December 30, 2015

Israeli Government Launched Largest Ever Plan for Economic Development in the Arab Sector

The largest ever government plan to advance economic development in the Arab sector was approved today by the Israeli government. This comprehensive five-year plan will allocate NIS 15 billion for the development of Arab municipalities in the fields of education, transportation, welfare services, employment and housing. The plan was submitted by the Prime Minister, the Ministry of Finance and the Ministry for Social Equality and was developed in partnership with Arab leadership.

The plan will give a swift economic push for development of Arab society in Israel, thereby constituting a historic step on the way to reducing gaps and advancing social equality in Israel between Jewish and Arab populations. President Reuven Rivlin congratulated Netanyahu on Wednesday for the “vital step on the road to closing the gaps which have existed for years,” calling the plan “an unprecedented confidence-building measure“.

The Ministry for Social Equality will be tasked to administer the plan through the government’s Authority for the Economic Development of Minority Sectors which will be required to report on its progress to a ministerial committee at least once every six months.

Key issues making this plan historically significant: 

  • Largest ever government plan to advance economic development in the Arab sector: NIS 15 Billion (USD 3.9 Billion) over five years (2016-2020)
  • Correction of budgetary and funding mechanisms: As oppose to previous plans which provided occasional additional special funding for Arab citizens, the new plan changes the allocation system itself, ensuring that Arab citizens will be budgeted for according to their portion in society, and often even with preferential resource allocation.
  • Enhancement of equality:  This plan addresses needs of most Arab communities in Israel – incl. Muslims, Christians, Druze and Bedouins in the Negev (except for “mixed” cities and unrecognized Bedouin villages)
  • Close consultation: The plan was developed in partnership with Chairman of the Joint List, MK Ayman Odeh, Mayor of Sahnin Mazen Ghanayem, Head of the Arab Mayors Forum, and other Arab elected officials.

Major  budget allocations:

Industrial areas and Employment:42.5% of all funds allocated to new industrial development will be designated to Arab localities. At least 50% of the Ministry of Economy funds for “populations with low employment rates” will go to Arab communities. Subsidies for employers employing minority citizens will be enhanced, with prioritization for women and Bedouins. The plan calls for spending 24 million shekels on incentives to employers and small and medium-size businesses in the Arab community, for both development and for export outside Israel. The Finance Ministry will allocate 200 million shekels to the Economy Ministry for the operation of One Stop Employment Centers – run in collaboration with JDC-Israel – continuing until the end of 2020.
Education system:The plan aims to enhance the quality of educational staff in Arab society, advance core studies with emphasis on math, Arabic and Hebrew as well as “21st century skills”. New classrooms will be added and new schools will be constructed.
Higher Education:By 2021, the plan aims for Arab undergraduates at Israeli universities to reach 17% (present rate is 13.5%), 12% of all MA students (present rate is 10%) and 7% of all PhD students (present rate it 5.4%).
Informal Education:The resolution outlines a system-wide plan to develop informal education in Arab localities and ensure that allocations to Arab citizens will not fall below their rate in the general society.
Early Childhood:The plan calls for an allocation of at least 25% of all development budgets for building daycare centers in Arab towns.
Transportation:Ministry of Transportation will allocate 40% of its development budget, or 100 million shekels a year, towards developing public transportation services in Arab localities “until coverage [of services] is equal” to the general population. By 2022, the plan calls for complete equality in transportation, in terms of frequency of service and area covered by public transportation.
Housing and Public Institutions:Ministry of Housing will subsidize by 55% the construction of new, modern neighborhoods of apartment buildings, as well as town and neighborhoods planning, Furthermore, the plan states that 20% of the investment in public institutions will be in Arab communities, according to the Arab communities’ portion in Israeli society (and no less than 750 million shekels over five years). Lastly, 30% of funds allocated for “open areas” will be earmarked for Arab communities.
Arab local councils and municipalities:Close to NIS 1 billion will be allocated for long term development plans and immediate assistance for Arab localities, and additional NIS 350 million will be given for development of “excelling Arab local councils”.
Sports and Recreation:The Ministry of Culture and Sports plans to allocate at least 33% of its budget for establishment of new sports facilities and renovation of existing facilities in Arab localities.

 

Further Reading:

Israel okays $4 billion upgrade plan for Arab communities – Times of Israel – Stuart Winer – 12.30.15.

Israel Looks to Address Funding Gaps for Arab Community With $3.9 Billion Plan – Haaretz – Lee Yaron and Jack Khoury – 12.28.15.

The Beginning of a Thorough Treatment? Ynet –  Abed Kananeh – 12.28.15.  (Hebrew)

 

Explore Further
Historic Economic Development Plan for Arab Sector: Overview and Key Allocation Areas I January 2016 I NEW Learn more
Recommended Resources
Historic Economic Development Plan for Arab Sector: Overview and Key Allocation Areas | January 2016

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