From State-Led Growth to Globalization: The Evolution of Israeli Capitalism
Author(s)
Hanieh, Adam
Abstract
Whereas the traditional view of the Israeli economy prior to the mid-1980’s was that it was socialist in nature, the Labor Zionist movement had in fact fostered an indigenous capital class by encouraging capital within conglomerates initially tied to the state. After implementation of the 1985 Economic Stabilization Plan these conglomerates were placed in the private sector and backed by foreign capital. One result of Israel’s incorporation into the global economy is that it has undermined the Zionist project and led to a crisis of legitimacy in the state. These changes have important ramifications for the future of Israeli-Palestinian relations, as members of the Israeli capital class have joined with the US government and the European Union in arguing that a political solution must be found to the current intifada.
