“The existing growth model based on high tech has not been successful in bringing the fruits of prosperity to all, and a different, more inclusive growth model is required, one that will integrate sections of the population with low rates of employment, while raising substantially their productivity and earnings,” Governor of the Bank of Israel Dr. Karnit Flug said today at a seminar organized by the Central Bureau of Statistics entitled “The Face of Israeli Society Where is Israel Coming From and Where is it Going?”. Flug took the opportunity to set out her social beliefs, which appear somewhat left-wing, especially in comparison with the views of Prime Minister Benjamin Netanyahu.

Flug set out the social and demographic challenges Israel faces, saying “The automatic pilot will not bring us to where we want to be. Only proactive policy can set us on the desired track.”

First of all, Flug called for very active policy on the question of employment for Arabs and haredim (ultra-Orthodox Jews), and warned that, without such a policy, “Not only will we not advance, we will go backwards. We must improve their human capital. Even if they join the workforce, unless the human capital gap is closed, we are talking about low-paid employment.”

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(YWN – Israel Desk, Jerusalem)