per child in compulsory and tertiary education as a share of gdp is not low by oecd standards, and in some cases is higher. but when we see the decline in pupil achievement over the years, compared to other countries, then we must conclude that the israeli education system is not effective. to improve the situation, it is important that we examine the reasons for this ineffectiveness and that we act to put it right. why? because we are referring to our most important investment, the investment in our young, who are our future source of labor, enterprise and growth. in the field of higher education too there is room for special concern. it is sufficient to see the lists of israelis on the faculties of the leading universities of the us and other countries. this is a difficult situation to accept. the shochat committee, which reported earlier this year, has done sterling work on advancing higher education in israel and it is important that its recommendations be implemented, including granting wage differentials in order to reward the best academic staffers. another area that has been neglected in recent years is that of technological education. i hear this from various sources : in the educational system, and from industrialists who need individuals with technological qualifications. this is also a field that needs cultivating and promoting. as is well known, education is the best way of reducing poverty in the long run. and this leads me onto the next topic, that of welfare. b. welfare a very important way of alleviating poverty is by integrating those who can work into the field of employment, and at the same time raising the compensation that poorly paid people receive. in this context i am delighted that the subject of earned income tax credits is on the government's socioeconomic agenda and i hope that it will be implemented soon, along with the other subjects found on this important agenda. i will not elaborate today on the ways to integrate the poor into employment and to support those who cannot work. rather, i would like to refer to the topic of the composition of israeli society. according to data from the central bureau of statistics, most of the poor in israel are concentrated in two sectors : the ultra - orthodox and the arab. while the incidence of poverty among the non - ultra - orthodox jewish population was only 12 percent in 2006, the incidence of poverty among the ultra - orthodox and arabs was 57 percent and 58 percent respectively. this is connected to the low rates of employment in these two sectors, particularly among ultra - orthodox men

the various reforms interacted with one another, are they coherent, what are their larger social benefits and costs? this work is especially important in the current context : as memories of the crisis fade and the burden of regulatory reforms comes into sharper focus, the pressure to unwind the reforms will grow. it is important for the credibility of the reforms that their impact be objectively evaluated. it is also incumbent on us as regulators to be accountable for the substantial changes that we have put in place over the last eight years. fostering a culture of trust in the financial industry a second growing focus in the supervisory agenda is to help foster a culture that motivates the right ethical behaviour and responsible risk - taking in our financial institutions and markets. but it will require different and novel approaches because there are limits to what externally imposed rules can do to promote the right values in financial firms. the financial industry continues to be plagued by egregious misconduct, nine years on from the global financial crisis. in the us and uk, major retail banks are still settling charges against them for mis - selling investment and insurance products in the run - up to the financial crisis. across financial centres, traders at several banks were found to be involved in flagrant manipulation of key financial benchmarks. internationally, regulators have been cracking down on illicit fund flows, with several financial institutions being penalised for lapses in money laundering controls. in singapore, we have taken decisive actions against financial institutions that fell short of our anti - money laundering standards. mas shut down two banks and fined several others, and culpable individuals have been charged in court and sentenced. reform of the financial industry will not be complete until this issue of trust and ethics is addressed. we need to “ get the culture right ”. this will require collective effort by regulators, the industry, and financial institutions. the fsb and iosco have been driving international efforts to reduce misconduct risk, focusing on governance and incentive structures, conduct standards in wholesale markets, and the reform of financial benchmarks. national regulators have been stepping up engagement with financial institutions on issues pertaining to culture and conduct. the industry must itself take collective responsibility to promote good practices and develop codes of conduct, and hold institutions accountable to their peers. here in australia, you have set a good example. the australian bankers ’ association has commissioned an independent review of sales commissions and product - based payments in retail banking that is now in its final stages. banks have also agreed to share information among themselves