Despite important actions Israel has taken, it is far from being one of the world's most developed countries, a new report from the Organisation for Economic Co-operation and Development (OECD) published this week has determined.
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The report notes that even prior to the COVID pandemic, Israel's per capita productivity and GDP were some 30% lower than those in the OECD's outstanding countries. The report cited a higher rate of inequality in Israel than in other developed countries, and said that a significant part of Israel's children did not complete school with skills that would help them in the job market.
The OECD praised Israel's government for funneling more money into education, although said the additional budget did not "translate" into better achievement because the structure of the school system had not changed.
According to the authors of the report, the COVID pandemic poses "long-term challenges" to Israel, particularly in the form of extensive poverty – notably among Arab Israelis and Haredi Jews – and a growing gap between Israel's "vibrant" high-tech sector and the traditional economy.
The report notes that prior to COVID, Israel's per capita GDP was 28% lower than that of the strongest member nations in the OECD (not the OECD average), whereas per capita productivity was 35% lower than that of the strongest OECCD nations. Israel's employment rate was considered average and had not changed significantly since the start of the pandemic, the report aid.
Israel also spends considerably less on job training than other developed nations – 8% compared to up to 20% -- the report said.
The report assigned Israel an overall "inequality score" of 34.8, compared to a median score of 30.3 in the OECD. In OECD rankings, the lowest level of inequality is ranked at 23, and third-world nations rank at 45.3 for inequality.
Israel's public transportation system lagged "significantly" behind most OECD nations even prior to the COVID pandemic, the report said, creating some of the worst traffic congestion in the organization. The report cited lack of efficient public transportation infrastructure as one reason why 75% of Israeli citizens live with highly polluted air.
On a slightly more positive note, the report noted that Israel released less greenhouse gas than the OECD average, and praised the new commuter train line between Jerusalem and Tel Aviv, as well as the construction of a light rail system for the greater Tel Aviv area and other transportation infrastructure projects.
The organization recommended that Israel promote public transportation and establish transportation authority that would liaise between the government and local authorities.
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