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Israel-The Occupied Territories

Israel Index

During the June 1967 War, about 1.1 million Palestinian Arabs living in the West Bank, Gaza Strip, and East Jerusalem came under Israeli rule. Immediately after the war, East Jerusalem was occupied and reunited with the rest of Israel's capital. Its Arab inhabitants--about 67,000 after the war--became citizens of Israel with the same rights as other Israeli Arabs. The West Bank, ruled by Jordan since 1948, was economically underdeveloped but possessed a relatively efficient administrative infrastructure. Its 750,000 people consisted of a settled population and refugees from Israel who had led during the 1948 War. Both the refugees and the settled population were Jordanian citizens, free to work in Jordan. Most of the leading urban families and virtually all the rural clans had cooperated with Hussein. The Gaza Strip, on the other hand, was seething with discontent when Israeli forces arrived in 1967. Its 1967 population of 350,000--the highest population density in the world at the time--had been under Egyptian rule, but the inhabitants were not accepted as Egyptian citizens or allowed to travel to Egypt proper. As a result they were unable to find work outside the camps and were almost completely dependent on the UN Relief and Works Agency (UNRWA) for Palestine Refugees in the Near East. In the Gaza Strip, Israel implemented harsh security measures to quell widespread unrest and root out the growing resistance movement.

Labor's settlement policy in the occupied territories was based on a plan formaulated during the summer of 1965 by Yigal Allon, deputy prime minister of the Eshkol government. The plan, primarily dictated by security concerns, called for rural and urban settlements to be erected in a sparsely Arab-populated strip twelve to fifteen kilometers wide along the western bank of the Jordan River and the western shores of the Dead Sea. Labor governments sought to interfere as little as possible in the day-to-day lives of the Arab inhabitants. Political and social arrangements were, as much as possible, kept under Jordanian or pro-Jordanian control, the currency remained the Jordanian dinar, the application of Jordanian law continued, and a revised Jordanian curriculum was used in the schools.

Another aspect of Labor's occupation policies was the integration of the territories into the Israeli economy. By the mid-1970s, Arabs from Israel and the territories provided nearly one-quarter of Israel's factory labor and half the workers in construction and service industries. Moreover, the territories became an important market for Israeli domestic production; by 1975 about 16 percent of all Israeli exports were sold in the territories.

The final element of Labor's occupation policies was economic and social modernization. This included the mechanization of agriculture, the spread of television, and vast improvements in education and health care. This led to a marked increase in GNP, which grew by 14.5 percent annually between 1968 and 1973 in the West Bank and 19.4 percent annually in Gaza. As a result, the traditional elites, who had cooperated with Hussein during the years of Jordanian rule, were challenged by a younger, better educated, and more radical elite that was growing increasingly impatient with the Israeli occupation and the older generation's complacency. In the spring of 1976, Minister of Defense Shimon Peres held West Bank municipal elections, hoping to bolster the declining power of the old guard Palestinian leadership. Peres wrongly calculated that the PLO would boycott the elections. Instead, pro-PLO candidates won in every major town except Bethlehem.

Israel's settlement policy in the occupied territories changed in 1977 with the coming to power of Begin. Whereas Labor's policies had been guided primarily by security concerns, Begin espoused a deep ideological attachment to the territories. He viewed the Jewish right of settlement in the occupied territories as fulfilling biblical prophecy and therefore not a matter for either the Arabs or the international community to accept or reject. Begin's messianic designs on the territories were supported by the rapid growth of religious nationalist groups, such as Gush Emunim, which established settlements in heavily populated Arab areas.

The increase in Jewish settlements and the radicalization of the settlers created an explosive situation. When in May 1980 six students of a Hebron yeshiva, a Jewish religious school, were killed by Arab gunfire, a chain of violence was set off that included a government crackdown on Hebron and the expulsion of three leaders of the Hebron Arab community. West Bank Jewish settlers increasingly took the law into their own hands; they were widely believed to be responsible for car-bomb attacks on the mayors of Ram Allah and Nabulus.

Begin's policies toward the occupied territories became increasingly annexationist following the Likud victory in the 1981 parliamentary elections. He viewed the Likud's margin of victory, which was larger than in 1977, as a mandate to pursue a more aggressive policy in the territories. After the election, he appointed the hawkish Ariel Sharon as minister of defense, replacing the more moderate Ezer Weizman, who had resigned in protest against Begin's settlement policy. In November 1981, Sharon installed a civilian administration in the West Bank headed by Menachem Milson. Milson immediately set out to stifle rapidly growing Palestinian nationalist sentiments; he deposed pro-PLO mayors, dissolved the mayors' National Guidance Committee, and shut two Arab newspapers and Bir Zeit University.

While Milson was working to quell Palestinian nationalism in the territories, the Begin regime accelerated the pace of settlements by providing low-interest mortgages and other economic benefits to prospective settlers. This action induced a number of secular Jews, who were not part of Gush Emunim, to settle in the territories, further consolidating Israel's hold on the area. Moreover, Israel established large military bases and extensive road, electricity, and water networks in the occupied territories.

In November 1981, Milson established village leagues in the West Bank consisting of pro-Jordanian Palestinians to counter the PLO's growing strength there. The leadership of the village leagues had a limited base of support, however, especially because the growth of Jewish settlements had adversely affected Arab villagers. The failure of the Village League Plan, the escalating violence in the occupied territories, in addition to increased PLO attacks against northern Israeli settlements, and Syria's unwillingness to respond when the Knesset extended Israeli law to the occupied Golan Heights in December 1981 convinced Begin and Sharon of the need to intervene militarily in southern Lebanon.

Data as of December 1988



BackgroundFollowing 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.
LocationMiddle 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 coordinates31 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

Climatetemperate; 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 resourcestimber, 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 hazardssandstorms may occur during spring and summer; droughts; periodic earthquakes
Environment - current issueslimited 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 agreementsparty 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 - notethere 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
Population7,233,701
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.)
Nationalitynoun: 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 nameconventional long form: State of Israel
conventional short form: Israel
local long form: Medinat Yisra'el
local short form: Yisra'el
Government typeparliamentary democracy
Capitalname: 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 divisions6 districts (mehozot, singular - mehoz); Central, Haifa, Jerusalem, Northern, Southern, Tel Aviv
Constitutionno 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 systemmixture of English common law, British Mandate regulations, and, in personal matters, Jewish, Christian, and Muslim legal systems; has not accepted compulsory ICJ jurisdiction

Suffrage18 years of age; universal
Executive branchchief 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 branchunicameral 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 branchSupreme 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 leadersB'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 participationBIS, 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 descriptionwhite 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 - overviewIsrael 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 force2.957 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 index38.6 (2005)
35.5 (2001)
Investment (gross fixed)(% of GDP)18.1% of GDP (2008 est.)
Budgetrevenues: $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 - productscitrus, vegetables, cotton; beef, poultry, dairy products
Industrieshigh-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 ratesnew 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 use2.9 million (2008)
Telephones - mobile cellular8.902 million (2008)
Telephone systemgeneral 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 users2.106 million (2008)
Airports47 (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 terminalsAshdod, Elat (Eilat), Hadera, Haifa
Military branchesIsrael 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 servicemales age 16-49: 1,717,362
females age 16-49: 1,636,574 (2008 est.)
Manpower fit for military servicemales age 16-49: 1,474,966
females age 16-49: 1,404,712 (2009 est.)
Manpower reaching militarily significant age annuallymale: 61,223
female: 58,219 (2009 est.)
Military expenditures(% of GDP)7.3% of GDP (2006)
Disputes - internationalWest 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 personsIDPs: 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/AIDS5,100 (2007 est.)
HIV/AIDS - deathsfewer 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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