Oldal 2 [2]
OCR
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.
