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Start-up Nation : The Story of Israel's Economic MiracleThough some of the governmentБЂ™s political opponents did begin to oppose its heavy economic hand and antiБЂ“free market attitudes, these critics were a small minority. If the government had valued and sought to ease the path for private initiative, the economy would have grown even faster. In retrospect, however, it is clear that IsraelБЂ™s economic performance occurred in part because of the governmentБЂ™s meddling, and not just in spite of it. During the early stages of development in any primitive economy, there are easily identifiable opportunities for large-scale investment: roads, water systems, factories, ports, electrical grids, and housing construction. IsraelБЂ™s massive investment in these projectsБЂ”such as the National Water Carrier, which piped water from the Sea of Galilee in the north to the parched Negev in the southБЂ”stimulated high-velocity growth. Rapid housing development on kibbutzim, for example, generated growth in the construction and utilities industries. But it is important not to generalize: many developing countries engaged in large infrastructure projects waste vast amounts of government funds due to corruption and government inefficiencies ...» |
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