President Reuven Rivlin on Monday 10 Marcheshvan opted to come to the defense of chareidim and residents of Yehuda and Shomron, releasing an attack against the ongoing incitement that has been the life of that tzibur since the establishment of the current coalition.

Speaking at an economic conference the president expressed his concerned with those who buy into the hashkafa that the ‘big money’ is found with one segment of Israeli society of another. He attacked the atmosphere of hate and incitement that has accompanied the current administration since the formation of the coalition.

Following is President Rivlin’s address:

For years, we have become accustomed to the circumstances of our lives here, both political and security-related, control the public and political agenda and for the most part dictate it. The difficult summer we experienced, where we once again had to fight for our homeland, is further evidence, that our existential battle here has not finished.

This past summer Israeli society has once again demonstrated that at crucial times, it stands firm. It (Israeli society) understands the magnitude of the security challenge faced, and does not recoil away from it.

And yet, last summer proved that there is another front on which the Israeli public is not ready to give up on. During the fighting, when our soldiers at the battle front, it was hard not to notice that the socio-economic debate has not faded.

Moreover, immediately after the cessation of fire, surprisingly swiftly, the public and media debate returned to deal with concepts, such as the cost of living, which after years of being absent from public discourse in Israel, have become so common in our discussions. The way it happened made ​​quite a few of us disgusted. It was hard not to feel grotesque, when the war and heroism of last summer, crashed on the shores of the macabre discussion revolving around the Berlin “Milky” (pudding).

However, after peeling off the cynicism and irony, it is impossible not to notice the determination of the public demand to go back and turn the political spotlight on economic and social challenges.

A clear line is drawn between the social protest of the summer of 2011 and the socio-economic debate today. Hundreds of thousands of Israelis have perhaps left the squares and streets since then but that protest hasn’t ended. Many rushed and perhaps derived pleasure in eulogizing that protest and its achievements. But having lived here for quite a few years, and as someone who has seen the cycle of public, political and media debate, I cannot ignore the significance of its achievements.

The main achievement of the protest is that it does not allow, even today, (even those who seek it), to simply ignore the urgent need to look inward. For the past three years the Israeli public has spoken loud and clear, voicing their dissatisfaction with the current social and economic systems.

Citizens from all classes and sectors, report on experience of insecurity. They feel they cannot raise their children as they would like; they are not free to develop their abilities. Since its inception, the main and largely only resource of the State of Israel has been its human capital. This human capital is the underlying strength of the economy, and the foundation of our national security.

When so many citizens feel that in the current environment of the economic and social system they are unable to grow and develop, it is no less than a strategic threat. This is a necessity we must address with the same seriousness and the same creativity, with which we are required to deal with threats to our security.

When the 19th Knesset was established and the Foreign Affair and Defense Committee convened, with the Minister of Defense and Chief of Staff attending, I turned their attention to the fact that 54 Members of Knesset (MK) had changed. This dramatically changed the Knesset’s agenda. As I was the most seasoned MK, I was the first speaker of the plenary, and I asked them to note that this Knesset had changed its reference and ​​mind-set. I told them that in the next coming days the State’s budget will be presented for approval, and you will now be informed that you will not be able to pass the IDF’s budget after June, but they didn’t seem too nervous about it. The Knesset was selected on the basis of that social protest that led to the election of 54 new MKs. What was in the past will be no more. The Chief of Staff and Minister of Defense listened, but only after a year it became clear how this change indicates a new approach, different set of priorities and an entirely new situation.

When I look at the lively public discourse regarding economic and social issues, I can say with satisfaction that, finally, we as a society have begun to address the social challenges. However, notwithstanding, I am concerned today with two common and distressing preconceptions within the public debate:

The first approach states that our ability to respond to social challenges depends on deep budget cuts to the defense budget.

I want to say clearly: The State of Israel is currently facing the most complex security challenges, which require a huge investment. With or without a political resolution, this situation is not going to change in the coming decades. Israel will continue to invest significant portions of its GDP, for the benefit of investment in defense, research, development and procurement, and no less important, human capital within defense system. It is important for me to add that even if we could and should take such efficiency measures, the citizens of Israel need to know that the security system serves them well.

A discourse which positions the security establishment as the enemy to prosperity is twice as hazardous. Not only because it creates the illusion about the possibility of a dramatic shift in resources from the security system for the benefit of social-economic challenges. But, because it validates the misconception that the socio-economic system is hostage to the security situation, and as long as a satisfactory solution to the threats around us is not found, we cannot deal with the pressing economic issues at home.

The second conception that concerns me revolves around of the idea that the “large sum of money” we need is located with one or another group in Israeli society. In the last three years we learnt that the public treasury is not found within the ultra-Orthodox just as it is not found in the Settlements. The perception that the chareidim and the settlers are responsible for the social economic reality in Israel, is twice as dangerous:

Firstly, and as Guy Rolnik wrote – because it is simply not true.

And secondly, because this concept is not only wrong, but also infringes upon the attempt to integrate all the groups in Israeli society in the labor market. Moreover, turning an accusing finger irresponsibly to a certain group or another could plunge us into conflicts between the various tribes in Israeli society, when it is clear to all, that the solution to the challenges before us depend on the cooperation between them.

These two notions are not only wrong in themselves but rather represent a way of thinking which we have to move away from, if we really want to deal with the economic challenges ahead. We used to think that the socio-economic discussion is at its base a struggle: security or society; poor or middle class; yeshiva or universities; settlements or periphery. However, instead of the concept of “either-or”, we must focus on the economic engines that will enable us, slowly and gradually, do, “both”. We do not have today, any other choice.

I am not a great economist and I say this with humility rather than pride. But I think that there is now a broad consensus regarding the three primary growth engines, which we must focus on.

The first growth engine is the full integration, and suitable employment, all the sectors of Israeli society in the labor market, and in particular Arab women and chareidi men. I do not think we really need the OECD economists to tell us that our economy’s future depends on it.

The second engine is the expansion of the knowledge and innovation revolution, to all industries. For too much time now economic growth has relied upon Israel’s high-tech industry. The high-tech revolution that took place here in the last twenty years is one the biggest achievements of the State of Israel. But in recent years, the relative share of this industry in GDP and the labor market does not reflect the growth rates to which we have become accustomed.

The Israeli economy cannot bear the existence of two parallel economies: the first, a high-tech economy, with high productivity rates, research and development and export, among the highest in the world, where employees also enjoy the highest salary levels; and the other, an economy based on the traditional industries with low productivity rates, low wage levels, and the major problem of financially poor workers. We must ensure that the innovation capacity and technological know-how that is stored within the Israeli economy permeates across the economy and is incorporated in all industries.

The third engine has to do with structural obligatory changes that will ensure competition and efficiency on the one hand, and quality and stability on the other hand, within a number of key sectors of the economy. I am not among those who think the economy is divided into ‘good’ and ‘bad’. But, it is clear to all, that the financial industry; energy industry; food industry; housing sector among others need bold and responsible reforms today.

And friends, to remove any doubt in your mind, until four months ago I was a Member of the Knesset Economic Affairs Committee and Finance Committee. When I say, bold reforms, I do not mean reforms the Knesset passed on the “Law of Concentration” and the “Food Law”. I am very concerned that these reforms are not brave enough; nor do they provide an answer to the problem, I’m afraid they anchor the status quo rather than amend it.

Friends, today I am not discussing a change in priorities, or the budget itself. I believe most of us agree today on the substance, and know that the challenge before us. I also believe that today we all realize that we no longer live in a reality of ‘either-or’, but the reality of ‘both’.

Our challenge now is trying to motivate those engines of growth, which will enable us to create a world of “both”. We want, and are able, to foster a generation of great citizens here, that feel they deserve their country, and that their country deserves them.

(YWN – Israel Desk, Jerusalem)