Israel’s bureaucratic red tape is costing the state NIS 14 billion ($3.9 billion) a year, one percent of its gross domestic product (GDP), according to a new report published Monday. Written by Zvi Eckstein, former deputy governor of the Bank of Israel, and labor economics researcher Sergei Sumkin, the report states that Israel has failed to conform to OECD standards or act on recommendations of inter-ministerial teams set up for that purpose.
“It is all about ego,” Eckstein said Monday when presenting the research at a conference at The Interdisciplinary Center Herzliya, in central Israel. None of the bodies in charge of cutting red tape will collaborate, he said.
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