Leapfrog Now!

The 9th Herzliya ConferenceFebruary 2009

Large Gap in Quality of Life

Israel: leads export of Human Capital

Economist: Israel is 38th

Leapfrog is essential!

Developed Countries

Israel

What’s the problem?What’s the problem?

Real Danger of Collapse

LeapfrogLeapfrog

This vision requires a social and economic leapfrog that closes the gap in quality of life

between Israel and developed countries.

ISRAEL15 Vision: Transforming Israel into one of the leading 15 countries in quality of

life

Israel is Growing but not LeapfroggingIsrael is Growing but not Leapfrogging

Ireland

South Korea

0.

2.

4.

6.

8

Inco

me

Per

Cap

ita

Rel

ati

ve

to U

S

USA = 1

Western Europe

1950 1960 1970 1980 1990 2000 2007

Source: Prof. R. Hausmann

Israel Leapt 1950-1970

Ireland

South Korea

Western Europe

Israel has not closed the gap

Korea and Ireland have Leapt

Growth Relative to the US (1950-2007)

30% of the US

60% of the US

Brosh & Eini, a new pact?

New gov’t2 stable years

Crisis breeds willingness

Unique Opportunity

Growth, Accelerated Growth, and LeapfrogGrowth, Accelerated Growth, and Leapfrog

Source: Prof. R. Hausmann et al., Growth Accelerations

Only 13 ‘Economic Miracles’

Leapfrog

Growth: Nearly Everyone

02

46

8

Years

X X+8 X+25

GD

P G

row

th p

er

cap

ita

Source: World Bank, Growth Report

Accelerated Growth: 1 in 4

The Public Sphere is CriticalThe Public Sphere is Critical

תמונת עתיד רצויה

חסכון והשקעה

אליטה מחויבת

Flexicurity אמנה ביןמפלגתיתגלובלית וייחודית

Vision

Values

Leadership

Institutions

Industrial Policy

Labor Market

Public Sphere

A Shared Future

Central BrainTask Forces

Flexicurity

Unique & Global

Dedicated Elite

Savings & Investment

Labor Market PoliciesLabor Market Policies

Industry Labor

Government

Flexible Labor Markets

Human Capital

Enforcing Labor Laws

Flexible Labor Markets

Safety Net

Human Capital

CompetitivenessProtecting

Workers not Jobs

Industrial PolicyIndustrial Policy

Global Trends

Unique Global Industrial Policy

Unique Assets

StandardizationLegislationRegulationInfrastructureInt’l Agreements

Public InputsHistoric SitesDefense EstablishmentJewish World

Rise of ChindiaGlobal Water CrisisRenewable EnergyAgingRise of Africa

Israel is not talking LeapfrogIsrael is not talking Leapfrog

Policy Institutions

Domestic Industrial Policy

Labor Market: Pact for growth

Unique Global Industrial Policy

Local Government

No Vision

Local Government Necessary

Vision Necessary

Growth Leapfrog

Economics Multidisciplinary

Labor Market: Conflict

Israel Land AdministrationChief Scientist

Infrastructure Investment

Government FundsDesalination

Cutting Red-TapeInstitutional Reforms

The Candidates’ LanguageThe Candidates’ Language

Source: The Marker, 01.23.09

American Loan Guarantees

Lower Taxes

Negative Income Tax

Deficit Spending

Macroeconomic Policies

The Candidates’ LanguageThe Candidates’ Language

Source: The Marker, 01.23.09

The Language of LeapfrogLabor Market Policies

Local government is an engine of growth

Unique Global Industrial Policy

The Language of Growth

What do we do tomorrow?What do we do tomorrow?

The ISRAEL 15 Vision

Labor Market Pact

Unique Global Industrial Policy

Macroeconomic Stability

Local Economic Development

Central Mind

ISRAEL 15 Portal Guidelines for a Leapfrog

To be one of the leading 15 countries in quality of life

www.Israel15.org

National Obsession

Business Community

Philanthropy

Local Gov’t

Gov’t of Israel

Universities

Jewish World