ISRAEL Vision To Become One of the 15 Leading Countries in Quality of Life

1. ISRAEL VisionTo Become One of the 15 Leading Countries in Quality of Life Second Annual ISRAEL 15 Conference 16th of Sivan 5769 June 8, 2009

2. Israel Must Leap Danger of Collapse Developed Countries Gaps continue to widen Large Gap in Quality of Life Israel Leapfrogging is not a luxury; it is a necessity! Heavy security burdenWeak education system Low participation in work force Israel is 2nd in the world in the export of Human Capital According to The Economist Israel ranks 38th in Quality of Life

3. ISRAEL15 Vision ISRAEL15 Vision: Becoming one of the fifteen leading countries in terms of Quality of Life This Vision requires a Social and Economic Leapfrog in order to close the gap in Quality of Life between Israel and other developed countries

4. .8 .6 .4 .2 0 2007 1950 1960 1970 1980 1990 2000 Countries that have Leapt US = 1 Since then, Israel has grown by 1.5% and has not closed the gap Western Europe 60% of the US Israel Singapore Israel leapt between 1951-72 30% of the US During this time, Singapore & South Korea both leapt South Korea GDP Rate Compared to the US (1950-2007) Source : Professor Ricardo Hausmann

5. 8. .6 .4 .2 0 Growth, Accelerated Growth, Leapfrog Only 13 “Economic Miracles” Only 1 in 4 experience Accelerated Growth Real GDP per Capita % Leapfrog Almost all countries experience Growth X X+8 X+25 Years Source: Prof. R. Hausmann et al., Growth Accelerations Source:World Bank, Growth Report

6. The Public Sphere is Critical Vision Leadership and Politics Labor Market Public Sphere Central Brain, Elite Task Forces A Shared Future Dedicated Elite Unique and Global Savings and Investment A pact Values Development Policy Institutions

7. Inclusiveness Trust Values Future orientation Common Denominator for Countries that Leapt A variety of market economies Pragmatism

8. Identifying Trends & Ability to Analyzing Execute Relevancy Decisions Flexibility in the Market Institutions Central Brain Elite Task Forces A Pact

9. New Dealin the Labor Market Government Employers flexible to hire and fire in return for a commitment to keep to employment laws Government provides a safety net & training in return for improvement in competitiveness Industry Labor Protect the Worker not the Job Workers agree to flexible labor markets in return for improvement of Human Capital & safety net

10. Unique and Global Development Policy The Holy Land Defense Industry Jewish World Greening the Desert אתרים היסטורייםמערכת הביטחון העולם היהודיפיתוח המדבר Unique Assets Policy Inputs Global Trends Rise of China and India Global Water Crisis Renewable Energy Aging Populations Rise of Africa Standardization, Legislation Regulation, Infrastructure International Agreements Not Just Money! Unique Global Development Policy

11. New Regional Development Regional Approach Israel has regional diversity Global and national competitiveness The region generates the change Exploit comparative advantage Growth at the local level

12. Israel is Not Talking Leapfrog Growth Leapfrog No Vision Vision Necessary Policy Institutions Domestic Industrial Policy Unique & Global Development Policy Labor Market: Pact for Growth Labor Market: conflict Local Government Ignored Local Government Necessary Economics Multidisciplinary

13. Unique Opportunity for Change Why Now? New Government: Stability for 2 yrs Establishment of the Roundtable Crisis Breeds Willingness

14. What should we do Tomorrow? Macroeconomic Stability (+-) A Vision is Necessary Israel15 Unique and Global Development Policy Labor Market : New Deal Reorganizing on the Local Level Central Brain

15. On the ISRAEL 15 Vision: “This is a very impressive document, based on clear thinking and a knowledge of the recent experience and writing about growth at various stages of development.” Professor Michael Spence, Economics Nobel Prize Laureate, and Head of the U.N Commission on Growth and Development