The Economist explains that two sectors of Israeli society do not take a full part in the work force – the Ultra Orthodox and Israeli Arabs. Unless more of them start working “economists fear that…growth will be sluggish and the taxes of those who do work will have to support an even heavier burden”
The Reut Institute has previously discussed the challenge (and untapped potential) of Ultra Orthodox not taking part in the work force and has warned that Israel’s inability to solve it will result in the weakening of the Israeli middle class and could lead to a brain drain. Ultimately, its solution requires inter agency coordination.
Key Documents
The Charedi Challenge to Israel’s Prosperity
The Charedi Challenge: Adaptive not Technical
The Charedi Challenge: Policy Recommendations
The feature also states that there is increased tension between Arabs and Jews in Israel as well as growing demands by the Arab minority for collective rights. It quotes the head of Adalah who promotes one bi-national state instead of the traditionally accepted Two State solution.
Reut has written about the increased ‘internationalization’ of the issue of Israeli Arabs as well as their growing ‘Palestinization’ and other growing trends within the sector.
Key Documents:
Between Adalah’s ‘New Constitution’ and Annapolis
Adalah’s New Proposal: A Dramatic Shift

