Enduring globalisation also implies raising the “quality” of trade and financial flows. For trade flows, this could include “global standards” (e.g. on labour conditions or product safety) to the extent that externalities cannot be dealt with through market-based solutions. Such standards have become important ingredients in free trade agreements and contribute considerably to the political legitimacy of globalisation.
*  *  *  I will begin by presenting the state of the Israeli economy and the challenges we face in the short term, and will then provide a brief discussion of the long-term challenges as well. The Israeli market, as we know, is heavily influenced by the global environment.