top of pageBackground: Following World War II the British withdrew from their mandate of Palestine and the UN partitioned the area into Arab and Jewish states an arrangement rejected by the Arabs. Subsequently the Israelis defeated the Arabs in a series of wars without ending the deep tensions between the two sides. The territories Israel occupied since the 1967 war are not included in the Israel country profile unless otherwise noted. On 25 April 1982 Israel withdrew from the Sinai pursuant to the 1979 Israel-Egypt Peace Treaty. In keeping with the framework established at the Madrid Conference in October 1991 bilateral negotiations were conducted between Israel and Palestinian representatives and Syria to achieve a permanent settlement. Israel and Palestinian officials signed on 13 September 1993 a Declaration of Principles (also known as the 'Oslo Accords') guiding an interim period of Palestinian self-rule. Outstanding territorial and other disputes with Jordan were resolved in the 26 October 1994 Israel-Jordan Treaty of Peace. In addition on 25 May 2000 Israel withdrew unilaterally from southern Lebanon which it had occupied since 1982. In April 2003 US President BUSH working in conjunction with the EU UN and Russia - the 'Quartet' - took the lead in laying out a roadmap to a final settlement of the conflict by 2005 based on reciprocal steps by the two parties leading to two states Israel and a democratic Palestine. However progress toward a permanent status agreement was undermined by Israeli-Palestinian violence between September 2003 and February 2005. An Israeli-Palestinian agreement reached at Sharm al-Sheikh in February 2005 along with an internally-brokered Palestinian cease-fire significantly reduced the violence. In the summer of 2005 Israel unilaterally disengaged from the Gaza Strip evacuating settlers and its military while retaining control over most points of entry into the Gaza Strip. The election of HAMAS in January 2006 to head the Palestinian Legislative Council froze relations between Israel and the Palestinian Authority (PA). Ehud OLMERT became prime minister in March 2006; he shelved plans to unilaterally evacuate from most of the West Bank following an Israeli military operation in Gaza in June-July 2006 and a 34-day conflict with Hizballah in Lebanon in June-August 2006. OLMERT in June 2007 resumed talks with the PA after HAMAS seized control of the Gaza Strip and PA President Mahmoud ABBAS formed a new government without HAMAS. OLMERT in September 2008 resigned in the wake of several corruption allegations but remained prime minister until the new coalition government under former Prime Minister Binyamin NETANYAHU was completed in late March 2009 following the February general election.
Climate: temperate; hot and dry in southern and eastern desert areas
Terrain: Negev desert in the south; low coastal plain; central mountains; Jordan Rift Valley
Natural resources: timber potash copper ore natural gas phosphate rock magnesium bromide clays sand
Natural hazards: sandstorms may occur during spring and summer; droughts; periodic earthquakes
GeographyNote: there are about 340 Israeli civilian sites - including 100 small outpost communities in the West Bank - as well as 42 sites in the Golan Heights 0 in the Gaza Strip and 29 in East Jerusalem (July 2008 est.); Lake Tiberias (Sea of Galilee) is an important freshwater source
top of pageEthnic groups: Jewish 76.4% (of which Israel-born 67.1% Europe/America-born 22.6% Africa-born 5.9% Asia-born 4.2%) non-Jewish 23.6% (mostly Arab) (2004)
Languages: Hebrew (official) Arabic used officially for Arab minority English most commonly used foreign language
Religions: Jewish 76.4% Muslim 16% Arab Christians 1.7% other Christian 0.4% Druze 1.6% unspecified 3.9% (2004)
top of pageIndependence: 14 May 1948 (from League of Nations mandate under British administration)
National holiday: Independence Day 14 May (1948); note - Israel declared independence on 14 May 1948 but the Jewish calendar is lunar and the holiday may occur in April or May
Constitution: no formal constitution; some of the functions of a constitution are filled by the Declaration of Establishment (1948) the Basic Laws of the parliament (Knesset) and the Israeli citizenship law; note - since May 2003 the Constitution Law and Justice Committee of the Knesset has been working on a draft constitution
Legal system: mixture of English common law British Mandate regulations and in personal matters Jewish Christian and Muslim legal systems; has not accepted compulsory ICJ jurisdiction
Executive branchChief of state: President Shimon PERES
Head of government: Prime Minister Binjamin NETANYAHU (since 31 March 2009); Vice Prime Minister Silvan SHALOM (since 31 March 2009); Vice Prime Minister Moshe YAALON (since 31 March 2009)
Cabinet: Cabinet selected by prime minister and approved by the Knesset
Elections: president is largely a ceremonial role and is elected by the Knesset for a seven-year term (one-term limit); election last held 13 June 2007 (next to be held in 2014 but can be called earlier); following legislative elections the president assigns a Knesset member - traditionally the leader of the largest party - the task of forming a governing coalition
Election results: Shimon PERES elected president; number of votes in first round - Shimon PERES 58 Reuven RIVLIN 37 Colette AVITAL 21; PERES elected president in second round with 86 votes (unopposed)
Legislative branch: unicameral Knesset (120 seats; members elected by popular vote to serve four-year terms)
Elections: last held 10 February 2009 (next scheduled election to be held in 2013)
Election results: percent of vote by party - Kadima 23.2% Likud-Ahi 22.3% YB 12.1% Labor 10.2% SHAS 8.8% United Torah Judaism 4.5% United Arab List 3.5% NU 3.4% Hadash 3.4% The Jewish Home 3% The New Movement-Meretz 3% Balad 2.6%; seats by party - Kadima 28 Likud-Ahi 27 YB 15 Labor 13 SHAS 11 United Torah Judaism 5 United Arab List 4 NU 4 HADASH 4 The Jewish Home 3 The New Movement-Meretz 3 Balad 3
Judicial branch: Supreme Court (justices appointed by Judicial Selection Committee - made up of all three branches of the government; mandatory retirement age is 70)
Political parties and leaders: Balad [Azmi BISHARA]; Democratic Front for Peace and Equality (HADASH) [Muhammad BARAKEH]; Kadima [Tzipora 'Tzipi' LIVNI]; Labor Party [Ehud BARAK]; Likud [Binyamin NETANYAHU]; National Union [Yaakov KATZ]; The Jewish Home (HaBayit HaYehudi) [Daniel HERSCHKOWITZ]; SHAS [Eliyahu YISHAI]; The New Movement-Meretz [Haim ORON]; United Arab List-Ta'al [Ibrahim SARSUR]; United Torah Judaism or UTJ [Yaakov LITZMAN]; Yisrael Beiteinu or YB [Avigdor LIEBERMAN]
International organization participation: BIS BSEC (observer) CERN (observer) EBRD FAO IADB IAEA IBRD ICAO ICC ICCt (signatory) ICRM IDA IFAD IFC IFRCS ILO IMF IMO IMSO Interpol IOC IOM IPU ISO ITSO ITU ITUC MIGA OAS (observer) OECD (accession state) OPCW (signatory) OSCE (partner) PCA SECI (observer) UN UNCTAD UNESCO UNHCR UNIDO UNWTO UPU WCO WFTU WHO WIPO WMO WTO
Flag description: white with a blue hexagram (six-pointed linear star) known as the Magen David (Shield of David) centered between two equal horizontal blue bands near the top and bottom edges of the flag
top of pageEconomy overview: Israel has a technologically advanced market economy with substantial though diminishing government participation. It depends on imports of crude oil grains raw materials and military equipment. Despite limited natural resources Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel imports substantial quantities of grain but is largely self-sufficient in other agricultural products. Cut diamonds high-technology equipment and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable trade deficits which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US its major source of economic and military aid. Israel's GDP after contracting slightly in 2001 and 2002 due to the Palestinian conflict and troubles in the high-technology sector has grown by about 5% per year since 2003. The economy grew an estimated 3.9% in 2008 slowed by the global financial crisis. The government's prudent fiscal policy and structural reforms over the past few years have helped to induce strong foreign investment tax revenues and private consumption setting the economy on a solid growth path.
Industries: high-technology projects (including aviation communications computer-aided design and manufactures medical electronics fiber optics) wood and paper products potash and phosphates food beverages and tobacco caustic soda cement construction metals products chemical products
Exports: $50.07 billion (2007 est.)
Rank: 53
Commodities: machinery and equipment software cut diamonds agricultural products chemicals textiles and apparel
Partners: US 32.5% Belgium 7.5% Hong Kong 6.7% (2008)
Imports: $55.93 billion (2007 est.)
Rank: 46
Commodities: raw materials military equipment investment goods rough diamonds fuels grain consumer goods
Partners: US 12.3% Belgium 6.5% China 6.5% Switzerland 6.1% Germany 6% (2008)
Exchange rates: new Israeli shekels (ILS) per US dollar - 3.56 (2008 est.) 4.14 (2007) 4.4565 (2006) 4.4877 (2005) 4.482 (2004)
top of pagetop of pageTelephone systemGeneral assessment: most highly developed system in the Middle East although not the largest
Domestic: good system of coaxial cable and microwave radio relay; all systems are digital; four privately-owned mobile-cellular service providers with countrywide coverage
International: country code - 972; submarine cables provide links to Europe Cyprus and parts of the Middle East; satellite earth stations - 3 Intelsat (2 Atlantic Ocean and 1 Indian Ocean) (2008)
top of pageMilitary service age and obligation: 18 years of age for compulsory (Jews Druzes) and voluntary (Christians Muslims Circassians) military service; both sexes are obligated to military service; conscript service obligation - 36 months for enlisted men 21 months for enlisted women 48 months for officers; reserve obl
top of pagePipelines: gas 176 km; oil 442 km; refined products 261 km (2008)
Israel - Transnational issues 2009
top of pageDisputes international: West Bank and Gaza Strip are Israeli-occupied with current status subject to the Israeli-Palestinian Interim Agreement - permanent status to be determined through further negotiation; Israel continues construction of a 'seam line' separation barrier along parts of the Green Line and within the West Bank; Israel withdrew its settlers and military from the Gaza Strip and from four settlements in the West Bank in August 2005; Golan Heights is Israeli-occupied (Lebanon claims the Shab'a Farms area of Golan Heights); since 1948 about 350 peacekeepers from the UN Truce Supervision Organization (UNTSO) headquartered in Jerusalem monitor ceasefires supervise armistice agreements prevent isolated incidents from escalating and assist other UN personnel in the region
Illicit drugs: increasingly concerned about ecstasy cocaine and heroin abuse; drugs arrive in country from Lebanon and increasingly from Jordan; money-laundering center
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