1. From Dependency to Self Sufficiency מהבטחת הכנסה להכנסה בטוחה Disclaimer: the information is presented for indicative purposes. The information shall not bind the State of Israel, the Tender Committee or anyone acting on their behalf and such information should not be relied upon or used for any purpose. The circulation of this information shall not be construed as binding the State of Israel or the Tender Committee to publish a tender, and if a tender will be published – to the contents thereof.

2. Content The need for Reform Required solution Goals and Objectives Action taken by the government Principles to be implemented Vision Conclusion

3. The Need for Reform Labor force participation – 54% vs. 69% in OECD. Increasing Unemployment Rate – 10.7% Increase in foreign workers – 11% of labor market. Social expenditure has gone up from 32% to 57% from 1985 – 2000. Welfare payments to working age individuals equals 6.7% of GDP in 2001 Vs. 2.9% in OECD. During the 90’s the percent increase in the number of income assurance recipients was 11 times greater than that of the general population. 160,000 income assurance recipients. 300,000 foreign workers (100,000 legal). 300,000 unemployed. Social and educational aspects.

4. The Needed Solution Practical comprehensive and effective solution for reintegrating of welfare recipients into the work force. Solution must more efficiently allocate current resources. Solution must work with the market trends and by its rules.

5. The Objective Reduction of dependency in long- term benefits while developing the work force

6. Goals To Reduce the dependency of welfare recipients To Develop employment opportunities and encourage entrepreneurship Pooling of resources and focusing government and other services Regional and communal development Employment mobility Reduction of welfare expenditure

7. Actions Taken First recommendation for a welfare reform model by Ben-Shalom Directors’ Committee - a committee to review the government employment service 1998 Positive reports of inter-ministerial delegations on international models 1999 Government decision proposed by the Ministry of Finance and the Employment Service - four pilot studies in four regions 2000 Appointment of a professional committee headed by Prof. Tamir,”the committee for the reduction of dependency on long term welfare benefits” by the minister of labor and social affairs - recommendation to apply the model suggested by the Ben-Shalom Committee 2001 Government Decision - Adopt recommendation of Tamir committee2002 Legislation of the “Knesset” - the “integration of welfare recipients in the labor force” 2003 Implementation2004

8. Vision Establishment of nationwide one stop Job Centers platform The centers will operate in defined regions for the integration of welfare recipients into the labor force and prevention of recidivism, while developing regional employment

9. Methodology - Job Centers Guidelines Work as a prime value Time, effort and ability for state support Unifications of resources in one service point Flexible and versatile solutions Transferring resources from monetary benefit to work support services Working with the community Unification of resources

10. Conclusion Increasing the work force participation rate by allocating resources from benefits to work support services. A pilot in transferring government activity to non- government entities. Maximizing financial and social incentives for job retention. Efficiently utilizing community and other regional resources. Prevention of hereditary dependency