As the government begins its 2005’s budget planning, the chairman of the Export Institute, Mr. Shraga Brosh, called upon the government to put the export sector at it’s top economic priority list.
According to Mr. Brosh, should the government adopt such a policy, the economy will enjoy an export led economic growth of 4% and reduce unemployment by 26,000 people in the first year and by 170,000 people at the end of a five years period.
Mr. Brosh reiterated that should the government wants to reduce unemployment rate and increase growth by about 4% - 4.5%, during 2005, it should embark upon a pro-export policy and devote the necessary budget to stimulate the export sector thus creating additional exports estimated around $5 billions per year.
In a press release Mr. Brosh outlined the issues the government has to decide upon:
- The government must devote specific short term financial resources to finance import of raw materials as well as short term export shipment finance.
- Improve long term financial instruments as well as project financing.
- Improve Israel’s bilateral trade agreements, expand technology co-operation agreements and create joint research and development funds .
- To define an employment level target in addition to rate of inflation target and budget deficit target.
- To keep the exchange rate of NIS 4.65 – NIS 4.70 per US$.
- To expand possibilities for participation of Israeli companies in international tenders as well as projects by devoting the necessary financial resources for the finance of long term projects.
- Participation of the government in overseas marketing efforts as well as risk sharing with private enterprises in long term projects.