ASSIGNMENT

Poverty and Political Economics

“POLITICS AND ECONOMICS SYSTEM IN

ISRAEL COUNTRY”

By:

Ummaya mardhotillah
1210514015

International Economics
Andalas University
2015
 CHAPTER I

INTRODUCTION

Israel (Hebrew ‫ ישראל מדינת‬Medinat Yisra'el, Arab ‫ إسرائيل دولة‬Daulat Israil) is a country in
the Middle East which is surrounded by the Mediterranean Sea, Lebanon, Syria, Jordan, Egypt
and the Sinai desert. In addition it is also surrounded two Palestinian National Authority areas:
the Gaza Strip and the West Bank. With a population of 7.5 million, Israel is the only Jewish
state in the world. In addition, there are also several other minority ethnic groups, including
ethnic Arab citizens of Israel, along with other religious groups such as Muslims, Christians ,
Druze, Samaritans, and others.

The establishment of the modern state of Israel stems from the concept of the Land of
Israel (Eretz Yisrael), a central concept of Judaism since ancient times, which is also the central
region of the ancient kingdom of Judah. After World War I, the League of Nations approved
dijadikannya British Mandate of Palestine as "state of the Jews". In 1947, the UN approved the
division of Palestine into two states, one Jewish state and an Arab state. May 14, 1948, Israel
proclaimed its independence and was soon followed by war with the Arab countries surrounding
it rejected the partition plan. Israel went on to win this war and confirmed its independence.
Similarly a result of this war, Israel succeeded in expanding the boundaries of the country
exceeds the boundaries set by the United Nations Partition Plan for Palestine. Since then, Israel
continually clashed with Arab countries neighboring, causing wars and violence that continue to
this day. Since the beginning of the establishment of the State of Israel, borders of Israel and its
right of Israel to exist has been disputed by many, especially by Arab countries and Palestinian
refugees. Israel has signed peace treaties with Egypt and Jordan, but efforts for peace between
Palestine and Israel until now has not succeeded.

Israel is a democratic state with a parliamentary system of government and universal

suffrage. Israeli Prime Minister as head of government and the Knesset serves as Israel's
legislative body. In terms of gross domestic product, the country's economy ranks 44th in the
world. Israel has a Human Development Index, the freedom of the press, and economic
competitiveness which is the highest compared with other countries Arabs in the vicinity.
According to the law of the state of Israel, the capital of Israel is Jerusalem. Nevertheless, the
United Nations and most countries in the world do not recognize it.
 CHAPTER II

DISCUSSION

HISTORY

Land of Israel, known in Hebrew as Eretz Yisrael, the holy land of the Jews. According to the
Torah, the Land of Israel promised to the Jews by God three Patriarch as their homeland. At this
period, scholars estimate there are in the 2nd millennium BC. According to the traditional view,
around the 11th century BC, several kingdoms and the state of Israel was established around the
Land of Israel; Kingdoms and states ruled for a thousand years into the future.
Between periods kingdoms of Israel and the Muslim conquest of the 7th century, the Land of
Israel fall under pemerintahan Kerajaan Israel, the Kingdom of Judah, Assyrian, Babylonian,
Persian, Greek, Roman, Sassanid, and Byzantine. The presence of Jews in the region drastically
reduced after the failure of Bar Kokhba revolt against the Roman Empire in 132, causing a
massive expulsion of Jews. In 628/9, the Byzantine Emperor Heraclius ordered the massacre and
expulsion of Jews, resulting in the Jewish population declined even further. However, there is a
small group of Jewish population who still live in the land of Israel. Land Israel captured from
the Byzantine Empire around the year 636 by the Muslim conquerors. For more than six
centuries, the control of the region under the control of the Umayyad, Abbasids, and Crusaders
before falling under the Mamluk Sultanate in 1260. In 1516, the Land of Israel became part of
the Ottoman Empire, which ruled the region until the 20th century.

Independence and first years

After 1945, Britain became involved in a violent conflict with the Jews. In 1947, the British
government withdrew from the Mandate of Palestine, stating that Britain can not reach a solution
acceptable by both Arabs and Jews. United Nations Agencies then the newly formed United
Nations approved the Partition Plan (UN General Assembly Resolution 18) on 29 November
1947. The partition plan dividing Palestine into two states, one Arab country, and the Jewish
state. Jerusalem is intended as an international city - a corpus separatum - which is administered
by the UN to avoid conflict status of the city. The Jewish community accepted the plan, but the
Arab League and Arab Higher Committee rejected it on the grounds of the Jews got 55% of the
entire territory land although only 30% of the entire population in this area. On December 1st
1947, the Arab Higher Committee declared a strike for 3 days, and Arab groups began attacking
Jewish targets. The Civil War began when the Jews, who at first is defensive slowly became
offensive. Arab-Palestinian citizens economic collapse and about 250,000 Arabs-Palestinians
were expelled or fled.

On May 14, 1948, the day before the end of the British Mandate, the Jewish Agency
proclaimed independence and established the country named as "Israel". A day later, a
combination of five Arab countries - Egypt, Syria, Jordan, Lebanon and Iraq -menyerang Israel,
causing Arab-Israeli War of 1948. Morocco, Sudan, Yemen and Saudi Arabia also helped send
troops. After a year of fighting, a ceasefire was declared and temporary borders, known as the
Green Line be determined. Jordan subsequently annexed the area known as the West Bank and
East Jerusalem, while Egypt controls the Gaza Strip. Israel then accepted as a member of the
United Nations on May 11, 1949. During this conflict, approximately 711,000 Palestinian Arabs
(80% of the Arab population) fled Palestine.

In the early days kemerdekannya, the Zionist movement of workers, led by Prime
Minister David Ben-Gurion dominated Israeli politics. These years were marked by mass
immigration of the survivors of the Holocaust and the Jews were expelled from Arab lands.
Israel's population increased from 800,000 to 2,000,000 within a period of ten years between
1948 to 1958. Most of the refugees were placed in camps known as Ma'abarot. Until 1952,
200,000 immigrants held disenfranchised in this tent city. The existence of urgency to resolve
this crisis forced Ben-Gurion signed the agreement between West Germany and Israel. This
agreement raises great protests of Jews who do not agree Israel associated with Germany.

During the 1950s, Israel repeatedly attacked by militants, mostly from the Gaza Strip was
occupied by Egypt. In 1956, Israel joined into a secret alliance with Great Britain and France,
which aims to reclaim the Suez Canal, which had previously been nationalized by Egypt (see the
Suez Crisis). Although captured the Sinai Peninsula, Israel was forced to resign under pressure
from the United States and the Soviet Union in exchange for Israeli shipping rights guarantees in
the Red Sea and the Suez Canal.

At the beginning of the next decade, Israel managed to catch and prosecute Adolf
Eichmann, a key initiators of the Final Solution hiding in Argentina. Justice has a strong
influence on public awareness of the Holocaust, and to date Eichmann was the only person
executed by Israel although John Demjanjuk was also sentenced to death before the decision was
reversed by the Supreme Court of Israel.

GOVERNMENT AND POLITICS

Israel is a democratic republic with a parliamentary system. The Israeli president is the
head of state, but his duties are very limited and merely ceremonial. MPs are supported by a
majority in parliament becomes the Prime Minister. Usually the prime minister is the head of the
largest party. The Prime Minister is the head of government and head of the cabinet. Israel was
ruled by the 120-member parliament, known as the Knesset. Knesset members from various
parties elected in parliamentary elections. Typically formed government is a coalition
government.

Parliamentary elections are scheduled every four years, but the coalition government is
unstable or the vote of no confidence by the Knesset often disperse existing government earlier.
"The average its website an Israeli government ruled is approximately 22 months. The peace
process with the Palestinians, the role of religion in the state, and political scandals are often the
cause breakdown of the coalition and lead to elections sooner."The laws of basic Israel (Hebrew:
‫היסוד חוקי‬, ḥŭḳḳēi ha-yyǝsōd) serves as the unwritten constitution of the country. In 2003, the
Knesset began to submit draft an official constitution based on these basic laws.

Israeli justice system has three levels. At the lowest level is the judicial court, located in
most cities of Israel. On it is the district court, which serves as the court of appeal and courts of
first instance; The district court is located in the five District Israel. The top level of the Israeli
judiciary is the Supreme Court which is located in Jerusalem. Israel's Supreme Court acts as both
the top and the appellate court and final court of first instance. As a court of first instance and the
last, the Israeli Supreme Court to allow individuals, whether they are citizens or non-citizens, to
petition against the decision of the Israeli government. Israel is not a member of the International
Criminal Court.

Israeli legal system is a combination of English common law, civil law and Jewish law
(Halakha). Israeli law is based on the principle of stare decisis (ie the judge's decision earlier
used as a basis for decisions on the future) and using the system adversarial, where the two
parties to the court is required to bring evidence before the court. Court cases decided by a judge
and not by a jury. The issue of marriage and divorce are under the jurisdiction of religious courts
according to their respective religions: Jewish, Muslim (sharia), Druze, and Christians. The
members of the Knesset, Supreme Court judges, and members of the bar Israel carry out the
process of selection of judges.

Israeli Basic Law on Human Dignity and Freedom of protecting human rights and
freedom in Israel. Israel is the only country in the Middle East to get the status of "free" by
Freedom House based on political rights and civil liberties, but in the area of the Israeli
occupation, its status is "Not Free" The same is seen in report Reporters Without Borders that
puts Israel in the order of 93 of 175 countries in terms of press freedom. This ranking is behind
countries such as Kuwait (60th), Lebanon (61st), and the United Arab Emirates (86th). Some
groups such as Amnesty International and Human Rights Watch as well criticized the human
rights record of Israel in the Arab-Israeli conflict. B'Tselem is an Israeli human rights
organization that has often criticized human rights violations committed by the Israeli
government.

Foreign relations

Israel has diplomatic relations with 161 countries and 94 diplomatic missions around the
world. Only three Arab League countries that have normalized relations with Israel; Egypt
signed a peace treaty with Israel in 1979, Jordan in 1994, and Mauritania decided to open full
diplomatic relations with Israel in 1999. Two members of the Arab League, Morocco and
Tunisia that have limited diplomatic relations with Israel broke off diplomatic relations are at the
beginning of the Second Intifada in 2000. Since 2003, relations with Morocco have been
improved, and the Israeli foreign minister has visited the country.
As a result of the Gaza war in 2009, Mauritania, Qatar, Bolivia, and Venezuela to stop the
political and economic ties with Israel. Under the law of Israel, Lebanon, Syria, Saudi Arabia,
Iraq, and Yemen are enemy state and Israeli citizens are prohibited from visiting the country
without permission from the Interior Ministry of Israel. Since 1995, Israel is a member of the
Mediterranean Dialogue, which aims to improve cooperation between seven countries located in
the Mediterranean basin and NATO member states. Israel's foreign relations with the United
States, Turkey, Germany, Britain, and India is the closest. United States is the first country to
recognize the establishment of Israel, followed by the Soviet Union. The United States considers
Israel as the main Middle East ally.

Although Turkey and Israel do not have full diplomatic relations until 1991, Turkey has
been working with Israel since the Turkish recognition of the independence of Israel in 1949.
Therefore, Turkey is also on good terms with the Arab countries in the Middle East, some
Turkey time getting tremendous pressure that Turkey cut ties with Israel. The relationship
between the two countries receded when Turkey condemned the Israeli attack on Gaza in 2009.

Germany also has a strong relationship with Israel. The cooperation between the two
countries include scientific cooperation, education, economy, and military. India open full
diplomatic relations with Israel in 1992. Israel diplomatic relations with Iran took place during
the Iran under the Pahlavi dynasty but withdrawn recognition of Iran since the Iranian
Revolution.

Until now Indonesia has not recognized Israeli sovereignty, despite Palestinian
sovereignty is recognized even though the region is uncertain. Former Indonesian president
Abdurrahman Wahid (1999-2001) had planned to acknowledge the sovereignty of Israel and
open diplomatic relations, but to get criticism and opposition from Muslim groups in Indonesia.
President Susilo Bambang Yudhoyono said he would not open relations with Israel before the
Palestinian issue is solved and Israel's occupation of Palestine ends.

ECONOMICS

Israel is regarded as one of the most advanced countries in Southwest Asia in terms of
economic and industrial development. The country is ranked number 3 in the region according to
the World Bank's ease of doing business index and the Global Competitiveness Report of the
World Economic Forum.

In 2007, Israel has a gross domestic product of the 44th largest and the income per capita
of the 22 tallest (by purchasing power parity) in the world amounted to US $ 232.7 billion and
US $ 33,299 respectively. In 2007, Israel was invited to join the Organization for Economic
Cooperation and Development (OECD) which aims to enhance cooperation among countries that
uphold the principles of democracy and free market economy.
 Although Israel's limited natural resources, intensive development in the sectors of
agriculture and industry for decades to make Israel can be self-sufficient in food in outline, with
the exception of the cereals and beef. In 2006, Israeli imports reached US $ 47.8 billion,
consisting of fossil fuels, raw materials, and military equipment. Israel's main export
commodities include fruits, vegetables, drugs, devices software, chemicals, military technology,
and diamonds; In 2006, Israeli exports reached US $ 42.86 billion.

Israel ranked first in the world in terms of water conservation and use of geothermal
energy. Israel is also developing technologies, software, communications, and science in Silicon
Wadi. Since the 1970s, Israel has receive economic aid from the United States, and loans from
the United States to occupy the proportion of foreign debts Israel is quite large. In 2007, the
United States approved a grant of US $ 30 billion to Israel for the next ten years.

Tourism, especially religious tourism, is also an important field of Israeli industry.

Security problems in Israel have hindered the development of this industry, but recently the
number of tourists started to increase. In 2008, approximately 3 million tourists visited Israel.

CHAPTER III

CONCLUSION

In economics Israel is regarded as one of the most advanced countries in Southwest

Asia in terms of economic and industrial development . The country is ranked number 3 in the
region according to the World Bank's ease of doing business index and the Global
Competitiveness Report of the World Economic Forum.
Israel is a democratic republic with a parliamentary system . [ 92 ] The Israeli president
is the head of state , but his duties are very limited and merely ceremonial. [ 105 ] MPs are
supported by a majority in parliament becomes the Prime Minister. Israeli justice system has
three levels . At the lowest level is the judicial court , located in most cities of Israel . On it is the
district court , which serves as the court of appeal and courts of first instance ; The district court
is located in the five District Israel

Source: https://id.wikipedia.org/wiki/Israel