Israel is a relatively young country and economy. In its short life of 60 years, its economy has matured through continuing crises and has become strong and well diversified. Almost all years of the country’s existence it has enjoyed healthy economic growth. Apart from these achievements, the country and the economy are facing serious problems.
The conflict with the Palestinians, which has been dragging on for decades, in the new millennium has intensified and became more and more violent. Besides the obvious humanitarian and political consequences, this conflict also has many economic implications – all but positive, both for Israel and the Palestinians. Both parties are paying a high economic price for the continuation of this conflict – with falling GDP’s, loss of jobs, sanctions on one another and most importantly – the huge unfulfilled potential that lies in economic cooperation between the two.
Israel is also facing an internal economic and social problem – the Ultra-orthodox Jews population group. Due to their unique lifestyle of abiding vigorously to religion, they almost do not participate in the Israeli labour market, rely heavily on government help and also do dot join the army like all other Israeli Jews. This group contributes to the poverty rate in an unproportional manner, being much poorer than other Israelis. Due to very high fertility rate, the Ultra-orthodox, who used to be just a small minority, are on the way to become almost a quarter of the population in two decades. This situation demands some urgent changes.
Inhaltsverzeichnis (Table of Contents)
- Scope of the topic
- Israel an insight into the young country
- Contemporary history and conflict
- Economy
- Demographics
- Poverty
- Unemployment and low participation in the labour market
- The Ultra – orthodox population in Israel and its effects on the economy
- The Ultra-orthodox society
- Religious education
- Draft exemption
- Subsidies, other income sources and unemployment
- Social problems
- Population growth and poverty
- Economic consequences of the Israeli – Palestinian conflict
- Current situation
- Conflict consequences on the Israeli economy
- Conflict consequences on the Palestinian economy
- Policy Suggestions for the Ultra-orthodox question
- Revaluation and renewal of the “Tal Law” and setting up of a civil service framework
- Establishment of outsourcing centers and training programs
- Supportive measures
- Negative income tax
- Implementation of the EITC system in Israel
- Suggestions for the Israeli – Palestinian economic relations
- Future economic agreement
- Israeli – Palestinian trade throughout the conflict
- Benefits of economic cooperation
- Price of economic separation
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This work focuses on the economic situation of Israel, particularly addressing its rising economy and the accompanying drawbacks. It aims to analyze the causes, consequences, and potential remedies for these economic challenges, taking into account the impact of the Israeli-Palestinian conflict and the growing Ultra-orthodox population within Israel.- Israel's rising economy and its drawbacks
- The impact of the Ultra-orthodox population on Israel's economy
- Economic consequences of the Israeli-Palestinian conflict
- Policy suggestions for addressing the Ultra-orthodox question and improving Israeli-Palestinian economic relations
- Potential benefits and drawbacks of economic cooperation between Israel and the Palestinian Authority
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter introduces the scope of the topic, highlighting the significance of the Middle East as a center of global affairs and the complex dynamics of the region. It establishes Israel as the focal point of the work, acknowledging the Palestinian perspective and emphasizing the need for economic cooperation between the two entities. The chapter concludes by stressing the importance of economic well-being for achieving peace in the region. Chapter two provides a comprehensive overview of Israel, exploring its contemporary history, economic landscape, demographics, poverty rates, and unemployment figures. This section delves into the complexities of Israel's social and economic situation, laying the foundation for a deeper understanding of the subsequent discussions on the Ultra-orthodox population and the Israeli-Palestinian conflict. Chapter three examines the impact of the Ultra-orthodox population in Israel on the economy. It investigates various aspects of their society, including religious education, draft exemption, subsidies, and employment patterns, shedding light on the social and economic challenges associated with this demographic group. This chapter explores the complex relationship between religious beliefs, economic participation, and social integration in Israel. Chapter four delves into the economic consequences of the ongoing Israeli-Palestinian conflict. It analyzes the current situation, assesses the impact of the conflict on both the Israeli and Palestinian economies, and highlights the potential benefits of economic cooperation between the two entities. This chapter explores the intertwined nature of their economies and the potential for growth through collaboration. Chapter five presents policy suggestions aimed at addressing the challenges posed by the Ultra-orthodox population in Israel. This chapter explores various policy options, including the revision of the "Tal Law," the establishment of outsourcing centers and training programs, supportive measures, and the implementation of the Earned Income Tax Credit (EITC) system. These suggestions aim to promote greater economic integration and participation for the Ultra-orthodox population. Chapter six focuses on suggestions for enhancing economic relations between Israel and the Palestinian Authority. This chapter explores the potential for a future economic agreement, examines the dynamics of trade during the conflict, and highlights the benefits of economic cooperation. It concludes by emphasizing the potential costs of continued economic separation.Schlüsselwörter (Keywords)
The keywords for this work include: Israeli economy, Ultra-orthodox population, Israeli-Palestinian conflict, economic cooperation, economic development, poverty, unemployment, social welfare, policy suggestions, "Tal Law", EITC, economic integration, trade relations. These keywords represent the core themes and areas of research explored throughout the paper.- Quote paper
- Gregory Ler (Author), 2008, Israel's Rising Economy and its Drawbacks - Causes, Consequences and Remedies, Munich, GRIN Verlag, https://www.grin.com/document/116191