This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 TEL AVIV 003973 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON PREL SENV IS ECONOMY AND FINANCE GOI INTERNAL ISRAELI SOCIETY
SUBJECT: GOI VISION FOR GALILEE AND THE NEGEV, A TRIP BACK 
IN TIME 
 
REF: A. 04 TEL AVIV 02901 
     ¶B. 04 TEL AVIV 03085 
     ¶C. 04 TEL AVIV 03393 
     ¶D. 05 TEL AVIV 02537 
     ¶E. 05 TEL AVIV 02540 
 
¶1. (SBU) SUMMARY:  As the GOI moves to develop its strategic 
policy plans for the Negev and the Galilee a closer look at 
the failures of the past efforts is instructive.  The three 
plans - the National Outline Plan 31 (1990) which served to 
find ways to absorb immigration from Soviet Union and 
Ethiopia,  Israel 2020 Master Plan (1996) which was designed 
to promote population growth for the region in general, and 
National Outline Plan 35 (1997) which aimed to develop the 
Negev by introducing infrastructure and settlements all 
shared common shortcomings.  These plans failed to 
materialize due to a lack of funding caused by resource 
allocation to the territories and the inability of ministries 
to coordinate effectively.  END SUMMARY. 
 
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Three National Plans 
-------------------- 
 
¶2. (SBU) Over the last 15 years, the GOI developed three 
national development plans: National Outline Plan 31, the 
Israel 2020 Master Plan, and National Outline Plan 35.  The 
Center for Research and Development in the north, which 
studies social issues related to employment and population 
growth, indicated that although these plans were national in 
nature, focus was primarily on the Negev.  This focus was 
centered on population migration and expansion from central 
Israel, southward. 
 
¶3. (SBU) National Outline Plan 31 was put together at the end 
of the 1980's - early 1990's in order to assess the 
development and construction necessary to quickly absorb the 
mass immigration of immigrants from the former Soviet Union 
and Ethiopia.  Contacts at the Negev Center for Research and 
Development at Ben Gurion University indicate that many of 
these immigrants went to, and still remain in the Negev. 
 
¶4. (SBU) The Israel 2020 Master Plan was put together in 
1990's and is a long range plan focusing on developing Israel 
over the next 20 - 30 years.  The plan focuses on reinforcing 
and increasing the population in the Galilee and the Negev. 
The 2020 plan takes into account expected population growth, 
and calls for a balanced dispersal of population in the Be'er 
Sheva and Galilee regions.  This plan could be considered a 
demographic plan, addressing a need to increase Jewish 
communities. 
 
¶5. (SBU) National Outline Plan 35 is still waiting government 
approval.  It calls for developing the Negev, in particular 
the Be'er Sheva region, as a major metropolitan area. 
Investment in transportation development, including trains, 
in order to bring the peripheral areas closer to the center 
is a major component of the plan.  Development of regional 
employment centers, growth of rural areas, and developing 
peripheral areas highlight GOI desire to expand into the 
Galilee and Negev regions. Environmental issues are also 
addressed in this last plan. 
 
----------------------------------------- 
Drawer Full of Plans, Success or Failure? 
----------------------------------------- 
 
¶6. (SBU) In spite of the fact that various plans have been 
conceived, planned, and discussed, overall execution has not 
been successful.  According to a 1999 GOI report, every 
existing plan regarding the Negev remained in the planning 
stage, and was not implemented.  These plans were 
comprehensive, but they lacked national implementation. Plans 
talked about the establishment of an industrial area in the 
Negev, without providing solutions as to how to attract 
industry there.  The most recent GOI evaluation published May 
2005 echoed a similar theme that planning lacked a successful 
employment scheme and was destined to fail. 
 
¶7. (SBU) Regarding the Galilee, Ministry of Interior research 
shows that due to a lack of resources companies were 
unwilling to migrate to the north and vital employment 
generation never materialized.  GOI reports say that the 
government decisions to establish settlements between 1997 - 
2003 did not take employment generation into account.  They 
also say that the government and planning authorities were 
not dealing with the economic, social, planning, and 
environmental implications of adding more than 35 new and 
renewed settlements in the Negev and more than 20 in the 
Galilee region.  Another criticism is that the government did 
not properly coordinate its planning with the regional 
councils before making decisions. 
 
¶8. (SBU)  Uri Keidar of the Haifa and Northern District 
office, who deals with economic issues for the Galilee 
region, said that in the past, there was an interest in 
developing and expanding industries in Galilee, but that lack 
of money and the second Intifada affected the region's 
economic development.  Keidar said that GOI investment grants 
to the Galilee region went from 38% to 24%, when Sharon first 
became Prime Minister and note that when grants for 
investment are low, it is not worthwhile for investors 
because transportation costs remain high.  They said in the 
past the budget for development infrastructure was around 430 
million shekels a year.  The 2005 budget has cut this amount 
to 43 million shekels.  The GOI has no five, ten, or 15 year 
plan for development in the Galilee, said Keider, since each 
ministry sees its own interests.  Although the 2005 budget 
includes a government decision to develop the Galilee region, 
no money has actually been allocated, he said. 
 
¶9. (SBU) Chaim Fialkoff, senior Director General from the 
planning and coordination office in the Ministry of 
Construction and Housing said the main reasons why the 
Galilee and the Negev plans were not fruitful in the past is 
because of historic resource allocation to the territories, 
especially Gaza redeployment.  He said lack of coordination 
between ministries responsible for developing the Galilee and 
the Negev was another factor.  Fialkoff also indicated that 
the disengagement from Gaza was now providing an opportunity, 
allowing the GOI to focus on developing the Galilee and the 
Negev. 
 
------------ 
New Momentum 
------------ 
 
¶10. (SBU)  In October 2004, a conference was held on 
developing the Negev, with the result a concept called the 
"New Israel in the Negev" Plan.  The idea is that the Negev 
become an area that is able to attract people, with the aim 
of doubling the population in the area by 2020.  This was the 
first precursor to a session devoted to the Negev development 
at the annual Herzliya conference in December of 2004.  In 
March 2005, the planning process for the Negev and the 
Galilee development was approved by GOI.  In April, planning 
process was initiated by GOI and Daroma, a private company 
contracted to assist the GOI in its efforts to plan for the 
Negev development (septel).  Daroma and GOI ministerial teams 
are tasked to integrate various educational, infrastructure, 
settlement, housing, and Bedouin plans as part of the grand 
plan to develop the Negev. 
 
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