Governmental Economical Policy towards Arab Sector In Israel The Authority for Economic Development of the Minorities

1. Governmental Economical Policy towards Arab Sector In Israel The Authority for Economic Development of the Minorities Sector AimanSaif October 2013

2. General Demographic Source: Central Bureau of Statistics, 2012

3. Minorities By Religion

4. Natural Growth Rates • 2010: the minorities population in Israel constituted 20% (1554.7 thousands) • Median age was 20 (773.8 thousands ages 0-20) • 2059 Forcast: Arabs will make up 23% of the population Source CBS 2011

5. Poverty Data Source: Central Bureau of Statistics

6. Poverty Incidence among families by sector and number of breadwinners Poverty Incidence and Number of Breadwinners Data Processing: National Economic council

7. Average study years Minorities Academics • Ministry of Industry, Trade and Labor, 2011

8. Matriculation Entitlement • Ministry of Education, 2012

9. Average years of study – ages 18-22, life status and education Youth - Rates do not study or work, ages 18-22 In 2009 - 38.5% Arab youth in the ages of 18-22 did not study or work, 25.6% of the men and 52.1% of the women. 28.9% Arab women has 0-8 years of education compared with 4.5% of the Jewish women 2011 [analysis on CBS 2009 Data] ,Akeshtein and DahanArab Youth – status,

10. Workforce participation rates in Israel ages 18-66 ,1980- 2010 Ministry of Industry Trade and Labor, Arabs in Israel 2010

11. 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

12. Net Impact of Demography on Employment Rates (ages 25-64)* % ממוצע OECD בשנת 2011 *Under the assumption that Employment Rates remain constant for each age, gender & sector group CBS data processed by Bank of Israel

13. Labor Market – Main Economic Growth Engine • Israeli workforce is shrinking, according to Demographic Forecast • The big Challenge: Preserving work force rates by Increasing workforce rates in under participating groups, there lies the potential. • One point increase in employment rate contributes over 10 billion NIS to the GNP

14. Governmental Policy for Economic Integration of Minorities

15. 4 Areas of Activity • Empowering municipalities • UpgradingBusinesssector The Authority for Economic Development of the Minorities Sector • Encouraging Employment HR Development & Approachability to high education

16. The Governmental Designated Plans: 2012: Increasing Labor Force Participation Rate and Employment rate (Trachtenberg committee) 2012: Expansion of the Economic Development plan focusing on Planning and Building (Trachtenberg committee) Over 4 Billion NIS

17. Trachtenberg Committee Increasing Supply 480 Mil NIS Increasing Demand 250 Mil NIS

18. The Economic Development 5 Year Plan • (13 Towns, 780 Million NIS)

19. Implementation of The Economic Development 5 Year Plan • Planning & Building Over 1000 units successfully marketed between 2010-2013 (Nazareth, Sakhnin, Maghar & Shefaram) 700 more housing unit will be published in few months

20. Implementation of The Economic Development 5 Year Plan • Planning & Building Sakhnin: The valley neigbourhood –A New Challenge 227 units successfully marketed during 2013 Economical contribution to Sakhnin and the area: 1,235 billion NIS – Economic activity as a result of building and developing 5-6 million NIS – property tax to the local authority 7600 people – local consumer power

21. Implementation of The Economic Development 5 Year Plan • Economic Development Industrial Zones 3000 Dunams in 13 towns Total Investment within this plan: 80 Mil NIS Total Investment in all plans: 400 Mil NIS KfarKassem – Industrial area – Lev Haaretz 600 dunams

22. Implementation of The Economic Development 5 Year Plan • Public Transportation 2013: About 200,000 bus passengers daily compared to 33,000 at 2010 (580% growth)

23. Additional Projects • 11 Career Centers Established and already functioning (Out of 21) • Explanation Campaign for Proper Representation in the Public Sector • Encouraging Women Entrepreneurship • Employment Subsidy 4500 jobs between 2009-2012 • Integration of Academics (KavMashve& Tsofen) • Advertising Campaign - Private Sector • Day Care- building and subsidy 64 Mil NIS in 2012 • 500 women excel program (Required Professions)

24. Government and Philanthropy Working Together Model 1 : 21 Employment Centers Employment Center in Tira

25. Government and Philanthropy Working Together Model 2 : Micro- Business Development • Led by Arab women • Micro Finance Loans • 21 Million NIS • 2000 loans 2011-2012 (16 Mil NIS) Government Koret Funds Micro- Finance

26. Challenges • The big challenge in the mission of increasing employment is creating jobs. • New creative models need to be formed in order to open new jobs for Arab job seekers especially in the Jewish business sector. • Philanthropy have the flexibility to support new initiatives for creating jobs while the government can subsidize wages: A great collaboration.

27. conclusion • The trends in socio-economical developments are positive. • There are significant governmental programs, with substantial budgets, to reach goals. • The role of the philanthropy is to match and leverage government funds aimed towards programs with maximum impact. And invest in creating new models by supporting NGO’s. • The current target fields are Education & Employment

28. Encouraging High Education and Employment • Career education at high school • Scholarships fund • Employment Centers • Creative models to expand demand Suggestions for Budget Matching

29. THANKS!