of the courses. the reform that the government recently adopted in the technological colleges is an important step in the right direction, and the recommendations that appear in this field in the draft report of the 2030 committee appointed by the government point to additional important measures that will help israel to better deal with the issue of professional 2 / 4 bis central bankers'speeches training. in the field of business capital : the high level of variance in the israeli economy is also reflected in the extent of innovation and the volume of investment in physical capital in different industries. in this area, the situation is good in exporting industries, particularly in software industries, but it requires improvement in the rest of the economy, compared to parallel areas in other countries. why is this happening? first, it is reasonable to assume that some of it is a natural result of market forces. israel developed a relative advantage in the field of high - tech, which makes successful investments and attracts select software and hardware people. however, the government ’ s involvement encourages these successful areas of activity directly and almost exclusively, thereby raising the costs of human and physical means of production for the other industries, which employ most of the workers in the economy. over time, the productivity of export companies will have difficulty continuing to grow, as companies that provide them with raw materials and services remain so far behind. therefore, a gradual change is required that will make support of the principle industries based on incentivizing the various areas of activity and industries by economic criteria that will lead the economy to higher returns on investment and government support — among exports, which can continue to benefit from it, and among domestic manufacturers. it is important to focus on running programs that support the removal of market failures that delay production and the implementation of unique knowledge, innovation, and management methods that can spill over to other companies. such a policy, alongside the effect of streamlining and the reduction of regulation, which i will discuss later, may contribute significantly to increased stock of capital in exporting industries and in domestic industries as one. in the field of infrastructure : the rate of investment in transport infrastructure in israel has been similar in recent years to the average rate of investment in oecd countries, but is far from what is necessary to reduce the gap in transit efficiency compared with the leading countries. this is due both to the accumulated gap and to the rapid population increase in israel. improving the transport system, particularly public transit, will shorten the time wasted in traffic. an example that i

, there is some logic to this argument, but the question is what level of deficit is sustainable. the current deficit level is, in our assessment, too high to allow for further increase, due to the short - term marcoeconomic risks it entails. in addition, deficit financing creates risks to the quality of project selection and of a loss of control over costs. when public projects are financed without effective short - term budgetary restrictions that show the public and decision makers in real time what the cost of the sources required for the investment is, the risk of inefficient allocation of investments and excessive costs increases. in conclusion, these recommendations illustrate the material possibilities that we are presenting to policy makers to increase the standard of living in israel. i believe that their strength is in their interconnectedness and in their being sufficiently detailed in terms of the cost of realizing each item in the report. their concurrent implementation will maximize the chances of success of the project. the report is available for viewing, and was already presented to the various government ministries as it was being formulated. thank you. 4 / 4 bis central bankers'speeches