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Delivering on Economic Prosperity in Israel
Article

Delivering on Economic Prosperity in Israel

How Monopolies Are Hampering the “Start-Up Nation”


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Editorial Rating

8

Qualities

  • Innovative

Recommendation

Israel’s economy – a fertile incubator for tech start-ups, perhaps rivaled only by Silicon Valley – stands out for excessive market concentrations across most of its industrial and service sectors. According to economist Dany Bahar, the Israeli middle class isn’t benefiting from the nation’s vibrant economy due to its high consumer prices, partly the result of monopolies. Thus, Israelis advocate political efforts to lower their cost of living. getAbstract recommends this insightful article on Israel’s economic challenges to analysts, policy makers and executives.

Take-Aways

  • Despite Israel’s innovative tech start-ups, the country stands out for high market concentrations across most economic sectors.
  • Increased imports to compete with local products would help lower consumer prices.
  • Regulatory red tape might account for at least some of the country’s high costs in banking and construction.

About the Author

Dany Bahar is a global economy and development fellow at the Brookings Institution.


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