Judicial reform is a disaster, says Nobel economist

Among the 100 senior Israeli economists who yesterday published an opinion warning that the government’s judicial reform could harm the economy was Noble Prize winner in Economics Prof. Daniel Kahneman who told Globes about the expected ramifications of the judicial reform.

“The reform is a disaster, not only in terms of values. It will have tangible results in the economy, in Israel’s political status and ultimately in its security as well,” he said, adding that “Israel will no longer be considered a democracy in the eyes of the world. Joining Hungary and Turkey — this is the way they talk about it today in the US and Europe. The reform associates Israel with countries that pretend to be democracies, but are not democracies.”

What damage do you see to the Israeli economy?

“The damage to the economy will be first of all as an ostracized country. There is no doubt, it will have an effect on investments. There will be a large fall in the best of the population. Hi-tech won’t stay in Israel either.”

Can the demonstrations that we see have any influence?

“For this you need to know what is going on in the prime minister’s heart. It seems to me that the protest movement that is starting now is just the beginning. The participation of Israel’s economic and technological elite in the protest increases its weight.”

What does academia in the US say about the situation? “It will be a disgrace to be Israeli. It will become widespread, no doubt. In the US – to those who read The New York Times and The Washington Post, which is a certain elite – Hungary and Turkey are considered countries that pretend to be democracies, and Israel joins them. This comparison appears everywhere you write about Israel now.” (Globes/TNS)