Home
About IDI
IDI Press
Education
Debate
Research

Highlights from the Session on a Macroeconomic Analysis of the Israeli Economy and its Stability in the Face of Financial Shocks

The Caesarea Forum: Formulating National Economic Policy

MK Professor Avishay Braverman (Labor), member of the Knesset Finance Committee:
“We have internal and external restrictions. Today we know that most third-world countries, because of the external limits of globalization, are not able to invest in infrastructure and education. A noticeable polarity, inequality within the country, is on the rise. This also applies to countries that have continually neglected the investment in infrastructures and education.”

“What is presented here – that every fiscal deviation will supposedly be interpreted as a lack of credibility – produces a situation in which there are barely any degrees of freedom in this area... If everything is so good – then why is it so bad? It is that bad because while Tel-Aviv and the rest of the world grow at an annual rate of 5%, this growth does not permeate the periphery.”

According to Braverman, Israel has exhausted much privatization. “What is happening is a process that keeps repeating itself. A government that has some new ministers every year will have problems of ruling and performance. Today we are witnessing the collapse of the Israeli government, because, if we won’t be able to pass reforms within the government, or at least within the Ministry of Finance with the Budget Law, then we have failed.”

“I think that there are good tax benefits in Israel.”

I think that globalization and corruption are among the main, crucial problems. This process affects Israel as well. Globalization is a problem: because of fiscal limitations, we neglect a large part of the public; because of the government’s difficulty, the meaning of reforms escapes us.”