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Israel Faces Economic-Social Collapse Risk, Warns New Report
A new report by the Shoresh Institution for Economic and Social Research warns of an impending economic and social collapse in Israel due to declining productivity, educational disparities, and demographic shifts.
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What happened
- 01Israel faces a severe economic-social threat that could lead to collapse, according to a new report by the Shoresh Institution.
- 02Productivity has declined significantly since the mid-1970s, with Israel now lagging behind G7 averages.
- 03Government spending on the Haredi sector in 2024 exceeded that on hospitals, universities, and colleges combined.
- 04Demographic shifts and educational disparities, particularly among Haredi and Arab students, pose a major challenge to future workforce development.
- 05Brain drain is increasing, with significantly more Israelis leaving the country than returning in 2024.
- 06Professor Dan Ben-David proposes an "Israel 2.0" plan to reform priorities and strengthen the nation's future.
Authored by Professor Dan Ben-David, the "Shoresh Guide 2026" highlights a reversal in productivity trends and contrasts government spending on the Haredi sector with investments in healthcare and higher education. The report calls for significant reforms, including an "Israel 2.0" plan, to avert a crisis and ensure the nation's future development.
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