Finance Ministry Advisor Reflects on War, Economy, and Tech

Nathan Nahorai, who served as the economic advisor to Finance Minister Bezalel Smotrich, is concluding his eight-year tenure at the Ministry of Finance. He began as an education planner in the salary department and rose through the ranks, eventually advising the minister on economic matters. Nahorai described his role as being a professional within a political office, bridging the gap between the ministry's professional staff and the minister's political bureau.

During his time, Nahorai was deeply involved in managing the economic fallout of the war that began on October 7th. He participated in reserve duty as a company commander and focused on connecting various sectors, from farmers to high-tech professionals, with the ministry. He played a key role in developing benefits for reservists, leading the milk reform, and formulating strategies for the high-tech industry amidst challenges like protests and the AI revolution.

Nahorai recounted his immediate deployment to the Gaza envelope following the October 7th attacks, where he escorted Ministry of Finance leadership on tours of affected areas to foster a direct understanding of the situation. He also facilitated a visit by Minister Smotrich to Nir Oz, where he helped advocate for the relocation of displaced families as a cohesive community, emphasizing the importance of community preservation.

He detailed his work in establishing a comprehensive package of benefits for reservists, including grants and the "Fighter" card, aiming to make them feel recognized and supported. Nahorai highlighted how Israeli high-tech companies continued to expand operations despite the war, attributing this resilience to the dedication of their employees, many of whom were serving in reserves.

Reflecting on the broader economic landscape, Nahorai discussed the tension between economic and political considerations, noting Smotrich's frequent prioritization of professional economic decisions. He addressed the challenges of managing the economy during wartime, drawing parallels to the biblical story of Joseph in Egypt, and emphasized the need for difficult decisions to maintain market confidence. Nahorai also touched upon the impact of the judicial reform protests on the high-tech sector and his efforts to foster dialogue between industry leaders and the government.

In a notable incident while on reserve duty in Syria, Nahorai organized an emergency Zoom call with industry leaders when the dollar exchange rate suddenly dropped, leading to the rapid development of a NIS 1 billion aid program for startups. He also discussed the ministry's initiatives to attract researchers back to Israel and foster the AI revolution, including new academic programs and support for AI integration in education. Nahorai expressed optimism about Israel's future economic growth, particularly in AI and cybersecurity, and reflected on the lessons learned from the milk reform and the ongoing efforts to address the cost of living.