BDI: Israel gov't quality among OECDs lowest

Business Data Israel: The government inefficient, irresponsible, corrupt, and does not enforce laws effectively.

The security situation and recession have lowered the ranking of Israels quality of government in comparison with other OECD countries, according to a Business Data Israel (BDI) analysis based on World Bank data. The report, published yesterday, found that Israels government is inefficient, irresponsible, politically corrupt, and does not effectively enforce the law.

BDI general manager Tehila Tamir-Yanay said the security situation, severe recession, and the over 30% rise in the number of companies at high risk since 2000 were the main causes of the deterioration.

Since 2000, the quality of government in Israel has declined on every key parameter. Israel is perceived as one of the most dangerous Western countries, with an unstable and inefficient government. The damage to companies condition has caused falling tax revenues, budgetary shortages for public services and consequent pressure on government effectiveness.

The recession has not passed over the public sector. The budgetary shortages at government and public agencies have affected their ability to provide public services and quality of government. The frequent changes in economic policy in recent years severely harmed public confidence in the government.

Israel has one of the lowest ratings in the quality of government index among OECD countries. Israel scores 83.5%, 3.5% lower than in the previous decade. The score is a composite test of the quality of public services, bureaucracy, civil servants independence from political pressures, and governments adherence to stated policies. The OECD average rating is 91.6%.

Israel scored only 81.4% in the law enforcement index, which measures confidence in the legal system, compared with Spain - 84.5%; France - 87.6%; OECD average - 91.6%; the US - 91.8%; Germany - 92.8%; the UK - 94.3%; and the Netherlands - 94.8%.

Israel scored 83.5% in the government corruption index, which checks and compares perceptions about public officials exploiting their positions for personal gain. Israels score is far below most OECD countries, with only Italy scoring less (76.3%). The OECD average is 91.3%.

Israel scored 14.1% in the political stability index, the lowest of all Western countries. This index examines the regimes stability from illegal forces, including terrorism and internal violence. The OECD average was 87.2%.

Published by Globes [online] - www.globes.co.il - on June 10, 2003

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