The fierce criticism from right-wing politicians when the current government was formed of the five-year plan for aid for the Arab population is currently becoming even louder as election day approaches. The allegation is that the plan will enable state funds to be transferred to non-profit organizations, among them some linked to terrorist groups.
The factual basis for these claims is extremely slim. Is it just election propaganda and no more than that? And what will happen after the election if Benjamin Netanyahu succeeds in forming a government? At the Globes Israel Business Conference, Netanyahu was explicitly asked about his commitment to the five-year plan. His response was, "We’ll draw up our own plan." In other words, there will be changes to the current plan, and certainly a delay in transferring the money, since preparing a plan will take months.
The cash will continue to flow
The plan to strengthen Arab society in Israel economically and socially was budgeted at NIS 25 billion when the Bennett-Lapid government was formed. When the coalition collapsed, a race started to implement the plan before a new government would arise, the reason being the fact that it Is not clear when next year’s state budget will be passed, if at all.
Since it is highly likely that 2023 will begin with a continuation budget based on one twelfth of the 2022 budget each month, then as far as the Lapid government is concerned as many projects as possible need to be started in order to ensure continuity. This means that if Netanyahu forms a government he will be committed to the five-year plan.
The political Netanyahu or the economic one
Netanyahu’s position ("We’ll draw up a new plan") to some extent contradicts his past policy. He previously thought that the advancement of Arab society was highly important for Israel as a whole, for the country’s economic and social metrics, and that it would be an important growth engine for Israel’s economy. So, in 2015, it was the Netanyahu government that promoted the famous Plan 922, which brought good results for the Arab population, among other things impressive growth in the numbers of Arab students at the universities and colleges.
A prominent Arab mayor told "Globes" that the legitimacy that Netanyahu gave to Arab society through Plan 929, and to Arab party Ra’am and its leader Mansour Abbas through his coalition talks with him, were what led to the new plan. "I’m sure that Netanyahu would have continued with the plan to support Arab society had he been prime minister. If he continues it now, it will help in the integration of Arab citizens into Israeli society, even more than the outgoing government. But if not, it will set us back in many ways."
What will Netanyahu do if he is elected? At the Globes Israel Business Conference he was asked if he would be the political Netanyahu or the economic Netanyahu. The answer to this question will give the answer to the question of the fate of the five-year plan. An economic Netanyahu will continue to promote the plan, perhaps with slight changes. A political Netanyahu, under pressure from his right-wing coalition partners, will probably delay the plan and introduce substantial changes into it.
The budget that has so far been given final approval, that is, actually transferred to government ministries, and published in calls for proposals, amounts to about NIS 4 billion. This is about 20% of the amount envisaged in the overall plan, a much higher proportion than is typical for the first year of a government five-year plan. As mentioned, this was deliberate policy of the Lapid government, aimed at ensuring continuity at least for the first half of 2023.
What has the money been spent on? The amounts in permits to commit to projects that have been approved or will be approved in the coming weeks show that the major sums are NIS 1.5 billion for transport in Arab society, NIS 400 million for education, and NIS 540 million for local authorities.
Talking to "Globes", Meir Bing, director general of the Ministry for Social Equality, said, "Netanyahu’s Plan 922 was an excellent plan, but it had shortcomings." He says that the current plan was drawn up from the start in collaboration with the Arab local authorities, and that this collaboration continues into the implementation stage through a permanent supervisory committee on which representatives of the National Committee of Arab Local Authorities in Israel sit.
Stepping on the brakes: Ayelet Shaked’s Ministry of the Interior
Bing says, however, that not all government ministries harnessed themselves to the effort. The heads of the Arab local authorities mainly point the finger at the Ministry of the Interior, headed by Ayelet Shaked. Their complaint is that Arab local authorities were discriminated against , since, they claim, "tenders that have been fixed and tenders in which organized crime is involved occur in Jewish and Druze local authorities as well," but the money keeps flowing and supervision of tenders is not strict.
Another complaint is about implementation of the plan. The National Committee of Arab Local Authorities in Israel says the Ministry of the Interior used leakage of money to crime organizations as an excuse to hold money back, and to make unreasonable demands. "We took the big transport tenders, the planning and construction of new neighborhoods, and the construction of public buildings, out of the hands of the local authorities, but we know how to deal with all the rest, and still the Ministry of the Interior takes things too far."
Ministry of the Interior director general Yair Hirsch rejects these claims, and says that his ministry is the spearhead of the five-year plan, and is rapidly implementing it. He says that there is no differentiation between Arab and Druze and other local authorities, and that the treatment in each case is in accordance with intelligence received from the police, and supervision is tight for Druze authorities as well. "We are committed to advancing the plan and making a success of it, and we are making rapid progress on it," he says. Last year, the Ministry of the Interior transferred NIS 340 million to Arab local authorities as grants meant to compensate for disparities, as part of Ra’am’s immediate demands.
On continuity into next year, Bing says, "It must be remembered that these are citizens of Israel entitled to equality in the provision of services. I estimate that there will be no substantial change."
Political stalemate will hold up the plan
Hassan Towafra, who as director of the Authority for Economic Development of Arab Society within the Ministry of Social Equality is directly responsible for implementing the five-year plan, says that it has achieved the closing of gaps, such as the rollout of optic fiber cable in Arab settlements, with almost 90% of Arab settlements scheduled for rollout.
Towafra is aware that if there is a situation of political stalemate, it could delay or even halt the plan, but he points out how the plan could nevertheless continue to move forward even in the event of a right-wing government. "Most of the contracts we concluded this year do not end at the end of 2022, but continue at least until mid-2023. We are working on most of the commitments not needing re-approval, and being able to use surpluses from 2022. Any government is entitled to make changes. I believe that the ultimate goal is to see the fruits of the investment in the economic status of the entire country."
Published by Globes, Israel business news - en.globes.co.il - on October 31, 2022.
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