Sikkuy Discrimination of Arabs harms growth

1.4% of Investment Promotion Center grants were directed to Arab enterprises in 2003 NIS 45 million of NIS 3.3 billion.

“Adhering to the historic format of massive development for Jews and neglect Arab citizens will deepen inequality, generate frustration and intensify tensions,” states Sikkuy The Association for the Advancement of Civic Equality in Israel in a new policy paper on the post-disengagement plan for developing the Negev and Galilee.

Sikkuy says unless the human potential of the entire population is realized, because of discrimination, the country’s potential economic development will be severely curtailed. Sikkuy calls for a policy to close gaps and to “Remove procedural barriers and position the Arab communities in the Negev and Galilee as direct targets for development, on equal terms with the Jewish communities.”

Data indicate that 62% of Israeli Arabs resided in the north and south of the country in 2003, and government policies toward these areas therefore affects the majority of the country’s Arab population.

Sikkuy claims there are indications that the present development plan for the Negev and Galilee, which will be partly funded by the US following the disengagement, does not include Arab communities. It further claims that while the development of Jewish communities was carried out through massive investment, no Arab community has been founded.

Sikkuy claims that most Arab communities have no outline plan, making them ineligible for mortgage aid, and public projects, infrastructures, and industrial parks cannot be built.

Sikkuy writes, “In 2003, the Investment Promotion Center approved NIS 3.3 billion for new enterprises or the expansion of existing ones, of which NIS 45 million was directed to Arab communities 1.4% of the total amount.”

Sikkuy recommends, “Stipulate criteria that are consistent with the existing reality and ensure that Arab citizens are able to benefit from the special allocations for the development of the Negev and Galilee.” Criteria should be set to enable Arab businesses to utilize benefits accruing to businesses in Development Area ''A'', which requires changing these criteria.

Sikkuy writes, “There exists in outlying areas in Israel a chasm of inequality between Jews and Arabs, which threatens to bring the two sides to decline and collapse… The anticipated momentum for development in the Negev and Galilee offers an historic opportunity for pursuing the goal of equality.”

Published by Globes [online], Israel business news - www.globes.co.il - on August 9, 2005

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