Despite last summer's war in Lebanon, Hamas's rise to leadership, Hizbullah rockets being aimed at Israeli cities, and international boycotts, Israeli economy is thriving, the national debt and unemployment have significantly dropped, and investors continue to look to Israel as fertile ground for investment.
In this article, originally published in Haaretz on April 1, 2010, IDI Senior Researcher Prof. Avraham Ben-Bassat warns that Israel's policy of reducing taxes should be frozen since it may precipitate an economic crisis, and advocates giving preference to increasing public spending while preserving the economy's stability.
Dr. Peter Jarrett, the head of the Country Studies Division at the OECD, says the government must do more to integrate all Israelis into the economy if it is to continue to prosper and grow. "Boasting that Arabs and Ultra-Orthodox Aside, Israel's Situation is Excellent - is Simply shortsighted and Foolish."
The integration of talented Arab employees into Israel’s hi-tech sector could relieve the human-resources shortage for employers. Encouraging Arabs to enter the hi-tech industry could improve their economic situation significantly, which would reduce inequality and contribute to a reduction of social tensions in the Arab community.
Top Israeli economist, Professor Eytan Sheshinski, has joined IDI as a senior researcher in the Center for Governance and the Economy, under the leadership of Dafna Aviram-Nitzan.
Survey to serve as backdrop for discussion at Eli Hurvitz Conference on Economy and Society – June 19 and 20
With the featured participation of: Bank of Israel Governor, Education Minister, Economy Minister, Director-General of the Finance Ministry, Director-General of the Prime Minister Office, Chairman of the Histadrut Labor Federation, Director-General of Bank Leumi, Director General of Microsoft Israel and other VIPs