The OECD has starred in the news here lately, mainly because of the critical report it produced on the Israeli government's social policy. The report was extensively covered in "Globes" and in other media, and, given the normal news life-cycle, it could have been expected that it and the OECD would quickly disappear from the headlines.
But then came Minister of Finance Yair Lapid's meeting with OECD secretary general Angel Gurría at the annual get together of finance ministers. Lapid, as is his wont, described his experiences on his Facebook page, and saw fit to highlight the praises he received from a professional diplomat: "I welcome the equality of the burden, because you must bring the haredim into the labor market." Thus Lapid summed up what his interlocutor had to say.
Lapid's post made no mention of the content of the annual meeting and the message that came out of it. That can be read in the communiqué released immediately after it ended. As a service to the minister of finance, who perhaps did not understand in depth what was said to him when he met Gurría, we will cite the communiqué, which reflects the current consensus among the ministers on the burning issues. Unlike Lapid, who stresses, and thinks in terms of, "equality of the burden", the rest of the OECD finance ministers stress "equality of opportunity". The title of the joint statement is: “It’s all about people: Jobs, Equality and Trust”.
Israel's finance minister would have done well to measure himself, and the government he represented at the OECD, against the scale set out by that headline. Of the three elements (jobs, equality, and trust), let's start with the last, trust. In this connection, the OECD statement mentions three components: open government, transparency in policy making, and acting to promote social solidarity.
In a country in which the finance minister likes to communicate via his Facebook page, and evades awkward questions, press conferences, and public criticism, there is no real openness. In a country in which it takes public pressure, demonstrations, and petitions to the High Court of Justice, to obtain protocols of public committees, there is no transparency. And as far as social solidarity in Israel is concerned, there is no need to add to what is obvious from the phrase "equality of the burden".
It would have been worth Lapid's while to peruse the National Insurance Institute report on the significance of the measures he introduced in the budget. The report warned of the blow to the poor, both in absolute and relative terms. How does that fit in with the OECD ministers' call for the formulation of economic policy that will emphasize participation by all sections of the population in the fruits of economic growth?
Truth be told, the more substantial and relevant question is: Does the minister of finance of the State of Israel understand these issues; does he recognize their importance, not at the verbal and declaratory level, but at the level of consciousness and feeling? Is he committed, at the deepest personal level, to a policy of greater equality, deeper social solidarity, and spreading the fruits of growth to the weaker classes?
Lapid talks a great deal about the ordinary Israeli of the middle class. In his/her name, he entered politics. To understand who that ordinary Israeli is, I will cite figures published by the OECD in its Better Life Index. On average, an Israeli works 1,890 hours a year, compared with an OECD average of 1,776 hours. Moreover, 18% of Israelis work very long hours, compared with an OECD average of 9%. But when it comes to the reward, the result is different: an Israeli earns, on average, a little over $28,600 a year, compared with an average for all OECD countries of $34,500.
When you add to these figures the growing inequality in incomes, dwindling job security, the struggles undergone by many young employees, and the narrowing opportunities for young families, the gap becomes apparent between the world of "equality of the burden" of Yair Lapid, and the real world, which is a source of much anxiety for other finance ministers.
Published by Globes [online], Israel business news - www.globes-online.com - on June 3, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013