OECD Investment Policy Reviews: Israel 2002

OECD's review of Israel's investment policy. It finds that the Israeli economy has been progressively transformed from an underdeveloped agrarian economy to one which is technologically advanced and services-based. Trade liberalisation, along with the abolition of exchange controls, the adoption of modern corporate governance rules and intellectual property protection enhancement have led to the establishment of an enabling, transparent and non-discriminatory environment for domestic and foreign investment. The beneficial effects of Israel's FDI policies are enhanced by a focus on high-tech industries and a wide network of international commitments. However, particular attention needs to be given to reducing market access restrictions or distortions resulting from past heavy government involvement. Further progress may in fact largely depend on the acceleration of the privatisation process, the dismantling of monopolies and a less interventionist approach to business activity.