An Economic Strategy for Israel: Vision, Strengths, and Threats

A strong economy is a key component of Israel’s national resilience – socially and politically, as well as with regard to national security. Therefore, the plan below sets an overarching objective: the Israeli economy will be among the top ten economies in the world in terms of GDP per capita, and will enjoy inclusive, sustainable, and ongoing growth alongside low poverty rates, within 15 years.

This paper presents the joint vision of the Aaron Institute and the Yated Foundation for the State of Israel in the areas of economic resilience and security, economic welfare and equal opportunity, growth through innovation and competitiveness, and infrastructure and long-term growth. It outlines the core strengths of the Israeli economy, identifies the key risks it faces, and proposes a comprehensive economic strategy for Israel. The strategy is built around three required areas of action and the key change levers necessary to achieve the strategic objective: human capital, public capital, and private capital.
The program was formulated in parallel with the work of the Mind Israel team and provided economic support for its policy recommendations regarding force buildup and the required budget.