Available in Arabic and Hebrew
This research aims to deduce the causes of low welfare of the children of the Arab minority in the State of Israel: the continued discrimination against them and their exclusion from the economic process. The report investigates the aspects stemming from economic policies directed towards the Arab population, especially since the 90s. The economic research focuses on merging politics and economics: understanding the relationship between the nation and the economy helps in understanding the reality of the economy for minority children.
The research finds that the fundamental cause of the barriers to Arab development and economic growth is in government policies that serve to deepen the inferiority of the fundamental structures in the Arab economy. The State maintains the division of the economy and the labor market between the Jewish and the Arab sectors in order to maintain the structural inequality. The system prefers Jewish workers and withholds economic resources from the minority Arab community. The system gives preference to the Jewish sector with regard to economic resources. Thus in the absence of free market rules between the two economies, and considering the non-neutrality of the state in the economic space, the institutionalized policies serve the goals of Jewish society and the preservation of the status quo.
The research concludes that the architects of economic policies towards the Arab minority is derived primarily from the economic ideology of Zionism. If the system underwent a transformation to a liberal economic system and adopted the ideals of the free market and globalization, current policies would be forced to change and the system would be better capable of confronting problems of unemployment and poverty in the country in general.