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The Center for Jewish – Arab Economic Development

Bar Lev

November 2009 www.cjaed.org.il

The Center for Jewish-Arab Economic Development (CJAED) was established in 1988 by Ms. Sarah Kreimer and a group of Jewish and Arab businesspeople. The guiding principle of the Center is that Jewish-Arab economic cooperation in Israel is essential for peace, prosperity and economic stability in Israel and the region at large. CJAED acts on the premise that Israel's primary resource is its people, that Israel's strength lies in its pluralism and democracy, and that the Arab community must be integrated into the Israeli mainstream economy and society.

Industrial Zones and Local Development

CJAED believes that economic integration can be initiated through bold regional development, and has long advocated for the inclusion of Arab municipalities in the administration of regional industrial zones. Industrial zones are geographic areas that the Ministry of Industry and Trade endows with specific benefits to attract businesses to an area. Administration and management of a zone is typically the responsibility of local municipalities. Industrial zones are effective tools to:

� Increase employment opportunities

� Attract new or expanding businesses

� Create additional tax income for the municipalities

With both Jewish and Arab local governments facing land shortages within their municipal boundaries, the Ministry of Industry and Trade has encouraged cooperation via the establishment of regional industrial zones between neighboring municipalities. The Bar Lev Regional Industrial Zone is the product of such an initiative and was originally established as a regional economic development area between the City of Karmiel, the Regional Council of Misgav and the Regional Council of Mateh Asher. In 2003, in response to CJAED’s persistent advocacy, the Ministry of Industry and Trade encouraged the inclusion of the Arab municipal region of Al-Shaghour.

CJAED Facilitates Expansion of Bar Lev

In 2003 CJAED was recruited by the Ministry for the Development of the Galilee and the Negev to assist in the expansion of the Bar Lev Regional Industrial Zone. CJAED’s “on-the-ground” experience implementing successful joint Jewish-Arab development projects was essential in implementing a coherent, sustainable expansion plan.

July 2009 marked the official inclusion of the “Al-Shaghour” area villages of Deir al-Asad, Bine and Majd al-Krum into the Bar Lev Regional Industrial Zone’s board of managers. The new board’s equal allocation of administrative responsibilities and revenue sharing make Bar Lev a unique example of a shared Jewish and Arab industrial zone. In response to the inclusion of the Shaghour municipalities, the Israeli Government approved a 1,800 dunam expansion of the zone and over 5 million NIS to assist in planning and marketing.

Ensuring Success

Now that the “Al-Shaghour” municipalities have been formally incorporated into the Bar Lev Regional Industrial Zone, CJAED is working to ensure that the project’s

benefits are fully realized for all participants. The goal is a cooperative economic environment for Jewish and Arabs to train, study and initiate new ventures together.

The Bar Lev Regional Industrial Zone

Of the 7085 dunams of industrial area in the Galilee, 87% is allocated to Jewish municipalities and just 13%, is allocated to Arab municipalities. In this region Arabs comprise over 50% of the population.

Joint Jewish Arab Industrial Zones

המרכז היהודי ערבי לפיתוח כלכלי ���� المركز اليھودي العربي للتطوير ا�قتصاديCe n t e r f o r J e wi s h– Ar a b Ec onom i c De v e l opm e nt

המרכז היהודי ערבי לפיתוח כלכלי ���� المركز اليھودي العربي للتطوير ا�قتصاديCe n t e r f o r J e wi s h– Ar a b Ec onom i c De v e l opm e nt

Regional Objectives

CJAED’s continued involvement in the Bar Lev project is driven by the following primary objectives:

� Create new jobs and reduce unemployment

� Increase entrepreneurial ventures in the area

� Improve the management and planning capacity of the participating municipalities

� Increase tax revenues for Bar Lev municipalities

� Develop an economic climate that leverages the region’s diversity

To realize these objectives and ensure that the region is fully prepared to benefit from the Bar Lev Industrial

Zone’s expansion, CJAED established an Employment and Business Development Center (EBDC). Services provided by the EBDC were developed in direct response to a CJAED survey of over 500 local businesses and manufacturers.

Employment Services

CJAED is providing vocational and skills training courses tailored to regional employer needs. Concurrently, CJAED staff performs individualized career counseling and placements with area residents. To date CJAED has administered:

� Three professional computer skills training courses o 50+ total students

� Three vocational ‘call center’ courses o 60+ total students

To facilitate increased efficiency and program awareness CJAED recently launched the “AML” web portal (www.aml.org.il) that connects local employers with the region’s workers.

Small Business Services

CJAED staff regularly meets with local entrepreneurs interested in starting or expanding their businesses. Our staff has met with over 70 local entrepreneurs, providing assistance and guidance on issues such as financial and loan assistance, business planning, marketing and professional mentorship. Additional achievements and goals include:

� Established, in partnership with the UJC and JAFI, $200,000 loan guarantee fund for small businesses

� Administered a women’s entrepreneurship course (20+ total students)

� Established Al-Shaghour Business Forum with over 40 local business leaders, to offer guidance on development services

� Recruiting entrepreneurs for development of an in-house, fully equipped business incubator

Bar Lev Planning and Management Support Services

CJAED staff is supporting the Al-Shaghour municipal leadership with diverse financial and managerial assistance to ease the transition into the Bar Lev Zone’s Management Board. Additionally, CJAED is overseeing the planning and establishment of a Light Industry Zone for Green Technologies and Commerce within Bar Lev, in an effort to promote sustainable development in the Galilee.

CJAED Project Targets – Bar Lev

CJAED anticipates continued growth and success based on current levels of investment in programming and support services. CJAED projected targets for the end of 2011:

� 400 area jobseekers trained and employed at existing businesses

� Creation of 20 small businesses employing up to 100 area residents

� Relocation of Hiram Industries, a large high-tech company, employing up to 300 area residents

CJAED would like to thank those partners who have contributed to Bar Lev’s continuing success:

Employment and Business Development Center (EBDC) services include:

� Employment Services

� Small Business Services

� Bar Lev Planning and Management Support Services

November 2009 www.cjaed.org.il

CJAED Women’s Entrepreneurship Course

FOHS Foundation