Telecommunications development in Israel: The growth of public services and lessons from developing countries

The article begins with a discussion of the importance of the public services sector in the development of a modern economy, with specific reference to the organization and growth of public services in Israel. While the telecommunications sector is becoming increasingly important in national economies, it is often mismanaged in developing countries and its profits are used to subsidize other areas of the economy, particularly the postal services, which are run at a loss. The author analyses the various reasons for the lack of effective telecommunications policies in developing countries, and concludes with a series of recommendations for Israel which arise from that analysis.