This chapter aim is to analyse the evolution of 'governance' in Israel over the period from the establishment of the state until the present. It is divided into two major sections: an analysis of the foundation and stabilization of the Israeli system of government, is followed by an analysis of increasing challenges to the government's capacity for steering the system from 1967 to the present. Over the last two decades Israel has been moving towards a broader democratic process with an emphasis on individualism and a liberal economy. Still, although its grip is weakening, the bulk of Israeli political power is still in the hands of the executive, appointed policy-makers and high-ranking civil servants. In order to successfully strengthen democracy in Israeli society, one must rebuild the confidence of its citizens in its institutions while promoting education in democratic values.