Leapfrog Now! The 9 th Herzliya Conference February 2009

Large Gap in Quality of Life Israel: leads export of Human Capital Economist: Israel is 38th Leapfrog is essential! Developed Countries Israel What ’ s the problem? Real Danger of Collapse

Leapfrog This vision requires a social and economic leapfrog that closes the gap in quality of life between Israel and developed countries. ISRAEL15 Vision: Transforming Israel into one of the leading 15 countries in quality of life

Israel is Growing but not Leapfrogging Ireland South Korea Income Per Capita Relative to US USA = 1 Western Europe Source: Prof. R. Hausmann Israel Leapt Ireland South Korea Western Europe Israel has not closed the gap Korea and Ireland have Leapt Growth Relative to the US ( ) 30% of the US 60% of the US

Brosh & Eini, a new pact? New gov’t 2 stable years Crisis breeds willingness Unique Opportunity

Growth, Accelerated Growth, and Leapfrog Source: Prof. R. Hausmann et al., Growth Accelerations Only 13 ‘Economic Miracles’ Leapfrog Growth: Nearly Everyone Years X X+8X+25 GDP Growth per capita Source: World Bank, Growth Report Accelerated Growth: 1 in 4

The Public Sphere is Critical תמונת עתיד רצויה חסכון והשקעה אליטה מחויבת Flexicurity אמנה בין מפלגתית גלובלית וייחודית Vision Values Leadership Institutions Industrial Policy Labor Market Public Sphere A Shared Future Central Brain Task Forces Flexicurity Unique & Global Dedicated Elite Savings & Investment

Labor Market Policies Industry Labor Government Flexible Labor Markets Human Capital Enforcing Labor Laws Flexible Labor Markets Safety Net Human Capital Competitiveness Protectin g Workers not Jobs

Industrial Policy Global Trends Unique Global Industrial Policy Unique Assets Standardization Legislation Regulation Infrastructure Int’l Agreements Public Inputs Historic Sites Defense Establishment Jewish World Rise of Chindia Global Water Crisis Renewable Energy Aging Rise of Africa

Israel is not talking Leapfrog PolicyInstitutions Domestic Industrial Policy Labor Market: Pact for growth Unique Global Industrial Policy Local Government No Vision Local Government Necessary Vision Necessary GrowthLeapfrog EconomicsMultidisciplinary Labor Market: Conflict

Israel Land Administration Chief Scientist Infrastructure Investment Government Funds Desalination Cutting Red-Tape Institutional Reforms The Candidates ’ Language Source: The Marker, American Loan Guarantees Lower Taxes Negative Income Tax Deficit Spending Macroeconomic Policies

The Candidates ’ Language Source: The Marker, The Language of Leapfrog Labor Market Policies Local government is an engine of growth Unique Global Industrial Policy The Language of Growth

What do we do tomorrow? The ISRAEL 15 Vision Labor Market Pact Unique Global Industrial Policy Macroeconomic Stability Local Economic Development Central Mind

ISRAEL 15 Portal Guidelines for a Leapfrog To be one of the leading 15 countries in quality of life

National Obsession Business Community Philanthropy Local Gov’t Gov’t of Israel Universities Jewish World