Research published by the Jerusalem Institute for Israel Studies (JIIS) shows that the capital is slipping further behind Israel's other major cities in economic terms.
JIIS has published parts of its latest study entitled "A Vision for Jerusalem" - a plan for the rehabilitation of Jerusalem. The research was conducted by an independent team of researchers headed by Prof. Gur Ofer of the Hebrew University of Jerusalem, and was paid for by various funds operating in Jerusalem.
The plan is to enlarge Jerusalem's middle-class population by 100,000 by 2020, while adding 100,000 middle-class residents to the surrounding metropolitan area. This will be achieved by creating 60,000-70,000 professional jobs in the city.
In a chapter entitled "Demographic trends and the economic decline of Jerusalem" Yoram Mishor and Assaf Zimmering write that over the past decade, the city's economic strength has declined.
If current trends continue, according to the research, the ultra-orthodox population will comprise 44% of the city's residents in 2020, and the average standard of living of Jerusalem's Jewish population will be 83% of the national average, compared with 92% in 2005.
The study also shows that Jerusalem is today the "poorest of Israel's largest cities."
The introduction to the study says, "Jerusalem, the capital of Israel and the Jewish people, has and always will be an attraction for visitors of all faiths. It is rich in hillside panoramas, world heritage sites and historical, religious and cultural Jewish, Christian and Islamic assets. The Hebrew University and the hospitals that have developed over the years in the city have created an important global center for higher education and scientific research in every sector."
"Despite this, over the years we have witnessed a severe deterioration in the status of Jerusalem, in its image and its social and economic situation. This chronic decline in the city's situation is reflected in a broad spectrum of indicators. For example, per capita income in 2003 in Jerusalem was lower than in any other Israeli city except Bnei Brak - only 45% of the per capita income in Tel Aviv."
The average salary of Jewish men in Jerusalem in the 1980s was only 2% lower than Tel Aviv, while today it is just 60% of that salary. This negative development also stands out in the economic index calculated by the Central Bureau of Statistics, which represents a number of indicators about the strength of the city. According to this index, Jerusalem has slipped from 59 out of 118 local authorities in 1995, to 111 out of 198 local authorities in 2003. Even development towns like Dimona and Bet She'an have moved above Jerusalem.
"In the past three decades emigration from the city by young people and middle class residents has risen. At the same time there has been a decrease in the number of Israelis and new immigrants who chose to move to Jerusalem."
Published by Globes [online], Israel business news - www.globes-online.com - on January 20, 2009
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