Israel not reaching its potential

Israel is ranked 38th in the world according to the Economist's Quality of Life Index; and 23rd according to the 2007/2008 UN Human Development Index.

For some countries that might be enough but it's not enough for Israel.

We face the greatest gap between our potential, based on exposure to technology and education, and our achievements. The quality of our life is at the bottom of the developed world, and we don't have to be there.

The idea of Leapfrogging Israel's Quality of Life isn't just a nice thing to do. It's crucial for our survival - otherwise, we just won't be competitive.

Where is the Israeli Center?

[This is the fifth of fifteen posts on Jewish philanthropy in Israel]

Jewish philanthropy in Israel requires an overhaul in order to recapture a central role in Israeli society.One of the powerful and persistent trends driving this sidelining is the growing disconnect from the Israeli socioeconomic center. It is a challenge of priorities, as well as communications.

In the past, Diaspora Jewish philanthropy was perceived and framed in the context of economic and social assistance and as a supplement to Israel's national budget. Hence, understandably, it has been focused primarily on immigration absorption and on alleviating poverty and hardship.

Diminishing marginal impact of Jewish Philanthropy

[This is the fourth of fifteen posts on Jewish philanthropy in Israel]

The Zionist movement survived and thrived on the philanthropic generosity of world Jewry. However, as Israel grows in economic and political power, the relative importance of philanthropic giving by Diaspora Jewry is diminishing. indepth comprehension of these trends is critical to create the sense of urgency that is essential of the necessary overhaul.

The decline of Jerusalem and the rise of others

 [This post is the 3rd of a 15 part series on Jewish Philanthropy]

Part I: Israel-Diaspora Relations

Part II: Why should Israelis care?

A powerful and consistent trend that is affecting the role of Jewish philanthropy in Israel is the decline in the will and ability of the Government of Israel to address the needs of its constituency. I call this trend: the decline of Jerusalem. For world Jewry philanthropy in Israel, this trend represents both a threat and an opportunity: while it expands the menu of options for philanthropic interventions it is also overstretching its resources.

Why should Israelis care

As I mentioned in the first post of this series, my perspective in writing this series is that of a Jew and an Israeli, in that order. I am also a grantee that has realized a dream and a vision due to the generosity of time, spirit, trust and money by lay leaders, Jewish professional, rabbis, communities and organizations from across the Jewish world.

Why should we - Israelis - care? My answer is that we should care as both as Israelis and as Jews for a number of reasons (with no particular order of importance).

First, as Israelis we should have the most practical urge to see a billion dollars per annum of philanthropic giving being put to the best possible use in the service of prosperity and security of our country. A billion dollars of do-good money is a lot even in our present economic state.

Israel-Diaspora relations

[This is the first of fifteen posts on Jewish philanthropy in Israel titled "Overhaul or Be Marginalized".]

This series of blog posts deals with non-Israeli Jewish philanthropy in Israel with the objective of making a contribution to its effectiveness and relevance.

When I started working on this project, my wife, friends and colleagues asked me why I care enough to spend so many hours on a topic that is out of the focus of my professional work. My answer was that I feel a debt to the community that has made my dream possible and that, en route, this may turn out to be a contribution, however small, to Israel's prosperity, to Israel-Diaspora relations and to world Jewry.

The essence of leadership

Leadership is a process whereby a group is brought to reassess its values and priorities. This post adds a few more thoughts on the essence of leadership.

In a previous post I challenged the notion that Israel is subject to a crisis of leadership. I argued that we are experiencing a crisis of trust with people in positions of authority. In this post I would like to add a few more thoughts on the essence of leadership.

The distinction between leadership and authority is based on the work of Ron Heifetz of the Center of Public Leadership at the Harvard Kennedy School of Government captured in his book Leadership without Easy Answers. Ron is my teacher. His theory underlies the work of the Reut Institute. First, according to Heifetz, leadership is an activity and a process whereby a group is brought to reassess its values and therefore also its priorities.

Crisis of leadership or trust?

Is Israel suffering a crisis of leadership? For many, the long list of politicians and public servants under investigation gives a clear positive answer. I argue that our current crisis is not a crisis of leadership; it's a crisis of trust between the general public and the elected officials chosen to exercise authority. The distinction is essential for designing the remedy.

Ronald Heifetz of Harvard University defines authority as conferred power to perform a service. Authority rests on the contract between the authority figure and his or her constituents. It is given and can be taken away.

Israel's next strategic decision

Annapolis initiated two parallel processes: comprehensive and detailed negotiations in working groups over a Permanent Status Agreement (PSA) and implementation of the Roadmap. It seems that this approach is based on a logic that attempts to bypass the disagreements between the sides over the principles of Permanent Status.

However, a big crisis with the Palestinians is inevitable and will occur no later than the beginning of next summer. By then, most of the working groups will be deadlocked and will turn to the political echelon to make decisions.

The expected deadlock is due to several structural reasons.

Israel's economic problem is politics

Last week, the Jerusalem Post reported on Yechezkel Dror's comments about the problems of the parliamentary system. And while I don't necessarily agree with the solution he suggests, his prognosis is spot on. Without strengthening the capacity to govern, Israel will not be able to carry out an economic leapfrog, something essential to achieve Reut's Top 15 Vision.

Israel's macroeconomic policy has received many compliments from the International Monetary Fund and foreign governments. In recent years, Israel has experienced low deficit and inflation as well as decreased unemployment and national debt. Yet despite this, Israel's problem remains in the weakness of its government system.

About this blog

A Link in the Chain Founder of the prestigious Reut Institute, Gidi Grinstein, blogs about his vision for Israel and 21st century Zionism.

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Recent Comments

Lukas, Amsterdam: The main problem: lack of business management skills (project / programme management, quality management, people/resourcing/recruiting/teambuilding skills) AND the arrogant attitude that these things are not needed because we're so smart. Once a company grows over the entrepreneurial group's head, they panic, get selfish and sell it out abroad. There are a few, VERY few exceptions like Teva. The solution: train decision-makers in management (basic skills such as taught in an MBA programme).
Dror, Haifa Israel: Israel is a beacon of exploitation and injustice. Zion is supposed to mean a beacon for the Jewish people. The Land of Zion is the land of the Jewish people. The State of Israel has become simply put, evil and exploitative. Most average middle class Israelis are working for minimum wage and some for slightly more. Our corrupt self-serving government and economists refused to raise the minimum wage while giving themselves pay raises. People are barely surviving and are drowning in debt. The rich and well off flaunt and show off. God will smite down the wicked, unfortunately it is Israel's govt.
Gnarlodious: Israel is staggering because of bad television. Specifically, American television. Imitating America is a dead end for israel because Jews are very social people and Americans are so competitive. Israel can only reach its potential by teamwork, but everything on television is competition and stupidity. Israeli television is disturbingly similar, because Israel is imitating American media success. Enamoured of Ronald Reagan's "Greed is Good" ideology where the bottom line is building your own personal economic empire. Israel will fail following this example. Israel must reject Americanism.