Israel Faces Declining Education Scores and Rising Living Costs

Israel's Ministry of Agriculture is criticized for policies that allegedly maintain high food prices, despite its stated goal of ensuring food security. The ministry, which recently rebranded to include 'Food Security' in its name, announced a 25-year national plan aiming to keep supermarket shelves stocked and ensure affordable food. However, critics argue the ministry actively hinders market liberalization, preventing imports and thus keeping prices significantly higher than in other OECD countries. Official data indicates that while Israel's population has doubled since 2000, agricultural production has stagnated, leading to food price inflation far exceeding general inflation. Shortages of specific products, such as eggs during the pandemic and milk near holidays, are attributed to the ministry's protectionist measures, while imported goods remain readily available.

In parallel, a separate report highlights a significant decline in Israel's performance on the OECD's PISA tests, which assess reading comprehension, mathematics, and problem-solving skills. Israel has dropped to the 31st-33rd position among 38 developed nations, with a particularly sharp decline across all metrics. While other countries have also seen score reductions, Israel's fall is described as severe. Historical data from countries like Germany, Sweden, and Finland shows that recovering from such educational declines is challenging, with temporary improvements often followed by further drops.

Furthermore, Israeli businesses, particularly small and medium-sized enterprises, are struggling under an increasing regulatory burden. A recent clarification by the Privacy Protection Authority regarding website cookie consent has inadvertently become the basis for numerous lawsuits. Companies argue that the authority's interpretation, which demands active and explicit consent, goes beyond its original intent. This legal pressure exacerbates existing difficulties faced by businesses, including the lingering effects of the pandemic, ongoing conflict, high living costs, and rising interest rates. Small businesses, lacking the resources of larger corporations, often face the difficult choice between costly legal battles and settling potentially unwarranted claims.