ABSTRACT
Prior to the establishment of the state of Israel in 1948, the countries of the Arab League recognised the vulnerability of the nascent nation to external economic pressure. Until 1945 the objective of economic sanctions against the Jews of Palestine was clear: to inhibit and ultimately prevent the development of a viable economic structure and hence to thwart the emergence of a sovereign political community. While Israel remains part of the international community of states, its status is continuously being challenged. The Arab boycott is only one of the instruments employed. Both Arab and non-Arab states engage in efforts to isolate Israel from access to the machinery and benefits of multilateral organisations and international regimes. Israel's domestic economic development continues, while economic exchanges expand in both dollar value and diversity of partner. The Arab boycott has contributed to Israel's relative diplomatic isolation.
