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Last Updated: Tuesday, 22 April, 2003, 12:19 GMT 13:19 UK
Israel plans military privatisations
IDF logo
Military operations for sale

Israel's financial crisis has pushed the military into privatising non-combat elements of the forces and could lead to a reduced standing army.

The new head of the Israel Defense Forces' (IDF) Technology and Logistics Branch, Major-General Udi Adam, announced the privatisation proposals on IDF Radio on Monday.

"We are investigating every possible aspect that could be privatised," he said.

"We will do everything to ensure that it remains a good army, and that all combat operations remain unaffected," he added.

Emergency package

Israel's 11bn shekel (£1.5bn; $2.4bn) emergency budget, which is due to go before parliament next week, is expected to make sweeping cuts to public sector wages and jobs, including in the IDF.

The country's economy has been in recession for more than two years because of the Palestinian uprising in September 2000 against the Israeli occupation of its territories and the global economic slowdown.

The budget deficit has ballooned and there is little or no economic growth expected this year.

Major-General Adam added that a multi-year plan was being drafted which would result in "a very different army emerging".

Areas identified for possible privatisation include guard duties at military bases and other logistical operations.

"We are also examining the privatisation of the country's emergency stockpiles, and we will examine the privatisation of several of our plants as well as some of our operations," he said.

Standing forces cut

The Israeli Hebrew newspaper Yediot Aharonot also reported on Monday that the draft plan included reducing the size of standing army combat units for the first time in more than 10 years.

"The main cutbacks in the plan, to be presented for government approval, will include a reduction in regular and reserve ground forces, and in the equipment available to them," the paper said.

"In addition to a reduction of ground forces, the IDF is also considering reducing air force and navy forces."

The cuts are expected to cost thousands of career soldiers their jobs.




SEE ALSO:
Israel juggles budget strike threat
02 Apr 03  |  Business
Israel's fall from economic grace
18 Feb 03  |  Business


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