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Is Israel's 'startup nation' a mirage?

In an interview with Al-Monitor, economist Dan Ben-David warns that despite Israel's world-leading high-tech, its productivity remains among the lowest in the developed world, threatening rate of growth and quality of life.
An aerial view shows a large demonstration in Ha'medina Square calling for lower living costs and social justice in Tel Aviv September 3, 2011. Hundreds of thousands marched on Saturday for lower living costs in the largest such rally in Israel's history, bolstering a social change movement and mounting pressure on Prime Minister Benjamin Netanyahu to take on economic reform. REUTERS/Stringer

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Professor Dan Ben-David, a noted economist, has been observing Israel’s socioeconomic policies and studying their long-term implications with consternation for more than two decades. Over the last six years, serving as the executive director of the Taub Center for Social Policy Studies in Israel, his insight by which the Zionist project could ''end in tears'' has been deepening. He feels that ''the window of opportunity enabling us to save the state from collapse is getting smaller, as we reach the point of no return.''

In an interview with Al-Monitor, Ben-David explains why the path that the State of Israel is following in its 66th year will eventually lead to the system's collapse. He talks about why programs such as zero percent VAT on the purchase of new apartments or cell phone reform cannot reverse the trend, but also why he still maintains a certain degree of optimism: “I don’t believe that my generation will allow this country to collapse, after our parents’ generation built it.”

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