Israel Faces Governance Failures Amidst Political Appointments and Security Concerns

Columnist Yehuda Sharony criticizes what he terms "small head syndrome" in Israel's governance, highlighting two major administrative failures: the National Insurance Institute operating without a permanent director general for four years and the Ministry of Transportation's alleged laxity in vetting foreign pilots, exemplified by the Fly Dubai incident. The article argues that the lack of a permanent director at the National Insurance Institute, which handles compensation for victims of terror and war, stems from internal politics within the Shas party. Sharony contends that Minister of Transportation Miri Regev is more focused on ceremonial duties and photo opportunities than on substantive issues like civil aviation security, attributing the failures to political appointments based on loyalty rather than merit.

The Fly Dubai incident, where a pilot's alleged lack of proper certification raised safety concerns, is compared to the rigorous oversight of the banking sector by the Bank of Israel. Sharony questions the safety standards of Israeli airlines like El Al, Arkia, Israir, and Air Haifa, suggesting that while El Al's Israeli crews offer a sense of security, their premium pricing might be exploitative. He notes that other airlines may offer significant savings, even with foreign crews, making them a viable alternative for cost-conscious travelers.

The article also touches upon economic matters, noting that the September inflation index, the last before upcoming elections, is expected to be negative due to seasonal factors and government measures like freezing gasoline prices. However, it warns that these measures, costing approximately half a billion shekels, will lead to increased debt and interest payments after the elections. The Bank of Israel anticipates significant fiscal reforms from the next government, including budget cuts and efficiency measures, to reduce the debt-to-GDP ratio and deficit, despite security challenges. Potential austerity measures include reducing coalition funds, eliminating redundant ministries, and potentially increasing taxes or reducing tax benefits.

Sharony criticizes the current government's approach to public service appointments, describing them as a "work arrangement" for political loyalists, with Prime Minister Benjamin Netanyahu bearing ultimate responsibility for this system. He suggests that while the professional civil service should drive policy changes, political will is often lacking, though he credits Minister of Economy Nir Barkat for pushing for the harmonization of trade conditions with Europe despite bureaucratic opposition.