Book contents
- Frontmatter
- Contents
- Figures
- Tables
- Appendices
- Preface
- The Israeli Economy from the Foundation of the State through the 21st Century
- One Introduction
- Two The Economy of the Yishuv and Its Legacy
- Three The Economy, 1948–1985
- Four Macro-Economic Developments, Growth, and Policy
- Five Globalization and High Technology
- Six Defense: Service or Burden?
- Seven Israel and the Palestinians
- Eight The Economics of Religion
- Nine The Arab Minority
- Ten Demographic Developments and Socioeconomic Divisions
- Eleven Conclusions
- Appendices
- References
- Index
Three - The Economy, 1948–1985
Published online by Cambridge University Press: 05 June 2012
- Frontmatter
- Contents
- Figures
- Tables
- Appendices
- Preface
- The Israeli Economy from the Foundation of the State through the 21st Century
- One Introduction
- Two The Economy of the Yishuv and Its Legacy
- Three The Economy, 1948–1985
- Four Macro-Economic Developments, Growth, and Policy
- Five Globalization and High Technology
- Six Defense: Service or Burden?
- Seven Israel and the Palestinians
- Eight The Economics of Religion
- Nine The Arab Minority
- Ten Demographic Developments and Socioeconomic Divisions
- Eleven Conclusions
- Appendices
- References
- Index
Summary
Since independence, Israel’s economy has moved steadily from state control toward a free-market regime. This chapter examines the main features of Israel’s development in its first forty years. It shows how Labor Zionism gradually gave way to a much more capitalistic economy, partly through reforms in foreign trade policy from the 1960s to the 1990s, and also as a result of stabilization policies introduced in 1985.
The War of Independence, 1947–1949
In November 1947, fighting between Jews and Arabs broke out following the passing of a resolution in the UN General Assembly calling for the partition of Palestine into two states, one for the Arabs and one for the Jews. The Arabs rejected the resolution and the Jews accepted it. Against the background of this conflict, the British decided to abandon the Mandate, withdraw their armed forces, and leave Palestine. On 14 May 1948, the leadership of the Yishuv declared independence and the State of Israel came into being. One of the first acts of the new government was to open the country’s borders to Jewish immigration.
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- Publisher: Cambridge University PressPrint publication year: 2010