The kibbutz (plural, "kibbutzim"), which means "communal settlement" in Hebrew, is a farm-based community structure established primarily in Israel by immigrants from Eastern Europe. The kibbutz is based on these economic principles:
- The Marxist economic principle of "from each according to his ability, to each according to his needs"
- joint ownership of property
- equality in education and consumption
- welcoming of all who choose this way of life
The first kibbutzim (plural of “kibbutz”) were founded some 40 years before the establishment of the State of Israel (1948). Degania (from the Hebrew “dagan,” meaning grain), located south of Lake Kinneret, was established in 1909 by a group of pioneers on land acquired by the Jewish National Fund. 
The first kibbutz was founded prior to the formation of the State of Israel in 1948, but became more popular as Israel grew. However, it never attained as much as 10% of the population of Israel and by 2007 was considered to be a economic failure.