ISRAEL Vision To Become One of the 15 Leading Countries in Quality of Life
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ISRAEL VisionTo Become One of the 15 Leading
Countries in Quality of Life
Second Annual ISRAEL 15 Conference16th of Sivan 5769
June 8, 2009
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Heavy security burdenWeak education system
Low participation in work force
Danger of Collapse Large Gap in Quality
of Life
According to The Economist Israel ranks 38th in Quality of Life
Israel is 2nd in the world in theexport of Human Capital
Developed CountriesLeapfrogging is not
a luxury; it is a necessity!
Israel Must Leap
Gaps continue to widen
Israel
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ISRAEL15 Vision: Becoming one of the fifteen leading countries in terms of
Quality of Life
This Vision requires a Social and Economic Leapfrog in order to close the gap in Quality of Life between Israel and
other developed countries
ISRAEL15 Vision
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Israel leapt between 1951-72
Since then, Israel has grown by 1.5% and has not closed the gap
During this time, Singapore & South Korea both leapt
Israel
Singapore
South Korea
0.
2.
4.
6.
8Countries that have Leapt
US = 1
Western Europe
1950 1960 1970 1980 1990 2000 2007
Source : Professor Ricardo Hausmann
GDP Rate Compared to the US (1950-2007)
30% of the US
60% of the US
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Growth, Accelerated Growth, Leapfrog
Source: Prof. R. Hausmann et al., Growth Accelerations
Only 13 “Economic Miracles”
Leapfrog
Almost all countries experience Growth
0.
2.
4.
68.
Years
X X+8 X+25
Re
al G
DP
pe
r C
apita
%
Source:World Bank, Growth Report
Only 1 in 4 experience
Accelerated Growth
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Public SphereA Shared
FutureSavings and Investment
Dedicated Elite
A pactUnique and
Global
Central Brain, Elite
Task Forces
The Public Sphere is Critical
Vision
Leadership and
Politics
Values
Institutions
Development Policy
Labor Market
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Common Denominator for Countries that Leapt
Values
Future orientation
A variety of market economies
Pragmatism
Inclusiveness
Trust
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Central Brain
Institutions
A Pact
Identifying
AnalyzingRelevancy
Trends &
Elite Task Forces
Ability to Execute
Decisions
Flexibility in the Market
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New Deal in the Labor Market
Industry Labor
Government
Workers agree to flexible labor markets in return for improvement
of Human Capital & safety net
Employers flexible to hire and fire in return for a commitment to keep to
employment laws
Government provides a safety net & training in return for improvement
in competitiveness
Protect the Worker not
the Job
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Unique and Global Development Policyאתרים היסטורייםמערכת הביטחון
העולם היהודיפיתוח המדבר
Unique Global Development Policy
Global Trends
Unique Assets
Policy Inputs
Standardization, Legislation Regulation, Infrastructure International Agreements
Not Just Money!
The Holy LandDefense Industry
Jewish WorldGreening the Desert
Rise of China and IndiaGlobal Water CrisisRenewable EnergyAging Populations
Rise of Africa
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New Regional Development
Global and national competitiveness
Exploit comparative advantage
The region generates the change
Growth at the local level
Israel has regional diversity
Regional Approach
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Israel is Not Talking Leapfrog
Policy Institutions
Domestic Industrial Policy
Labor Market: Pact for Growth
Unique & Global Development Policy
Local Government Ignored
No Vision
Local Government Necessary
Vision Necessary
Growth Leapfrog
Economics Multidisciplinary
Labor Market: conflict
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Unique Opportunity for Change
Establishment of the Roundtable
New Government: Stability for 2 yrs
Crisis Breeds Willingness
Why Now?
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What should we do Tomorrow?
A Vision is Necessary
Labor Market : New Deal
Unique and Global Development Policy
Macroeconomic Stability (+-)
Reorganizing on the Local Level
Central Brain
Israel 15
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On the ISRAEL 15 Vision:
“This is a very impressive document, based on clear thinking and a knowledge of the recent experience and writing about growth at various stages of development.”
Professor Michael Spence, Economics Nobel Prize Laureate, and Head of the U.N Commission on Growth and Development