Israel Summary2

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    Jewish leaders proclaimed an independent State of Israel while local Arabs joinedwith the armies of 5 Arab countries (Egypt, Iraq, Jordan, Lebanon and Syria) in aneffort to destroy the new Jewish entity. Israel defended itself successfully and inconsequence of the 1949 armistice agreements extended its control to the areawithin the so-called Green Line. Many Palestinian Arabs fled the country during the1948 war and were prevented from returning afterwards.

    Israel's leaders chose to accomplish these tasks through a multipartyparliamentary democracy. At least once every four years, citizens over 18 years ofage cast a ballot for one of the country's numerous political parties vying for seatsin the 120-member Knesset (parliament). The seats are allocated in proportion tothe number of votes received by each party. After the January 28, 2003 elections, 13parties won Knesset seats. The party that received the largest number of votes, theLikud Party, was awarded 38 seats.

    Reform legislation introduced in 1996 decreed that, instead of being chosenby the Knesset, the prime minister would be elected directly by the voters. In May1999 Ehud Barak of the Labor Party became prime minister. Ariel Sharon agreed toserve as chair of the Likud Party faction, whose goal was to take over power in thenext election. On March 2, 2001, after winning 62% of the vote, Ariel Sharon

    succeeded Barak as prime minister. That month, the Knesset voted to restore theone-vote parliamentary system operating before 1996. The law went into effect withthe January 28, 2003 election, which was won by Likud. Ariel Sharon was chosenprime minister once again.

    Economical BackgroundAgriculture in Israel largely depends on extensive irrigation to compensate for

    the shortage of rainfall. Agricultural exports include citrus and other fruits,vegetables, and cut flowers. Other sizable crops are cotton, wheat, barley, peanuts,sunflowers, grapes, and olives. Poultry and livestock also are raised.

    High-technology industries are Israel's fastest-growing businesses, withemphasis on computers, software, aviation, telecommunications, biotechnology,medical electronics, and fiber optics. Diamond cutting and polishing is alsoimportant, and a number of light industries produce wood and paper products,processed foods, tobacco, precision instruments, metal and plastic goods,chemicals, textiles, and footwear. The Dead Sea has minerals of commercial value,such as potash, magnesium bromide, and salt. Tourism, which is one of Israel'slargest sources of revenue, is also important. The United States is by far thecountry's largest trading partner, as well as its major source of economic andmilitary aid. Other important trading partners are Belgium, Germany, Great Britain,and Hong Kong.

    TerritoriesThe West Bank has an area of 2,238 square miles and a population of 2.7

    million, including approximately 301,000 Israelis. The Gaza Strip has an area of 143square miles and a population of 1.5 million. Golan Heights is also Israeli-occupied.

    Key Institutions93% of the land in Israel is in the public domain; that is, either property of the

    state, the Jewish National Fund (JNF) or the Israeli Development Authority. TheIsrael Land Administration (ILA) is the government agency responsible for managingthese lands.

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    The Jewish National Fund was founded in 1901 to buy and develop land inOttoman Palestine for Jewish settlement. It is a quasi-governmental, non-profitorganization.

    The Institute for National Security Studies (INSS) describes itself as 'anindependent academic institute that studies key issues relating to Israel's nationalsecurity and Middle East affairs'.

    Modern history (19th century up to date)1517-1917 Ottoman rule1918 World War I ends1918-48 British rule

    1922 Britain granted Mandate for Palestine (Land of Israel) by League ofNations1939 Jewish immigration severely limited by British White Paper.1939-45 World War II; Holocaust in Europe.1947 UN proposes the establishment of Arab and Jewish states.STATE OF ISRAEL1948 End of British Mandate & proclamation of State of Israel (May 14). War

    of Independence (May 1948-July 1949).1949 Armistice agreements signed with Egypt, Jordan, Syria, andLebanon.

    Israel admitted to United Nations as 59th member.1967 Six-Day War; Jerusalem reunited.1968-70 Egypt's War of Attrition against Israel1979 Israel-Egypt Peace Treaty signed. Prime Minister Menachem Begin

    and President Anwar Sadat awarded Nobel Peace Prize.1982 Israel's three-stage withdrawal from Sinai Peninsula completed.

    Operation Peace for Galilee removes Palestine Liberation Organization(PLO) terrorists from Lebanon.

    1985 Free Trade Agreement signed with United States.2002 Israel launches Operation Defensive Shield in response to massive

    Palestinian terrorist attacks. Israel begins building the anti-terroristfence to stop West Bank terrorists from killing Israeli citizens.

    2009 Benjamin Netanyahu is elected Prime Minister in national elections heldin February 2009, and forms a broad-based coalition government.

    2010 Israel joins the Organization for Economic Co-operation andDevelopment

    (OECD).

    Political Economy and Geopolitics of IsraelThe economy of Israel is a diversified, technologically advanced market

    economy with substantial state ownership and a rapidly developing high-techsector. Israel's tech market is very developed, and the high-tech sector islikely to be the major driver of the Israeli economy. Israeli companies,particularly in the high-tech area, have recently enjoyed considerablesuccess raising money on the world financial markets. Israel is one of theworld's centers for diamond cutting and polishing. It also is a world leader insoftware development. Israel now ranks 2nd among foreign countries in thenumber of its companies listed on US stock exchanges. Israel is also one of

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    the world's major exporters of military equipment. In terms of externaltrade, The US is Israel's largest trading partner. The 2 countries signed a freetrade agreement in 1985 that progressively eliminated tariffs on most goodstraded between the 2 countries. Israel also has trade and cooperationagreements in place with the EU and Canada.

    As for oil factor, Israel produces almost no oil and imports nearly all itsoil needs. Traditionally, major oil import sources have included Egypt, theNorth Sea, West Africa, and Mexico. In recent years, however, Israel hasstepped up its imports from Russia and the Caspian region (Kazakhstan,Turkmenistan, etc.) and also signed a deal to purchase from Angola. Althoughoil exploration in Israel has not proven successful in the past, drilling is beingstepped up. Geologically, Israel appears to be connected to the oil-richPaleozoic petroleum system stretching from Saudi Arabia through Iraq toSyria. Since 1998, Israels government has been working to reform the highlycentralized Oil sector. Israel has 2 major refineries, both owned and operatedby Oil Refineries Limited (ORL). The plants, which are located at Haifa and

    Ashdod, meet all of Israels demand for refined oil products. Although Israelitself produces almost no oil, a comprehensive settlement of the Arab-Israeliconflict could affect Middle East oil flows significantly. Israels geographiclocation between the Arabian Peninsula and the Mediterranean Sea offers thepotential for an alternative oil export route for Persian Gulf oil to the West.

    In 2009, the Delek-Noble an energy exploration partnership,announced a massive natural gas discovery off Israels northern coast. Thisdiscovery is very good for Israel and validates the belief that significant oiland gas reserves can be found in Israel. The discovery also reinforces thedecision by the Government of Israel to continue building the gas pipelineinfrastructure and electric generating plants powered by natural gas. Israel

    hopes to increase the share of Natural Gas in its fuel mix for energy security,economic, and environmental reasons.

    Geopolitics of Israel requires a consideration of 3 dimensions. First isthe internal geopolitics of Israel. Israel is located on the eastern shore of theMediterranean Sea, on the Levant. The Levant in general and Israel inparticular has always been a magnet for great powers. No Mediterraneanempire could be fully secure unless it controlled the Levant. The Levant is thecrossroads of continents, and Israel lies in the path of many imperialambitions. Israel therefore occupies what might be called the convergencezone of the Eastern Hemisphere. Israel is geographically divided into 3regions, which traditionally have produced 3 different types of people. 1st, its

    coastal plain which facilitates commerce, serving as the interface betweeneastern trade routes and the sea. It is the home of merchants andmanufacturers and cosmopolitan for Israel. 2nd, the northeast is hill country,closest to the north of the Litani River and to the Syrian threat. It breedsfarmers and warriors. 3rd, the area south of Jerusalem is hard desert country,more conducive to herdsman and warriors than anything else. Jerusalem iswhere these three regions are balanced and governed.

    Second dimension, is the interaction of Israel and the immediate

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    neighbors who share borders with it. The main neighbors of Israel areEgyptians, Syrians and those who live on the east bank of Jordan. But Israelcan resist its neighbors for it is well-buffered in 3 directions. The Sinai Desertprotects it against the Egyptians. Israel is similarly protected from thesoutheast by the deserts Eilat-Aqaba. The eastern approaches are similarly

    secured by desert, east of the Jordan River.Last dimension is Israels interaction with the great powers, beyondIsraels borderlands. Danger arises when more distant powers begin playingimperial games. Israel is normally of interest to outside powers because of itsstrategic position. While Israel can deal with local challenges effectively, itcannot deal with broader challenges. It lacks the economic or military weightto resist. Therefore, while Israels military can focus only on immediateinterests, its diplomatic interests must look much further. Israel is constantlyentangled with global interests, seeking to deflect and align with broaderglobal powers.

    Israel exists in 3 conditions. 1st, it can be a completely independent

    state. This condition occurs when there are no major imperial powersexternal to the region. This called the David model which exists primarilywhen there is no external imperial power needing control of the Levant. 2nd, itcan live as part of an imperial system either as a subordinate ally or as amoderately autonomous entity. In any case, it maintains its identity but losesroom for independent maneuvering in foreign policy and potentially indomestic policy. This is called the Persian model which exists when Israelaligns itself with the foreign policy interests of such an imperial power, to itsown benefit. Finally, Israel can be completely crushed with massdeportations and migrations, with a complete loss of autonomy and minimalresidual autonomy. This is called Babylonian model which exists when Israel

    miscalculates on the broader balance of power and attempts to resist anemerging hegemon.

    Israels real threat lies in the event of internal division and/or a greatpower, coveting Israels geographical position, marshalling force that isbeyond its capacity to resist. Israels reality is this. It is a small country, yet itmust manage threats arising far outside of its region. It can survive only if itmaneuvers with great powers commanding enormously greater resources.Israel cannot match the resources and, therefore, it must be constantlyclever. For Israel, the retention of a Davidic independence is difficult. Israelsstrategy must be to manage its subordination effectively by dealing with its

    patron cleverly. But cleverness is not a geopolitical concept. It is notpermanent, and it is not assured. And that is the perpetual crisis ofJerusalem.

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    FOREIGN RELATIONS

    Egypt

    `Israel and Egypt signed a peace treaty in 1979, marking the end of 30 yearsof relentless hostility and five costly wars. The treaty was preceded by Egyptian

    President Anwar Sadat's visit to Jerusalem (1977), at the invitation of Israel's PrimeMinister Menachem Begin, as well as the signing of the Camp David Accords (1978),which constituted a basis for peace between Egypt and Israel and between Israeland its other neighbors. The accords also addressed the need to solve thePalestinian issue, following a five-year interim phase of autonomy for the PalestinianArab residents of Judea and Samaria (the West Bank) and the Gaza Strip. PresidentSadat and Prime Minister Begin were jointly awarded the Nobel Peace Prize for theirachievement.

    The peace implemented between Israel and Egypt consists of several majorelements, including the termination of the state of war as well as acts or threats ofbelligerency, hostility or violence; the establishment of diplomatic, economic, and

    cultural ties; the removal of barriers to trade and freedom of movement; andwithdrawal by Israel from the Sinai peninsula, with agreed security arrangementsand limited force zones. Israel completed its withdrawal from Sinai (1982) accordingto the terms of the treaty, giving up strategic military bases and other assets inexchange for peace.Following the renewed outbreak of Palestinian terrorism(September 2000), relations cooled considerably and Egypt recalled its ambassador,who was returned at the beginning of 2005. Nevertheless, trade and cooperationcontinued, and the joint military committee meets regularly. In light ofIsrael'sdisengagement from the Gaza Strip, to which Egypt contributed, relations haveimproved.

    Jordan

    The peace treaty between Jordan and Israel, signed at the Akaba-Eilat bordercrossing (October 1994), was preceded by a meeting of King Hussein and PrimeMinister Yitzhak Rabin in Washington three months earlier, when the two leadersproclaimed an end to the state of war between their countries.The 1991 MadridConference led to public bilateral talks, culminating in a formal treaty (1994) inwhich both countries have undertaken to refrain from acts of belligerency, to ensurethat no threats of violence to the other will originate within their territory, toendeavor to prevent terrorism and act together to achieve security and cooperationin the Middle East by replacing military preparedness with confidence-buildingmeasures. Other provisions include agreed allocations from existing waterresources, freedom of passage for nationals of both countries, efforts to alleviatethe refugee problem and cooperation in the development of the Jordan Rift

    Valley.King Abdullah II, who succeeded his father, King Hussein, in March 1999,visited Israel in April 2000.Following the renewed outbreak of Palestinian terrorism(September 2000) in the territories, relations with Jordan cooled and Jordan recalledits ambassador. There has been a gradual development of relations and Jordanreturned its ambassador in 2005.

    Gulf StatesAs a result of the Oslo peace process in the Middle East, the Gulf States

    showed interest in relations with Israel for the first time since 1948. Initial contacts

    http://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Israel-Egypt+Peace+Treaty.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Camp+David+Accords.htmhttp://www.mfa.gov.il/MFA/History/Modern+History/Historic+Events/Disengagement+-+August+2005.htmhttp://www.mfa.gov.il/MFA/History/Modern+History/Historic+Events/Disengagement+-+August+2005.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Main+Points+of+Israel-Jordan+Peace+Treaty.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/The+Washington+Declaration.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/The+Madrid+Framework.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/The+Madrid+Framework.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Israel-Jordan+Negotiations.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Israel-Egypt+Peace+Treaty.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Camp+David+Accords.htmhttp://www.mfa.gov.il/MFA/History/Modern+History/Historic+Events/Disengagement+-+August+2005.htmhttp://www.mfa.gov.il/MFA/History/Modern+History/Historic+Events/Disengagement+-+August+2005.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Main+Points+of+Israel-Jordan+Peace+Treaty.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/The+Washington+Declaration.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/The+Madrid+Framework.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/The+Madrid+Framework.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Israel-Jordan+Negotiations.htm
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    were followed with a series of reciprocal visits by high-level officials. In May 1996,Israel opened trade representation offices in Oman and Qatar to develop economic,scientific, and commercial relations, with emphasis on water resources utilization,tourism, agriculture, chemicals, and advanced technologies.

    Since the renewed outbreak of Palestinian terrorism in 2000, relations with the Gulf

    States have cooled. Israel's trade representation office in Oman has been closed.United StatesEleven minutes after theproclamation of Israel's independenceon 14 May 1948,American President Harry S. Truman extended recognition to the new state. This actmarked the beginning of a relationship based on common values and wascharacterized by deep friendship and mutual respect. During the Nixon and Carteradministrations, it assisted in concluding disengagement agreementsbetween Israel and Egypt and Israel and Syria (1973-74), the Camp DavidAccords (1978) and the Egypt-Israel Peace Treaty (1979).

    During the Reagan administration, relations not only flourished, but were alsogiven a more formal and concrete content. In addition to previous commitments,memorandums of understanding were signed (1981, 1988), forming the basis forsetting up a number of joint planning and consultative bodies, which in turngenerated practical arrangements in both military and civilian fields. Israel currentlyreceives some $2.6 billion a year in security and economic aid, and bilateral tradehas been enhanced by the Israel - United States Free Trade Area Agreement (1985).

    The United States usually stands by Israels side in international forums,staving off attempts both in the United Nations and in associated bodies to pushthrough anti-Israel resolutions. The two countries have been cooperating to theirmutual advantage in exchanges of intelligence and military information, as well asin the war against international terrorism and the campaign against drugs. UnitedStates-Israel friendship is bolstered by support from the American-Jewishcommunity and a wide segment of American society.

    CONTEMPORARY ISSUES

    Israeli Women in Politics

    Since Israels establishment in 1948, dozens of womenhave served in theKnesset (Israels parliament), and haveheld leadership roles in politics.

    Ten women have served as cabinet ministers, includingPrime Minister Golda Meir, Israels first - and the worlds

    http://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Declaration+of+Establishment+of+State+of+Israel.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Israel-Egypt+Separation+of+Forces+Agreement+-+1974.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Israel-Syria+Separation+of+Forces+Agreement+-+1974.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Camp+David+Accords.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Camp+David+Accords.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Israel-Egypt+Peace+Treaty.htmhttp://www.mfa.gov.il/MFA/MFAArchive/1980_1989/1985/Israel-US%20Free%20Trade%20Area%20Agreementhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Declaration+of+Establishment+of+State+of+Israel.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Israel-Egypt+Separation+of+Forces+Agreement+-+1974.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Israel-Syria+Separation+of+Forces+Agreement+-+1974.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Camp+David+Accords.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Camp+David+Accords.htmhttp://www.mfa.gov.il/MFA/Peace+Process/Guide+to+the+Peace+Process/Israel-Egypt+Peace+Treaty.htmhttp://www.mfa.gov.il/MFA/MFAArchive/1980_1989/1985/Israel-US%20Free%20Trade%20Area%20Agreement
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    third - female prime minister.

    Israeli-Arab women actively participate in politicallife. Nadia Hilou was the second Israeli-Arab womanto serve in the Knesset when she took her current seat

    in office in 2006.

    At present, 17 Knesset members are women.

    34 percent of judges in Israel are women.

    Currently, three women hold senior political roles inIsrael: TzipiLivni, vice premier and minister of foreignaffairs; Dalia Itzik, Knesset speaker; and DoritBeinisch,president of Israels Supreme Court.

    Israeli Women in the Workforce

    Israeli law protects the right of women to equal opportunity in theworkplace. Since the 1950s, womens opportunities in the workplace havebeen secured by legislation guaranteeing maternity leave allowance paid bythe National Insurance Institute, protection against dismissal duringpregnancy and affordable childcare facilities. In 1964, legislation was passedmandating that women receive pay equal to that of men.Today, women aremaking great strides in the Israeli workforce. Though Israeli women stillhavent achieved equal pay, women have risen to the CEO level inseveralIsraeli Fortune 500 companies. Examples include Dalia Narkiss, CEO

    of Israels largest employment agency,Manpower; and GaliaMaor, CEO ofleading commercialbank Bank Leumi. In the Israeli national trade union(Histadrut), women are represented at each level. The Histadrut has adopteda resolution requiring that 30 percent of its leadership must be women. Inaddition, Israels Ministry of Commerce and Industryhas established a unit to encourage women to open small- and medium-sizedbusinesses. The unit has aided Bedouin women in Israel in setting up smallbusinesses, and is providing them the planning and marketing skillsnecessary to maximize their success. The Negev Institutefor Strategies and Development has also instituted a project in southernIsrael to provide Bedouin women with vocational, entrepreneurial and

    managerial training, combined with financial support and counselling

    The Iranian Threat

    Iran has long been involved in the sponsoring and support of worldwide terrorgroups and has been officially implicated for its involvement in terroristactivities in several Western states. It provides aid in the form of weapons,

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    training, and funding to Hamas and other Palestinian terrorist groups,Hizbullah in Lebanon, Iraq-based militants, and Taliban fighters inAfghanistan.

    Iran's is actively pursuing a nuclear weapons program. While denying these

    allegations, Iran's behavior has led to its being sanctioned by variousinternational bodies, including the IAEA and the U.N Security Council.

    Iran publically denies the Holocaust, and is the only country that openly callsfor the annihilation of another state - the State of Israel.

    President Ahmadinejad actively endorses chaos, so as to hasten the re-emergence of the Hidden Imam and spread true Islamic rule worldwide. Hebelieves that the Hidden Imam will return only following an apocalyptic waragainst Israel and the West.