GOI VISION FOR GALILEE AND THE NEGEV, A TRIP BACK

UNCLAS SECTION 01 OF 02 TEL AVIV 003973

SIPDIS

E.O. 12958: N/A
TAGS: ECON PREL SENV IS ECONOMY AND FINANCE GOI INTERNAL ISRAELI SOCIETY
SUBJECT: GOI VISION FOR GALILEE AND THE NEGEV, A TRIP BACK
IN TIME

REF: A. 04 TEL AVIV 02901

B. 04 TEL AVIV 03085

C. 04 TEL AVIV 03393

D. 05 TEL AVIV 02537

E. 05 TEL AVIV 02540


1. (SBU) SUMMARY: As the GOI moves to develop its strategic
policy plans for the Negev and the Galilee a closer look at
the failures of the past efforts is instructive. The three
plans - the National Outline Plan 31 (1990) which served to
find ways to absorb immigration from Soviet Union and
Ethiopia, Israel 2020 Master Plan (1996) which was designed
to promote population growth for the region in general, and
National Outline Plan 35 (1997) which aimed to develop the
Negev by introducing infrastructure and settlements all
shared common shortcomings. These plans failed to
materialize due to a lack of funding caused by resource
allocation to the territories and the inability of ministries
to coordinate effectively. END SUMMARY.

--------------
Three National Plans
--------------


2. (SBU) Over the last 15 years, the GOI developed three
national development plans: National Outline Plan 31, the
Israel 2020 Master Plan, and National Outline Plan 35. The
Center for Research and Development in the north, which
studies social issues related to employment and population
growth, indicated that although these plans were national in
nature, focus was primarily on the Negev. This focus was
centered on population migration and expansion from central
Israel, southward.


3. (SBU) National Outline Plan 31 was put together at the end
of the 1980's - early 1990's in order to assess the
development and construction necessary to quickly absorb the
mass immigration of immigrants from the former Soviet Union
and Ethiopia. Contacts at the Negev Center for Research and
Development at Ben Gurion University indicate that many of
these immigrants went to, and still remain in the Negev.


4. (SBU) The Israel 2020 Master Plan was put together in
1990's and is a long range plan focusing on developing Israel
over the next 20 - 30 years. The plan focuses on reinforcing
and increasing the population in the Galilee and the Negev.
The 2020 plan takes into account expected population growth,
and calls for a balanced dispersal of population in the Be'er
Sheva and Galilee regions. This plan could be considered a
demographic plan, addressing a need to increase Jewish
communities.


5. (SBU) National Outline Plan 35 is still waiting government
approval. It calls for developing the Negev, in particular
the Be'er Sheva region, as a major metropolitan area.
Investment in transportation development, including trains,
in order to bring the peripheral areas closer to the center
is a major component of the plan. Development of regional
employment centers, growth of rural areas, and developing
peripheral areas highlight GOI desire to expand into the
Galilee and Negev regions. Environmental issues are also
addressed in this last plan.

--------------
Drawer Full of Plans, Success or Failure?
--------------


6. (SBU) In spite of the fact that various plans have been
conceived, planned, and discussed, overall execution has not
been successful. According to a 1999 GOI report, every
existing plan regarding the Negev remained in the planning
stage, and was not implemented. These plans were
comprehensive, but they lacked national implementation. Plans
talked about the establishment of an industrial area in the
Negev, without providing solutions as to how to attract
industry there. The most recent GOI evaluation published May
2005 echoed a similar theme that planning lacked a successful
employment scheme and was destined to fail.


7. (SBU) Regarding the Galilee, Ministry of Interior research
shows that due to a lack of resources companies were
unwilling to migrate to the north and vital employment
generation never materialized. GOI reports say that the
government decisions to establish settlements between 1997 -
2003 did not take employment generation into account. They
also say that the government and planning authorities were
not dealing with the economic, social, planning, and
environmental implications of adding more than 35 new and
renewed settlements in the Negev and more than 20 in the
Galilee region. Another criticism is that the government did
not properly coordinate its planning with the regional
councils before making decisions.


8. (SBU) Uri Keidar of the Haifa and Northern District
office, who deals with economic issues for the Galilee
region, said that in the past, there was an interest in
developing and expanding industries in Galilee, but that lack
of money and the second Intifada affected the region's
economic development. Keidar said that GOI investment grants
to the Galilee region went from 38% to 24%, when Sharon first
became Prime Minister and note that when grants for
investment are low, it is not worthwhile for investors
because transportation costs remain high. They said in the
past the budget for development infrastructure was around 430
million shekels a year. The 2005 budget has cut this amount
to 43 million shekels. The GOI has no five, ten, or 15 year
plan for development in the Galilee, said Keider, since each
ministry sees its own interests. Although the 2005 budget
includes a government decision to develop the Galilee region,
no money has actually been allocated, he said.


9. (SBU) Chaim Fialkoff, senior Director General from the
planning and coordination office in the Ministry of
Construction and Housing said the main reasons why the
Galilee and the Negev plans were not fruitful in the past is
because of historic resource allocation to the territories,
especially Gaza redeployment. He said lack of coordination
between ministries responsible for developing the Galilee and
the Negev was another factor. Fialkoff also indicated that
the disengagement from Gaza was now providing an opportunity,
allowing the GOI to focus on developing the Galilee and the
Negev.

--------------
New Momentum
--------------


10. (SBU) In October 2004, a conference was held on
developing the Negev, with the result a concept called the
"New Israel in the Negev" Plan. The idea is that the Negev
become an area that is able to attract people, with the aim
of doubling the population in the area by 2020. This was the
first precursor to a session devoted to the Negev development
at the annual Herzliya conference in December of 2004. In
March 2005, the planning process for the Negev and the
Galilee development was approved by GOI. In April, planning
process was initiated by GOI and Daroma, a private company
contracted to assist the GOI in its efforts to plan for the
Negev development (septel). Daroma and GOI ministerial teams
are tasked to integrate various educational, infrastructure,
settlement, housing, and Bedouin plans as part of the grand
plan to develop 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