Israel

Israel finds itself at the center of Middle East politics. A history of violence and turmoil has its roots in the displacement of Palestinians that has occurred since the early 20th century. Part of the problem stemmed from the Balfour Declaration in 1917 in which Britain stated that they favored a national home for the Jewish people in Palestine, a territory mainly occupied by Arabs. In reality, Jews had immigrated decades before, but the declaration changed everything, granting Jews a safeguard in the British Empire. Tensions followed with heavy fighting, and the Jewish community managed to establish its own governing councils, which also meant that they were better equipped to maintain control when the British finally left Palestine in the 1940s. In 1948, Israel became an independent nation-state, leaving Palestinians without a country of their own. During this period, millions of Palestinians were forced from their homes. The Palestinians who stayed now mainly live in Gaza and the West Bank, and the two regions function as autonomous entities with elective governments exempt from Israeli influence.

Although it was widely accepted as a sovereign state in 1948, Israel continues to live in conflict with its Muslim neighbors. The Six Day War in 1967, in which Israel stood victorious against a coalition of Arab states, is one of the most well known expressions of the conflict and a war that showed Israel’s capabilities in the battlefield. Other conflicts involving Israel include the Arab-Israeli War in 1948, the October War in 1973 (also known as the Yom Kippur War or the Ramadan War), the invasion of Lebanon in 1982, the Lebanon War in 2006, and the Gaza War in 2008.

Relations with some Arab nations have, however, improved significantly during the latter part of the 20thcentury. For example, the 1979 peace treaty harmonized relations between Egypt and Israel. Jordan has also made peace with Israel. Nevertheless, the major issue continues to be the ongoing conflict over the Palestinian Territories. The Oslo Accords in 1993 was perhaps the most promising step towards a solution, but confidence in the agreement has faltered, leaving peace talks at a halt.

Israel has moved away from the socialist model that dominated economic policy in the mid-1980s. With a more market-oriented approach, the country has achieved promising growth figures – GDP has grown by about 5% over the past five years (except in 2009 when the financial crisis pushed down figures to 0,5%). The “Second Intifada” in 2000 led to a temporary decline in foreign visitors, but the country has managed to regain its appeal, with positive development for tourism, exports and foreign direct investment.

Israel is a firmly established democracy, in a sense unique for the region, with strong protection of property rights and low levels of corruption. However, it is often argued that Palestinians and non-Jews are treated unjustly, and that Israel therefore does not qualify as a fully democratic state. 

As noted above, Israel separates itself from the rest of the region. It is the only non-Muslim state and has a fundamentally different social system with one of the highest life expectancies in the world. Free education is granted from a young age, and a large portion (1/3) continues to study at university level. Still, there are significant variations in living standards, with many Arab communities suffering from unemployment and other social problems.