The Five-Year Economic Plan for Israel’s Arab Sector: A Progress Report | INSS
go to header go to content go to footer go to search
INSS logo The Institute for National Security Studies, Strategic, Innovative, Policy-Oriented Research, go to the home page
INSS
Tel Aviv University logo - beyond an external website, opens on a new page
  • Contact
  • עברית
  • Support Us
  • Research
    • Topics
      • Israel and the Global Powers
        • Israel-United States Relations
        • Glazer Israel-China Policy Center
        • Russia
        • Europe
      • Iran and the Shi'ite Axis
        • Iran
        • Lebanon and Hezbollah
        • Syria
        • Yemen and the Houthi Movement
        • Iraq and the Iraqi Shiite Militias
      • Conflict to Agreements
        • Israeli-Palestinian Relations
        • Hamas and the Gaza Strip
        • Peace Agreements and Normalization in the Middle East
        • Saudi Arabia and the Gulf States
        • Turkey
        • Egypt
        • Jordan
      • Israel’s National Security Policy
        • Military and Strategic Affairs
        • Societal Resilience and the Israeli Society
        • Jewish-Arab Relations in Israel
        • Climate, Infrastructure and Energy
        • Terrorism and Low Intensity Conflict
      • Cross-Arena Research
        • Data Analytics Center
        • Law and National Security
        • Advanced Technologies and National Security
        • Cognitive Warfare
        • Economics and National Security
    • Projects
      • Preventing the Slide into a One-State Reality
      • Contemporary Antisemitism in the United States
      • Perceptions about Jews and Israel in the Arab-Muslim World and Their Impact on the West
  • Publications
    • -
      • All Publications
      • INSS Insight
      • Policy Papers
      • Special Publication
      • Strategic Assessment
      • Technology Platform
      • Memoranda
      • Posts
      • Books
      • Archive
  • Database
    • Surveys
    • Spotlight
    • Maps
    • Real-Time Tracker
  • Events
  • Team
  • About
    • Vision and Mission
    • History
    • Research Disciplines
    • Board of Directors
    • Fellowship and Prizes
    • Internships
    • Newsletter
  • Media
    • Communications
      • Articles
      • Quotes
      • Radio and TV
    • Video gallery
    • Press Releases
  • Podcast
  • Newsletter
New
Search in site
  • Research
    • Topics
    • Israel and the Global Powers
    • Israel-United States Relations
    • Glazer Israel-China Policy Center
    • Russia
    • Europe
    • Iran and the Shi'ite Axis
    • Iran
    • Lebanon and Hezbollah
    • Syria
    • Yemen and the Houthi Movement
    • Iraq and the Iraqi Shiite Militias
    • Conflict to Agreements
    • Israeli-Palestinian Relations
    • Hamas and the Gaza Strip
    • Peace Agreements and Normalization in the Middle East
    • Saudi Arabia and the Gulf States
    • Turkey
    • Egypt
    • Jordan
    • Israel’s National Security Policy
    • Military and Strategic Affairs
    • Societal Resilience and the Israeli Society
    • Jewish-Arab Relations in Israel
    • Climate, Infrastructure and Energy
    • Terrorism and Low Intensity Conflict
    • Cross-Arena Research
    • Data Analytics Center
    • Law and National Security
    • Advanced Technologies and National Security
    • Cognitive Warfare
    • Economics and National Security
    • Projects
    • Preventing the Slide into a One-State Reality
    • Contemporary Antisemitism in the United States
    • Perceptions about Jews and Israel in the Arab-Muslim World and Their Impact on the West
  • Publications
    • All Publications
    • INSS Insight
    • Policy Papers
    • Special Publication
    • Strategic Assessment
    • Technology Platform
    • Memoranda
    • Posts
    • Books
    • Archive
  • Database
    • Surveys
    • Spotlight
    • Maps
    • Real-Time Tracker
  • Events
  • Team
  • About
    • Vision and Mission
    • History
    • Research Disciplines
    • Board of Directors
    • Fellowship and Prizes
    • Internships
  • Media
    • Communications
      • Articles
      • Quotes
      • Radio and TV
    • Video gallery
    • Press Releases
  • Podcast
  • Newsletter
  • Contact
  • עברית
  • Support Us
bool(false)

Publications

Home Publications INSS Insight The Five-Year Economic Plan for Israel’s Arab Sector: A Progress Report

The Five-Year Economic Plan for Israel’s Arab Sector: A Progress Report

INSS Insight No. 845, August 9, 2016

עברית
Muhammed Abu Nasra
Meir Elran
Eran Yashiv
Umm al-Fahm
On December 30, 2015, the Israeli government approved a five-year economic plan designed to enhance the economic and social integration of Israel’s Arab citizens. The first six months were devoted primarily to planning processes, in order to ensure a smooth start. At the same time, the first few months have revealed serious challenges, which might reduce the scope or delay implementation of the five-year plan. The most severe obstacles include: complex government bureaucracy; hurdles at the level of Arab local government; and political hurdles and preconditions to implementation of parts of the plan. Yet despite these obstacles, it seems that there has already been important progress in preparing for the implementation of large parts of the program. An important test will be progress during the second half of 2016, particularly when it is time for significant budget allocations to local governments, and time for projects to start.

The five-year economic plan approved on December 30, 2015 by the Israeli government in Resolution 922 is designed to enhance the economic and social integration of the Arab citizens in Israel. More than six months since its adoption, the plan’s status is somewhat unclear and many questions about its future remain unanswered.

The five-year plan (2016-2020) was first introduced as a package of projects worth NIS 15 billion for the social and economic advancement of the Arab sector. However, it has since emerged that under the plan, new programs are budgeted at not more than NIS 9.5 billion for the five years. The rest of the budget designated for improvement of the Arab sector is supposed to be used for existing projects. The largest in budget terms and the most significant project is the differential budgeting for elementary education.

The five-year plan was intended by initiators, decision makers, and senior professionals to promote economic integration of the Arabs in Israel, which is perceived as a major growth engine for the Israeli economy, and to reduce inequality and social gaps between Jews and Arabs. The new plan, which covers numerous diverse fields, is based in part on changing the government budgetary mechanism so as to provide increased equality to the Arab population. The Ministry for Social Equality is responsible for the plan’s implementation via the Economic Development Authority, which oversees an inter-ministerial steering committee that enjoys close involvement of the Finance Ministry’s Budget Division. The Arab sector is represented by the chairman of the Heads of the Arab Local Authorities Council.

The first six months since the plan’s approval were devoted primarily to planning processes to ensure a smooth start. Most of the effort was invested in formulating work plans for the various ministries and introducing them to the Arab local governments. Among other steps, the Economic Development Authority held a conference in Nazareth for local Arab leaders and their professional teams, together with civil society organizations. The conference included the presentation of detailed plans and discussions about their implementation. Two websites were launched to present the detailed projects to the stakeholders and provide ideas as to how best to implement them. Government ministries are currently finalizing the plans before submission to the steering committee for approval. Not less important is the forecast for the transfer  for the rest of 2016 – of NIS 2 billion, which is expected to come in addition to the budget for differential education. Thus far, relatively limited allocations have been made to the relevant ministries to finance projects in informal education, transportation accessibility to remote Arab villages, and daycare centers to allow more women’s employment, or directly to the Arab local governments.

The first few months have also revealed serious challenges, some permanent and some temporary, which might reduce the scope or delay implementation of the five-year plan. The most severe obstacles include:

1. The complex government bureaucracy: The five-year plan requires initiative and flexibility in its detailed planning, budgeting, appropriations, and decisive implementation. These complex processes encounter the known hurdles in Israel’s government administration, as well as the challenging relationship between the government and the Knesset Finance Committee. Unless these problematic processes are handled with special dedication and care, perhaps even by unique mechanisms for this project, delays – perhaps long ones – can be expected down the road.

2. Hurdles at the Arab local government level: Local government plays a key role in implementation of the program. But often – and in many cases, continuously – the Arab authorities suffer from unsatisfactory performance, resulting from the lack of a management culture, inexperience in managing large projects, and persistent administrative and professional weaknesses. The goal is to overcome these impediments by establishing a special executive apparatus in charge of the working relations between the government ministries and the local Arab authorities. At the same time, it will be necessary to strengthen the local governments by appointing senior professionals to run the projects. The obstacles in the local Arab bureaucracies might prove to be a major issue, unless a special, far reaching effort is made to address it.

3. Political hurdles and preconditions to implementation of parts of the plan: At the outset, the five-year plan – both its guiding concept and the initial implementation – encountered political reservations within the government. It seems that some senior figures in key ministries are less than pleased with the plan’s vision and do not support the policy spearheaded by the Finance and the Social Equality Ministries for the economic development of the Arabs in Israel. The apparent gap between the plan’s supporters and opponents has surfaced in the Knesset debates. For example, the Finance Minister himself remarked that the scope of the plan would, in all likelihood, be significantly less than the original sum earmarked. At present, a serious obstacle lies in implementing the parts of the plan dealing with construction in Arab population centers. Political reservations were raised about implementing them before enforcing building regulations, including the demolition of illegally constructed buildings. This sensitive and complex issue will not be resolved in the near future and as long as no far reaching changes are made in the planning and supervision processes of construction in the Arab sector. The lack of genuine progress in the construction field will represent a serious impediment to the advancement of Arab society in Israel.

Despite these obstacles, it seems that there has already been important progress in the crucial stage of preparing for the implementation of large parts of the program. It seems that the professional government sector, particularly in the Finance and the Social Equality Ministries, is demonstrating willingness to create new frameworks to promote the program, to help overcome both bureaucratic and political obstacles. An important test will be progress during the second half of 2016, particularly when it is time for significant budget allocations to local governments, and time for projects to start. Without the appearance of dynamic action, the program might lose momentum and public trust, and possibly hit a dead end. This would be an unfortunate blow to the important strategic vision of shared interests and cooperation between the Arab minority and Jewish majority to enhance social equality, stability, and the economic growth of the State of Israel.

The opinions expressed in INSS publications are the authors’ alone.
Publication Series INSS Insight
TopicsJewish-Arab Relations in Israel
עברית

Events

All events
The 18th Annual International Conference
25 February, 2025
08:15 - 16:00
Photo: Ronen Topelberg

Related Publications

All publications
Shutterstock
Neglecting the Struggle Against Crime in Arab Society Is a Threat to Israel’s National Security
Against the backdrop of the ongoing war, which has lasted for 8 months, it appears that the problem of crime in Arab society is noticeably absent from the list of priorities of the Israeli government and the law enforcement system. With over 100 murders in the Arab sector during the first half of the year, the persistent neglect in combating the growing violence has dangerous implications for Israel’s national security
26/06/24
Mostafa Alkharouf / Anadolu Agency
Between Restraint and Protest: Arab Society in Israel After Seven Months of War
After seven months of war in Gaza, calm has been maintained between the Jewish and Arab sectors in Israel—even during the month of Ramadan, despite concerns expressed by the security and political establishments. However, amid the harsh reality of the ongoing war, potential dangers could undermine the stability of these delicate relations. What are these dangers, and how should they be addressed?
19/05/24
REUTERS/Carlos Barria
Cutting the Budgets for the Arab Sector’s Five-Year Plans Threatens Israel’s National Security and Resilience
Despite the need for budget cuts across the board because of the war in Gaza, a significant cut in the five-year plans for Arab society could severely harm not only Arab society but also the Israeli economy and national security
07/02/24

Stay up to date

Registration was successful! Thanks.
  • Research

    • Topics
      • Israel and the Global Powers
      • Israel-United States Relations
      • Glazer Israel-China Policy Center
      • Russia
      • Europe
      • Iran and the Shi'ite Axis
      • Iran
      • Lebanon and Hezbollah
      • Syria
      • Yemen and the Houthi Movement
      • Iraq and the Iraqi Shiite Militias
      • Conflict to Agreements
      • Israeli-Palestinian Relations
      • Hamas and the Gaza Strip
      • Peace Agreements and Normalization in the Middle East
      • Saudi Arabia and the Gulf States
      • Turkey
      • Egypt
      • Jordan
      • Israel’s National Security Policy
      • Military and Strategic Affairs
      • Societal Resilience and the Israeli Society
      • Jewish-Arab Relations in Israel
      • Climate, Infrastructure and Energy
      • Terrorism and Low Intensity Conflict
      • Cross-Arena Research
      • Data Analytics Center
      • Law and National Security
      • Advanced Technologies and National Security
      • Cognitive Warfare
      • Economics and National Secutiry
    • Projects
      • Preventing the Slide into a One-State Reality
      • Contemporary Antisemitism in the United States
      • Perceptions about Jews and Israel in the Arab-Muslim World and Their Impact on the West
  • Publications

    • All Publications
    • INSS Insight
    • Policy Papers
    • Special Publication
    • Strategic Assessment
    • Technology Platform
    • Memoranda
    • Database
    • Posts
    • Books
    • Archive
  • About

    • Vision and Mission
    • History
    • Research Disciplines
    • Board of Directors
    • Fellowship and Prizes
    • Internships
    • Support
  • Media

    • Communications
    • Articles
    • Quotes
    • Radio and TV
    • Video Gallery
    • Press Release
    • Podcast
  • Home

  • Events

  • Database

  • Team

  • Contact

  • Newsletter

  • עברית

INSS logo The Institute for National Security Studies, Strategic, Innovative, Policy-Oriented Research, go to the home page
40 Haim Levanon St. Tel Aviv, 6997556 Israel | Tel: 03-640-0400 | Fax: 03-744-7590 | Email: info@inss.org.il
Developed by Daat A Realcommerce company.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.