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Viewing cable 05TELAVIV7099, CONFERENCE PROMOTES NEGEV AND NEW MINISTRY

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Reference ID Created Released Classification Origin
05TELAVIV7099 2005-12-30 13:41 2011-08-24 01:00 UNCLASSIFIED Embassy Tel Aviv
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 TEL AVIV 007099 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON PGOV IS ECONOMY AND FINANCE GOI INTERNAL
SUBJECT: CONFERENCE PROMOTES NEGEV AND NEW MINISTRY 
SPEARHEADS IT 
 
1. (U) SUMMARY: The Globes business daily newspaper hosted 
several hundred private and public officials at a business 
conference where the GOI promoted its Negev Development Plan. 
 A panel of prominent GOI officials lead by former Vice 
Premier Shimon Peres presented the development plan, which 
calls for increasing the population of the Negev, providing 
economic assistance to the Bedouin, upgrading the education 
system and improving the housing infrastructure, relocating 
selected military bases to the area, creating industrial 
zones and high-tech parks, improving existing and building of 
new infrastructure, and cleaning-up of the Ramat Hovav 
chemical plant.  The speakers indicated that privatization 
and investment in the Negev will be a key element in ensuring 
that the economic plan succeeds.  Peres asserted that in 
2006, the GOI will increase the amount of money allocated for 
the Negev and that financial assistance promised by the U.S. 
for the region will be helpful.  In a subsequent meeting, the 
newly minted Ministry for the Development of the Negev and 
Galilee gave a presentation to the EconCouns on the GOI's 
plan to develop the two regions.  The officials described the 
structure of the ministry, which is now staffed by 13 people, 
and indicated that it will address housing, employment, 
infrastructure, and education issues, including support for 
the Bedouin.  In addition, the ministry will also begin the 
planning process for a Galilee development plan.  END SUMMARY. 
 
------------------------------------------- 
GOI Promotes the Negev at Globes Conference 
------------------------------------------- 
 
2. (U) On December 3, Globes held a three day business 
conference, where private and public officials took the 
opportunity to market their products and different business 
initiatives.  On December 4, the GOI showcased its Negev 
Development Plan, where prominent government officials 
promoted the economic initiative and talked about investment 
opportunities in the region. 
 
3. (U) The panel consisted of former Vice Premier Shimon 
Peres; Ilan Cohen, Director General - Prime Minister's 
Office; Lt. General Dan Halutz, IDF Chief of Staff; Eitan 
Wertheimer, Chairman - International Metal Working Companies; 
Felix Zandman, Chairman - US Vishay Intertechnology; Avishai 
Braverman, President of Ben Gurion University (BGU); Shmuel 
Rifman, Head  of the Ramat Hanegev Regional Council; Efrat 
Duvdevani, Director General - former Vice Premier Peres' 
office; and Haim Blumenblat, Chief Executive Officer - Daroma. 
 
4. (U) Peres expressed his thanks to GOI ministries for 
supporting the plan, which he said is reflected in the 
expenditure of 700 million New Israeli Shekels (NIS), 
approximately 156 million dollars, for the Negev.  He claimed 
that the GOI will allocate more money for the southern region 
in 2006, and that financial assistance promised by the U.S. 
for the Negev will help in this endeavor. 
 
5. (U) The other speakers in the panel highlighted various 
parts of the plan, such as the GOI goal to increase the 
population of the Negev through employment and housing 
initiatives, overhauling the education system and addressing 
problems in the Bedouin sector.  They emphasized that 
infrastructure support and clean-up of the Ramat Hovav 
chemical plant takes precedence, in order to create a clean 
environment that will allow basing of troops in the area. 
 
-------------------------------------------- 
New Ministry: Nexus for Developing the Negev 
-------------------------------------------- 
 
6. (U) On December 22, Efrat Duvdevani, Director-General for 
the newly minted Ministry for the Development of the Negev 
and Galilee gave a presentation to the EconCouns and Econoff 
on the GOI's plan to develop the Negev and Galilee.  The 
ministry is staffed by 13 people, mostly shifted from peres' 
office that dealt with Gaza economic development.  Duvdevani 
was accompanied by Jossef Avi Yair Engel, senior advisor; 
Yorma Dori, Policy and Interagency Coordination; Jill Marie 
Reinach, International Affairs and Communications; Orry Ben 
Porat, Director of Political and Economic Affairs; Noach 
Kinarti, Director of Projects; Yishay Sorek, Arab Affairs; 
and Ayelet Frisch, the ministry's spokeswoman.  Duvdevani 
expressed  gratitude to the Embassy for raising concerns over 
parts of the plan that were ambiguous, which she said has 
helped the ministry take steps to clarify and refine the 
plan. 
 
7. (U) Porat indicated that the ministry will spearhead the 
Negev Development Plan, which is estimated to cost 17 billion 
NIS, approximately 3.7 billion dollars, over the next ten 
years.  He noted that the GOI has already approved the plan 
and budgeted for it.  He said the ministry has five 
departments: Housing and Tourism, Infrastructure and Economic 
Development, Arab Communities, Project Leaders, and 
International Affairs and Communication. 
 
8. (U) Porat noted that the ministry will focus on major 
issues, such as the low level of income in the Galilee and 
Negev, approximately 15 percent lower than the national 
average; the high unemployment rate, which is 35 percent 
higher than the rest of the country; and the limited 
infrastructure, which he said creates a sense of isolation. 
He remarked that limited access to higher education is also a 
problem because it diminishes a young person's desire to 
pursue advanced education. 
 
9. (U) Regarding the Israeli-Arab population in the Negev and 
Galilee, he claimed that 25 percent of the Negev population 
is Bedouin and 55 percent of the Galilee population is Arab. 
He said this segment of the minority sector live in 
conditions of low income, high unemployment, and poor 
infrastructure.  He added that the Bedouin women have 9.8 
children on average, compared to the average birth rate for 
Arab women of four children and an overall national average 
of 2.4.  He noted that this worsens their already dismal 
socio-economic situation. 
 
--------------------------------------------- ----- 
Implementing in the Negev and Planning for Galilee 
--------------------------------------------- ----- 
 
10. (U) Porat said that the ministry's goal is to implement 
projects in the Negev and to begin planning for the Galilee. 
He noted that the ministry has been very successful working 
with the private sector and other GOI ministries, citing as 
examples 371 mortgage grants given to families in the Negev 
and 408 grants to families in the Galilee region, in order to 
facilitate population growth. 
 
11. (U) Porat also highlighted projects for the Bedouin and 
Druze communities.  He remarked that a solar electricity 
infrastructure grid was recently put into place in the 
township of Darijat in the Negev, which will benefit both 
Arab and Jewish inhabitants of that township.  He claimed 
that several Druze and Bedouin tourism initiatives and a R&D 
center dedicated to Bedouin health, agriculture, and 
community improvement is in the planning stage.  He stressed 
that vocational training and new education programs for 
Bedouin youth are all part of the Negev plan. 
 
------------------------- 
Ministry's Focus for 2006 
------------------------- 
 
12. (U) Sorek said that a committee made up of officials from 
the Prime Minister's Office, the Ministry of Finance, and the 
Ministry for the Development of the Negev and Galilee is 
planning projects for 2006.  He indicated that one of its 
goals is to find an optimal solution for the clean-up of the 
Ramat Hovav chemical plant, to enable the relocation of 
military bases to that area.  He noted that another goal is 
to find a way to plan for the restoration of the Dead Sea, 
and to construct an additional 8,000 hotel rooms in the area 
to support tourism.  He said that these projects will help 
create 20,000 jobs for Negev residents. 
 
13. (U) Porat said that regarding national projects, the 
ministry is going to work with the private sector to 
establish an industrial zone on the Jordanian side and a 
logistics center on the Israeli side, connected by a bridge. 
As for the Arab communities, he added, that education, 
employment, housing, and infrastructure projects will 
continue to be implemented and that spending in this area 
will grow in order to help "narrow" the gaps between the 
Jewish and Arab communities in the Negev. 
 
********************************************* ******************** 
Visit Embassy Tel Aviv's Classified Website: 
http://www.state.sgov.gov/p/nea/telaviv 
 
You can also access this site through the State Department's 
Classified SIPRNET website. 
********************************************* ******************** 
CRETZ