Government in Israel is inefficient, with a high rate of political corruption and a low rate of law enforcement, according to Business Data Israel’s (BDI) government corruption index, based on indices examined by the Bank of Israel.
Israel’s rating is particularly poor in comparison with most developed countries. Israel’s alarmingly bad rating in the political stability index is worse than that of every Western country.
BDI general manager Tehila Tamir-Yanay said, “Israel’s particularly poor ratings for quality of government affect foreign investment in the country.” She added that deterioration in the security situation since late 2000, combined with the economic crisis in 2001-2003, had dragged down the rating for the quality of government in Israel.
The government efficiency index rates the quality of public services, including the professionalism of services personnel, bureaucracy, independence of political pressure, and government’s adherence to stated policies. Israel’s rating on this index was 80.8%, behind developed countries, such as the Netherlands, the UK, Germany, the US, France and Spain. The global average rating among developed countries for this index was 89.7%.
In law enforcement, which rates the credibility of the justice and law enforcement system, Israel’s rating was only 74.4%, behind Spain 85%, France - 88.9%, the US 92.3%, Germany 93.2%, the UK 93.7%, the Netherlands 95.2%, and the global average for developed countries 90.3%.
The government corruption index rates perceptions about the government’s use of authority and public officials exploiting their positions for personal gain. Israel’s rating on this index was 80.8%, far behind the 91.4% average for developed countries. Italy was the only developed country with a worse rating (74.9%) than Israel.
The regulatory framework index rates the degree to which government policy, such as supervision of prices, interferes with free market mechanisms. This index also rates the effectiveness of banking supervision. Israel’s 71.9% rating was lower than every developed country, and far below the 90.6% average for developed countries.
The political stability index rates risks to government stemming from violence and illegal activity, including terrorism. Israel got its worst rating, 15%, in this index, compared with an 83.5% average for developed countries. The Netherlands was highest with 88.3%, ahead of Germany 79.1%, the UK 71.4%, Spain 64.6%, France 63.1%, the US 60.7%, and Italy 56.3%.
Published by Globes [online] - www.globes.co.il - on August 3, 2005