REPORT CARD - 03-Sep-96

REPORT CARD

(Excerpts from "Ma'ariv" Business Supp., Sept 3, 1996, pp. 16-21)

IN ANOTHER THREE DAYS, ON 6 SEPTEMBER, THE FIRST 100 DAYS (THE DAYS OF GRACE) OF THE NETANYAHU GOVERNMENT WILL END. EVERY GOVERNMENT'S ULTIMATE TEST IS THE TRIAD OF INTENTIONS, ACTIONS, AND RESULTS AFTER THREE MONTHS, IT IS ALREADY POSSIBLE TO BEGIN EXAMINING TWO OF THE THREE PARTS: INTENTIONS AND ACTIONS. CORRECT, 100 DAYS IS NOT A LOT OF TIME, BUT EVERY MINISTER HAS ALREADY HAD ENOUGH TIME TO SPEAK A LOT, TO PROMISE QUITE A LOT, AND TO ACT ON SOMETHING. THE BUSINESS SUPPLEMENT CHOSE THE TEN IMPORTANT ECONOMIC MINISTRIES AND EXAMINED ACTIONS OF THE MINISTERS HEADING THEM SINCE ENTERING THEIR JOBS.

FINANCE By Moshe Pearl

IF WE WEIGH INTENTIONS, WE HAVE TO GIVE A BREAK DUE TO THE OPENING CONDITIONS HE INHERITED, AND TESTING HIS ACTIONS, THE FINANCE MINISTER'S GRADE IS NOT BAD. BUT THIS IS A CONDITIONAL GRADE, AND IT DEPENDS UPON RESULTS.

The only way to assess the minister's work is via three methods: a test of intentions, a test of actions, and a test of results. In the instance of Finance Minister Dan Meridor, it is possible to relate to intentions, the partial implementation of his actions, but there is no serious way to even talk about results.

In the first phase, the Finance Minister should receive a high grade. His stated intentions were primarily correct, and this is valid not only in his style but also concerning substance. Concerning his style, Meridor did not enter the Finance Ministry as an elephant in a ceramic store. His actions are evidence of careful weighing of opinions. He does not throw people around. Just the opposite, the Director-General David Brodet stayed, department heads did not change, even the media advisor remained.

From a substantive standpoint, he is going in the correct direction. In general, he presents a world view continuing that of his predecessor Shohat, with a slightly less socialist emphasis. Meridor understands the burning problems, he looks at the economic situation through a general prism and therefore takes a more balanced approach regarding the conflict between the need to rout inflation and the high cost this demands from the economy.

But his status changes when we test his actions. The budget cutting plan that he passed through the government deserves an assessment of its raison d'etre. The treasury brought NIS 1.66 billion in cuts to the government, yet came out with NIS 850 million and all the important, substantive changes can be found in the concessions. If we weigh the intentions, given the opening conditions, and test the actions the Finance Minister's grades are not bad. But they are conditional grades, and the condition will be the results.

NATIONAL INFRASTRUCTURE MINISTRY By Raviv Drucker and Yael Carmi-Danieli

FOR THE TIME BEING, SHARON IS LEARNING ABOUT THE OFFICE: IN OTHER WORDS, THE MINISTRY'S AREAS THAT HE DOES NOT YET KNOW. IN THE SHORT TIME HE HAS HAD, HE HAS MANAGED TO PROVE THAT HE UNDERSTANDS QUITE WELL WHAT MUST BE DONE IN THIS NEW MINISTRY.

One can take issue with the actions and opinions of Ariel Sharon. But it is hard to find fault with his performance capability. Sharon's 100 days of grace have not yet ended. It will be recalled that he entered his new job a few weeks after everyone. It seems that the wounds inflicted on him upon entering office have already hardened. Sharon himself says: In my opinion, there is no ministry more interesting than this one.

In the short time that he has had, he has managed to prove that he understands quite well what must be done in this new ministry. All the appointments that he has made until now, have based purely on professional background. Sharon is intelligent enough to understand the far-reaching potential on the isses of developing the railroads. From the first minute, he stubbornly requsted (and received) this sphere, and the expections here are enourmous. In the meantime, he has already managed to order the re- opening of the Tel Aviv-Ashdod line.

Intentions are not wanting, yet Sharon has not yet done very much. He understands that in such professional and important areas there is no room for a "shoot from the hip" approach. It is anticipated that in the near future, several major decisions will come from this new office. Then, and only then, will we know what Sharon has cooked up for us. In the meantime, the signs are positive.

One last comment: Many fear that Sharon will use his office to create political facts. Perhaps. Until now he has advanced the paving of two controversial roads in the territories and has spoken on the right to establish new settlements. It is forbidden to blaspheme Sharon's power, but it should not be forgetten that his ministry essentially has no authority in the territories.

TRANSPORTATION By Gil Melamed and Ami Ettinger

LEVY CONTINUES, WITHOUT SERIOUS EXAMINATION, THE LEGISLATION BEGUN BY MINISTER KEISSAR, AIMED AT RAISING THE CEILING OF FINES FOR TRAFFIC VIOLATIONS LEGISLATION THAT WAS ACCEPTED WITHOUT TAKING INTO ACCOUNT THAT IT WILL RICOCHET.

The best thing that happened during the first 100 days in the Ministry of Transportation is only indirectly connected to the new minister, Yitzhak Levy. In the wake of the "new order" that the Netanyahu government set for the portfolios and authority of the ministers, responsibility for the Israel Railway was taken from the Transportation Ministry in favor of the governmental bulldozer, Ariel Sharon.

Levy made quite a few concessions during his first 100 days, including, among other things, giving up an entire ministry Energy. To his credit it can be said, that he did this on behalf the whole government as opposed to personal and party interests.

But Levy's most difficult problem in the first 100 days of his office is, without a doubt, dealing with road accidents. Although this did not begin in his era and will not end with it, the bruising work necessary to reduce them has not yet been carried out.

INDUSTRY AND TRADE By Hadas Manor

IN THE FIRST 100 DAYS IN OFFICE, SHARANSKY HAS PROVEN HE IS A QUICK LEARNER. ASIDE FROM THIS, IT HAS BECOME CLEAR THAT HE IS BOTH THOROUGH AND DECISIVE.

In contrast to his predecessor, Natan Sharansky was appointed without any prior involvement in economic activities in Israel. Nevertheless, in the first 100 days in office Sharansky has proven he is a quick learner. Aside from this, it has become clear that he is both through and decisive.

An important point in his favor is that he withstood pressure to appoint members of his party, Yisrael Ba'aliya or Likud to senior positions. Sharansky has, until now, made professional appointments free from political considerations.

Already in the 100 day grace period, Sharansky changed the policy emphases. Among the most obvious a preference to assist technology, hi-tech and export industries having a relative advantage in competition abroad, at the expense of basic industries like food and textiles.

CONSTRUCTION AND HOUSING by Raviv Drucker

PORUSH SAID THAT HE DOES NOT INTEND TO ISSUE DECLARATIONS OR MAKE PROMISES. SINCE THEN, HARDLY A DAY GOES BY WITHOUT PORUSH ISSUING SOME DECLARATION OR MAKING SOME PROMISE. TRUTHFULLY, THERE IS NOT VERY MUCH WHICH IS TANGIBLE IN THIS THUNDER AND LIGHTNING.

The Construction and Housing portfolio is in the hands of the Prime Minister, which leaves a broad field of action by Deputy Construction and Housing Minister Meir Porush (United Torah Judaism). When he took up office, Porush said that he did not intend to issue declarations or make promises. Since then, hardly a day has passed without Porush issuing some declaration or making some promise. Truthfully, there is not very much which is tangible in this thunder and lightning. Currently, most actions border on mere media declarations.

Porush, who is trying with all his might not to be depicted as a sectoral Construction and Housing Minister, has been compelled to make promises to everybody: the Arabs, confrontation line communities, etc. The tactic is simple: if we give to everyone, no one will be able to criticize us for giving to the ultra-orthodox as well. The problem is that the Finance Ministry is not exactly showing sympathy for the Deputy Minister's plight.

More than three months have passed, and the real estate sector still has not felt Porush. In all fairness, it must be pointed out that almost all of the important cards have been taken away from Porush. The financing is in the hands of the Bank of Israel and the banks. The manpower issue is in the hands of the Labor and Social affairs Minister and the Interior Minister. And a segment of marketing land is in the hands of the National Infrastructures Minister. This is a problem. It must also be said that Porush is full of desire to both study and understand the sector. The question is if the fruit of his studying will ripen soon, before the sector enters a dangerous whirlpool, primarily a complete construction freeze.

TOURISM by Ami Ettinger

KATZAV HAS NOT SEEN FIT TO PASS THE SENSE OF CRISIS IN THE TOURISM SECTOR TO THE CABINET. AND HIS BUDGET WILL REFLECT THIS.

Tourism Minister Moshe Katzav heads a ministry whose operational powers are not great, mainly because the budgetary level is low. In order to bring the problems in his field to the public and national agenda, he must act properly. During the previous government's term, Uzi Baram succeeded in doing this very well; with him, the solutions with the backing of the Prime Minister were not long in coming. Katzav (Likud) entered the Tourism Ministry during a very difficult period for incoming tourism to Israel. Even though Katzav has put himself through an intensive study regime in order to learn the problems, and even met in London with his Ministry's representatives in Europe, he has not seen fit to pass on the sense of crisis to the Cabinet, and has been satisfied with Netanyahu's assurance that he will raise the problem in his meetings with leaders abroad.

COMMUNICATIONS by David Gordon

UP UNTIL NOW, THE ENERGETIC AND CHARISMATIC LIVNAT HAS DEMONSTRATED GREAT DILIGENCE IN LEARNING THE ISSUES ON THE AGENDA. AFTER 100 DAYS, IT IS POSSIBLE TO SAY THAT ALREADY HAS A GRASP OF MOST OF THE COMPLICATED CONCEPTS ON THE AGENDA.

A different breeze is currently blowing through Communications Minister Limor Livnat's office. The "rookie" minister has seen fit to identify what U.S. Vice President Al Gore discovered, and which Shulamit Aloni refused to learn: the great potential of the communications market in the age of the cellular phone and the Internet, both as an important economic ministry and as an excellent promoter of public relations.

Up until now, the energetic and charismatic Livnat has demonstrated great diligence in studying the issues on the agenda, and after 100 days, it is possible to say that she already has a grasp of most of the complicated issues on the agenda. Despite her declaration that all of her predecessor's decisions are "open to discussion," she decided to leave the previous Director-General, Shlomo Wachs, in place, and has thus assured a measure of continuity in the processes.

AGRICULTURE by Dalia Mazouri

THE AGRICULTURAL SYSTEM IS SO COMPLICATED IT INCLUDES PRODUCTION COUNCILS, 16 GROWERS' ORGANIZATIONS AND 12 SETTLEMENT MOVEMENTS FROM ALL SHADES OF THE POLITICAL RAINBOW THAT IN THREE MONTHS IT HAS BEEN DIFFICULT FOR RAFUL TO IMPLEMENT UPHEAVALS.

At the Ministry of Agriculture, 100 days are not enough to carry out an upheaval. But the agricultural system is so complex it includes production councils, 16 growers' organizations, and 12 settlement movements from all shades of the political rainbow that in three months, it has been difficult to carry out upheavals. But there is a sense of an impending upheaval, and the farmers are certainly anxious over the future.

"The system is very confused because there are declarations and intentions, and it is not clear where things are going. Everything is in a fog," say the growers. What is clear, is that in its [first] 100 days in power, the new government has succeeded in angering almost all of the growers' organizations. "Where is the Agriculture Ministry which should protect us? Why don't we hear from them?" the farmers are murmuring.

ENVIRONMENT by Dalia Mazouri

IT HAS CERTAINLY NOT BEEN EASY FOR EITAN TO STEP INTO THE SHOES OF HIS PREDECESSOR, YOSSI SARID. THE LATTER DID MUCH IN THE ENVIRONMENT FIELD AND PUT THE ISSUE ON THE PUBLIC AGENDA FOR THE FIRST TIME IN THE COUNTRY'S HISTORY.

At the Ministry of the Environment, it is possible to see more results. First, a Judea and Samaria District has been established at the Ministry which includes the allocation of funds, positions, and joint Ministry-Civil Administration work plans to resolve environmental problems neglected over the years. Talks with the Palestinians on environmental issues have also been resumed. Rafael Eitan is also the minister of this ministry, but the Ministry Director-General Nehama Ronen is properly managing the ministry's affairs and achieving results. It was not easy for Eitan to step into his predecessor Yossi Sarid's shoes. The latter did much in the environment field and put the issue on the public agenda, for the first time in the country's history.

LABOR AND SOCIAL AFFAIRS by Yehuda Golan

YISHAI, THE YOUNGEST MINISTER IN THE CABINET, PREVENTED A CUT IN CHILD ALLOWANCES WHICH WAS SUPPOSED TO TAKE EFFECT APPROXIMATELY TWO MONTHS AGO.

Labor and Social Affairs Minister Eli Yishai (Shas) is the youngest Cabinet minister, is still studying the ministry which he received, but even so, despite the fact that he has never dealt with the labor and social welfare fields at a ministerial level, it is already possible to record several successes for him. First, he succeeded in preventing a 5% cut in his Ministry's budget immediately following the establishment of the government. Second, he prevented a cut in child allowances, which were supposed to take effect approximately two months ago. But beyond this, Minister Yishai is now focusing on reducing the number of foreign workers in Israel, and has been successful, at least in the planning stage. The implementation stage i,e. the expulsion of the foreigners will be Yishai's big test.