Governmental Economical Policy towards Arab Sector In Israel The Authority for Economic Development of the Minorities Sector Aiman Saif October 2013

General Demographic 2 Source: Central Bureau of Statistics, 2012

Minorities By Religion

Source CBS : the minorities population in Israel constituted 20% ( thousands) Median age was 20 (773.8 thousands ages 0-20) 2059 Forcast: Arabs will make up 23% of the population Natural Growth Rates

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

7 Ministry of Industry, Trade and Labor, 2011 Average study years Minorities Academics

8 Matriculation Entitlement Ministry of Education, 2012

Youth - Rates do not study or work, ages In % Arab youth in the ages of 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 Dahan Arab Youth – status, Average years of study – ages 18-22, life status and education

Workforce participation rates in Israel ages 18-66, Ministry of Industry Trade and Labor, Arabs in Israel

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)* CBS data processed by Bank of Israel ממוצע OECD בשנת 2011 % * Under the assumption that Employment Rates remain constant for each age, gender & sector group

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

Governmental Policy for Economic Integration of Minorities

Upgrading Business sector Empowering municipalities HR Development & Approachability to high education Encouraging Employment 4 Areas of Activity The Authority for Economic Development of the Minorities Sector

The Governmental Designated Plans: 2010: The Economic Development Plan for Arab Towns 2011: A plan for promoting economic growth in the Bedouin sector (South) 2011: A plan for empowering Bedouin towns in the North 2011: A plan for empowering and development of the Druze and Circassian towns : 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 Industrial Zones Development Shuttle Services Encouraging Women Entrepreneurships Promoting employment in hi-htech proffessions Technological Education Employment Programs for Arab women High School Completion Program Increasing Demand 250 Mil NIS Increasing Supply 480 Mil NIS

The Economic Development 5 Year Plan (13 Towns, 780 Million NIS) 18 Specified urban planning Subsidy -Development of land Planning and building Issuing Public Transportation PT infrastructure development Transportation Increasing Personal Security Homeland security Physical infrastructure Encouraging Employment Economic Development

Implementation of The Economic Development 5 Year Plan Planning & Building Over 1000 units successfully marketed between (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 Kfar Kassem – Industrial area – Lev Haaretz 600 dunams Industrial Zones 3000 Dunams in 13 towns Total Investment within this plan: 80 Mil NIS Total Investment in all plans: 400 Mil NIS

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 Integration of Academics (Kav Mashve& Tsofen) Advertising Campaign - Private Sector Day Care- building and subsidy 64 Mil NIS in 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 (16 Mil NIS) Government Micro- Finance Koret Funds

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

THANKS !