Will the Ultra-Orthodox Hold Israel Back?

As someone who invests in the Israeli economy, I know firsthand that Israel's strength lies in its educated workforce. It used to be said that to make a small fortune in Israel, you needed a large one. That is simply not true anymore. Israel's economy is ripe for investors seeking a strong return.

But there is an impediment to continued economic growth in Israel: the current dynamic of strong state support for ultra-Orthodox regulations.

Today, Israel's economic and overall security is under threat from the increased hold that the ultra-Orthodox, or Haredim, have on religion for Jews in Israel. Although, according to the 2006 census, only about 8% of Israelis consider themselves ultra-Orthodox, state funding flows to everything from segregated public transportation to religious education in order to accommodate a lifestyle that leads to a less educated, less competitive workforce. If this continues, it will challenge Israel as a global modern economy.

For example, in Israel, ultra-Orthodox schools receive full public funding despite their failure to implement the core curriculum of general studies required by the Ministry of Education. Haredi boys receive minimal instruction in math and language arts during elementary school. Ultra-Orthodox yeshivas (religious schools) for high school age boys teach no general studies whatsoever.