The gaps between the Jewish and Arab population in Israel are significant in terms of GDP per Capita. Yet while closing these gaps and utilizing the economic potential of the Arab sector depends primarily on governmental policies, it also requires dealing with communal obstacles within Arab society.
Integrating the Arab population into Israel’s economy is essential if Israel wants to carry out an economic ‘leapfrog’ and reduce gaps vis-à-vis the 15 leading countries in terms of quality of life (See: ISRAEL 15 Vision).
However, there are several notable communal obstacles within Arab society such as the failures of the Local Authorities (which suffer from unprofessional management, weak legitimacy and lack of resources), the phenomena of Hamulot (clans), the exclusion of women from the work force, the nature of ownership of land, the special difficulty Arab entrepreneurs experience in raising capital and the issue of polygamy.
The Reut Institute recently completed a paper on these issues. To read more, click here.

