Democracy in Decline: How the Erosion of Civil Services Threatens Israel’s Future

Amit Ben-Tzur

In recent years, Israel’s democratic foundations have faced mounting pressures - not only from populist politics or judicial reforms, but from a quieter, more insidious trend: the systematic erosion of civil services. While headlines focus on political controversies, a deeper crisis is unfolding in the public sphere - one that risks hollowing out the very institutions that hold a democracy together.

Civil services are not a bureaucratic afterthought. They are the living infrastructure of democracy. Public hospitals, schools, welfare agencies, labor inspectors and regulators - these are the tangible expressions of the state’s commitment to equality, dignity and solidarity. When these services are deliberately neglected, outsourced, or underfunded, democracy begins to fail - not in theory, but in people’s daily lives.

In Israel, this failure is increasingly visible. According to recent research by the Arlozorov Forum, Israel ranks among the lowest in the OECD in civilian public expenditure relative to GDP. While the OECD average is about 38%, Israel spends less than 32% and the gap has been growing. In education, Israel’s investment per student in the public system is far below the OECD average. In healthcare, the share of public financing has dropped below 70%, pushing more and more families into the private system. And in welfare services, the ratio of social workers to clients is among the worst in the developed world.

These are not isolated shortcomings. They reflect a structural policy shift over the past two decades, in which successive governments have favored privatization, deregulation and a shrinking role for the state. Civil services have been reframed not as public goods, but as burdens - subject to market logic and short-term cost-cutting.

This has severe implications for democracy:

It deepens inequality: Those who can afford to opt out do so - buying private healthcare, education or legal aid - while the rest are left behind in deteriorating systems.

It erodes trust: Citizens lose faith in a state that fails to provide basic, reliable services.

It weakens civic identity: When people experience the state only as a source of frustration - or not at all - the bonds of solidarity and shared responsibility disintegrate.

But this trajectory is not inevitable. Trade Unions - especially the Histadrut, Israel’s largest federation of trade unions - plays a critical role in defending and renewing the welfare state. Through collective bargaining, public campaigns, and policy advocacy, the Histadrut has pushed back against privatization, promoted fair wages and working conditions, and recently led efforts to protect public sector employees amid the rise of AI and automation. Its voice is vital not only for workers, but for the democratic project itself.

A healthy democracy requires more than elections. It demands strong, accessible, and equitable public services - and a government that can deliver them. Rebuilding the civil service is not an act of nostalgia. It is a necessary investment in the resilience of democracy and the social fabric of Israeli society.