Oldal 2 [2]
ee
- page two ¬
The immediate result of these measures became apparent
in rising prices and scarcity of money. Consumption of all non"
es ential goods = luxury items, smoking, entertabmment, traveling,
nevspapers etce - droped to an all time Lowe ömaller shops, small
businesses, luxury pypductions and certain local black mirket centers )
were in difficulty or had to close; consequently unemployment rose.
Cheap and Low quality products, unfit for the export, vere produced
in greater quantities and reappeared on the inner wWarkete
Now, after six months of that new economic experience,
financial circles in Tel Aviv evaluate the situation as followSe
They agree that a deflationary campaign was a vital necessity for the
country and that, by favoring greater efficiency anu freer competition |
the present Mapai rarty government had, without doubt, made an |
important concession in its basic socialist principles. |
However, it is openly criticised that the goverment gave way to |
labor pressuree AS prices and cost of living were rising, the
"Histadrut™, the Trade Union Federation, imposed an automatic wage and
salary increase. By this fact, most of the anti~inflationary effect
that was to be reached by the government's economic policy, was annuled
or at least dangerously threatened.
Another point that is vbolently criticized is the still insufficient
over-all planning, It is repea&tedly pointed out that many immigrants
to Istael are not yet properly absorbed into the country's. economic
life; that certain factories and piants are Still maintained which ¬
locking either capital or raw material - will never be able to
develop proper vitality; and finally thaté efficienty and productivity
are still the soge spots in Israel's sconomye
Here too, certain efforts are recognized. Recentiy for example, labor
and managment, in every more important plant, have agreed in setting
up so-called work pyyduction committees. These are mixed councils
responsible for studying the factorgés productivity, for suggesting
improvements and for supervising their application.
The situation in general is summarized as follows: while currency was
stabilized, the deflationary and export-favoring measures have proven
to be, partially at least, a failure.
The ricultural situation.
With the exodus of Arab populations, large areas of land
were abandoned, agricultural production fell and Israel bacame
greatly dependent on émport of essential goods and on relief from
abroade
fhe main problems with which the new Israel agriculture
was faced were such fundamental issues as irrigation, rural labor
forces and the set-up of trade, markets and cooperativese
Irrigation. A Jewish immigrant is unable to wowk a poor
dried-out soil as did the Arabs, as his standards of living and his
work hebits are uncomparably higher ones. Irrigation therefore becomes
an essential requirement: only where there is water, can Israeli soil
be settled and worked.
Rural labor. Numerous immigrants, having an urban background
24.