ABSTRACT
The political economy of any country is an analysis that transcends the dry data and figures of a conventional economic survey. It includes the relationship between the economy and the society as two integral parts of the same picture. It is a far more judgemental way of looking at a country's economy and it juxtaposes openly the social injustices against the economic achievements. This chapter focuses on the work of local Israeli political economists and follows the development of the Israeli economy. There are several structural features of the Israeli economy that survived the years and are going to affect the economy in years to come. There are two kinds of monopoly in Israel – one is exercised in the market and the other over the budget. The private sector is monopolised through few strong families, who have multi-layered companies that control most of the economic activity in the state.
