The international OECD (Organization for Economic Cooperation and Development) gives Israel high marks for withstanding the global economic crisis, but says it must improve the status of Hareidim and Arabs.
The report was released on Wednesday, and within 24 hours had already received a positive Israeli response. 
The report was released on Wednesday, and within 24 hours had already received a positive Israeli response - from the Minister of Industry, Trade and Employment.
The Minister of Industry, Trade and Employment, Binyamin Ben-Eliezer, addressed an Israeli Manufacturers Association convention on Thursday morning, where he said he plans to put an emphasis on improving employment rates in the hareidi-religious and Arab sectors. “In the framework of our activities to promote employment,” Ben-Eliezer said, “I have given instructions to place a special emphasis on integrating the weaker sectors, particularly the Arab and hareidi sectors.”
“I view this as a national mission,” he continued, “and I see you [manufacturers] as important and active partners therein. Your task is not limited to the economic sphere and financial reports, but also has great influence on all aspects of life in Israel, and especially the social plane which is so complex in our country.”
Arab and Hareidi Poverty
The OECD report noted that just over half of Arab-Israelis and 60% of hareidi-religious Jews have disposable income that is less than half the national median, the OECD has found. In addition, Israel spends 16% of GDP on social policies, compared with an average of 21% for OECD countries.
It is known, however, that Israel’s outlays for defense and security take a bite out of its budget that is larger than that of most other countries.
"There are weaknesses in the Israeli economy, particularly on the social welfare side," said OECD Secretary General Angel Gurria. The OECD called on the government to help hareidi Jews strengthen their vocational skills as part of a drive for a “more self-sufficient balance between religious worship and work.”
Israel’s GDP (gross domestic product) grew by an estimated 0.5% in 2009 – a rate that is expected to climb to more than 3% in 2010. The OECD reports praised Israeli authorities' response to the global downturn, but criticized Bank of Israel's continued intervention in foreign-currency markets, as well as the fact that one in five Israelis lives in poverty - a higher ratio than in any OECD country.
Israel on the Way to Joining OECD
The reports were released in Jerusalem, where Gurria met with Israeli leaders on Tuesday. The meetings were aimed at preparing for Israel’s accession to OECD, which could occur sometime this year.
Minister Ben-Eliezer acknowledged that amidst the positive economic indicators, “the recent reports of plants that are in danger of collapse remind us that we must still deal with ramifications of the crisis. The Ministry of Industry and Trade is doing all it can to help these factories and head off dozens and hundreds of layoffs.” He enumerated some steps being taken to this end.