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Comment and Opinion

INSS: The Five-Year Economic Plan for Israel’s Arab Sector: A Progress Report, by Mohammed Abo Nasra, Meir Elran, Eran Yashiv

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The five-year economic plan approved on December 30, 2015 by the Israeli government in Resolution 922 is designed to enhance the economic and social integration of the Arab citizens in Israel. More than six months since its adoption, the plan’s status is somewhat unclear and many questions about its future remain unanswered.

The five-year plan (2016-2020) was first introduced as a package of projects worth NIS 15 billion for the social and economic advancement of the Arab sector. However, it has since emerged that under the plan, new programs are budgeted at not more than NIS 9.5 billion for the five years. The rest of the budget designated for improvement of the Arab sector is supposed to be used for existing projects. The largest in budget terms and the most significant project is the differential budgeting for elementary education.

The five-year plan was intended by initiators, decision makers, and senior professionals to promote economic integration of the Arabs in Israel, which is perceived as a major growth engine for the Israeli economy, and to reduce inequality and social gaps between Jews and Arabs. The new plan, which covers numerous diverse fields, is based in part on changing the government budgetary mechanism so as to provide increased equality to the Arab population. The Ministry for Social Equality is responsible for the plan’s implementation via the Economic Development Authority, which oversees an inter-ministerial steering committee that enjoys close involvement of the Finance Ministry’s Budget Division. The Arab sector is represented by the chairman of the Heads of the Arab Local Authorities Council.

Read the full article at INSS.