Political economy is the concerned with the interaction of political and economic processes within a society and its influence on the direction of development and developmental policies. The distribution of power and wealth between the different groups and individuals and the processes that create, sustain and transform these relations over a course of time are also involved in the meaning of Political economy. It is a close connection between policymakers and executors of policy to be implemented for the social purpose at large. It talks about the laws of production, wealth and community welfare. Keeping in mind the true meaning behind the term ‘Political Economy’, Israel seemed to be the best country I could take. Since six and a half years of state’s existence, the country has a diverse history to tell which I wanted to explore through this assignment as it is always in the world light but not sound reasons. This essay will seek to present a multifaceted, multidisciplinary exploration of Israel, using a theory-guided review and a broad overview that addresses the various aspects of Israeli society as well as issues that were of major public importance.
Few democratic polities around the world can match the rate of Israel’s economic growth. Since its establishment in 1948, the Jewish state has transformed itself from a third world country – poor in natural resources, small in population (fewer than 1 million citizens), and heavily dependent on financial support from outside sources – into what has been labeled ‘A Start-Up Nation’. Today Israel is generally considered one of the world’s leaders in high-tech advancements, water utilization, agricultural and medical innovations, the development of sophisticated weapons, and other important areas. However, it is noted that in Israel there is “total subjugation of the economy by the state”—oh, and it also tells us that the country has abandoned egalitarianism for laissez-faire capitalism which intrigued me to find the political economy stature present in the country to have a better understanding of the nuances of different countries that we might be unaware of.