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Not on Everyone's Mind: How Important is Economy in Israel's Parliamentary Race Set for 23 March?

© AFP 2023 / AHMAD GHARABLIThis picture taken on July 30, 2020 from the Mount of the Olives shows a view of an Israeli flag flying in Jerusalem with the Dome of the Rock seen in the background
This picture taken on July 30, 2020 from the Mount of the Olives shows a view of an Israeli flag flying in Jerusalem with the Dome of the Rock seen in the background - Sputnik International, 1920, 15.03.2021
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Security has always been the main concern of most Israelis and the reason they voted for this or that candidate. The outbreak of the COVID pandemic in 2020 changed that equation and pushed economy to the forefront.

Although Israel is rapidly getting back on track, following its successful vaccination drive, the economy is still in a fragile state.

Unemployment is still high, with February registering 18.2 percent. Poverty remains an issue, further aggravated by the raging coronavirus pandemic that has already killed more than 6,000 Israelis.

Do Israelis Really Care?

With slightly more than a week left until Israelis head to the polls, the economy is at the forefront of very few Israeli parties.

In fact, out of the 14 main political lists that will be running head-to-head in the upcoming polls on 23 March, only six focus on Israel's economy, and Ran Bar-Yoshafat, a public diplomacy expert, puts this down to a lack of interest by the Israeli public.

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"[Generally speaking] most Israelis don't understand much in economy. They are not that involved in it. But this time it will matter more, simply because COVID-19 and the economy became intertwined".

For many, the measures imposed by the government to curb the spread of the virus were a series of bad decisions that didn't work out well.

Such was the case with the decision to shut down bars and restaurants, something that led to the bankruptcy of many businesses, and such was the case with the closure of airports, hotels, and attractions, a move that affected Israel's tourism industry and that sent tens of thousands of employees home.

It was these measures that pushed many Israelis onto the streets and although protests against Prime Minister Benjamin Netanyahu have quieted down, they still sweep Israel during weekends.

Security, Not Economy Matters

But only a decade ago, the economy was not a factor that moved that many. In 2009, for example, it was security, especially the threats emanating from Lebanon and the Gaza Strip, that pushed Israelis to cast their votes in favour of a certain party.

A turning point, says Bar-Yoshafat, occurred in 2011, with the eruption of the social justice protests venting their anger at the high cost of living and the government's alleged unwillingness to address those concerns.

"Back then, Israel's economy was blooming. In fact, it was one of the most prosperous years. But the left-wing circles, whose power has dwindled since the Second Intifada [in 2000] saw that as an opportunity and they used that card to regain power".

Since then, socio-economic issues have been pushed to the front, but in a country where security penetrates every aspect of ordinary life, such concerns continued to play second fiddle. 

Prior to the pandemic, a 2019 poll found that although 45 percent of Israelis saw the state of the economy as their number-one factor for a vote, 30 percent were certain the element that would determine the outcome of elections would be security. Only 22 percent believed it would be the country's economy.

Not On Their Agenda

This is why, says Bar-Yoshafat, it is no longer surprising why Israeli parties put little emphasis on economy and ways to improve it.

Today, Israel has registered only one party, the New Economic Party led by Yaron Zelekha, that concentrates on the economy. Most media polls predict it will not pass the 3.25-percent threshold to get into the Knesset.

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The reason for this, says the expert, is because the Israeli public is "sceptical" that Zelekha's party will bring about the much-needed changes, and when other political formations promise much but elaborate little on how they are going to stick to their words, faith in politicians evaporates even more.

Take, for example, the main opposition party, Yesh Atid headed by Yair Lapid. Although its political platform dedicated 15 pages to socio-economic reforms, it says nothing about how to achieve them.

A similar situation has been observed with yet another party in the opposition, that of former Defence Minister Avigdor Lieberman and with Likud defector Gideon Saar, who vows to implement changes but doesn't mention how he intends to achieve these aims.

The only two exceptions to this are the Meretz party that has an entire economic team dedicated to the economy, and Naftali Bennett's Yamina who came up with a solid plan that would see taxes reduced within the space of five years.

"The economy is neither Meretz nor Yamina's main card. But Bennett realised that [this year people will vote] not only according to security but also because of the economy. And he came up with this Singapore plan. It is not perfect but it is better than anything else that has been offered so far".

Now what remains to be seen is whether these efforts will translate into electoral success and how many seats they will secure in the Knesset. Israel has eight days to find out.

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