Sharon boasts about economic success
Prime minister vows more economic growth, narrowing social gaps, funneling more funds to deprived
Sharon, speaking just hours following the surprise victory of Amir Peretz over Shimon Peres in the Labor primaries, said that Israel’s social problems emanate from a “culture of social welfare” that pushed the deprived away from the job market.
Sharon’s words came at the prime minister’s conference for export and international cooperation, where he hinted that fighting poverty, increasing social welfare for the elderly and minors, and funneling more funds to the education system, will be his top priorities.
The shift to a social tone in Sharon’s speech was echoed soon after the completion of the disengagement plan in September, yet it took on a higher note today in light of Peretz’ election as Labor party chairman. Peretz, who vowed to pull Labor out of Sharon’s coalition government, has garnered support among the country’s poor for his criticism of the government’s Thatcherite social policies.
'Disengagement plan created new reality'
“In 2005 we increased social welfare for the single elderly by NIS 200 (about USD 43) and for elderly couples by NIS 250 (about USD 54), an increase that benefited 200,000 people,” said Sharon, promising that his government will extend the social welfare package in the 2006 budget to assist poor children and people earning below the minimum wage.
“The steps we took fundamentally changed the economy, modernized it and made it more suitable to integrate in a global economy,” Sharon said.
The prime minister did not fail to mention the success of the implementation of the Gaza disengagement plan, which presented a critical test for Israeli democracy, he said. Beyond the security and political implications of the disengagement plan, Sharon outlined the economic benefits of the pullout, notably an improvement in Israel’s image abroad, a development that is likely to encourage foreign investment.
The disengagement plan, he said, created a new reality in Israel and the Middle East, and its economic dividends are evident in the increase in foreign investment in Israel’s economy since September, when the last Israeli soldier left Gaza.
“The yearly achievements of the government have formed the appropriate foundation for the next step, which is an integrated socio-economic plan. On the economic front, we will follow a policy of liberalization and privatization. Our target is to grow by 4 to 5 percent each year for the next 10 years. This increase will generate USD 70 billion for the GNP. It’s difficult to reach this target, yet it is not impossible,” Sharon said.
