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The Political and Socio-Economic Situation of Israel in 1948-1972

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Vasil Khizanishvili

Doctor of Social Sciences in Economics, Professor.

Abstract

The creation of the State of Israel and its subsequent development were preceded by significant events. In particular, the independence declared by the Yishuv leadership on May 14, 1948. One of the first actions of the new government was to open the country's borders to Jewish immigration. Their main task was to build community-based agricultural settlements, which would make it possible to painlessly absorb the growing influx of immigrants into the state and disperse them fragmentarily throughout the country.

Amidst internal political conflicts and turmoil, as well as defensive battles, the statehood of Israel was developing into a powerful state, mainly with financial support from Germany, USA and Jewish communities, which, despite its territorial smallness, it should have become a force to be reckoned with for all countries.

The creation of the foundations of a self-sufficient economy was based on the revival of agriculture, which was also to be followed by the development of heavy and light industry, and which was primarily associated with the investment of colossal sums in the military industry. The sharp increase in military production also contributed to the country's technological superiority both in the Middle East region and around the world.

Keywords: State of Israel; Yishuv; Histadrut; Mass Immigration; New Economic Policy.

References

  1. Shoshana Neuman, “Aliyah to Israel: Immigration Under Conditions of Adversity,” Discussion Paper No. 89 (December 1999), Institute for the Study of Labor (IZA), Bonn, p.1.
  2. David Horowitz, The Enigma of Economic Growth: A Case Study of Israel (New York: Praeger Publishers, 1972), xiii.
  3. Israel State Controller, 1969, Report on Audits of State Corporations, p. 211.
  4. Sharon Sadeh, “Israel’s Beleaguered Defense Industry,” Middle East Review of Foreign Affairs (MERIA) Journal, Vol. 5, No.1 (March 2001), p.1
  5. David Kochav, “The Influence of Defense Expenditure on the Israel Economy,” in Sanbar, p.41.

The new Economist, No3, 2025, Vol. 20, Issue 3.

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Published Date:

11/10/2025

Article Views: 91