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![Page 1: Governmental Economical Policy towards Arab Sector The Authority for Economic Development of the Minorities Sector Aiman Saif November 2014.](https://reader035.fdocuments.us/reader035/viewer/2022062423/56649e795503460f94b79321/html5/thumbnails/1.jpg)
Governmental Economical Policy towards Arab Sector
The Authority for Economic Development of the Minorities Sector
Aiman Saif
November 2014
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General Demographics
2
Jews
Se-ries
1 75%
Arabs
21% Others 4%
Source: Central Bureau of Statistics, 2013
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Muslims 83%
Christians 8.7% Druze
8.3%
Source: Central Bureau of Statistics, 2013
Minorities By Religion
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Geographic Distribution
Source: Central Bureau of Statistics, 2013
North; 43%
Jerusalem; 19%
Haifa; 14%
South; 13%
Center; 10%
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Geographic Distribution
Arab Communi-ties
72%
Mixed Communi-ties
24%
Unrecognized Communities3%
Jewish Communities 1%
Source: Central Bureau of Statistics, 2013
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2059 Forecast: Arabs will make up 23% of the population
1996-2000 2001-2005 2008 2013
1.81.4 1.7 1.8
3.4
3.0
2.62.4
Jews Linear (Jews)Arabs Linear (Arabs)
Natural Growth Rates
Source: Central Bureau of Statistics, 2013
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Poverty Data
Source: Central Bureau of Statistics
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Poverty Incidence among families by sector and number of breadwinners
Arabs Orthodox Others Total0
10
20
30
40
50
60
70
80
90
100
0 Breadwinners1 Breadwinners2 Breadwinners
Poverty Incidence and Number of Breadwinners
Data Processing: National Economic council , 2012
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9Ministry of Economy, 2013
2001 2005 2008 2010 2013
910
1112 12
5
8
11
12
13
Arab MenArab women
1980 1990 2000 2010
11
1213
14
89
10
11
JewsArabs
Average study years Minorities Academics
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Workforce participation rates in Israel ages 18-66 ,1980- 2012
1980 1990 2000 2005 2009 2012
79 79
7168
72 69
11 1120 21 25 27
74 72
72 68 7378
4657
67 65 71
76
Arab men Arab Women Jewish Men Jewish women
Academics General
77
27
workforce participation rates Arab women
Ministry of Economy, 2013
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Net Impact of Demography on Employment Rates (ages 25-64)*
CBS data processed by Bank of Israel
2011 בשנת OECDממוצע
71.1
64.3
60
62
64
66
68
70
72%
*Under the assumption that Employment Rates remain constant for each age, gender & sector group
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Lost Potential
Arab citizens, despite constituting more
than 20% of the population, contribute only 8%
to Israel’s GDP at an estimated loss of
over 30 billion NIS each year
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Equal Citizens?
• By law: Equal rights – Equal services
• In Practice: Underserved population
• large socio-economic gaps
• Governmental policy for economic integration of minorities– Establishing the Authority for Economic Development
– Designated programs (total budget: 4 billion NIS)
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The Authority for Economic Development of the Minorities Sector
Developing and integrating the Arab population in the Israeli Economy
Mission:
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Upgrading Business
sector
Empowering municipalities
HR Development & Accessibility to higher education
Encouraging Employment
Main Areas of Activity
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Encouraging Employment and HR Development – Model
SupplyJob Seekers
DemandEmployers
Local Economic Infrastructures
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SupplyJob Seekers
Accessibility to Higher Education
Vocational Training Programs
Women Entrepreneurships
HR Development
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Arab Scholarship Program
• Government and Philanthropy Working Together
• 650 Scholarships in 2014
• Purpose: Raising the rate of Arab student for first degree
• Based on socio-economic criteria and preferred fields of study
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DemandEmployers
Employment Subsidy
Advertising Campaign
Government Sector
Job Placement – Private Sector
Job Opportunities – Major Challenge
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Government and Philanthropy Working Together
Employment Center in Tira
21 Employment Centers
Local Economic Infrastructures
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Industrial Zones
Kfar Kassem – Industrial area – Lev Haaretz - 600 dunams
Industrial Zones Development: 3000 Dunams
Industrial Zones Planning: 1920 Dunams
Total Investment : 230 Mil NIS
Local Economic Infrastructures
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Public Transportation
2013: About 200,000 bus passengers weeklycompared to 33,000 at 2010 (580% growth)
Local Economic Infrastructures
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Encouraging Employment and HR Development
SupplyJob Seekers
DemandEmployers
Local Economic Infrastructures
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Access to Market
Export Encouragement
Business and Government Procurement
Access to know How
Business Incubators
Entrepreneurship &
Technological Innovation
נגישות לאשראי, שווקים וידעחיזוק המגז
ר העסק
י
Access to Capital
Private Equity Fund
Governmental & Micro
Finance loans
Upgrading the Business Sector
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• Technological Incubators
• Chief Scientist Track (85% subsidy)
• Business Acceleration Programs
Entrepreneurship & Technological Innovation
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Future Plans• Holistic Economic Development
Program for Arab Communities
• Upgrading Arab Education System
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THANKS!