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Governmental Economical Policy towards Arab Sector In Israel The Authority for Economic Development of the Minorities Sector Aiman Saif October 2013. General Demographic. Source: Central Bureau of Statistics, 2012. Minorities By Religion. Natural Growth Rates .
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Governmental Economical Policy towards Arab Sector In Israel The Authority for Economic Development of the Minorities Sector AimanSaif October 2013
General Demographic Source: Central Bureau of Statistics, 2012
Natural Growth Rates • 2010: the minorities population in Israel constituted 20% (1554.7 thousands) • Median age was 20 (773.8 thousands ages 0-20) • 2059 Forcast: Arabs will make up 23% of the population Source CBS 2011
Poverty Data Source: Central Bureau of Statistics
Poverty Incidence among families by sector and number of breadwinners Poverty Incidence and Number of Breadwinners Data Processing: National Economic council
Average study years Minorities Academics • Ministry of Industry, Trade and Labor, 2011
Matriculation Entitlement • Ministry of Education, 2012
Average years of study – ages 18-22, life status and education Youth - Rates do not study or work, ages 18-22 In 2009 - 38.5% Arab youth in the ages of 18-22 did not study or work, 25.6% of the men and 52.1% of the women. 28.9% Arab women has 0-8 years of education compared with 4.5% of the Jewish women 2011 [analysis on CBS 2009 Data] ,Akeshtein and DahanArab Youth – status,
Workforce participation rates in Israel ages 18-66 ,1980- 2010 Ministry of Industry Trade and Labor, Arabs in Israel 2010
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
Net Impact of Demography on Employment Rates (ages 25-64)* % ממוצע OECD בשנת 2011 *Under the assumption that Employment Rates remain constant for each age, gender & sector group CBS data processed by Bank of Israel
Labor Market – Main Economic Growth Engine • Israeli workforce is shrinking, according to Demographic Forecast • The big Challenge: Preserving work force rates by Increasing workforce rates in under participating groups, there lies the potential. • One point increase in employment rate contributes over 10 billion NIS to the GNP
4 Areas of Activity • Empowering municipalities • UpgradingBusinesssector The Authority for Economic Development of the Minorities Sector • Encouraging Employment HR Development & Approachability to high education
The Governmental Designated Plans: 2012: Increasing Labor Force Participation Rate and Employment rate (Trachtenberg committee) 2012: Expansion of the Economic Development plan focusing on Planning and Building (Trachtenberg committee) Over 4 Billion NIS
Trachtenberg Committee Increasing Supply 480 Mil NIS Increasing Demand 250 Mil NIS
The Economic Development 5 Year Plan • (13 Towns, 780 Million NIS)
Implementation of The Economic Development 5 Year Plan • Planning & Building Over 1000 units successfully marketed between 2010-2013 (Nazareth, Sakhnin, Maghar & Shefaram) 700 more housing unit will be published in few months
Implementation of The Economic Development 5 Year Plan • Planning & Building Sakhnin: The valley neigbourhood –A New Challenge 227 units successfully marketed during 2013 Economical contribution to Sakhnin and the area: 1,235 billion NIS – Economic activity as a result of building and developing 5-6 million NIS – property tax to the local authority 7600 people – local consumer power
Implementation of The Economic Development 5 Year Plan • Economic Development Industrial Zones 3000 Dunams in 13 towns Total Investment within this plan: 80 Mil NIS Total Investment in all plans: 400 Mil NIS KfarKassem – Industrial area – Lev Haaretz 600 dunams
Implementation of The Economic Development 5 Year Plan • Public Transportation 2013: About 200,000 bus passengers daily compared to 33,000 at 2010 (580% growth)
Additional Projects • 11 Career Centers Established and already functioning (Out of 21) • Explanation Campaign for Proper Representation in the Public Sector • Encouraging Women Entrepreneurship • Employment Subsidy 4500 jobs between 2009-2012 • Integration of Academics (KavMashve& Tsofen) • Advertising Campaign - Private Sector • Day Care- building and subsidy 64 Mil NIS in 2012 • 500 women excel program (Required Professions)
Government and Philanthropy Working Together Model 1 : 21 Employment Centers Employment Center in Tira
Government and Philanthropy Working Together Model 2 : Micro- Business Development • Led by Arab women • Micro Finance Loans • 21 Million NIS • 2000 loans 2011-2012 (16 Mil NIS) Government Koret Funds Micro- Finance
Challenges • The big challenge in the mission of increasing employment is creating jobs. • New creative models need to be formed in order to open new jobs for Arab job seekers especially in the Jewish business sector. • Philanthropy have the flexibility to support new initiatives for creating jobs while the government can subsidize wages: A great collaboration.
conclusion • The trends in socio-economical developments are positive. • There are significant governmental programs, with substantial budgets, to reach goals. • The role of the philanthropy is to match and leverage government funds aimed towards programs with maximum impact. And invest in creating new models by supporting NGO’s. • The current target fields are Education & Employment
Encouraging High Education and Employment • Career education at high school • Scholarships fund • Employment Centers • Creative models to expand demand Suggestions for Budget Matching