News Brief

(IsraelNN.com) The London Economist stated that the deteriorating education system threatened Israel's long-term prosperity. The widely respected journal noted that Israel has achieved remarkable success since the re-establishment of the Jewish state 60 years ago but that much of it is becoming a mirage.

"Beneath its gleaming high-tech skin, the body of Israel's economy is slightly worn," the magazine stated. "Much of the country's traditional industry, such as machinery, chemicals, clothing and food, which accounts for more than half of its jobs, is lackluster. Average industrial productivity is around half that in America."

It cited lack of research and development outside of high-tech industries as threatening economic growth. It also expressed concern over the concentration of most of Israeli wealth in the hands of a few families while the rate of poverty grows.