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. 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 to head the Palestinian Legislative Council froze relations between Israel and the Palestinian Authority (PA). Ehud OLMERT became prime minister in March 2006 and presided over a 34-day conflict with Hizballah in Lebanon in June-August 2006 and a 23-day conflict with HAMAS in the Gaza Strip during December 2008 and January 2009. OLMERT who in June 2007 resumed talks with PA President Mahmoud ABBAS resigned in September 2008. Prime Minister Binyamin NETANYAHU formed a coalition in March 2009 following a February 2009 general election. Direct talks launched in September 2010 collapsed following the expiration of Israel's 10-month partial settlement construction moratorium in the West Bank. Diplomatic initiatives to revive the negotiations through proximity talks began at the end of 2010.
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: Lake Tiberias (Sea of Galilee) is an important freshwater source; there are about 355 Israeli civilian sites including about 145 small outpost communities in the West Bank 41 sites in the Golan Heights and 32 in East Jerusalem (2010 est.)
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 75.6% Muslim 16.9% Christian 2% Druze 1.7% other 3.8% (2008 census)
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: mixed legal system of English common law British Mandate regulations and Jewish Christian and Muslim religious laws
Executive branchChief of state: President Shimon PERES
Head of government: Prime Minister Binyamin NETANYAHU (since 31 March 2009)
Cabinet: Cabinet selected by prime minister and approved by the Knesset
Elections: president 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 in consultation with party leaders assigns the task of forming a governing coalition to a Knesset member who he or she determines is most likely to accomplish that task
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; political parties are elected by popular vote and assigned seats for members on a proportional basis; members serve four-year terms)
Elections: last held on 10 February 2009 (next scheduled election to be held in 2013)
Election results: percent of vote by party (preliminary) - 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% Hadash 3.4% National Union 3.4% New Movement-Meretz 3% The Jewish Home 3% Balad 2.6%; percent of vote by party (final) - Kadima 22.5% Likud-Ahi 21.6% YB 11.7% Labor 9.9% SHAS 8.5% United Torah Judaism 4.4% United Arab List 3.4% Hadash 3.3% National Union 3.3% New Movement-Meretz 3% The Jewish Home 2.9% 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 National Union 4 HADASH 4 The Jewish Home 3 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 [Jamal ZAHALKA]; Democratic Front for Peace and Equality (HADASH) [Muhammad BARAKEH]; Independence [Ehud BARAK]; Kadima [Tzipora 'Tzipi' LIVNI]; Labor Party [Eitan CABEL]; Likud [Binyamin NETANYAHU]; National Union [Yaakov KATZ]; SHAS [Eliyahu YISHAI]; The Jewish Home (HaBayit HaYehudi) [Daniel HERSCHKOWITZ]; 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) CE (observer) CERN (observer) CICA EBRD FAO IADB IAEA IBRD ICAO ICC ICRM IDA IFAD IFC IFRCS ILO IMF IMO IMSO Interpol IOC IOM IPU ISO ITSO ITU ITUC MIGA OAS (observer) OECD OPCW (signatory) OSCE (partner) Paris Club (associate) PCA SECI (observer) UN UNCTAD UNESCO UNHCR UNIDO UNWTO UPU WCO 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; the basic design resembles a Jewish prayer shawl (tallit) which is white with blue stripes; the hexagram as a Jewish symbol dates back to medieval times
National anthemName: 'Hatikvah'
Lyricsmusic: Naftali Herz IMBER/traditional arranged by Samuel COHEN
Note: adopted 2004 unofficial since 1948; used as the anthem of the Zionist movement since 1897; the 1888 arrangement by Shmuel COHEN is thought to be based on the Romanian folk song 'Carul cu boi' (The Ox Driven Cart)
top of pageEconomy overview: Israel has a technologically advanced market economy. 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. 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 grew about 5% per year from 2004-07. The global financial crisis of 2008-09 spurred a brief recession in Israel but the country entered the crisis with solid fundamentals - following years of prudent fiscal policy and a series of liberalizing reforms - and a resilient banking sector and the economy has shown signs of an early recovery. Following GDP growth of 4% in 2008 Israel's GDP slipped to 0.2% in 2009 but reached 3.4% in 2010 as exports rebounded. The global economic downturn affected Israel's economy primarily through reduced demand for Israel's exports in the United States and EU Israel's top trading partners. Exports of goods and services account for about 40% of the country's GDP. The Israeli Government responded to the recession by implementing a modest fiscal stimulus package and an aggressive expansionary monetary policy - including cutting interest rates to record lows purchasing government bonds and intervening in the foreign currency market. The Bank of Israel began raising interest rates in the summer of 2009 when inflation rose above the upper end of the Bank's target and the economy began to show signs of recovery.
Industries: high-technology products (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: $45.9 billion (2009 est.)
Rank: 51
Commodities: machinery and equipment software cut diamonds agricultural products chemicals textiles and apparel
Partners: US 32.1% Hong Kong 6.3% India 5.1% Belgium 5.1% (2010)
Imports: $45.99 billion (2009 est.)
Rank: 46
Commodities: raw materials military equipment investment goods rough diamonds fuels grain consumer goods
Partners: US 12.8% China 8.1% Germany 6.3% Belgium 5.8% Switzerland 4.6% Italy 4.2% (2010)
Exchange rates:
new Israeli shekels (ILS) per US dollar -
3.739 (2010)
3.93 (2009)
3.588 (2008)
4.14 (2007)
4.4565 (2006)
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)
Broadcast media: state broadcasting network operated by the Israel Broadcasting Authority (IBA) broadcasts on 2 channels one in Hebrew and the other in Arabic; 5 commercial channels including a channel broadcasting in Russian a channel broadcasting Knesset proceedings and a music channel supervised by a public body; multi-channel satellite and cable TV packages provide access to foreign channels; IBA broadcasts on 8 radio networks with multiple repeaters and Israel Defense Forces Radio broadcasts over multiple stations; about 15 privately-owned radio stations; overall more than 100 stations and repeater stations operating (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; pilots commit to 9 years service; reserve obl
top of pagePipelines: gas 211 km; oil 442 km; refined products 261 km (2010)
Israel - Transnational issues 2011
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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