Vision to Reality: The Reut Blog

While the 2009 Galilee Conference primarily focused on economically developing the periphery, Reut believes that Israel should focus on utilizing the unique assets of many of its different regions.

The 2009 Galilee Conference recently took place in Kfar Blum and was attended by President Shimon Peres, Prime Minister Netanyahu, senior ministers, entrepreneurs and mayors of local municipalities.

Most speeches reflected a similar approach regarding economic development in the periphery according to which change will primarily result from initiatives by the central government. One example of such initiatives – called “change creating projects” – is the establishment of a medical school in the Galilee.

One (minor) aspect of the Prime Minister’s speech touched on the recognition that unique assets in any given region are relevant to its economic development. By way of example, the PM mentioned the unique advantages of the Galilee region, some of which are globally competitive (such as its landscape, archeology and holy sites for Christianity.) Those advantages can be promoted in order to strengthen tourism in the region.

The Reut Institute claims that great economic value can be found in unique assets (not just in tourism). We believe that in order to promote regional leapfrogging, there is a need to identify the unique values of each region, and to build globally competitive clusters around them. Similar claims were said by Stef Wertheimer, who built Tefen, an industrial area in the western Galilee. Wertheimer argues that while investment in infrastructure is necessary, it is also advisable to simultaneously promote creativity and innovation in the industrial sector.

As a first step towards a socio-economic leapfrog in the Galilee region, perhaps initial regional efforts should focus on turning the existing iron industry (which is particularly sophisticated) into a globally competitive cluster.