worker – in those industries is 33 percent lower in israel than the oecd average. we can see from this that the extra education does not translate into effective education that provides skills that contribute to high labor productivity. the quality of the education system, as reflected in international tests, is also relatively low, which does not bode well for the skills of workers that will be joining the labor market in the next few years. we do not have relative advantages compared to the rest of the world, other bis central bankers ’ speeches than human capital and our innovation and creativity. as such, these trends are worrisome in this context. against the background of these trends, a study conducted by the oecd indicates that the future contribution of human capital to the expected growth in israel in the next 15 years is near zero – almost the lowest among oecd countries. in view of the analysis of the trends i have presented, it is clear that in order to support sustainable and inclusive growth, which will lead to a higher standard of living, constant improvement is required in the level of human capital of the entire population. the education system, and the education required to provide the content and skills that will enable effective integration into the labor market for all parts of the population, including schooling in mathematics, english, hebrew, sciences and computers. • an increase in investment in the education system is required, with an emphasis on expanding affirmative action in all aspects of the system, and for all levels of education. • in particular, the quality of secondary and college education must be strengthened and improved, including in the post - secondary technological schools and in professional training for graduates. • the future needs of the labor market must be examined, and skills and qualifications must be adjusted to dynamic needs, including by providing cognitive skills that will provide the ability to adjust to a changing labor market. the conclusion arising from the analysis that i have briefly provided in the areas of healthcare and education is clear, and illustrates the importance of formulating and implementing a long - term policy that deals with the fundamental demographic trends and other trends and forces facing the israeli economy in the coming years. the future is already here, and we must deal with it now. bis central bankers ’ speeches

capital. the examples will illustrate that without the implementation of such a strategic plan, not only will we not move forward toward closing the gaps vis - a - vis the other advanced economies, the gaps vis - a - vis the countries at the forefront will widen. it is important to state at this point that in recent years, there has been significant progress in the government ’ s strategic planning led by the national economic council. a deputy directors - general forum for planning and strategy has been established, and is preparing a plan for the government ’ s work ; seven areas in which the government has chosen to focus have been identified ; interministerial cooperation has been intensified ; and detailed targets have been set in a number of areas, and work has begun toward achieving them. however, the challenges are large, and the way toward formulating a work plan, and more importantly toward implementing such a plan, remains long. in the area of healthcare and long - term care, in view of the trend of aging population, we can estimate that the volume of needs for medical and long - term care services will increase sharply, and we must already prepare for this now. while the general population is expected to increase by 23 percent, the number of elderly citizens is expected to increase by more than double that – 52 percent. as a direct result, the demand for various healthcare services bis central bankers ’ speeches will also increase by about 60 – 70 percent, all while the overcrowding in the hospitals is already very high. in addition, about half of the physicians in the system are aged 55 or more – the highest figure in the western world – and the rate of those completing medical and nursing school is lower than in other countries, even after the increase in recent years. as such, the number of physicians per capita is expected to decline. the israeli healthcare system is considered very high - quality by international comparison. however, given the overcrowding in the hospitals, the long wait for various procedures, and the low rate of doctors and nurses per capita, the level budgeting for the healthcare system must be adjusted to the tasks imposed on it, a significant increase in the physical infrastructure and human capital in the system, and streamlining the long - term care system, with particular attention to improving systemic coordination. these can be advanced only through a multi - year plan based on a detailed analysis of future needs. only the formulation and implementation of such a program will be able to maintain and improve the high - quality israeli healthcare