ABSTRACT
To say that Israel's economy is highly politicized is not to fall victim to the syndromes of the Chosen People, Promised Land, and prophetic tradition, by which only superlatives are suitable for describing Israeli phenomena. The economy truly is distinctive, as shown by comparative analysis. It ranks among the western democracies with the largest and most centralized public sector relative to the size of the economy. It is also among the poorest of the western democracies. Both the centralization and the shortage of resources weigh heavily on Israeli politics and public policy. They compete with the hyperbole that emanates from themes of Chosen People, Promised Land, and prophetic tradition to shape the activities of the modern state.
