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Non agriculture employment Document Transcript

  • 1. SMALL SCALE INDUSTRIES - CONCEPTS ANDREALIZATIONS: THE ISRAELI CASE STUDY -THE CREATION OF NON-AGRICULTURALEMPLOYMENT (NAE).by Zvi GALORwww.coopgalor.com 19961. Introduction.Small Scale Industries is a term which has been recentlyused by scholars to describe the phenomena of the creationof small industries and other income generating projects allaround the developing world. We remember that at one ofthe points of its developing a successful way ofindustrializing, Taiwan has produced 90% of its industrialoutputs, coming out of small scale enterprises employing nomore than 15 workers each. No doubt that this concept is ofgreat interest to those who think that development is notabout sticking to old fashioned ideas of agriculturaldevelopment, nor is it possible, at least not in satisfactorymeasures responding to the needs of the developing world,to introduce heavy industrial development, in these needycountries. 1
  • 2. 2. The Conceptual Approach.2.1 The SetupIt is well known that one of the most important problemsfacing the majority of the worlds population is the problemof development. The Brandt report(1) expressed this featureas well as the fact that the world which looks toward itsdevelopment is unable to exploit its own resources in anoptimal way, for the benefit of its population. This world ischaracterized by another phenomena described byProfessor Arnon (2) as the concentration of 70%-90% of itspopulation in rural areas, engaged mainly in agriculture.Arnon describes these areas with the followingcharacteristics: The land is divided up unequally, and itspossession is arbitrary. Moreover, the land does not belongto the people who farm it. Water for irrigation is often non-existent and when it is available, it is not distributedequitably. The land is partially exploited, during the season,according to traditional methods which are not suitable. Thelabour factor is added to this - there is a shortage ofeducated qualified labour. The situation of the workers isprecarious. They often work part-time and are thus 2
  • 3. underemployed. The low productivity of agriculture gives lowyields, thus low income, a situation which discouragessavings. They are living in a traditional setup.This population has a very low annual income, as describedby McNamara (3), in the order of $US100 to $US300 , asituation which has not changed since 1970. On thecontrary, the rural population of the majority of developingcountries is earning the same nominal figures, but the realvalue of the US dollar has tremendously dropped down.2.2 The problemArnon describes(4) the vicious circle out of which thepopulation of the traditional rural areas in most of thedeveloping countries can not liberated themselves. Thispeople live in conditions of low productivity of their land, theirwater, their labour. This leads to a situation ofunderemployment. It goes on to a situation of very lowannual income, which in turn means low capacity of saving ifat all. People who have no savings are unable to invest intheir farms. When there are no investments, the yieldsremain low, as well as the productivity of the farmer, who is 3
  • 4. bound to stay within the vicious circle.2.3 False solutionsThere were two major mistaken trends in the developmentalpolicies of many international agencies.A. The first trend arose from the desire to find a way tobreak through the vicious circle. This approach wanted to doit by alleviating the production capacity of the farmer. It hasattacked the low productivity factor. It believed that by havingbetter farmers, development will take place. This approachhas forgotten two things. First it approached only few afarmers, the leaders, and believed that the others wouldfollow. If this approach had been successful, and all the 70%of the rural population had become successful farmers, whowould consume all the wonderful agriculture produce? Therewere never any convincing answers to this problem. Thesecond forgotten issue was what happened in reality. Thefew privileged farmers who participated in the developmentprojects have succeeded, but what about the others, themajority of the rural population? They have been practicallyneglected. The underemployment part in the vicious circle 4
  • 5. has been ignored, and practically it has swallowed all thepositive results of upgrading the productivity factor. Theeconomy of affection, as it was wonderfully described byGoran Hyden (5), has practically erased all the eventuality ofdevelopment. Developmental solutions which do not takeinto consideration that solutions should be given to themajority of the people will fail. Here comes the factor whichshould direct our thinking when speaking aboutdevelopment, through the establishment of Small ScaleIndustries, so that we can create in the traditional ruralareas Non-Agricultural Employment possibilities.B. The second mistake is the negligence and the almost totalabandon of rural areas in many countries developmentprograms. Most of development in general, and industrialdevelopment in particular, has happened in the small urbanareas, especially those around the capital city. The out comeof this policy was, and is now as well, the struggle againstrural exodus, or as it is also called, the urban drift. Mostgovernments and most international development agenciessee rural exodus as a negative phenomena, butdevelopment mostly takes place in urban areas. When agovernment denounces the rural exodus, it tells its rural 5
  • 6. citizens to stay and to remain in underdeveloped situations.Most developed countries all over the world have a verysmall rural population, which amounts generally to figuresbelow 10%. Looking at Taiwan and South Korea during thelast 40 years, we are observing a spectacular process ofnational economic development coming along with atremendous decrease in the rural population. This ispractically the trend everywhere. So, by negating the ruralexodus, these governments are saying to their people: staypoor, stay where you are, stay as far away as possible fromus urban dwellers, and do not come to disturb us here in ourtowns.I doubt if this should have been the policy during so manyyears.2.4 A Way Out.The following model will present a developmental processwhich may decrease the rural exodus, and at the same timebring development to all rural populations. (6)The general model of rural development 6
  • 7. The bulk of national investments go to rural areas, a part toagriculture and a part to industries (this goes as well to SSI).Investment in agriculture gives the following results: 7
  • 8. Productivity - of the land, the workday output, and of thevarious crops - is multiplied. At the same time, many workerswill not earn their living from agriculture, and will look foremployment, if available, elsewhere. Underemployment isdiminished, fewer people will be engaged in agriculture.At the same time there should be investment in industry,mainly that located in the rural areas, in the interior. Theseenterprises will absorb the excess labour force, which willnot then abandon the rural areas, thus avoiding the ruralexodus. These enterprises, mainly initially processingenterprises for agricultural produce, as well as SSI, and as aconsequence, development of trade and other services inrural areas, will contribute to the creation of Non-AgriculturalEmployment there.The next stage of the process leads to the followingsituation: in agriculture fewer farmers produce more. Thisgreater production is consumed by the non agriculturalpopulation, which is on the increase in urban as well as ruralareas. On the other hand, the farmers earn a larger incomewhich enables them to consume more, and invest in theirfarms. 8
  • 9. 2.5 The Problem of ProductionThe problem of production, be it rural or urban, be itagricultural or non-agricultural, is an essential one. SmallScale Industries are based primarily on production, and thisnotion has not been learned and recognized sufficiently byscholars and by decision makers.Once we have launched into production, we shouldpreferably consider the following factors. The productionprocess will be functional only after studying the fundamentalfactors of production such as land, labour, capital and know-how.The essential triangle of production 9
  • 10. In any process of production we need to have the necessaryfinance. We need capital. Generally, we do not haveenough, so we look for external sources to finance ourproduction. Generally speaking, the sources for finance arescarce, and when available, they are very expensive. Creditcoming from money lenders is very expensive. Our role is tolook for the cheapest source of credit available. 10
  • 11. When credit is available, we purchase with it the necessaryinputs to facilitate our production. Inputs aresold, and can be located through different traders. Theseinputs are sold for a very high price, sometimes too high. Inmany environments, the money-lenders are also the traders,gaining from this situation a stronger hold on the poorproducer.The production having been done, it needs to be marketed.The producer, in many traditional societies, finds the outletthrough middlemen, who in turn pay him the lowest possibleprice for his produce.Around the production process, mainly in the traditionalsetup, we have an essential triangle, and the producer is inthe middle. The producers pay the highest possible price forcredit and inputs, and get the lowest price for their produce.A possible solution is the creation of one cooperativebelonging to the producers, which will deal with the supply ofcredit and inputs, and will take care of marketing theproduce. 11
  • 12. 3. Small Scale Industries - the Israeli Case Study.This chapter will attempt to describe the different forms ofsmall scale industries in Israel, but will put more emphasison what has happened in the rural areas of Israel, where avery interesting industrial development took place accordingto the model presented earlier.3.1 Industry in the Kibbutz.The kibbutz is the Israeli form of collective village. It isunique in the world in its kind and form, as well as, by itsspectacular transformation of economic and social life in arural community. The first kibbutz was established at thebeginning of this century when Israel was still colonized, andeven though, it succeeded very much. The kibbutz had beenestablished as an agricultural production unit based in a ruralcommunity. The production unit was based on a mixed farmapproach, which sought to develop as many agriculturalbranches, giving the kibbutz the highest possible net income,and at the same time giving the members the possibility towork all through the year, trying to over come in so doing,the underemployment problem of rural areas in so many 12
  • 13. countries all over the world. Another reason for that choicewas the notion that in farming there are always difficultiesand even catastrophes, so if one of the branches fails, theothers may still be profitable enough to give the ruralcommunity - the kibbutz, the ability to continue economically.The drive for moving from solely agricultural production,came when the farming became modernized. Modernagriculture needs less workers. Underemployment exists,exactly according to the model described earlier, and thisbrings about the need to create Non-AgriculturalEmployment. The first move happened from the beginning ofthe Kibbutz existence. There are a variety of support serviceoccupations such as: kitchen, laundry, bakery, medical aswell as technicians to maintain any thing on the chain ofmodernization which needs maintenance. The second moveis the introduction of non-farming branches in the Kibbutzsuch as industries of all scales, and selling of servicesproduced by the Kibbutz, such as hotel industries, fuelingstations and others.There was a move from agricultural employment towardsNon-Agricultural Employment in the workforce of the kibbutz. 13
  • 14. The extent of Kibbutz industries is significant, in theproduction of metal, electronics, plastics and rubber,processed food, optics and glass, textile and leather,medicine and chemicals, office supplies, quarries andbuilding materials, toys, jewelry and musical instruments.The share of Kibbutz industries in the Israeli economy is 6%of sales, 7.3% in export, 5% of annual investments and 6.1%of Industrial employment (1993 figures). There are 415enterprises in the different Kibbutz villages in Israel.There are 22000 workers employees who achieved averageannual sales per worker of $100000, and total sales reached$2.3 billion, and a total export value of $733 million.(7) It isinteresting to update some of these figures by mentioningthat in 1995 the total sales of kibbutz industry were of thevalue of $3.3 billion and the total export value was $1.04billion and gave employment to 25000 workers, includingnon members of the kibbutz. (8)3.1.1 Kibbutz Industry - a Case Study.In order to present this kind of rural industry, we shall take a 14
  • 15. typical Kibbutz as an example. Kibbutz Givaat Brener wasestablished during the twenties some 25 km south of TelAviv. At that time the Kibbutz was veryisolated, and had many survival problems. Today it is amongthe biggest Kibbutz villages in Israel, and has around 1000members, including men, women, children and elderlymembers. This Kibbutz has today a variety of industries ofdifferent size economically."Rimon" is a food processing industry, and concentratesmainly on the production of preserves from agricultureproduce. It was the first industry in this Kibbutz.Practically, it conforms to the model which we havepresented earlier. This enterprise employs some hundreds ofworkers, some of them are not members of the Kibbutz. Inthis way the Kibbutz industry contributes to solving theproblem of unemployment among the rural population, whoare not members of the kibbutz. This enterprise has aproduction turnover of more than $10 million annually."Matar" is a metal industry in the irrigation field. Thisenterprise is still in the agricultural sphere, and sellsirrigation fittings. 15
  • 16. "Kol Gil" is a furniture industry building up house furniture ingeneral, and children’ furniture in particular."Gavish Software" is a more recent industry. They sellsoftware destined for agricultural uses. They began with thedevelopment of software necessary to run their irrigationneeds as well as their need for managing efficiently theirdairy milking branch, and their poultry branch. Theysucceeded, and decided to sell their products, to developmore."Matpera" is a small textile enterprise where clothes areproduced for members of the Kibbutz, and to the public atlarge. This enterprise has a special shopping centre wherecustomers from near by towns are come to shop. Thisshopping centre sells to the public, who like to purchasefrom the producers directly, and by so doing pay less, alsothe furniture made in the kibbutz."Bengali" is the most recent firm and is in effect a SSI. Only4 members are working there, producing oriental styleBamboo curtains for commercial and domestic uses.We can not end this survey without mentioning a small 16
  • 17. enterprise where the older members of the kibbutz areworking from 1-4 hours a day, in this enterprise, assemblingelectrical appliances. This enterprise gives employment butmainly occupation to the old age members of the Kibbutz.Kibbutz branches such as the kitchen, the laundry, financialservices now sell their services to non members of theKibbutz, and this phenomena connects with our notion ofdeveloping NAE (Non-Agricultural Employment) within therural community, as a solution to the underemploymentexisting among most rural population around the world.3.2 Industry in the Moshav.The Moshav is a cooperative village, based on the familyunits as the centre of the production unit. This village isbased on farming at a very advanced level. It is important tonote to the reader that I am going to describe the classicalMoshav, which almost does not exist any more today, sincemany changes took place during the last decade. TheMoshav is a very advanced multi-purpose cooperativecontaining together the following functions: production,saving and credit, supply of inputs, marketing, irrigation, 17
  • 18. processing, storage, consumption, construction, housing,transport, accountancy, pensions, insurance, technicalservices.(9)The Moshav contains at the same time the municipalservices function, and the rural community unit, as wellas the basic principle of mutual guarantee existing amongthe members of the Moshav.The basic unit of the production in the Moshav is the familyunit. Every member of the Moshav and his familyacquire the same size of agricultural unit, and from it heearns his living. The idea was and is, that the member andhis family will concentrate all their time and effort inproduction, whilst the Moshav as a cooperative takes care ofeverything else relating to credit, inputs or marketing as wellas other needs. The problem of the Moshav was in itsdevelopment. As the efficiency of agricultural productionincreased, the need to retain the same number of farmersdecreased, and more and more farmers became more andmore underemployed, at least partially. The Moshavremained an agriculturally based village and did not find anefficient solution as to how to introduce industry to its 18
  • 19. members, to those who could not continue farmingefficiently. The need for NAE arose, but no efficient solutionwas found.3.2.1 Why industry did not succeed in the Moshav.A) The first important problem, over many years, was onewhich is related to the fundamental nature of the Moshav -the fact that the member and his family are working theirfarm, and their time is devoted to agricultural production onan individual basis. Commonly owned agricultural brancheshave never had any success in the Moshav history, andwhere they have existed, especially in Moshavs in their firststages, when the Moshav was called in Hebrew slang"Moshbutz", these branches were divided between membersas soon as possible. The members did not have the time orthe ability to go to work in industry where you have tocollaborate with others in the production phase. The memberof the Moshav is ready to collaborate and to cooperate withother members of his Moshav in all functions, exceptproduction. 19
  • 20. B) The second problem was that the Moshav is a staticsocial unit. Only one descendent can continue to work hisparents agricultural unit. The other children will have to liveelsewhere since the farm plot size is equal for all membersand cannot be divided among the descendents.So, even theoretically, the second generation will be, by andlarge, the same size as their parents generation in number,and the same size as the third generation. The Moshav as acooperative did not have any incentive, at least not from theemployment creation point of view to establish industry, eventhough there were children who could stay in the Moshav,living in it, and earning their living through any form ofindustry. This did not happen mainly for ideological reasons.The majority of the members, over many years wanted theMoshav to remain exclusively agricultural.C) The third problem was the development andmodernization of the farming methods and the resultanttremendous increase in productivity. The farm holding hasbeen changed from being labour intensive to capitalintensive. This phenomena meant that fewer farmersproduce more or even much more than previously. Israelifarming suffers from overproduction and is in a state of 20
  • 21. production limitations. This situation reduces the number ofactive farmers, and increases the number of those who arelooking for alternative employment outside the village - theMoshav. Once again, the narrow minded attitude of theremaining farmers, who naturally were those who were themost powerful members of the community, prevents andrefrains the introduction of NAE in the Moshav.3.2.2 Proposals for Industry in the MoshavAt the end of the seventies and the beginning of the eightiesthe need to introduce industries in the Moshavwas increased.(10) Some attempts to introduce industry inthe Moshav proposed the following possibilities:- The introduction of any given industry belonging to thecooperative - the Moshav, employing members of theMoshav, would be managed by the Moshav as in the case ofany other commonly owned branch of the cooperative.- The introduction of an industry which belongs partly to theMoshav as a cooperative, and partly to a group of members,who would work in this industry, and would manage it aswell. In most cases this would be as SSI.- A Small Scale Industry in the Moshav, would belong partly 21
  • 22. to the Moshav and partly to an individual member, whowould work there and manage it as well._ A Small Scale Industry belonging solely to a group ofmembers of the Moshav or to one of them, where theMoshav would have nothing to do with the productionprocess, but would intervene in the question of supply ofcheap credit, or marketing facilities for the produce.Practically, almost none of these eventualities have everbeen realized. The Moshav at that time was not yet ready tomake these changes. The changes came later, after thecrisis.3.2.3 NAE in the MoshavThe eighties have been the witness to a very deep crisis inIsraeli farming. The Moshav went through a terrible crisiswhich brought to an end the cooperative existence of manyof the Moshavs in Israel. In times of crisis, solutions arise.Varieties of NAE were created at this time.- The oldest one, which exists already for many years, andmust be mentioned in this discussion, is employment outsidethe Moshav, and generally not in agricultural employment.- Catering, food production, bakeries, night clubs, wedding 22
  • 23. organization, these are some of the occupations, mainlybased on the traditional farm unit, where members do notwork any longer in farming.- Members of the Moshav with academic qualificationshave quit farming and put more efforts in to their profession,and in most cases having in the village their office or bureau.These are teachers, engineers, psychologists, writers,painters or graphic designers, etc.- Another group is composed out of manual non farmingworkers, such as mechanics, craftsmen, artisans, knitting,clothes sales, and other types of manual employment.Parallel to this phenomena, the multi-purpose cooperative,the Moshav, has lost many of its functions, among them themost important, is the mutual guarantee among members,which enabled the acquisition of cheaper credit forproduction in the past.3.3 Small Scale Industry in Traditional Rural Areasin Israel.The rural areas in Israel are composed of several differentgroups of rural settlements. We are able to distinguish the 23
  • 24. following groups: The Kibbutz, the Moshav, the Moshavshitoufi, (which we are not going to discuss in this papersince from the subject point of view it is similar to theKibbutz,) and also the traditional rural areas.Be the traditional rural areas, we mean those villages, Araband Druze, which were created hundreds of years ago, andwhich have all the characteristics of traditional areas in otherthird worlds countries. The major problem of these villagesas mentioned earlier was their low level of productivity andthe high underemployment rate among their populations.The model which we presented earlier describes how thedevelopment of NAE in these areas contributes to thedevelopment of SSI as well as to the advancement ofdevelopment.As an example, we shall present the Druze village of KfarYarka in the Upper Galilee in the northern part of Israel, veryclose to the Lebanese border. This a village whichcomprises some thousands of inhabitants. Traditionally, thepeople used to cultivate the land and earn their living out ofthe meager produce over hundreds of years. After thecreation and establishment of the state of Israel a social and 24
  • 25. economic process took place in this village, as was the casewith most of the Arab villages in Israel, the drifting of theunderemployed workforce looking for employmentelsewhere, where it could be found, and at the same time,continuing to live in the village, and bringing their income tothe village and to the family. In the traditional village, as aresult, there is an aggregation of capital that has to beinvested. It is invested firstly by the improvement of thestandard of living of the inhabitants in the village. Thismeans better houses, and better community services andthe improvement of agriculture. This means as well thecreation of NAE in the village, including the introduction ofSSI.In Kfar Yarka today there are several enterprises whichinclude the Kadamani Brs. Metal Works. This metal industrywas started during the sixties by three brothers who workedfor years as welders in different parts of the country. Theydecided to establish a metal workshop in their village. Thisworkshop did well, and became an enterprise, employinghundreds of workers from Kfar Yarka itself, and fromneighboring Druze villages. The Kadamanis opened aprofessional school on the spot which trained unqualified 25
  • 26. workers to become well trained employees.In Kfar Yarka there are two sewing and dress makingworkshops, belonging to people from the village, andanother one established by an outside investor who sought acheaper workforce. These enterprises employ hundreds ofworkers - mostly women, and if these enterprises wouldhave been outside the village, these women would not havebeen able to go to work there because of the traditionalsociety, which wouldnt allowthem to work far away from home.There are in the village some smaller workshops, each withten to fifteen employees, generally in the shoe makingbranch, and some other occupations.This village like others can serve as an example of howSSIs established in the traditional village contributed a greatdeal to the creation of NAE.4. Conceptual Approach to SSI in Israel.The Small Scale Industries idea has been developed andadvanced to a large extent for many years. The kibbutz 26
  • 27. when considering the establishment of industry within itsframework takes various considerations into account.They(11) are include first and foremost a professionalexamination of the financial viability, the technologicalviability, the human resource factor and the marketingavailability of the future enterprise. The establishmentitself of the enterprise includes the following steps:- Organizational planning and physical planning to constructthe building and locate the equipment needed.- The human factor in all its aspects including theenvironment, safety at the work place, automation, etc.The notion that SSIs are important has been scattered allover Israel. Many centres intending to promote the idea,have been created in remote rural areas. Two importantmodels have been established.One is the creation of the Industrial Park, in a remote ruralarea. The chosen industrial zone has the advantage ofcheap available infrastructure, and in most of cases,financed by the state. In these parks different sizedindustries are established. An example is the region of Tefen 27
  • 28. in the Upper Galilee, in the northern mountainous part ofIsrael. In this industrial park there is one big enterprise"ISCAR", a highly advanced high-tech plant, and around itdifferent enterprises have been developed.These enterprises have benefited from close guidance fromtheir establishment to the stage where they couldcontinue independently. One of the tasks of this tutorialactivity is to help the newly established enterprise to developa business plan. The business plan is the main basis onwhich you can obtain finance through the various enterprisefunds. The purpose of the plan is to assess the viability ofthe new business and to make sure that there is financialjustification for its establishment. The business plan shouldevaluate the level of risk of the proposed business, thesensitivity level of the plans implementation, and alsoserving as a control instrument by which the entrepreneurcan test the achievements of his business. (12)The second approach is the idea of industrial "green houses"established in many places in Israel as well as in remoterural areas. One of these green houses is in the Misgavregion of the Lower Galilee. In this hilly region it was rather 28
  • 29. difficult to develop farming, so from the beginning, during theseventies, the rural settlements established there, werebased on the Idea of NAE, and that includes as well the SSI.Many SSIs were established in this area, but their beginningstarted in the industrial green house of the region.Dr. D. BEN-TOLILA, an expert of this region (13) explainshow to establish a SSI in this green house. The objective isto initiate and then follow up industrial projects. Eachenterprise should supervise three aspects, which are linkedtogether: production, finance, and marketing. There are foursteps to go through.First, a feasibility study should be done. In this study wemust establish if the product we are going to produce isproduceable, if it is possible to sell it, and if we are going toearn sufficient income to make our work profitable.Secondly, a production plan should be prepared. Here westart by choosing the best product to be produced. This isdone by considering the cost of production of the proposedproduct, the cost involved in marketing it, the necessaryfinance needed, and its selling price. All these elements arepart and parcel of our feasibility study. The result of all this is 29
  • 30. the chosen product to be produced.Next a marketing plan should be presented. This means thatwe have to research to determine potential markets for ourproducts. We should be able to evaluate the selling capacityof each market, and then start marketing itself.Finally, a financial programme should be introduced. Thisprogramme should contain the calculations for estimatedincome and expenditure. The difference will show us wherewe are. This calculation should be done on a cash flowprogram basis, on a monthly basis, and then on an annualbasis. This cash flow table will enable us to know ourrequirements for finance for every month of the year, and todetermine how much external finance should be neededduring the year, and what would be the cost of this finance.5. Summary.Small Scale Industry development is an attractive challengeto many people, scholars and practitioners, around theworld. I have tried to present in this paper the impressiveachievements in this field in Israel. At the same time I have 30
  • 31. tried to present a conceptual approach in the establishmentof SSIs as a response to the enlarged need in thedeveloping world to acquire more and more the availability ofNon-Agricultural Employment as a point of departure to theprocess of development of the vast rural population in thedeveloping world. The emphasis on rural developmentshould not be, according to my proposal, on thedevelopment of merely agriculture, but rather a huge effort atdeveloping NAE, and as a result, the advancement ofagriculture will be facilitated as well.References:1. The Brandt report. 1980.2. Arnon, I. and Raviv, M: From Fellah to FarmerSettlement Study Center, Rehovot. 1980.3. McNamara, R.S.: One Hundred Countries - Two BillionPeople Praegar, N.Y. 1973.4. Arnon, I.: Modernization of Agriculture in DevelopingCountries John Willey & Sons, 1981.5. Hyden, G.: No Shortcuts to Development. Berkeley,University of California Press, 1983. 31
  • 32. 6. Galor, Z. : "Towards the Cooperative Development ofTraditional Rural Areas" The International Institute, 1986.7. Kibbutz Industry Association Link Magazine, IsraelsInternational Business Magazine, 1995.8. MAARIV Israeli Newspaper, 23/4/96.9. Galor, Z. "Conditions for the Success of a New Moshav:the Stage-by-Stage Approach" HASSADEH QUARTERLYVOL.1No.2 March 1990.10. Galor, Z.: "The Moshav - Not Only Agricultural" DAVARIsraeli Newspaper, 20/9/82.11. Carmel, M.: "How a Kibbutz Industrial Enterprise is SetUp". The International Institute. 1991.12. M.A.T.Y. - A Network of Centers for EncouragingEnterprises in Business. Tel Aviv. 199613. Ben-Tolila, D,: "Industrialization of Rural Areas" BentoConsultants - Industrial & Management Engineering.Korannit, Misgav. 1994. 32