2009 OECD Economic Surveys: Israel 2009

image of OECD Economic Surveys: Israel 2009

This first OECD review of Israel's economy includes chapters covering recent economic developments and policy challenges, the macroeconomic policy framework, education reform, reducing poverty and raising employment rates, and policies affecting the business environment.

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Selected policies affecting the business environment

Israel is assisting businesses and promoting market competition in ways that are familiar to many OECD countries. Nevertheless, red tape is overly burdensome. Active policies to support business include incentives geared towards foreign investors, innovation policies and various aids for small and medium-sized enterprises (SMEs). As in many other countries, the agriculture sector receives considerable support. Ground still needs to be covered in bringing a healthy level of competition in electricity, post and sea ports. Transport infrastructure has struggled to keep pace with the rapid pace of population growth, and the mix between private and public transportation has become unbalanced, adding to problems of congestion in urban areas.

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