Government Intervention

“Market Failures, Government Failures or Logical Fail­ures” examines several sectors that recently made headlines and finds that politicians and journalists tend to blame the market in order to justify more government intervention. The paper rec­ ommends reducing the burden of bureaucracy and allowing markets to work for the benefit of the citizens of Israel.

The Chief Scientist Subsidizes the "Tycoons" and Big Corporations. It Gave grants to dozens of companies controlled by the Ofer and Dankner groups and to half of the largest 50 publicly traded technology companies The paper recommends stopping subsidies to large corporations by closing the various chief scientist programs. Another recommendation is to meanwhile increase transparency and publish a full list of grants by amount, company and year.


This study, published by the Stockholm Network, explores the economies of several non-European Union countries. Focusing on their economic freedom and market-oriented reforms, JIMS looked at the prospects and challenges of the Israeli economy for the report.

The chief scientist program is designed to support Israeli technological projects. The level of subsidization, as revealed in JIMS' position paper, is much higher than the level used by OECD members. In fact, the Chief Scientist office distributes freely taxpayers' money without filtering and sorting the best projects. Usually, the bulk of the budget is given to large companies with extended public relations budgets. 

This paper examines economic centralization and shows that the government allegedly opposed to centralization, is in fact funding it through grants and subsidies to big firms that operates as monopolies.

This paper reveals that state subsidies for culture paid by the Israeli government engender inefficiency and encourage dependency on the government.

This paper examines the policies of the government in terms of the incentives it creates. Policymakers , and the public taxpayers , should review the government's positions in light of these incentives , and reconsider whether the policy tools will acheive their goals or alternatively bring more harm.


The Bank of Israel policy of buying dollars to keep the exchange rate artificially higher than the market price is a risky business. In the past 6 months the dollar has lost about 15% of its value against the Swiss franc, about 10% against the Japanese Yen and about 30% against the Australian dollar, about 14% against the euro and -- 15% against the shekel. According to JIMS' lastest study, this policy subsidies the export industry but hurts the other sectors of the economy.

The paper examines public investment on orchestras , opera and musical institutions in Israel , and examines the effect of these investments on the freedom and quality of musical work in Israel .


The paper discusses how members of the Trachtenberg Committee identified the reasons the average Israeli finds himself in debt and pays too much of his wages to the government. The government is managing a centralized ,cartelistic economy, but the committee then devoted most to their report to planning an even more centralized economy with an even heavier tax burden