The mandarins at Israel’s Ministry of Finance have good reason to be pleased.

First, it was revealed that Israel’s debt to gdp ratio is now down to 63.9%, as opposed to 95% back in 2003. This shows the country’s ability to repay debts. Below 60% is considered excellent, especially in the post- credit crisis era. A few days later, Fitch raised Israel’s credit rating to A+. Overall, the outlook is stable and healthy, as the Israeli economy still continues to grow steadily.

So, that’s all OK, isn’t it?

Now look again. For a considerable time, I have been warning of a split economy in the Holy Land. Global expert Prof. François Bourguignon observed that Israel is a country where the rich are benefitting from an inadequate tax system and from high prices for land. The gap between the haves and have nots is only growing.

There are plenty of indications of this inequality. The number of recorded bankruptcies in 2015 grew to 15,450, 50% higher than in 2012. The price of housing continues to rise, about 8% in the past year. Non resident Israelis have an easy time in avoiding taxes. And so the list goes on.

The point is very simple. The Israeli economy appears to be doing all right, according to base line stats. However, there is increasing evidence that the benefits of this improvement are reaching a limited number of people. And what is worse, the government does not seem to care.

Can I prove my point? Last week it was revealed that Israel had bought three submarines from Germany, despite the objections of the military. In today’s Hebrew media, we learn that the German manufacturer is represented in Israel by Prime Minister Netanyahu’s private lawyer, Dan Shimron.

Shimron’s office denies that he ever discussed the matter with the Prime Minister. Fair enough, but would you not have expected a top lawyer like Shimron to have declared the issue openly in order to prevent any possible thought of a conflict of interest?

Maybe, unless the rules for the elite are different than for others in Israel.