Governmental Economical Policy towards Arab Sector

The Authority for Economic Development of the Minorities Sector

Aiman Saif

November 2014

General Demographics

2

Jews

Se-ries

1 75%

Arabs

21% Others 4%

Source: Central Bureau of Statistics, 2013

Muslims 83%

Christians 8.7% Druze

8.3%

Source: Central Bureau of Statistics, 2013

Minorities By Religion

Geographic Distribution

Source: Central Bureau of Statistics, 2013

North; 43%

Jerusalem; 19%

Haifa; 14%

South; 13%

Center; 10%

Geographic Distribution

Arab Communi-ties

72%

Mixed Communi-ties

24%

Unrecognized Communities3%

Jewish Communities 1%

Source: Central Bureau of Statistics, 2013

2059 Forecast: Arabs will make up 23% of the population

1996-2000 2001-2005 2008 2013

1.81.4 1.7 1.8

3.4

3.0

2.62.4

Jews Linear (Jews)Arabs Linear (Arabs)

Natural Growth Rates

Source: Central Bureau of Statistics, 2013

Poverty Data

Source: Central Bureau of Statistics

Poverty Incidence among families by sector and number of breadwinners

Arabs Orthodox Others Total0

10

20

30

40

50

60

70

80

90

100

0 Breadwinners1 Breadwinners2 Breadwinners

Poverty Incidence and Number of Breadwinners

Data Processing: National Economic council , 2012

9Ministry of Economy, 2013

2001 2005 2008 2010 2013

910

1112 12

5

8

11

12

13

Arab MenArab women

1980 1990 2000 2010

11

1213

14

89

10

11

JewsArabs

Average study years Minorities Academics

Workforce participation rates in Israel ages 18-66 ,1980- 2012

1980 1990 2000 2005 2009 2012

79 79

7168

72 69

11 1120 21 25 27

74 72

72 68 7378

4657

67 65 71

76

Arab men Arab Women Jewish Men Jewish women

Academics General

77

27

workforce participation rates Arab women

Ministry of Economy, 2013

Net Impact of Demography on Employment Rates (ages 25-64)*

CBS data processed by Bank of Israel

2011 בשנת OECDממוצע

71.1

64.3

60

62

64

66

68

70

72%

*Under the assumption that Employment Rates remain constant for each age, gender & sector group

Lost Potential

Arab citizens, despite constituting more

than 20% of the population, contribute only 8%

to Israel’s GDP at an estimated loss of

over 30 billion NIS each year

Equal Citizens?

• By law: Equal rights – Equal services

• In Practice: Underserved population

• large socio-economic gaps

• Governmental policy for economic integration of minorities– Establishing the Authority for Economic Development

– Designated programs (total budget: 4 billion NIS)

The Authority for Economic Development of the Minorities Sector

Developing and integrating the Arab population in the Israeli Economy

Mission:

Upgrading Business

sector

Empowering municipalities

HR Development & Accessibility to higher education

Encouraging Employment

Main Areas of Activity

Encouraging Employment and HR Development – Model

SupplyJob Seekers

DemandEmployers

Local Economic Infrastructures

SupplyJob Seekers

Accessibility to Higher Education

Vocational Training Programs

Women Entrepreneurships

HR Development

Arab Scholarship Program

• Government and Philanthropy Working Together

• 650 Scholarships in 2014

• Purpose: Raising the rate of Arab student for first degree

• Based on socio-economic criteria and preferred fields of study

DemandEmployers

Employment Subsidy

Advertising Campaign

Government Sector

Job Placement – Private Sector

Job Opportunities – Major Challenge

Government and Philanthropy Working Together

Employment Center in Tira

21 Employment Centers

Local Economic Infrastructures

Industrial Zones

Kfar Kassem – Industrial area – Lev Haaretz - 600 dunams

Industrial Zones Development: 3000 Dunams

Industrial Zones Planning: 1920 Dunams

Total Investment : 230 Mil NIS

Local Economic Infrastructures

Public Transportation

2013: About 200,000 bus passengers weeklycompared to 33,000 at 2010 (580% growth)

Local Economic Infrastructures

Encouraging Employment and HR Development

SupplyJob Seekers

DemandEmployers

Local Economic Infrastructures

Access to Market

Export Encouragement

Business and Government Procurement

Access to know How

Business Incubators

Entrepreneurship &

Technological Innovation

נגישות לאשראי, שווקים וידעחיזוק המגז

ר העסק

י

Access to Capital

Private Equity Fund

Governmental & Micro

Finance loans

Upgrading the Business Sector

• Technological Incubators

• Chief Scientist Track (85% subsidy)

• Business Acceleration Programs

Entrepreneurship & Technological Innovation

Future Plans• Holistic Economic Development

Program for Arab Communities

• Upgrading Arab Education System

THANKS!