The Market for Religious Services in a Jewish State

1. The Market for Religious Services in a Jewish State Yarden Gazit May 22, 2012 JIMS Conference on Religion and Economic Liberty

2. Contents • Why does religion matter? • Israeli public opinion on religion and state • The religious services market in Israel: • Kashrut • Marriage and divorce • Burial • Reasons for Hope

3. Why does religion matter? • 64% of Jewish Israelis believe the tension between orthodox and non-religious Jews is most important or second most important issue facing Jewish society in Israel • Religious people are twice as likely to be involved in volunteer activities (36-46% vs. 20%) • Religious people generally express more satisfaction with their lives

4. Israeli Public Opinion on Religion and State • Religion and state should be separated: 56% • Civil marriage should be allowed: 62% • Religious institutions ought to be publicly funded: 76% • (of non-religious: 63%)

5. The religious services market in Israel • 133 religious councils have a monopoly over religious services for the Jewish population under the “Jewish Religious Services Law.” • Kashrut, marriage, divorce, burial etc. • Alternative services are also available privately, facing various legal obstacles

6. Religious Council Funding 118 million USD in 2011 25-40% central government; 60-75% local government. Depending on socioeconomic level (subsidies for religious towns) Approximately 3,000 employees Salaries make up ~80% of budget

7. Kashrut • The rabbanut has a legal monopoly over kashrut certificates for businesses under the “Forbidding Fraud in Kashrut Law.” • Fees are determined by the religion ministry • Kashrut supervisers are paid by businesses, in addition to the fee

8. Orthodox communities have private kosher establishments run as businesses, with stricter standards and a better reputation Kashrut (continued)

9. Marriage and Divorce • The rabbanut has a legal monopoly over marriage and divorce under the “Judicial Powers of Rabbinical Courts Law.” • Fees are determined by the religion ministry ($162)

10. The state recognizes marriages registered abroad 1,500 couples marry in Cyprus annually (~4% of Jewish marriages) Marriage (continued)

11. Marriage (continued) • NGOs offer private marriage services which must be licensed by the local religious council (2,000 couples wedded by Tzohar in 2011 ~5% of Jewish marriages) • Civil contracts (4,000 couples in 2010 signed a contract with Mishpaha Hadasha, ~10% of Jewish marriages), couples living out of wedlock • Couples living out of wedlock

12. Burial • 700 burial organization operate in Israel, most are local monopolies • Fees are borne by Social Security, unless a person chooses to be buried in a different cemetery • Only 11 organizations provide non-religious burial

13. Private Religious Services Brith Mila (Circumcision) Bar Mizvah Synagogues

14. Reasons for Hope • Reforms in Ministry of Religion (with no extra budget): • Breaking regional monopolies on marriage (planned) • Outsourcing Kashrut supervision (planned) • Transparency and Information distribution • Better financial supervision • Service Level Agreements • Call and Complaints Center