In view of the continuing internal and external shocks, the targets set for were to maintain financial stability and halt the contraction of the economy. Soon after President Truman took office, he appointed several experts to study the Palestinian issue. Library of Congress Country Studies, Active immigration encouragement was curtailed, to await the absorption of the earlier mass immigration.
Social welfare payments, such as unemployment benefits, child allowances, old age pensions and minimum income support, were expanded continuously, until they formed a major budgetary expenditure. Manufacturing grew slowly for most of the period, but very rapidly during World War II, when Palestine was cut off from foreign competition and was a major provider to the British armed forces in the Middle East.
This drop to a new plateau was the result of a number of factors, including the effect of the wave of immigration on the labor market mainly through a reduction in wagesa reduction in the dollar prices of imports, a supply surplus in the housing market that reflected a significant reduction in demand, an increase in the interest rate and, finally, the passing of the Deficit Reduction Law.
The demand pressure was manifested in a rise in inflation, an appreciation of the real exchange rate and a decrease in the current account surplus. The improvement in the monetary indicators expected inflation and the nominal and real yield curves enabled the Bank of Israel to gradually reduce interest rates up to the end of the year.
This high number was also the result of large purchases of foreign currency by the Bank of Israel to prevent the exchange rate from declining below the lower boundary of the band. Israel was fortunate in receiving large sums of capital inflows: This reduction was made possible by, among other things, peace agreements with Egypt and Jordan.
This was due to a lessening of the impact of the wave of immigration, a decline in domestic demand and a decrease in investment, with the completion of the process of adjustment in the capital stock. The Ata textile plant in Kiryat Atawhich went on to become an icon of the Israeli textile industry, was established in For more information, please see the full notice.
Great Britain wanted to preserve good relations with the Arabs to protect its vital political and economic interests in Palestine. Inthere was also a reversal in the trend of both long-term and short-term capital flows direct investmentswhich were partly the result of the recovery in the hi-tech industries.
As opposed to its previous behavior, the Bank of Israel maintained a relatively low interest rate during the period of —, while also keeping a low level of inflation that was within the target or even lower . The structure of manufacturing has also changed: The economy's growth began against the background of a current account surplus.
The Stabilization Plan received one-time assistance from the United States government and the conversion of U. These responses are important for understanding the background for the actions of policy makers in Israel in The Palestinian economy developed rapidly — real per capita national income grew at an annual rate of close to 20 percent in and 5 percent in — but fluctuated widely thereafter, and actually decreased in times of hostilities.
Roosevelt had assured the Arabs in that the United States would not intervene without consulting both the Jews and the Arabs in that region. The mountains of Galilee are separated from the hills of the Israeli-occupied West Bank to the south by the fertile Plain of Esdraelon Hebrew:The history of modern Israel begins in the s, when the first Zionist immigrants came to Palestine, then under Ottoman rule, to join the small existing Jewish community, establishing agricultural settlements and some industry, restoring Hebrew as the spoken national language, and creating new economic and social institutions.
The History of Modern Israel - Part II: Challenges of Israel as a sovereign state ratings This course deals with the Israeli politics, economy, society and culture, since its creation in till today. Creation of Israel, On May 14,David Ben-Gurion, the head of the Jewish Agency, proclaimed the establishment of the State of Israel.
Creation of Israel, On May 14,David Ben-Gurion, the head of the Jewish Agency, proclaimed the establishment of the State of Israel.U.S.
President Harry S. Truman recognized the new nation on the same day. and Pakistan inbetween Israel and its neighbours inbetween Israel, Great Britain, France, and Egypt inand between Israel, Jordan, and Egypt in None of these states was at the time declared an aggressor.
The economy of Israel is advanced by global standards. Israel ranks within the top 20 nations in the world on the latest report of the UN's Human Development Index, which places it in the category of "Very Highly Developed", allowing the country to enjoy a higher standard of living than many other Western countries.Download