ABSTRACT
The resurgence of political economy as an important topic reflects deep interpenetration of politics and economics. There are few economic issues of consequence that are not shaped by governmental decisions, and there are few governments whose agendas are not dominated by economic issues. No country may reflect the mixture of politics and economics as much as Israel. Israel also stands out for critical nature of its economic issues, and the challenges faced by politicians and civil servants who would guide or control the economy. Like other developing countries, Israel has depended on foreign sources of capital to finance growth, and a strong government to manage capital recruitment and investment. The government is not the only public body with a dominant role in the economy. During the period of the British Mandate the Jewish Agency and the Labour Federation provided social services, employee representation, and employment opportunities. The chapter also presents an overview of the key concepts discussed in this book.
