Thursday, October 02, 2008

Netanyahu: My Policies Worked


Hillel Fendel

Opposition Leader Binyamin Netanyahu, currently favored to become Israeli Prime Minister after the next national elections, says Israel is doing relatively well financially because of the policies he set in place as Finance Minister three years ago. Netanyahu, who served as Finance Minister from 2003 until 2005, brought Israel towards a more liberalized economy, while slashing social benefits in the process. Israel's GDP growth rate increased as a result, and Netanyahu has said that social benefits can now be restored to some extent.

"The reason why we are where we are and are taking this world crisis relatively well," Netanyahu said in a special pre-Rosh HaShanah interview, "is precisely because of the economic revolution I brought about." He was speaking with the Hebrew news site Walla.

"Before I was appointed Finance Minister," he said, "we faced collapse. You have to think what would have happened to us had I not carried out that economic plan. The reason we are in a good position now is because of the growth of the last five years, the rise in wages and the help to the weak. All these things made the Israeli economy more stable."

Analyzing the world economic crisis, Netanyahu, who earned the equivalent of an MBA from the MIT Sloan School of Management, said, "The crisis stems from a certain problem [in the free-market economy] that must be fixed - but this doesn't mean to throw out the baby with the bath water. We must institute improvements just like they did after the collapse of Wall Street in 1929; all the talk about abandoning the free economy are totally baseless."

"What allows the U.S. government to intervene is because it is a free government," Netanyahu added. "Would it be better to be like North Korea, which can't put down even one dollar? Only dynamic and free economies can fix and improve themselves, and that's what will happen this time as well. We must take advantage of the crisis to strengthen our growth and to become among the best-placed economies in the world market."

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