OECD chief: Haredim, Arabs lagging behind

On visit to Jerusalem, Angel Gurria lauds Israel's economic progress but slams real estate bubble

Ronen Medzini|Published: 11.23.10 , 13:30

OECD Secretary Angel Gurria on Sunday praised Israel's economic growth but criticized the real estate bubble, saying that home prices are dropping around the world except in Israel. He added that the Arab and ultra-Orthodox sectors were not progressing at the same rate as the rest of society.

Gurria, who was the cabinet meeting's guest of honor, said that the Israeli economy is growing faster than in other nations within the international organization because it suffers less deficiencies and has less debt and lower unemployment rates.

Gurria and Finance Minister Steinitz. (Photo: Marc Israel Sellum)

The praise came hand in hand with criticism, with Gurria adding that Israeli society had made a leap forward in recent years and has undergone a process of global integration, but has neglected certain sectors. He singled out the ultra-Orthodox and Arab sectors, noting that these groups are not moving forward at the same pace as the general public.

Gurria said he has met with the Socioeconomic Cabinet and discussed ways to improve the quality of life and the integration of these lagging sectors.

Prime Minister Benjamin Netanyahu addressed Israel's recent acceptance into OECD, an organization promoting worldwide economic development, by saying that it is a direct result of the numerous economic reforms that the state has implemented over the years.

He added that additional restructuring is needed to make Israel independent of the global economy, especially in the real estate industry, and that capital gains tax relief will be one of several foreseeable reforms.