Reviving cities: The New Zionism

In the wake of war, the Rashi Foundation is spearheading efforts to rebuild Israel’s northern and southern periphery—framing economic growth and social resilience as the new face of Zionism.

 Michal Cohen, CEO of the Rashi Foundation  (photo credit: Niv Aharonson)
Michal Cohen, CEO of the Rashi Foundation
(photo credit: Niv Aharonson)

“When it comes to Israel’s periphery, we cannot return to the way it was on October 6,” says Michal Cohen, CEO of the Rashi Foundation and former Director General of the Education Ministry. “We must give the periphery the opportunity to strengthen itself, to become resilient, and to grow. There is great unfulfilled potential in Israel’s periphery.”

The Rashi Foundation, one of Israel’s largest private philanthropies that promotes social mobility in Israel’s geo-social periphery, will hold its “Opportunities Summit” on May 13, marking forty years of operation. The conference will address the foundation’s activities in employment, the economy, education, and new opportunities that have presented themselves since the outset of the war in October 2023.

Cohen explains that the Rashi Foundation, which had a prominent presence in Israel’s northern and southern peripheries long before the war, sees an even greater need for its activities there today. “If, before the war, we said that citizens of Israel’s periphery did not have the same opportunities as those living in the country’s center, this gap has widened due to the war, and keeps growing, making the crisis even greater now.”

According to statistics commissioned by the Rashi Foundation and carried out by the ERI Institute, the unemployment rate among residents of the conflict zones in Israel’s north is 49%. More than 20,000 businesses in the north have closed, and 81% have suffered severe revenue losses. The official dropout rate in high schools is 11% and is estimated in reality to be as high as 30%. Just 35% of the population in the north has trust in State institutions. Interestingly, Cohen points out, they have a much higher rate of trust – 70% – in civil society, indicating the importance and value of philanthropic activity.

Despite the alarming numbers cited above, Cohen says that the current disaster has presented an opportunity to change and improve the situation in Israel’s periphery. “When we speak in terms of opportunity,” she says, “we mean a new form of Zionism – of economic development in municipalities, of employment and retaining young people in Israel’s periphery. The residents of the periphery experienced what it was like to live in Israel’s center when they were evacuated there. Now, they won’t settle for anything less than what citizens in the center receive regarding health, housing, education, and employment.”  

Cohen points out that residents of northern Israel were evacuated for more than a year due to the ongoing Hezbollah attacks, and 40% of the residents of the north say that they will not return. “The State of Israel has a duty to make northern and southern Israel more attractive so that citizens will return,” she says.

While the Rashi Foundation is active in both northern and southern Israel, Cohen says that at this point in time, the communities in the southern periphery are somewhat more advanced in their recovery than those of the north. The communities in the Gaza Envelope were accustomed to attacks from the enemy, and their rehabilitation began sooner than in the north.

The Rashi Foundation is involved in comprehensive efforts to rehabilitate the northern periphery of Israel. Together with other foundations, it is partnering with municipalities to rebuild their local economic ecosystems, youth employment programs, and more. Cohen adds that Rashi brought in the noted firm of Ernst and Young to prepare a precise assessment of the economic damage caused by the war in Kiryat Shmona. “We are not only bringing resources, but we are helping cities build local leadership and meet their needs in an intelligent way based on information and objective data to create a strategic plan.

“We have to help the municipalities work with the government in an orderly and professional manner. Philanthropy alone can’t strengthen Israel’s north and south, but it can strengthen the municipalities to operate efficiently and to receive assistance from the government.”

Cohen says that the municipalities in the northern periphery believe in Rashi’s professional abilities because they have seen the foundation’s effectiveness over the past decades. “We are not just handing out checks. We are building work plans and are bringing models that can sustain themselves over a long period of time.” She adds that the Rashi Foundation is working together with many partners, to build a comprehensive plan for the municipalities in the area.

“Today,” concludes Cohen, “more than ever, protecting and developing Israel’s northern and southern borders is essential for the State of Israel – settling the north and south is crucial to Israel’s security for the future.”

 This article was written in cooperation with the Rashi Foundation.