Ministry of Economic Strategy (Israel)

The consulted records do not establish a standalone Israeli ministry dedicated exclusively to economic strategy under that name. A list of ministries in the 32nd government, formed in March 2009, identifies Finance, Industry and Trade, and Strategic Affairs as separate ministries, but contains no entry for a "Ministry of Economic Strategy."[4] The April 20, 2020 coalition agreement likewise identifies the Ministry of Economy and the Ministry of Finance as distinct entities assigned to different political blocs and does not identify a Ministry of Economic Strategy.[5]

A February 29, 2012 Congressional Research Service report does list "Minister of Economic Strategy" among the concurrent posts held by Prime Minister Benjamin Netanyahu.[1] The report does not explain whether this was a portfolio designation attached to the prime minister or a ministry with a separate administrative structure. Taken together, the consulted sources document the ministerial title but do not establish a standalone institution named the Ministry of Economic Strategy.

Among the institutions in the consulted sources, the clearest formal body operating at the level of national economic strategy is the National Economic Council, which began operating within the Prime Minister's Office in 2006.[2][3] It serves as the prime minister's economic strategic body and as "a professional hub to the government's socio-economic strategy," supporting decisions through current data, professional analyses, and long-term systematic planning.[3] Its duties include proposing measures to encourage growth and reduce economic disparities, commenting on proposed state budgets, and preparing professional opinions on economic matters before the government.[3]

The Council's status and powers have not been anchored in legislation. A government resolution in 2006 called for such legislation, but a draft bill prepared in 2013 had still not been advanced by the Prime Minister's Office as of December 2022.[3] A 2024 Begin-Sadat Center study further notes that the Council's socioeconomic assessment is not incorporated into a formal national strategy document. The study characterizes Israel more broadly as lacking a formally written overall national strategy, with work in core areas undertaken only from time to time and only partly implemented.[2]

The State Comptroller also found significant gaps in the Council's operational output. June 2015 was the last time a full strategic situation-assessment report was submitted to and discussed by the government; reports prepared in 2020 and 2022 were not presented because the Prime Minister's Office did not grant the Council permission to do so.[3] Between 2016 and 2020, the Council carried out 99 projects, of which proposals for government resolutions were submitted for 36.[3]

Within the Ministry of Economy and Industry, a dedicated Strategy and Policy Planning Department carries out long-term planning functions at the ministerial level.[6] Its responsibilities include managing annual and multi-year work plans, overseeing research and information systems, developing policy programs, conducting evaluation processes, and monitoring government decisions that relate to the Ministry of Economy and Industry.[6] This department operates as an internal planning unit rather than as a top-level governmental body with cross-ministry authority.

A concrete effort to formulate a comprehensive long-term economic strategy was reported in 2011, when the government tendered for external assistance and awarded a contract to the RAND Corporation, partnering with Israeli consultancy Shaldor, with a budget of up to NIS 3.5 million.[7] RAND's team was to be led by economist Steven Popper.[7] Prime Minister Benjamin Netanyahu and Finance Minister Yuval Steinitz appointed National Economic Council head Professor Eugene Kandel and Finance Ministry Director General Haim Shani to lead the strategy's formulation, with the stated goal of raising Israel to the status of one of the countries with the highest standard of living for all its citizens.[7]

A steering committee for the initiative included Bank of Israel Deputy Governor Karnit Flug, Finance Ministry Budget Director Udi Nissan, and Ehud Prawer, head of policy planning in the Prime Minister's Office.[7] A senior source involved in the project was quoted as saying, "We are trying to bring into this project as many people as we can in order to create as wide a consensus as possible."[7]

Israel's economic-strategy functions are spread across institutions rather than assigned in the consulted sources to one ministry under the queried name. In a broad-national-security analysis, the Ministry of Finance is described as the institution that comes closest to seeing the overall governmental picture because it prepares the national budget. The same analysis emphasizes that the ministry approaches issues from its own institutional perspective and is not responsible for analyzing non-economic strategic threats.[8]

The precise institutional meaning of the queried title cannot be confirmed from the available sources. A ministry list for the 32nd government in 2009 and the April 20, 2020 coalition agreement do not identify a "Ministry of Economic Strategy."[5][4] By contrast, the February 29, 2012 Congressional Research Service cabinet table lists "Minister of Economic Strategy" as one of several concurrent posts held by Netanyahu, without explaining the portfolio's administrative basis.[1] The evidence therefore supports the existence of the ministerial title in that 2012 table but is insufficient to establish a separately constituted ministry under the same name.