ECONOMY
Azerbaijan’s embassy opening in Israel will give a strong momentum to the development of relations between the two countries
Roman Peres, First Vice-Mayor of the city of Yokneam

Caspian Energy (CE): Mr. Vice-Mayor, we would like to ask why exactly Yokneam was chosen as a place for creation of a high-tech zone.  Were geographic, climate and other conditions taken into account when making this decision? 

Roman Peres, First Vice-Mayor of the city of Yokneam: What happened to Yokneam over the last 30 years? It is an unusual phenomenon which stays unclear to many people even in Israel. Many countries are studying our experience. Yokneam was founded by immigrants  from African and West European countries. By mid of 80s Yokneam was a small and unknown dwelling settlement with a population of around 4,500 people. There were two enterprises operating there. One of them was Osem enterprise engaged in food industry.  Nowadays, it is a part of Nestle firm. The second enterprise was Soltam. It was a part of a well known Israeli military-industrial enterprise which basic customer used to be Iran. At that time, every mother living in Yokneam dreamt to have her child working for Soltam Company. The thing is that a plain worker’s salary was much higher than that of a bank governor in Yokneam. All this lasted until the revolution happened in Iran, which caused cessation of all relations with Israel.  

The unemployment rate in Yokneam reached 45% in 1988-89. A massive outflow of young people from Yokneam began. A few years ago a document, issued at that period by the commission created by the government of Israel, fell into our hands. The document stated that Yokneam does not have a future and in order to prevent its disappearance it has to be linked to one of the neighboring successful cities. There were hard times at that period... 

Repatriation from the USSR began in 1989 after the fall of the “iron curtain”. Simon Alfasi was elected as the mayor of Yokneam and since then he has been fulfilling his duties (30 years). Mayor elections take place every 5 years. I would like to note that the first three families which arrived in Yokneam were from Baku. The difference between Yokneam of 1990 and the present city is big. Now it is called a silicon valley and a high-tech center. We have about 150 enterprises operating and 80% of them account for high technologies. Last year, the turnover of the industrial zone totaled $7billion. Yokneam enterprise was sold to the American company two months ago for $6.9billion. The startup of that enterprise was launched in our city. Yokneam is a very young city. You may ask “how Yokneam managed to gain such big success”. We attach importance to the three main points. The first point is the development of industry. We managed to persuade the government to grant Yokneam priority privileges to develop industry. We managed to convince private enterprises to work in Yokneam. Most of these enterprises came here with their employees, skilled engineers, specialists and explorers. The second one is an education. When a young family considers any certain city for settlement, education for children is the first thing that the family pays attention to. We have created the best and successful educational system in Yokneam. Over the last 5-6 years we received a state award twice for developing an education sector in the city. The third point is a comfortable housing. Yokneam is a green city and 35% of it is occupied by housing facilities. We do not build skyscrapers, we want Yokneam to remain a small city. All these three points were the key to successful development of Yokneam. 

Owing to industrial enterprises which pay a city tax, the municipalities got an opportunity to invest money into development of Yokneam. Besides, about 50% of the current budget is spent on education which is the key to our success.  

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