involved in dissolving Knesset and initiating elections? What happens between a Knesset dissolution and the forming of a new government? Is Israel's process typical compared to other countries? All your questions answered about dissolving Israeli Knesset.

When and why was the Advisory Committee on Senior Civil Service Appointments established, what are its powers, and which appointments is it supposed to review? In light of the High Court hearing on petitions against the appointment of Maj.-Gen. Roman Gofman as head of the Mossad, this explainer reviews the role and composition of the “Grunis Committee,” as well as the meaning of “integrity” in senior public appointments.

The discourse around the impact of AI on the labor market tends to be centered on forecasts of how many jobs will be lost due to AI. The future is indeed uncertain, but this debate misses the mark. We now have a clearer view of what is already happening in Israel's labor market (as of 2025) that should shift the debate towards how to prepare and equip the labor market and education system for the changes that are unfolding. The answer to preparedness lies in human capital and a holistic economic approach.

The decision for Knesset to advance highly controversial legislation during the war with Iran, and under a special home front situation, risks undermining proper legislative processes, impeding public debate on the issues, and hindering the ability of elected officials to address urgent war-related matters.

Professor Karnit Flug, former Governor of the Bank of Israel from 2013 to 2018, and William Davidson Senior Fellow for Economic Policy at IDI's Center for Governance and the Economy, joined Amichai Magen, a Senior Research Scholar at Stanford's Center on Democracy, Development and the Rule of Law (CDDRL) and the founding director of the center's Jan Koum Israel Studies Program. After two years of war and growing international challenges, where is the Israeli economy now, and where might it be going? 

Prime Minister Benjamin Netanyahu has requested a presidential pardon while his trial is ongoing. President Isaac Herzog has an unprecedented decision before him that throws him into the thick of Israel's political divides.

Prime Minister Benjamin Netanyahu has requested a pardon from President Isaac Herzog. Here's everything you need to know about the presidential pardon process in Israel.

Instead of debating electoral reforms that seek to preserve and protect the political interests of those in power, let us focus on electoral reform, such as a semi-open ballot system, that would improve governance, increase accountability, and strengthen democracy.

The Head of IDI's Economic Reform Program Gilad Be'ery speaks to Naomi Segal on Kan Radio English about his new analysis on business adoption of AI in Israel. The analysis, based on a first-of-its-kind Central Bureau of Statistics (CBS) survey, finds that 28% of Israeli businesses have used AI in the past six months, and that AI is beginning to do the tasks of humans in the workplace. Gilad discusses the implications of these findings and what might lie ahead for Israeli workers. To read the full analysis, click here.

As the Likud party seeks to replace MK Yuli Edelstein as Chair of the Knesset Foreign Affairs and Defense Committee, this Q&A lays out everything you need to know about the role of a Committee Chair, and the the replacement process and history relevant to the current situation.

This week's announcement of the resignation of the ultra-Orthodox parties from the coalition marks a fairly common case of parties resigning due to matters of religion and state. The following historical analysis looks at parties that have withdrawn from their governing coalitions over the years and the ideological disagreements that led them to do so.

A new IDI analysis of a Central Bureau of Statistics survey finds 28% of businesses in Israel used AI in the past six months as part of their business activity. In terms of employees, the proportion is even higher, with 32% of employees working in businesses in which AI is being used.

The Knesset passed Amendment 44 in 2016 to regulate the possibility of impeaching MK's. An MK can be expelled if the Knesset finds that his or her actions constituted incitement to racism or support of an armed struggle against Israel.

The events of October 7, the judicial overhaul, continuous war, murderous violence on the streets, a spiraling cost of living—none of these have been enough to destabilize the coalition. Will it be the conflict over drafting yeshiva students that ultimately brings down the Netanyahu government?

In a semi-open ballot system, voters would see electoral lists and be able to select "preferred candidates" when they vote. This common sense reform would strengthen democracy, allowing for a fuller expression of voter preferences and an increased connection between voters and their elected officials.

Polls reveal that despite apparent polarization, Israelis are remarkably united on almost every issue of importance, prioritizing hostage release, ending Haredi draft exemptions, and anchoring a constitutional framework—leaving only their leaders out of step with the national consensus.

Many in Israel have watched Elon Musk's DOGE department and advocated for implementing the same approach in Israel. However, the model should be attuned to Israeli needs, including reducing the inflated number of government ministries and curbing wasteful budget allocations, such as the coalitionary funds.

A special analysis of the situation among evacuees from the north and south of Israel, based on an extensive survey conducted among a nationally representative sample of workers who were in employment immediately before the outbreak of the Iron Swords war.

This survey is the second in series taken since the outbreak of the Iron Swords War assessing the financial impact of the war on the Israeli workforce. 

In recent years, it has repeatedly been claimed that “Israel has too many elections.” On the one hand, this is true, Israel has the highest frequency of parliamentary elections compared to all developed democracies. On the other, Israelis have fewer voting opportunities.

Prof. Karnit Flug, IDI's William Davidson Senior Fellow for Economic Policy, spoke with State of Tel Aviv's Vivian Bercovici.

Expectations for the UN Climate Change Conference in Azerbaijan were low from the outset, and indeed, it concluded on a muted note. Nevertheless, where heads of state stall in their efforts, an Israeli initiative for regional collaboration offers a glimmer of optimism.

 A survey of daycare subsidies in Israel and recommendations for improved criteria that would encourage participation in the labor market among the ultra-Orthodox. 

An analysis of the effects of the war on employment within Israel's Arab population. 

Moody's downgrading of Israel's credit rating was hardly unexpected, but given at this irregular time and the continued negative outlook it represents an extremely unusual step. It reflects Moody's assessment that geopolitical risks have increased sharply for the short and long terms. 

Prof. Karnit Flug, VP of Research at IDI and the William Davidson Senior Fellow for Economic Policy, spoke with The Washington Institute's podcast Decision Points with David Makovsky, and discussed the current economic challenges facing Israel and future development prospects. 

With the outbreak of the war in October 2024, the Prime Minister announced that he was halting all legislation relating to the judicial overhaul, however, various government actions raise questions regarding its intentions in relation to the overhaul and whether it might be trying to advance it by other means beyond legislation.

This study describes the employment trends among men registered in ultra-Orthodox yeshivas between the ages of 18-25. The findings are based on a reported work, or "legal work," so it is very likely that this is an underestimation of reality. 

Technological advancements, rapid globalization, and structural changes in the Israeli economy over the past few decades have led to significant shifts in the demand for workers and in the tasks required of them, as well as in the characteristics of their skills and qualifications. This study offers insights on these questions using a variety of data sources and by employing two distinct empirical approaches.

A survey of various demographic statistics on Jerusalem, the capital of Israel. Which neighborhoods are more densely populated? Which ones are aging and which have a large majority under the age of 20? 

Eli Hurvitz Conference on Society in Economy 2024 convened top leaders in the midst of one of the most severe and significant wars in the country's history, ongoing since the attack of October 7, 2023.

New Study by Tomer Lotan and Vered Constantini at the Israel Democracy Institute

The tragedy of October 7, and the lack of a public sector response over the course of the ongoing crisis, shed light on the grim situation. This review presents figures and trends relating to the performance of the public sector and its ability to provide services and solutions in real time.

In May 2023, the Knesset approved a two-year state budget for 2023–2024. However, following the outbreak of the war in Gaza and the accompanying conflict in the north, the budget's composition, safety cushions, and especially the priorities it reflects are no longer suited to Israel’s economic and geopolitical realities.

On February 27, 2024, elections were held in 242 localities throughout Israel. The following analysis reviews the results of the elections from a number of angles.

V-Dem's latest report downgraded Israel's status from a "liberal democracy" to an "electoral democracy." The change in Israel's category is concerning, but on its own, it does not necessarily indicate a clear democratic decline. 

The National Unity faction in the Knesset is disbanding and reverting into the two parties that composed its list of candidates in the last election. The splitting of joint lists does not contribute to political stability. It contributes to fragmentation within the political system and may be perceived as political cynicism.

Between 1996 and 2015, there was a real improvement in women's representation in the Knesset. Since 2015, however, it seems this upward trend has stalled and female legislative representation is faltering, especially compared to other democracies.

Arab-Israeli public officials are being increasingly targeted by criminals, hoping to get their way through threats, extortion and force ahead of Tuesday's local elections. Running for office shouldn't cost people their lives.

The local elections this week in Israel—taking place at a time of war—have many Israelis asking, perhaps louder than usual, is it actually important to vote in these elections? The answer to this question is a resounding yes.

Over the weekend, Moody’s Investors Service announced that it had downgraded Israel’s credit rating from A1 to A2 and assigned it a “negative” credit outlook. Our policymakers would be well advised to study the risk analysis and assessment in Moody’s report closely and to take all possible steps to mitigate the risks. 

Israeli reserve soldiers are making unimaginable sacrifices to protect their country. To rise to the challenge of meeting the IDF's expanded personnel needs, Israel's policy solutions must be as diverse as are the reservists serving this nation. A "one-size-fits-all" compensation approach will not cut it. 

A decision to allow Palestinian workers back into Israel is not at all a simple matter. Despite recommendations by Israel's security agencies to allow entry to Palestinian workers, the Ministers of Construction and of the Economy oppose it for security reasons. As alternative solutions to the severe shortage of workers are unsatisfactory, we must ask ourselves whether we, as a country, are prepared to withstand another socioeconomic crisis.

This survey was conducted in order to assess public opinion regarding the preferred economic policy in light of the war in Gaza, to identify the main areas of concern to the public, and to examine the public’s views on various social issues.

This decision refocused our attention not only on the specific law it struck down but also on the unfinished business of completing our country’s constitutional framework

The Supreme Court's ruling to strike down the amendment made to the Basic Law: The Judiciary and reinstate the Standard of Reasonableness is a landmark decision on an issue that has been exceptionally divisive within Israeli society. Will this lead to a constitutional crisis? 8 Key points from IDI's experts examining the court's decision.

The Supreme Court ruled that the Court has authority to perform judicial review on Basic Laws, and that an intervention was necessary in the case of the amendment to the Basic Law: The Judiciary revoking the Standard of Reasonableness. What are the implications?

Coalition funds have been part of the budget-making progress for years. This study examines the trends in the use of these funds under the last three governments. One can see that the volume of coalition funds has grown up to fourfold within two Governments and that their breakdown has been less professional and more directed to interest groups.

The paradigm of reliance on technology for our security seems to have led us to a point in which infinite data points and technological tools are at our disposal failed to produce a response. It is of course essential to continue investing in technological superiority, but this needs to be done with a clearer head.

The ongoing war highlights the transformation of technology giants, once American-based corporations, into international entities. Within the Western aid package to Israel, it is imperative to enforce global accountability upon these companies

On November 5, 2023, Minister of Justice Yariv Levin notified the High Court of Justice that he will convene the Judicial Selection Committee within 15 days. Selecting judges is not possible in such a short time frame, so we will have to wait and see whether this decision leads to the completion of judge appointments to the vacant positions.

The ongoing war poses unprecedented challenges—military, civilian, geopolitical, and economic. Our focus is on providing necessary responses to the needs of the military, the needs of those directly affected in combat areas, mitigating the financial damage to businesses and employees, and rebuilding the communities destroyed on October 7.

The government of Israel must recognize the strategic importance of agriculture, the food sector, and other industries producing goods that are vital for the country’s security and for the continued functioning of the business sector during times of emergency and war

It is no surprise that the civil service has suffered a severe blow as the current hostilities continue. In light of recent actions aimed at undermining the public sector, immediate action must be taken to address this situation in order to restore social resilience.

On the question of Unreasonableness, it appears that the dispute is not only between the Knesset and the Supreme Court, but also among the justices themselves. There are many possibilities, but only one ruling, which will be handed down no later than mid-January 2024.

The Judicial Selection Committee has not met for more than a year, and during this period, various positions held by judges have been vacated.

IDI expert Dr. Guy Lurie met with KAN's Mark Weiss to discuss Supreme Court Justice Yosef Elron's announcement that he would seek election as the next Supreme Court president, a decision that flies in the face of the "seniority method" that has been used to select the court's president to date. 

Earlier this year, we published an article warning against the dangers of the judicial reforms, to our regret, many of the negative developments about which we warned at the beginning of the year have already come to pass.

Prof. Karnit Flug, IDI's VP of Research, William Davidson Senior Fellow and a former governor of the bank of Israel offers data on the current effects of the controversial judicial overhaul and projections for more ripples as the high tech industry begins to unravel. 

Comparing Israel's Supreme Court to America's Supreme Court. 64 Israeli legislators, a slim majority of the Knesset, voted on Monday, July 24, to amend one of Israel's Basic Laws, and in so doing, they took away the Israeli Supreme Court's ability to strike down decisions that it finds "unreasonable in the extreme.

The term "incapacitation" refers to a situation in which a government official is unable to perform their duty. The previous version of the law did not detail what constitutes incapacitation, nor who is authorized to declare incapacitation. The current version is accused of being personal and political.  

Less than 24 hours after the Knesset passed the “Reasonableness Law” the attorney general filed her professional opinion to the Supreme Court on an entirely different matter: the “Incapacitation Law.” What do the two amendments share in common?

This paper seeks to elucidate the economic consequences of the judicial overhaul. It approaches the topic through the lens of the new institutional literature in economics, which has extensively addressed the link between democratic institutions and the economy in recent decades.

The coalition is currently seeking to advance a legislative amendment that will prevent the Supreme Court from annulling (or striking down) decisions of the government, individual ministers, and other elected officials (such as mayors) it finds to be "extremely unreasonable."

In Israel, the public sector succeeded in enhancing innovation in the private sector but has remained rigidly stuck in the past and lags behind OECD standards.

The reform proposal and the resulting protests brought to light and to a large extent also created conflicts on religious and ethnic grounds. The findings of this research reveal a strong relation between levels of religiosity and support or opposition to the judicial overhaul.

Four behavioral insights on the recent State budget and how it informs on Israeli society and politics.

For local government to be able to truly represent all residents and understand the diversity of their different needs, it is important that there be appropriate representation of men and women alike

Study on the integration and mobility of individuals from disadvantaged economic backgrounds in the high-tech industry

40% of Israelis aged 25–44 cited the high cost of living as the issue that concerns them most. 80% of them have had to give up one or more item of expenditure, particularly leisure activities and vacation in Israel and abroad, and about 30% have refrained from buying basic items, food, or cars.

The OECD recommends granting local authorities’ greater autonomy in setting local taxation. The program being pursued by the current government raises fears of central government taking control of the Arnona (municipal tax) Fund, as has happened in the past.

New survey of Israeli workers reveals changes in levels of satisfaction post COVID pandemic: Most workers in Israel are satisfied with their work-life balance, despite the fact that half of them work more than their official number of hours; around a third report difficulty with functioning in family life

Even though the tax seems to have reduced the use of disposable utensils, its repeal demonstrates that a sustainable change in behavior requires additional measures, including running information campaigns tailored to the ultra-orthodox, making alternatives available, and encouraging their use.

The impact of the proposed changes to the judicial system on the financial balance of Israeli households: analysis of the M.O.F risk scenarios by income deciles