7.2.06

Official: Israel's poor abandoned

Official: Israel's poor abandoned

Head of National Insurance Institute says economic policies introduced by Former Finance Minister Netanyahu increased poverty, benefited the rich. 'A change is needed, or else situation will deteriorate even more,' he states.

Israel has failed to protect the weaker sectors of society in recent years, according to a scathing attack by Dr. Yigal Ben Shalom, director general of the National Insurance Institute.
"People were hurt, and a change in policy is needed," Ben Shalom said.
Speaking at a conference held at Haifa University, Ben Shalom lashed out at economic policies introduced by former Finance Minister Benjamin Netanyahu and supported by Prime Minister Ariel Sharon. According to Ben Shalom, even though a cut in public expenditures were necessary, most cutbacks targeted welfare budgets and hurt the poor.
"This is why in recent years we have witnessed a rise in violence and poverty," he claimed. "We have also seen an increase in the extent to which voluntary organizations replace the State in fields of education and welfare, without any involvement by official elements."

'Growth isn't everything'

According to Ben Shalom, the government's policy is behind the growing gaps between the poor and the rich in Israel.
"For the sake of increasing growth, taxes and allowances were cut. As a result, the income of the rich grew, while that of the lower strata remained the same or even dropped," he explained.
Ben Shalom expressed hope that "the next government will understand there is a need for change, and let socioeconomic professionals lead its social policy, along with economists, instead of having economists spearhead the policy by themselves."
Ben Shalom also warned that the current dominant approach within government circles hat advocates growth as the key to a healthy economy is erroneous.
"If we continue to measure everything in terms of growth, nothing else will sort itself out. If nothing changes, we can expect further deterioration in the coming years," he said.
http://www.ynetnews.com