Israel’s Prosperity, Peace Depend on Economic Reform

Until the Intifadah and the Oslo agreements, a non-political process of economic collaboration was leading to a gradual reconciliation between Arabs and Jews, explains ICSEP President Daniel Doron in a talk sponsored by the America-Israel Friendship League. That process can now resume, Doron argues, helped by economic reform within Israel.

ICSEP President Daniel Doron introduces future Israeli prime minister Binyamin Netanyahu at an NCPA dinner in Dallas, Texas.

“Past reforms have focused on asking for more money for education,” ICSEP President Daniel Doron noted in his speech to the Merage Forum on education.

“This despite the fact that Israel is already spending the highest proportion of GDP on education in the West.

“Yet, despite a steady growth in expenditures, standards and achievements have shown little improvement; in fact they have further deteriorated.”

“Before I continue with my remarks, let me sound an optimistic note,” said Daniel Doron, ICSEP President, in his opening remarks to the Strategic Forums Sponsored by Paul Merage.

“You will hear voices say that attempts to reform Israel are futile, that you cannot initiate significant changes here.

“We know better.”

The high-powered conference was held to explore ways of encouraging Israeli high-tech to meet the serious challenges facing it and to continue flourishing.

After the financial market reform was ratified by the Knesset, the director general of the finance ministry wrote to ICSEP director Daniel Doron. “Thank you for the support and encouragement that you and your colleagues gave us throughout the process,” he wrote.

After the passage of historic capital market and tax reform bills, Finance Minister Binyamin Netanyahu wrote to ICSEP director Daniel Doron to thank ICSEP for “truly invaluable assistance in helping bring about this important reform.”

“In 10 years, Israel could be one of the 10 richest countries in the world,” Finance Minister Benjamin Netanyahu told guests at ICSEP’s first annual United States Awards Dinner.

Milton Friedman expressed similar beliefs to those assembled at New York’s St Regis Hotel: “Israel has the potential of being the Hong Kong of the Middle East,” he said in his video address.

During dinner, Israel’s minister of economic affairs in America, Ron Dermer, presented the awards.

“Most of you have visited Israel,” ICSEP president Daniel Doron began his address to the Republican Jewish Coalition in Washington on May 25th.

“You saw a vibrant, seemingly well-to-do country.

“You ate at posh restaurants full of prosperous Israelis, visited their impressive villas and saw their expensive cars.

“And yet, Israel, chock-full of human talent and energy, a world-class high-tech leader, seems in perpetual economic trouble.

“If the country is to survive it must reform its economic system, and do it soon.”

Read the entire speech.

On the eve of Yom Kippur this year, Sever Plotzker, chief economic and social editor of the very influential Yediot Achronot, requested a pardon from seven parties whom he thought “were not given the credit they deserved” and “to whom the Israeli economy owes quite a bit.” Among them was ICSEP.