The Seventh Annual Economic Conference of The Israel Democracy Institute was held in July 1999 in Ashkelon. In making preparations for the conference, its organizers, under the leadership of Professor Avi Ben-Bassat, took into account the forthcoming elections (May 1999). They therefore drew up policy principles and plans of action in a number of fields for the benefit of the cabinet that would be formed.
In the macroeconomic arena, the basis for a socioeconomic program, badly needed considering the state of the economy and especially the considerable unemployment, was hammered out. This chapter dealt with fiscal policy and its necessary structural changes, and with monetary policy. In the capital market field, recommendations were made regarding the effects of globalization on the economy in general and on the desirable foreign exchange regime and the economy's openness to the worldwide movement of capital in particular. The position papers on infrastructure focused on transportation issues, presently one of the main bottlenecks holding up economic development. The problem of education and investment in it at all levels headed the human resources agenda, and recommendations were made for ways to narrow the gap in education between Jewish groups of differing origins (Europe and America / Africa and Asia) and between Jews and Arabs.
As in the case of the sixth conference in the previous year, much preparation went into this year's conference. For each of the above-mentioned fields, a team was gathered that analyzed the data, conducted lengthy and probing deliberations and drew up recommendations for action. As in the past, this year's teams were joined by top-level representatives from the state's most important sectors: the Knesset, the Government, the Bank of Israel, the private business sector, the Histadurt Federation of labor and academia.
Our thanks go to the members of the teams and the chairpersons who headed them, tothe research assistants andto the staff of the Israel Democracy Institute. My personal, heartfelt gratitude goes to Professor Avi Ben-Bassat who so skillfully conducted such a large and diverse orchestra. Furthermore, he managed to run the conference and edit this book on the very eve of his transition from halls of academe back to the practical world, as the Director General of the Ministry of Finance.
Arye Carmon,
President of the Israel Democracy Institute