IASPS

Quarterly Report
Winter 2001

Meet Silvan Shalom

Comments of the President

The Director's Column

Israelis Tell IASPS: We Want Freedom

IASPS and Its Impact

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Israelis Tell IASPS - We Want Freedom

The Israeli media, public and policy makers have come to rely on IASPS for its research, analysis and policy recommendations aimed at limited government and ensuring liberty. 

In part, this is reflected by the large number of news articles reporting on IASPS Policy Studies or conferences. But even more so, this is reflected in the frequent publication by Israeli newspapers of opinion pieces by IASPS representatives. In particular, Israel's two most prestigious papers, Globes and Ha'aretz, have made the pages of their papers open to ideas put forth by IASPS.

On January 28 this year, Globes printed an op-ed by DEPR Director Alvin Rabushka on the lack of economic freedom in Israel, and the reasons for this lack. That same day, we at IASPS received two faxes relating to the op-ed. Obviously, Professor Rabushka had struck a cord with the average Israeli, had as it were become their "voice." You can read the op-ed in this Quarterly, where it is published as the Director's Column. We were so moved by the two letters we received (bottom, right) that we take pleasure in translating them here for our readers' benefit:

From: Property Tax Victims Organization
To: Alvin Rabushka
Re: Bureaucracy Running the Economy 

A response to your article "On Economic Freedom," Globes, January 28, 2001  

I want to congratulate you on your article. In the article you wrote:

"Civil servants supported increasing state control as it enhanced their power. Then, as well as now, retiring civil servants were given high positions in state-owned firms. Boards of directors and managers of state-owned firms were selected by political parties, creating an incestuous relationship between government and the business sector."  

As the leader of a public battle, I have come into contact with many bureaucrats and with many parts of the government system, whose character has been corrupted by power, and I wholeheartedly agree with your arguments. Just to scratch the surface, I will note that the Income Tax Authority refuses to allow pre-rolling [in theory a tax payer-friendly procedure] (and I have no doubt this stems from the reasons you cite), hides information, issues fictitious assessments as a matter of course, etc.

Your article should be widely distributed. I would also advise you to distribute it among the legislators. I think that there are a few naive persons among them who believe that bureaucrats operate "innocently and faithfully."

Respectfully,  

Shabtai Azriel, Chairman  

cc: Mr. Hagai Golan, editor, Globes  
Ms. Noga Shavit, editor, Globes Ha'erev  

Ms. Merav Arlosorov, editor, Ha'aretz Economics Section  

Mr. Nehemia Strassler, Ha'aretz 

Mr. Avraham Tal, Ha'aretz  

Mr. Yoni Kaplan, Income Tax Commissioner

To: Prof. Alvin Rabushka/IASPS
From: Nadav Hacohen

Shalom!

Re: Your article in yesterday's Globes on economic freedom

You rightly brought attention to the true problem (though I am not convinced that this syndrome necessarily typifies only countries with a socialist approach).

Most serious, to me, is the "silence of the lambs" of almost all academics, including those who are not tied umbilically to the government.

If only your article would be the catalyst for finding an intelligent solution... 

Sincerely,

Nadav Hacohen

P.S. - Since Shabtai Azriel sent me his response to the article, I want to clarify that the Income Tax Commission does operate the pre-rolling institution, except that it insists on operating it "secretly" (without publicizing it or recourse to appeal).

Nadav


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