Flug: Israeli brainpower fueled growth for 37 years, but is hitting a wall

By
May 25, 2016 18:28

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

Israel's brainpower - its human capital - helped fuel its growth from an agricultural economy to a high-tech leader. All that may be about to change because of misaligned, ineffective, and low-quality education, Bank of Israel Governor Karnit Flug warned Wednesday.

Speaking at the Israel Democracy Institute's Eli Hurwitz Conference in Jerusalem, Flug noted that almost half of Israel's economic growth from 1974 to 2011 was attributable to increases in human capital. According to an OECD study, however, human capital's contribution to growth was expected to be near zero in the next 15 years, among the lowest in the OECD.

"We do not have relative advantages compared to the rest of the world, other than human capital and our innovation and creativity." Flug said. "As such, these trends are worrisome."

Even now, Israel's GDP per capita - a measure of wealth and productivity per person - is 40% lower than that of the United States. Without changes, the gap would not only remain static, Flug said, but increase.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Breaking news
November 14, 2018
Magnitude 6.1 quake hits Russia's Kamchatka - USGS

By REUTERS