The Authority for the Economic Development the Minorities Sector: Strategy for Economic Integration

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The Authority for the Economic Development the
Minorities Sector Strategy for Economic
Integration
Aiman Saif Managing Director
Prime Ministers Office
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One Nation, Two Economies

• 20 of the population, but only 8 of the GDP
• GDP per capita of 8000, compared with 19,000 in
  the economy (2006).
• Average gross income of Arab households amounted
  to approximately NIS 7,590, only 57 of that in
  Jewish households
• The rate of participation in the labor force by
  women is approximately 22 compared with 76
  among Jewish women (aged 18-65)
• Traditional industry (primarily privately- and
  family-owned)

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Obstacles to and Potential for Economic
Development
Obstacles
Potential

• Lack of local economic infrastructure
• Lower level of education
• Residence in peripheral areas
• Lack of supporting financial bodies
• Lack of knowledge/trust in government
  institutions
• Discrimination both on the governmental and
  business levels
• Traditional society and gender-based division of
  labor

• Untapped talents and education
• Increased awareness of issues related to
  integration in the labor market
• Demand for skilled workers in the economy
• Increase in consumer power with the increase in
  the standard of living

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Trends

• Over the past several years it seems that several
  of the elements needed to ensure a more efficient
  economic integration of the Arab population in
  the economy are taking form.
• Internal changes
• Rapid increase in the average education level of
  the labor force
• Improvement in the rate of participation by women
  in the labor force
• Changes in the employment structure (decrease in
  agriculture, increase in industry, increase in
  rate of professional workers)
• Increased awareness of integration into the labor
  market (result of various budget cuts and
  toughening of criteria for unemployment, etc.)

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Trends

• External changes Government activity
• Governmental recognition of socio-economic gaps
  between the Arab and Jewish populations
• The Arab population as an integral part of
  national plans (at risk children and teens, the
  program to strengthen the North, building
  classrooms, A New Horizon, targeted plan to
  invest in sewage infrastructures, etc.)
• Inclusion of all Arab villages in National
  Priority Area A
• Creation of government tools to decrease the risk
  taken by investors (employment track, subsidized
  professional training, investment in RD, etc.)

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Trends

• Government activity
• Building infrastructure for industry
• Approval of local planning programs
• Proper representation of the Arab population in
  the Civil Service
• Emphasis on investing in the Arab population
  (together with the ultra-Orthodox population) in
  the framework of the Governments Socio-Economic
  Agenda

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What is the purpose of the Authority?

• To emphasize economic development as a leading
  policy
• To expand the dialogue, integrate business and
  social-civilian factors
• To deal with obstacles and improve accessibility
• The goal of the Authority is to fully exhaust
  the economic potential of the Arab population by
  encouraging production- and business-based
  economic activity in Arab communities and by
  increasing their integration in the broader
  national economy.

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Mode of Operation
Methodology examination of the current
situation, research and formulating a model
Intensifying the activity of government offices
The Authority is staffed by economists
The authority of law
Advisory Council
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Targeted groups
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The Authoritys Role in the Governmental Field

• Cooperation of the Authority in formulating
  Government Resolutions with an economic character
  vis-à-vis the minority sector (including the
  State Budget)
• The obligation to consult with the Authority with
  regard to its spheres of operation
• Integrating the Authority in work teams (to be
  established in accordance with Government
  Resolutions) on economic issues relating to the
  sector
• Making tools for government assistance accessible
• Submitting a report to the Government annually
  regarding socio-economic gaps and government
  activity to reduce the gaps vis-à-vis the Jewish
  sector

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Central Activities Being Implemented

• Establishment of a private investment fund for
  the Arab sector
• Advancement of legislation
• Plan for employing Arab women
• Advancement of employment of academics with the
  cooperation of Kav Mashve
• Survey of positions of Jewish and Arab
  businesspeople
• Making government tools more accessible
  advancement of activities in cooperation with the
  Investment Center and the Chief Scientist
• Establishment of a unique website which will
  serve as a business meeting place between
  investors from both sectors seeking business
  opportunities (similar to the initiative of the
  Businesses Authority)

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The Authoritys Status

• Budget
• The Authoritys budget for 2008 is NIS 80 million
• The Authority will be funded through a separate
  budgetary clause and field of operation beginning
  in 2009
• Employees
• The Managing Director of the Authority was
  selected by a locating committee and approved by
  the Government on August 17, 2008
• Two public tenders were published
• The remainder of the personnel will be hired by
  the middle of November