Categories
privatization Israeli Economy Economic effects

History of privatization in Israel

Examples of the privatization techniques we mentioned in the privatization of government companies and we will give an example of the privatization of areas of responsibility that are of a distinctly state nature.

Privatization of government companies

The following are examples of some of the privatization tactics we represented in Chapter Three:
Amidar Company - Sale of some of the assets

The essence of the company

The "Amidar" company was founded in 1949 to build housing estates to provide housing solutions for new immigrants arriving in the State of Israel. In addition to construction, the company was assigned to engage in apartment rentals, assistance, financing, and mortgages for tenants. Later, the "Amidar" company expanded its goals and began supplying additional eligible groups.

Financial situation

The company, whose goals did not include the goal of maintaining profitability, maintained a budget balance until the 1980s. In the 1980s, the balance was broken because of the difficult economic situation (these were years of hyperinflation, of the bank stock crisis and the growing national debt), an ever-increasing stock of apartments (300,000 apartments in the early 1980s compared to 14,000 apartments in 1952), high maintenance expenses and difficulties in collecting rent and erosion of rent.

Factors privatization

1. Laying a foundation that owns the apartments will strengthen the tenants' willingness to cultivate their living conditions and quality of life and improve them.
2. Management and collection difficulties - the company found it difficult to collect the rent in full and in order
3. Difficulties in supervision - difficulties in preventing improper use of apartments, illegal invasion of property, construction irregularities and other offenses.
4. The low rent that can be charged from the tenants due to the nature of the population and the living environment.
5. Burden of increasing maintenance expenses.

Privatizations

The company uses the technique of selling the properties as its privatization policy throughout its years of existence - that is, one of the company's goals is to reduce its inventory of apartments by selling them to private hands in general and especially to the occupants of those apartments using different incentives.

Sources

• Akenstein Shlomo, Zilberlfarb Ben Zion, Rozewitz Shimon, 1998, "Privatization of companies in Israel and around the world."
• Ben Best Avi, 2001, “From Government Involvement to a Market Economy: The Israeli Economy 1985-1998,“ Am Oved ”, Tel Aviv; The Morris Falk Institute for Economic Research in Israel, Jerusalem.
• Halevi Nadav and Ruth Klinov, 1974, "Israel's Economic Development", Akademon, Jerusalem.
• Dr. Yitzhak Katz, 1997, “Privatization in Israel and the World,” Jerusalem, Packer Publishing Ltd.

• Berne Michel & Pogorel Gerard, 2004, “Privatization experiences in France”.
• Christoffersen Henrik, Paldam Martin, 2002, “Privatization in Denmark 1980-2002”.
• Goldstein Andrea, 2003, “Privatization in Italy-1993-2002”.
• Michael Parker,,2003 “The U.K privatization experiment”.

• Website of the Van Leer Jerusalem Institute, Haim Freshman, 2007, “The Limits of Privatization”.
http://www.vanleer.org.il/Data/UploadedFiles/econsoc/1/dispute5.pd

• "What is happening in the world?" Website, Yoav Peled, "Crime pays off - what can be learned from the American experience in the privatization of prisons?".
http://private.prison.googlepages.com/world

• NRG website, Yossi Greenstein, "The average salary in May dropped to NIS 7,428."
http://www.nrg.co.il/online/16/ART1/460/648.html
The website of the Haaretz online newspaper, Aryeh Dayan, "The sovereign Leviev promises to treat his prisoners well."
http://www.haaretz.co.il/hasite/pages/ShArtPE.jhtml?itemNo=650833&contrassID=2&subContrassID=2&sbSubContrassID=0
• Website of the Ministry of Internal Security, "Privatization of Prisons".
http://www.mops.gov.il/BP/OnTheAgenda/PrisonPrivatization
• Website of the Ministry of Internal Security, “Privatizing Israeli Prisons”.
http://www.mops.gov.il/NR/rdonlyres/25996BD2-B001-4F71-BE44-B080D6AAD3B8/0/PrivatizingIsraeliPrisons12_15.pdfAsdasd
• Knesset website, “Prison Ordinance Amendment Law”.
www.knesset.gov.il/laws/heb/FileD.asp?Type=1&SubNum=1&LawNum=1935

• The website of the British State Comptroller, Report 18/6/03
http://www.nao.org.uk/publications/nao_reports/02-03/0203700.pdf
• The site of the struggle for the privatization of prisons, position paper, Physicians for Human Rights, "Sin and its Punishment, Privatization of Prisons".
http://www.phr.org.il/phr/files/articlefile_1119784224709.pdf
• Amidar website, "Goals and Objectives".
http://www.amidar.co.il/Amidar/About+Amidar/Matarot.htm
• Arkia website, "company profile".
http://www.arkia.co.il/click/static_page?pageid=about_cmpny_hist&langcode=2
• The Jewish Agency's website, “The History of the Organization”
http://www.jewishagency.org/JewishAgency/Hebrew/Home/About/Info
• IEC website, "Summary of Financial Statements".
http://www.israel-electric.co.il/bin/ibp.jsp?ibpDispWhat=zone&ibpDisplay=view&ibpPage=IP&ibpDispWho=Investors&ibpZone=Investors&
• YNET website, Nurit Pelter, "The Ministry of Infrastructure and the Public-Services-Public-Electricity Authority will discuss the dispute over private electricity tariffs."
http://www.ynet.co.il/articles/1,7340,L-735829,00.html
• YNET website, Guy Mi-Tal, "The construction of the Sheri Arison power plant was postponed."
http://www.ynet.co.il/articles/0,7340,L-3526103,00.html
• The New York Times, Jennifer Steinhauer, For $ 82 a Day, Booking a Cell in a 5Star Jail

• Ripple Center website, Yael Hasson, 2006, three decades of privatization ”.
http://www.adva.org/view.asp?lang=he&catID=17&articleID=436