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Israel-POLITICAL FRAMEWORK: ELITE, VALUES, AND ORIENTATIONS

Israel Index

When Israel became independent, its founding political elite, associated mainly with Mapai, had almost three decades of experience in operating self-governing institutions under the British Mandate. The top Mapai/Labor Party leaders continued to dominate Israeli politics for another three decades. Their paramount influence for over half a century as founders, architects, and prime movers of a Jewish national homeland has had an enduring effect on their successor generation and the political scene in Israel. The elite, political culture, social structure, and social makeup of any nation entwine in complex ways and in the process shape the character and direction of a given political system. This process holds true especially in Israel, where ideological imperatives and their institutionalization have constituted an important part of the country's evolution.

The first generation of Israeli leaders came to Palestine (which they called Eretz Yisrael, or Land of Israel) mainly during the Second Aliyah (see Glossary) between 1900 and 1920 (see Labor Zionism , ch. 1). The Ashkenazim (Jews of European origin), who constituted the majority among the Yishuv's mostly Labor Zionist political and socioeconomic elites, were impelled by Zionist ideals. The majority held to Labor Zionism, while others adhered to moderate General Zionism (sometimes called Political Zionism) or right-wing Revisionist Zionism. To the early immigrants, the themes promoted by the different Zionist movements provided powerful impulses for sociopolitical action. These pioneers were essentially Labor Zionists with an abiding faith in the rectitude of values that stressed, among other things, the establishment of a modern Jewish nation promoting mutual assistance under the principle of "from each according to his ability, to each according to his needs," abolition of private ownership of the means of production, and the idea that human consciousness and character were conditioned by the social environment. They also held that Jewish land should be developed in a collectivist agricultural framework, that well-to-do Jews in the Diaspora should materially aid the cause of the Jewish homeland, and that the Jews of the Diaspora should seek the fullest measure of redemption by immigrating to the new Yishuv. In addition, collectivist values of East European and Central European origin, in which the founding generation had been socialized, affected the political orientation of Israel both before and after independence.

The value system of the first generation came to be exemplified first and foremost in the communal and egalitarian kibbutz and to a lesser extent in the moshav. Together these institutions accounted for less than 3 percent of the Jewish population at any given time, but they have held a special place in Israeli society as the citadel of pioneer ideology. They also gave Israel a distinctive self-image as a robust, dedicated, egalitarian, "farmer- or citizen-soldier" society. The kibbutzim also produced numbers of national leaders out of proportion to their small population; they also provided the country with some of its best soldiers and officers.

The founding generation of Israeli leaders, including David Ben-Gurion, Yitzhak Ben-Zvi, Berl Katznelson, Moshe Sharett, and later, Levi Eshkol and Golda Meir, in effect shaped the country's socioeconomic structures and political patterns. These people were instrumental in establishing the original Labor Zionist parties beginning in 1905, in merging them to establish Mapai in 1930, and in organizing the Histadrut and Jewish self-defense institutions, such as the Haganah (see Glossary), which later became the Israel Defense Forces (IDF) in 1920. These formative, nation-building organizations, along with the quasi-governmental Elected Assembly (Asefat Hanivharim--see Glossary), the National Council (Vaad Leumi), the WZO, and the Jewish Agency, served as the Yishuv's national institutions, shaping the character of postindependence Israel.

From its earliest days, Mapai, which had an interlocking leadership with the Histadrut, dominated Israeli public life, including the top echelons of the IDF, the WZO, and the Jewish Agency. Its legitimacy as a ruling party was seldom questioned because it was identified with the mystique of the Zionist struggle for independence, patriotism, and the successful consolidation of statehood. The essentially secular political values espoused by Mapai leaders were endorsed by most of the Jewish population. The absence of effective alternative governing elites or countervalues within the country's multiparty coalition-type government system made it difficult to challenge the Mapai-controlled political mainstream. Moreover, political patterns from the 1920s until the June 1967 War generally discouraged the rise of radical right-wing or left-wing destabilizing tendencies. This trend was rooted in the overall political dominance of Israel's Labor Party and its predecessors and the strength of the mutual restraints inherent in Israel's political subcultures.

Mainstream Israeli society is composed of persons who represent pluralistic cultural and political backgrounds. Politically, some Israeli Jews have liberal West European orientations; others were reared in more collectivist Central European and East European environments, or in authoritarian Middle Eastern political cultures. Some are religiously more traditional than others, but even among Orthodox Jews, shades of conviction vary substantially over the role of Jewish customary laws and the relationship between the state and religion. Thus, the founding generation had to develop a political system that reconciled and accommodated the varied needs of a wide range of groups.

The political system within Israel proper, excluding the West Bank and the Gaza Strip, is geared to the broadest possible level of public participation. Political activities are relatively free, although authoritarian and antidemocratic tendencies were evident among some of the leaders and supporters of right-wing ultranationalist parties and factions. In the late 1980s, the impetus to "agree to disagree" within the democratic framework of conciliation began to show some weakening as a result of intense polarizing controversies over the future of the occupied territories and various disputes over issues concerning the state and religion.

By the early 1970s, Jews of Sephardic origin (popularly referred to in Israel as Oriental Jews) outnumbered their Ashkenazic counterparts as a demographic group. The older Sephardim were, in general, from politically authoritarian and religiously traditional North African and Middle Eastern societies that regarded the Central European and West European secular and social democratic political value spectrum as too modern and far-reaching as compared to their own. They were accustomed to strong authoritarian leaders rather than ideals emphasizing social democratic collectivism and popular sovereignty. Nonetheless, a sizable proportion of Sephardim joined Labor's ranks both as leaders and rank-and-file party members.

Oriental Jews came to be referred to in the 1960s as "the Second Israel"--the numerically larger but socially, culturally, economically, and politically disadvantaged half of the nation (see Jewish Ethnic Groups , ch. 2). Not all Orientals were economically deprived, but nearly all of those who were relatively poor belonged to Sephardic communities. The communal gap and attendant tensions between Ashkenazic and Sephardic Jews have naturally engaged the remedial efforts of successive governments, but results have fallen far short of Oriental expectations. The problem was partly rooted in the country's political institutions and processes. Ashkenazic dominance of sociopolitical and economic life had been firmly institutionalized before independence. Over the years, however, Sephardic representation substantially increased in the country's major political parties, and as of the 1980s, Sephardic Jews occupied leadership positions in many municipalities.

Not surprisingly, beginning in the 1950s, most Sephardim tended to vote against Mapai and its successor, Labor. Both were perceived as representing the Ashkenazic establishment, even though Sephardim were always represented among the ranks of party leaders. In the 1950s and early 1960s, while many Sephardim were impressed with Ben-Gurion's charismatic and authoritative leadership, they nevertheless tended to support Herut, the major opposition party led by Menachem Begin, whose right-wing populism and ultranationalist, anti-Arab national security posture appealed to them. Paradoxically, the socialist-inspired social welfare system, a system built by Mapai and sustained by Labor and the Labor-dominated Histadrut, benefited the Sephardim particularly. In general, the Sephardim tended to support the right-wing Gahal/Likud blocs that for years had advocated a substantial modification of the welfare system so as to decrease its socialist emphasis. In terms of long-range electoral trends, the Sephardic position did not augur well for the Labor Zionist elite of the Labor Party.

Pressure for greater political representation and power has come from the younger, Israeli-born generation of both Ashkenazic and Sephardic origins. As a group, they were less obsessed with the past than their elders. The youth have been moving toward a strong, industrialized, capitalist, Western-style, middle-class society as the national norm. Although some younger right-wing ultranationalists and right-wing religious advocates continued to be imbued with the extremist nationalism and religious messianism of their elders--as shown, for example, by their support of parties favoring annexation of the occupied territories--most of the younger generation were more secular, pragmatic, and moderate on such issues.

The concerns of secular young people went beyond the question of "Who is a Jew"--which they continuously had to confront because of right-wing religious pressures--to such critical issues as the quality of education, social status, economic conditions, and the comforts of modern life. Their primary interests have been how to make Israel more secure from external threat and how to improve the quality of life for all. Nevertheless, for many Israelis, the founding ideologies remained a ritualized part of national politics.

Urbanization and industrialization were equally potent forces of change; their adulterating effect on Israel's founding ideology has been particularly significant. They have led to new demands, new opportunities, and new stresses in social and economic life affecting all social and political strata. The older commitment to agriculture, pioneering, and collectivism has crumbled before the relentless pressure of industrialization and the bridging of the gap between urban and rural life. Collective and communal settlements have become increasingly industrialized; factories and high-technology industries have been set up; the mass media have faciliated an influx of new information and ideas; and additional layers of bureaucratic and institutional arrangements have emerged. Kibbutz idealism, the pride of Israel, has declined, especially among increasingly individualistic and consumer-oriented young people. To stem this tide and to retain young members, kibbutz federations and individual kibbutzim have established many educational and vocational programs and activities.

As the 1970s began, the social base of Israeli politics had become highly complex, and political fluidity resulted. A major catalyst in creating a new mood was the October 1973 War, known in Israel as the Yom Kippur War, which dealt a crushing blow to popular belief in Israel's strength and preparedness in the face of its Arab adversaries (see The October 1973 War , ch. 5). The result was a loss of confidence in the political and national security elite, headed at the time by Prime Minister Golda Meir, Minister of Defense Moshe Dayan, and Minister-without-Portfolio Israel Galilee. After the war, in which Egyptian and Syrian forces scored military gains, many charges and countercharges concerned inadequate military preparedness. Nevertheless, Meir's government returned to power in the country's parliamentary elections held on December 31, 1973. Apparently, despite widespread misgivings, many Israelis believed that continuity was preferable to change and uncertainty under Begin's newly formed and untried center-right Likud Bloc (see The Likud Bloc , this ch.).

Meir's resignation from the prime ministership in April 1974 resulted in a succession crisis and the departure of the last of Labor's old guard party leaders, mostly in their late sixties and seventies, such as Meir, Pinchas Sapir, and Israel Galilee. Meir's departure triggered political infighting among the Labor elite, specifically between the former Mapai and Rafi (Israel Labor List--see Appendix B) factions; a new generation centered around the triumvirate of Yitzhak Rabin, Shimon Peres, and Yigal Allon, succeeded Meir.

The second most striking political development in the 1970s was the ascendance of a new right-wing counterelite in May 1977. An upset victory in the ninth parliamentary elections, called an "earthquake" by some, brought Begin's center-right Likud to power, ending Labor's half a century of political dominance. The new political elite won primarily because of the defection of former Labor leaders and previous Labor voters to the Democratic Movement for Change (DMC), which had been founded in 1976 by Yigal Yadin and several other groups. Despite the subsequent collapse of the DMC and the defection of moderates from the Likud-led cabinet--for example, former Minister of Defense Ezer Weizman formed his own list Yahad (Together--see Appendix B) in 1981 and Minister of Foreign Affairs Moshe Dayan created Telem--Likud's success in the tenth parliamentary elections of 1981 resulted from its continued ability to present itself as a viable governing group and a party dedicated to ultranationalism and territorial expansionism.

The top echelons of the Israeli political elite as of the late 1980s were still predominantly of European background; many of them had either immigrated to Palestine during the 1930s and the 1940s or had been born in the Yishuv to parents of East European or Central European origin. A growing number of Oriental politicians, however, were making their mark in the top ranks of all the major parties and at the ministerial and subministerial levels. A majority of the elite had a secular university education, while a minority had a more traditional religious education. The political elite was overwhelmingly urban--most resided in Tel Aviv, Jerusalem, or Haifa. A minority, particularly the Sephardim, came from the newer development towns. Among the elite who resided in rural areas most, especially members of Labor and its satellites, represented communal kibbutzim and, to a lesser extent, moshavim.

By occupational category, professional party politicians constituted by far the largest single group, followed, in numerical order, by lawyers, kibbutz officials, educators, Histadrut or private sector corporate managers, journalists, ex-military officers, and, to a lesser degree, functionaries of religious institutions. Many of the elite were in the forty-to-mid-sixty age bracket. In 1988 the political elite numbered more than 200 individuals, excluding the broader social elite encompassing business, military, religious, educational, cultural, and agricultural figures. The number would be greater if senior officials in such key offices as the Office of the Prime Minister and the ministries of defense, foreign affairs, finance, and commerce, as well as the Histadrut and its industrial and financial enterprises and trade unions, were included.

The power of individual members of the elite varied depending on their personal reputation and their offices. The most influential were found in the cabinet. Members of the Knesset came next. Elected mayors of large municipalities such as Tel Aviv, Jerusalem, and Haifa had considerable importance because of the influence of local politics on national-level politics. In addition, the president, Supreme Court justices, and the head of the Office of the State Comptroller had the prestige of cabinet members although they lacked decision-making responsibility.

During the late 1980s, the criteria for entrance into the top elite were more open and competitive than previously. Political parties, and, to some extent, the civil service, continued to be the principal vehicles for upward mobility. Under the country's electoral system of proportional representation, participation in party politics remained essential for gaining top positions, except in limited cases of co-optation from nonparty circles, principally the military. In earlier periods, party nominating committees primarily determined a politician's entry into a parliamentary delegation; in the 1980s, internal party elections increasingly governed this decision. This system placed a high premium on partisan loyalty, membership in a party faction, and individual competence.

The political establishment, whether in office or in opposition, secularist or Orthodox, left-wing or right-wing, has remained basically loyal to the state. Establishment interpretations of classical Zionist ideologies have varied according to the adherents' diverse backgrounds and political and religious orientations, but internal political cleavages have not undermined the essential unity of Israeli society and political institutions. Except for certain segments among a minority of extremist right-wing religious or secular ultranationalists, most Israeli citizens have sought to maintain democratic values and procedures; their differences have centered mainly on tactics rather than on the goal of realizing a modern, democratic, prosperous social welfare state.

Data as of December 1988

Background		Following World War II, the British withdrew from their mandate of Palestine, and the UN partitioned the area into Arab and Jewish states, an arrangement rejected by the Arabs. Subsequently, the Israelis defeated the Arabs in a series of wars without ending the deep tensions between the two sides. The territories Israel occupied since the 1967 war are not included in the Israel country profile, unless otherwise noted. On 25 April 1982, Israel withdrew from the Sinai pursuant to the 1979 Israel-Egypt Peace Treaty. In keeping with the framework established at the Madrid Conference in October 1991, bilateral negotiations were conducted between Israel and Palestinian representatives and Syria to achieve a permanent settlement. Israel and Palestinian officials signed on 13 September 1993 a Declaration of Principles (also known as the "Oslo Accords") guiding an interim period of Palestinian self-rule. Outstanding territorial and other disputes with Jordan were resolved in the 26 October 1994 Israel-Jordan Treaty of Peace. In addition, on 25 May 2000, Israel withdrew unilaterally from southern Lebanon, which it had occupied since 1982. In April 2003, US President BUSH, working in conjunction with the EU, UN, and Russia - the "Quartet" - took the lead in laying out a roadmap to a final settlement of the conflict by 2005, based on reciprocal steps by the two parties leading to two states, Israel and a democratic Palestine. However, progress toward a permanent status agreement was undermined by Israeli-Palestinian violence between September 2003 and February 2005. In the summer of 2005, Israel unilaterally disengaged from the Gaza Strip, evacuating settlers and its military while retaining control over most points of entry into the Gaza Strip. The election of HAMAS to head the Palestinian Legislative Council froze relations between Israel and the Palestinian Authority (PA). Ehud OLMERT became prime minister in March 2006 and presided over a 34-day conflict with Hizballah in Lebanon in June-August 2006 and a 23-day conflict with Hamas in the Gaza Strip during December 2008 and January 2009. OLMERT, who in June 2007 resumed talks with PA President Mahmoud ABBAS, resigned in September 2008. Prime Minister Binyamin NETANYAHU formed a coalition in March 2009 following a February 2009 general election. Peace talks are currently stalled.
Location		Middle East, bordering the Mediterranean Sea, between Egypt and Lebanon
Area(sq km)		total: 22,072 sq km land: 21,642 sq km water: 430 sq km
Geographic coordinates		31 30 N, 34 45 E
Land boundaries(km)		total: 1,017 km border countries: Egypt 266 km, Gaza Strip 51 km, Jordan 238 km, Lebanon 79 km, Syria 76 km, West Bank 307 km
Coastline(km)		273 km
Climate		temperate; hot and dry in southern and eastern desert areas
Elevation extremes(m)		lowest point: Dead Sea -408 m highest point: Har Meron 1,208 m
Natural resources		timber, potash, copper ore, natural gas, phosphate rock, magnesium bromide, clays, sand
Land use(%)		arable land: 15.45% permanent crops: 3.88% other: 80.67% (2005)
Irrigated land(sq km)		1,940 sq km (2003)
Total renewable water resources(cu km)		1.7 cu km (2001)
Freshwater withdrawal (domestic/industrial/agricultural)		total: 2.05 cu km/yr (31%/7%/62%) per capita: 305 cu m/yr (2000)
Natural hazards		sandstorms may occur during spring and summer; droughts; periodic earthquakes
Environment - current issues		limited arable land and natural fresh water resources pose serious constraints; desertification; air pollution from industrial and vehicle emissions; groundwater pollution from industrial and domestic waste, chemical fertilizers, and pesticides
Environment - international agreements		party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Ozone Layer Protection, Ship Pollution, Wetlands, Whaling signed, but not ratified: Marine Life Conservation
Geography - note		there are about 340 Israeli civilian sites - including 100 small outpost communities in the West Bank - as well as 42 sites in the Golan Heights, 0 in the Gaza Strip, and 29 in East Jerusalem (July 2008 est.); Lake Tiberias (Sea of Galilee) is an important freshwater source
Population		7,233,701 note: includes about 187,000 Israeli settlers in the West Bank, about 20,000 in the Israeli-occupied Golan Heights, and fewer than 177,000 in East Jerusalem (July 2009 est.)
Age structure(%)		0-14 years: 27.9% (male 1,031,629/female 984,230) 15-64 years: 62.3% (male 2,283,034/female 2,221,301) 65 years and over: 9.9% (male 311,218/female 402,289) (2009 est.)
Median age(years)		total: 29.1 years male: 28.4 years female: 29.8 years (2009 est.)
Population growth rate(%)		1.671% (2009 est.)
Birth rate(births/1,000 population)		19.77 births/1,000 population (2009 est.)
Death rate(deaths/1,000 population)		5.43 deaths/1,000 population (July 2009 est.)
Net migration rate(migrant(s)/1,000 population)		2.37 migrant(s)/1,000 population (2009 est.)
Urbanization(%)		urban population: 92% of total population (2008) rate of urbanization: 1.7% annual rate of change (2005-10 est.)
Sex ratio(male(s)/female)		at birth: 1.05 male(s)/female under 15 years: 1.05 male(s)/female 15-64 years: 1.03 male(s)/female 65 years and over: 0.77 male(s)/female total population: 1 male(s)/female (2009 est.)
Infant mortality rate(deaths/1,000 live births)		total: 4.22 deaths/1,000 live births male: 4.39 deaths/1,000 live births female: 4.05 deaths/1,000 live births (2009 est.)
Life expectancy at birth(years)		total population: 80.73 years male: 78.62 years female: 82.95 years (2009 est.)
Total fertility rate(children born/woman)		2.75 children born/woman (2009 est.)
Nationality		noun: Israeli(s) adjective: Israeli
Ethnic groups(%)		Jewish 76.4% (of which Israel-born 67.1%, Europe/America-born 22.6%, Africa-born 5.9%, Asia-born 4.2%), non-Jewish 23.6% (mostly Arab) (2004)
Religions(%)		Jewish 76.4%, Muslim 16%, Arab Christians 1.7%, other Christian 0.4%, Druze 1.6%, unspecified 3.9% (2004)
Languages(%)		Hebrew (official), Arabic used officially for Arab minority, English most commonly used foreign language
Country name		conventional long form: State of Israel conventional short form: Israel local long form: Medinat Yisra'el local short form: Yisra'el
Government type		parliamentary democracy
Capital		name: Jerusalem geographic coordinates: 31 46 N, 35 14 E time difference: UTC+2 (7 hours ahead of Washington, DC during Standard Time) daylight saving time: +1hr, begins last Friday in March; ends the Sunday between the holidays of Rosh Hashana and Yom Kippur note: Israel proclaimed Jerusalem as its capital in 1950, but the US, like nearly all other countries, maintains its Embassy in Tel Aviv
Administrative divisions		6 districts (mehozot, singular - mehoz); Central, Haifa, Jerusalem, Northern, Southern, Tel Aviv
Constitution		no formal constitution; some of the functions of a constitution are filled by the Declaration of Establishment (1948), the Basic Laws of the parliament (Knesset), and the Israeli citizenship law; note - since May 2003 the Constitution, Law, and Justice Committee of the Knesset has been working on a draft constitution
Legal system		mixture of English common law, British Mandate regulations, and, in personal matters, Jewish, Christian, and Muslim legal systems; has not accepted compulsory ICJ jurisdiction
Suffrage		18 years of age; universal
Executive branch		chief of state: President Shimon PERES (since 15 July 2007) head of government: Prime Minister Binyamin NETANYAHU (since 31 March 2009) cabinet: Cabinet selected by prime minister and approved by the Knesset elections: president is largely a ceremonial role and is elected by the Knesset for a seven-year term (one-term limit); election last held 13 June 2007 (next to be held in 2014 but can be called earlier); following legislative elections, the president assigns a Knesset member - traditionally the leader of the largest party - the task of forming a governing coalition election results: Shimon PERES elected president; number of votes in first round - Shimon PERES 58, Reuven RIVLIN 37, Colette AVITAL 21; PERES elected president in second round with 86 votes (unopposed)
Legislative branch		unicameral Knesset (120 seats; members elected by popular vote to serve four-year terms) elections: last held 10 February 2009 (next scheduled election to be held in 2013) election results: percent of vote by party - Kadima 23.2%, Likud-Ahi 22.3%, YB 12.1%, Labor 10.2%, SHAS 8.8%, United Torah Judaism 4.5%, United Arab List 3.5%, NU 3.4%, Hadash 3.4%, The Jewish Home 3%, The New Movement-Meretz 3%, Balad 2.6%; seats by party - Kadima 28, Likud-Ahi 27, YB 15, Labor 13, SHAS 11, United Torah Judaism 5, United Arab List 4, NU 4, HADASH 4, The Jewish Home 3, The New Movement-Meretz 3, Balad 3
Judicial branch		Supreme Court (justices appointed by Judicial Selection Committee - made up of all three branches of the government; mandatory retirement age is 70)
Political pressure groups and leaders		B'Tselem [Jessica MONTELL, Executive Director] monitors human rights abuses; Peace Now [Yariv OPPENHEIMER, Secretary General] supports territorial concessions in the West Bank and Gaza Strip; YESHA Council of Settlements [Danny DAYAN, Chairman] promotes settler interests and opposes territorial compromise
International organization participation		BIS, BSEC (observer), CERN (observer), EBRD, FAO, IADB, IAEA, IBRD, ICAO, ICC, ICCt (signatory), ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, OAS (observer), OECD (accession state), OPCW (signatory), OSCE (partner), Paris Club (associate), PCA, SECI (observer), UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO
Flag description		white with a blue hexagram (six-pointed linear star) known as the Magen David (Shield of David) centered between two equal horizontal blue bands near the top and bottom edges of the flag
Economy - overview		Israel has a technologically advanced market economy with substantial, though diminishing, government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel imports substantial quantities of grain but is largely self-sufficient in other agricultural products. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable trade deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, its major source of economic and military aid. Israel's GDP, after contracting slightly in 2001 and 2002 due to the Palestinian conflict and troubles in the high-technology sector, has grown by about 5% per year since 2003. The economy grew an estimated 3.9% in 2008, slowed by the global financial crisis. The government's prudent fiscal policy and structural reforms over the past few years have helped to induce strong foreign investment, tax revenues, and private consumption, setting the economy on a solid growth path.
GDP (purchasing power parity)		$203.4 billion (2008 est.) $195.2 billion (2007 est.) $185.6 billion (2006 est.) note: data are in 2008 US dollars
GDP (official exchange rate)		$202.1 billion (2008 est.)
GDP - real growth rate(%)		4.2% (2008 est.) 5.2% (2007 est.) 5.3% (2006 est.)
GDP - per capita (PPP)		$28,600 (2008 est.) $27,900 (2007 est.) $27,000 (2006 est.) note: data are in 2008 US dollars
GDP - composition by sector(%)		agriculture: 2.6% industry: 32.4% services: 65% (2008 est.)
Labor force		2.957 million (2008 est.)
Labor force - by occupation(%)		agriculture: 2% industry: 16% services: 82% (30 September 2008)
Unemployment rate(%)		6.1% (2008 est.) 7.3% (2007 est.)
Population below poverty line(%)		21.60% note: Israel's poverty line is $7.30 per person per day (2005)
Household income or consumption by percentage share(%)		lowest 10%: 2.6% highest 10%: 24.2% (2007)
Distribution of family income - Gini index		38.6 (2005) 35.5 (2001)
Investment (gross fixed)(% of GDP)		18.1% of GDP (2008 est.)
Budget		revenues: $59.98 billion expenditures: $64.21 billion (2008 est.)
Inflation rate (consumer prices)(%)		4.6% (2008 est.) 0.5% (2007 est.)
Stock of money		$NA (31 December 2008) $15.36 billion (31 December 2006)
Stock of quasi money		$NA (31 December 2008) $154.3 billion (31 December 2007)
Stock of domestic credit		$NA (31 December 2008) $113.4 billion (31 December 2006)
Market value of publicly traded shares		$134.5 billion (31 December 2008) $236.4 billion (31 December 2007) $173.3 billion (31 December 2006)
Economic aid - recipient		$240 million from US (FY06)
Public debt(% of GDP)		76.8% of GDP (2008 est.) 104.5% of GDP (2004 est.)
Agriculture - products		citrus, vegetables, cotton; beef, poultry, dairy products
Industries		high-technology projects (including aviation, communications, computer-aided design and manufactures, medical electronics, fiber optics), wood and paper products, potash and phosphates, food, beverages, and tobacco, caustic soda, cement, construction, metals products, chemical products, plastics, diamond cutting, textiles, footwear
Industrial production growth rate(%)		3.5% (2008 est.)
Current account balance		$2.213 billion (2008 est.) $4.185 billion (2007 est.)
Exports		$57.16 billion (2008 est.) $50.07 billion (2007 est.)
Exports - commodities(%)		machinery and equipment, software, cut diamonds, agricultural products, chemicals, textiles and apparel
Exports - partners(%)		US 32.5%, Belgium 7.5%, Hong Kong 6.7% (2008)
Imports		$64.4 billion (2008 est.) $55.93 billion (2007 est.)
Imports - commodities(%)		raw materials, military equipment, investment goods, rough diamonds, fuels, grain, consumer goods
Imports - partners(%)		US 12.3%, Belgium 6.5%, China 6.5%, Switzerland 6.1%, Germany 6% (2008)
Reserves of foreign exchange and gold		$42.51 billion (31 December 2008 est.) $28.52 billion (31 December 2007 est.)
Debt - external		$86.08 billion (31 December 2008) $89.58 billion (31 December 2007)
Stock of direct foreign investment - at home		$56.93 billion (31 December 2008 est.) $55.7 billion (31 December 2007 est.)
Stock of direct foreign investment - abroad		$54.55 billion (31 December 2008 est.) $48.47 billion (31 December 2007 est.)
Exchange rates		new Israeli shekels (ILS) per US dollar - 3.56 (2008 est.), 4.14 (2007), 4.4565 (2006), 4.4877 (2005), 4.482 (2004)
Currency (code)		new Israeli shekel (ILS); note - NIS is the currency abbreviation; ILS is the International Organization for Standardization (ISO) code for the NIS
Telephones - main lines in use		2.9 million (2008)
Telephones - mobile cellular		8.902 million (2008)
Telephone system		general assessment: most highly developed system in the Middle East although not the largest domestic: good system of coaxial cable and microwave radio relay; all systems are digital; four privately-owned mobile-cellular service providers with countrywide coverage international: country code - 972; submarine cables provide links to Europe, Cyprus, and parts of the Middle East; satellite earth stations - 3 Intelsat (2 Atlantic Ocean and 1 Indian Ocean) (2008)
Internet country code		.il
Internet users		2.106 million (2008)
Airports		47 (2009)
Pipelines(km)		gas 176 km; oil 442 km; refined products 261 km (2008)
Roadways(km)		total: 17,870 km paved: 17,870 km (includes 146 km of expressways) (2007)
Ports and terminals		Ashdod, Elat (Eilat), Hadera, Haifa
Military branches		Israel Defense Forces (IDF), Israel Naval Forces (INF), Israel Air Force (IAF) (2009)
Military service age and obligation(years of age)		18 years of age for compulsory (Jews, Druzes) and voluntary (Christians, Muslims, Circassians) military service; both sexes are obligated to military service; conscript service obligation - 36 months for enlisted men, 21 months for enlisted women, 48 months for officers; reserve obligation to age 41-51 (men), 24 (women) (2008)
Manpower available for military service		males age 16-49: 1,717,362 females age 16-49: 1,636,574 (2008 est.)
Manpower fit for military service		males age 16-49: 1,474,966 females age 16-49: 1,404,712 (2009 est.)
Manpower reaching militarily significant age annually		male: 61,223 female: 58,219 (2009 est.)
Military expenditures(% of GDP)		7.3% of GDP (2006)
Disputes - international		West Bank and Gaza Strip are Israeli-occupied with current status subject to the Israeli-Palestinian Interim Agreement - permanent status to be determined through further negotiation; Israel continues construction of a "seam line" separation barrier along parts of the Green Line and within the West Bank; Israel withdrew its settlers and military from the Gaza Strip and from four settlements in the West Bank in August 2005; Golan Heights is Israeli-occupied (Lebanon claims the Shab'a Farms area of Golan Heights); since 1948, about 350 peacekeepers from the UN Truce Supervision Organization (UNTSO) headquartered in Jerusalem monitor ceasefires, supervise armistice agreements, prevent isolated incidents from escalating, and assist other UN personnel in the region
Refugees and internally displaced persons		IDPs: 150,000-420,000 (Arab villagers displaced from homes in northern Israel) (2007)
Electricity - production(kWh)		50.41 billion kWh (2007 est.)
Electricity - production by source(%)		fossil fuel: 99.9% hydro: 0.1% nuclear: 0% other: 0% (2001)
Electricity - consumption(kWh)		46.15 billion kWh (2007 est.)
Electricity - exports(kWh)		2.081 billion kWh (2007 est.)
Electricity - imports(kWh)		0 kWh (2008 est.)
Oil - production(bbl/day)		5,246 bbl/day (2008 est.)
Oil - consumption(bbl/day)		235,000 bbl/day (2008 est.)
Oil - exports(bbl/day)		69,580 bbl/day (2007 est.)
Oil - imports(bbl/day)		318,900 bbl/day (2007 est.)
Oil - proved reserves(bbl)		1.94 million bbl (1 January 2009 est.)
Natural gas - production(cu m)		1.19 billion cu m (2008 est.)
Natural gas - consumption(cu m)		1.19 billion cu m (2008 est.)
Natural gas - exports(cu m)		0 cu m (2008)
Natural gas - proved reserves(cu m)		30.44 billion cu m (1 January 2009 est.)
HIV/AIDS - adult prevalence rate(%)		0.1% (2007 est.)
HIV/AIDS - people living with HIV/AIDS		5,100 (2007 est.)
HIV/AIDS - deaths		fewer than 200 (2007 est.)
Literacy(%)		definition: age 15 and over can read and write total population: 97.1% male: 98.5% female: 95.9% (2004 est.)
School life expectancy (primary to tertiary education)(years)		total: 15 years male: 15 years female: 16 years (2006)
Education expenditures(% of GDP)		6.9% of GDP (2004)

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