Wealthy State or Rich Vision

Economic growth in itself does not warrant advancement in quality of life for all. Development leap requires a rich vision, carrying capacity, and efficient government conduct.

In his article in Haaretz, Nehemia Shtrasler maintains that free-market economic policies in Israel will lead to continued economic growth, a fall in unemployment, external debt reduction, and an increase in foreign investment. Shtrasler explains that the success of economic policy is contingent on adoption of reforms aimed at reducing public sector role in the economy through privatization.

A paper published by the Reut Institute, based on the World Economic Forum's Competitiveness Index, demonstrates that the public sector Israel significantly lags behind the private sector in terms of competitiveness.

Furthermore, the size of Israel's public sector amplifies its economy's exposure to inefficiencies in this sector. Thus, the potential for a significant socio-economic leap lies not only in privatization, but also in improving the performance of the public sector.

The Reut Institute maintains that economic growth is an essential but not a sufficient condition for advancement in quality of life.

A long-term economic policy aiming to achieve a leap in quality of life, cannot focus solely on growth. Rich understanding of social, economic and political objectives is required to bring about a significant and sustainable improvement in quality of life for all.

Translation of this rich vision into policy, and its implementation, depends on government's carrying capacity and conduct:

  • Carrying capacity involves the availability of resources, the level of support decision makers obtain, and the ability of branches of government to cooperate.
  • Efficient conduct of the public sphere is founded on trust between employees, employers and government, and on the transpiring of public discourse revolving around issues such as growth and quality of life, as components of Israel's agenda.