The cabinet on Sunday, at the weekly cabinet meeting on Sunday, 3 Menachem Av, decided to join the global effort for international development.

Israel will create solutions for development goals that have been set by the UN in water, agriculture and nutrition, health, education and technology. According to the UN, in order to meet the goals by 2030, $4 trillion will be needed per annum. Israel, which is joining the global effort, has a relative advantage in at least five of the 17 goals: Water management, advanced agriculture, qualitative and universal health services, innovation and advanced energy.

Prime Minister Benjamin Netanyahu: “We are continuing to build up Israel’s standing. This is an important step of the highest magnitude that joins a series of decisions that we are leading on the issue of strengthening economic ties with international markets, especially India, China, Africa and Latin America.

The State of Israel is a global leader in technology, agriculture, water and medical care. We have a vast export potential that we are about to realize thanks to correct policy. The moves that we are leading will strengthen the developing countries and the Israeli economy and will increase activity by Israeli companies.

All of these, of course, will greatly contribute to our diplomatic ties with international organizations and the countries of the world.”

The government will assist Israeli companies in becoming involved with development activity in developing countries in order to create an optimal situation for all parties: The developing countries will benefit from economic and social development and the Israeli companies will benefit from increased revenues. As a result of the process, the State of Israel will increase exports and accelerate growth and strengthen Israel’s diplomatic standing.

Today, Israeli exports are concentrated in a reduced number of target countries (only approximately 25% is directed to developing countries) and is controlled by a small number of major exporters (about half of all goods exported from Israel are done so by approximately ten exporters only).

The developing world comprises approximately 55% of the global economy and is expected to comprise almost two-thirds in another decade. Private consumption in the developing world is also rising and is expected to grow from about $18 trillion per annum today to over $30 trillion per annum within a decade.

According to forecasts, no less than 70% of growth in global output in the coming decade will be in developing countries.

The government decision will realize the hidden potential of Israeli companies and strengthen the Israeli economy.

To further the government effort, an inter-ministerial committee will be established, chaired by the Director-General of the Prime Minister’s Office, which will receive authority regarding the determination of target countries while focusing on the areas in which the State of Israel has a relative advantage. The committee will decide on the tools for encouraging the Israeli private sector to become involved in – inter alia – international development, lifting impediments, resolving market failures and reducing risk. The possibility of establishing an Israeli financial institution for development will also be considered. At the conclusion of its work, the committee will present its conclusions to the Prime Minister and the Finance Minister.

(YWN Israel Desk – Jerusalem)