Governor Karnit Flug of the Bank of Israel called, Tuesday, for removal of barriers to competition and improved communication between government agencies and between the government and the public. Speaking at a conference on the economy and society in Be'er Sheva, Doctor Flug said, "Regulations and bureaucracy in Israel make it difficult to do business, and sometimes to bring in new competitors. Israel is ranked low in international comparisons of the bureaucratic and regulatory burden, and our position is declining.
Flug continued, "Strategic action on the part of the government and the advancing of structural reforms will make a significant contribution to growth and can be expected to bear fruit within 3 years (without any additional budget being necessary!). We must act to remove barriers to competition, such as regulations and standards: reducing the bureaucracy and improving communication among government offices and between them and the citizenry, cleansing and streamlining existing regulations, and more." She concluded, "The sooner we adopt and implement a strategic plan, the sooner we will be able to deal with the challenges and maximize the potential of the Israeli economy."