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The '''State of Israel''' ([[Hebrew]]: '''מְדִינַת יִשְׂרָאֵל''', ''Medinat Yisra'el'' from ''' יִשְׂרָאֵל''' ''Yisra'el'', "Upright with God") is a nation located in the [[Middle East]]. It is the world's only Jewish state, allowing citizenship to anybody its government considers to be [[Jewish]]. It also contains [[Arab]] Muslim and Arab [[Christian]] minorities who are remnants of the pre-1948 Arab majority, along with a small [[Druze]] community.  It is the location of [[Jesus]]' birth and many other major [[Bible|Biblical events]].
 
The '''State of Israel''' ([[Hebrew]]: '''מְדִינַת יִשְׂרָאֵל''', ''Medinat Yisra'el'' from ''' יִשְׂרָאֵל''' ''Yisra'el'', "Upright with God") is a nation located in the [[Middle East]]. It is the world's only Jewish state, allowing citizenship to anybody its government considers to be [[Jewish]]. It also contains [[Arab]] Muslim and Arab [[Christian]] minorities who are remnants of the pre-1948 Arab majority, along with a small [[Druze]] community.  It is the location of [[Jesus]]' birth and many other major [[Bible|Biblical events]].
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==Government==
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==Geography==
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Israel is a parliamentary democracy. Its governmental system is based on several basic laws enacted by its unicameral parliament, the Knesset. The president (chief of state) is elected by the Knesset for a 5-year term.
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Israel occupies an area along the eastern Mediterranean Sea, with Jordan and Syria to the east; Lebanon on the north; and Egypt to the south. The terrain varies from a temperate, coastal climate to desert conditions. Israel shares with Jordan the shorline of the Dead Sea, at 1,378 feet below sea level the lowest point on earth.
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The prime minister (head of government) exercises executive power and has in the past been selected by the president as the party leader most able to form a government. Between May 1996 and March 2001, Israelis voted for the prime minister directly. (The legislation, which required the direct election of the prime minister, was rescinded by the Knesset in March 2001.) The members of the cabinet must be collectively approved by the Knesset.
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The Knesset's 120 members are elected by secret ballot to 4-year terms, although the prime minister may decide to call for new elections before the end of the 4-year term. Voting is for party lists rather than for individual candidates, and the total number of seats assigned each party reflects that party's percentage of the vote. Successful Knesset candidates are drawn from the lists in order of party-assigned rank. Under the present electoral system, all members of the Knesset are elected at large.
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The independent judicial system includes secular and religious courts. The courts' right of judicial review of the Knesset's legislation is limited. Judicial interpretation is restricted to problems of execution of laws and validity of subsidiary legislation. The highest court in Israel is the Supreme Court, whose judges are approved by the President.
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Israel is divided into six districts, administration of which is coordinated by the Ministry of Interior. The Ministry of Defense is responsible for the administration of the occupied territories.  
      
==People==
 
==People==
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Active artist colonies thrive in Safed, Jaffa, and Ein Hod, and Israeli painters and sculptors exhibit works worldwide. Israel boasts more than 120 museums, including the Israel Museum in Jerusalem, which houses the Dead Sea Scrolls along with an extensive collection of regional archaeological artifacts, art, and Jewish religious and folk exhibits. Israelis are avid newspaper readers, with more than 90% of Israeli adults reading a newspaper at least once a week. Major daily papers are in Hebrew; others are in Arabic, English, French, Polish, Yiddish, Russian, Hungarian, and German.
 
Active artist colonies thrive in Safed, Jaffa, and Ein Hod, and Israeli painters and sculptors exhibit works worldwide. Israel boasts more than 120 museums, including the Israel Museum in Jerusalem, which houses the Dead Sea Scrolls along with an extensive collection of regional archaeological artifacts, art, and Jewish religious and folk exhibits. Israelis are avid newspaper readers, with more than 90% of Israeli adults reading a newspaper at least once a week. Major daily papers are in Hebrew; others are in Arabic, English, French, Polish, Yiddish, Russian, Hungarian, and German.
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==Political Conditions==
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==Government==
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Israel is a parliamentary democracy. Its governmental system is based on several basic laws enacted by its unicameral parliament, the Knesset. The president (chief of state) is elected by the Knesset for a 5-year term.
 +
 
 +
The prime minister (head of government) exercises executive power and has in the past been selected by the president as the party leader most able to form a government. Between May 1996 and March 2001, Israelis voted for the prime minister directly. (The legislation, which required the direct election of the prime minister, was rescinded by the Knesset in March 2001.) The members of the cabinet must be collectively approved by the Knesset.
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 +
The Knesset's 120 members are elected by secret ballot to 4-year terms, although the prime minister may decide to call for new elections before the end of the 4-year term. Voting is for party lists rather than for individual candidates, and the total number of seats assigned each party reflects that party's percentage of the vote. Successful Knesset candidates are drawn from the lists in order of party-assigned rank. Under the present electoral system, all members of the Knesset are elected at large.
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The independent judicial system includes secular and religious courts. The courts' right of judicial review of the Knesset's legislation is limited. Judicial interpretation is restricted to problems of execution of laws and validity of subsidiary legislation. The highest court in Israel is the Supreme Court, whose judges are approved by the President.
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Israel is divided into six districts, administration of which is coordinated by the Ministry of Interior. The Ministry of Defense is responsible for the administration of the occupied territories.
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===Principal Government Officials===
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*President--Shimon Peres
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*Prime Minister--Ehud Olmert (Kadima)
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*Foreign Minister--Tzipi Livni (Kadima)
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*Ambassador to the United States--Sallai Meridor
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*Ambassador to the United Nations--Dan Gillerman
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===Political Conditions===
 
From the founding of Israel in 1948 until the election of May 1977, Israel was ruled by successive coalition governments led by the Labor alignment or its constituent parties. From 1967-70, the coalition government included all of Israel's parties except the communist party. After the 1977 election, the Likud bloc, then composed of Herut, the Liberals, and the smaller La'am Party, came to power forming a coalition with the National Religious Party, Agudat Israel, and others. As head of Likud, Menachem Begin became Prime Minister. The Likud retained power in the succeeding election in June 1981, and Begin remained Prime Minister. In the summer of 1983, Begin resigned and was succeeded by his Foreign Minister, Yitzhak Shamir.  
 
From the founding of Israel in 1948 until the election of May 1977, Israel was ruled by successive coalition governments led by the Labor alignment or its constituent parties. From 1967-70, the coalition government included all of Israel's parties except the communist party. After the 1977 election, the Likud bloc, then composed of Herut, the Liberals, and the smaller La'am Party, came to power forming a coalition with the National Religious Party, Agudat Israel, and others. As head of Likud, Menachem Begin became Prime Minister. The Likud retained power in the succeeding election in June 1981, and Begin remained Prime Minister. In the summer of 1983, Begin resigned and was succeeded by his Foreign Minister, Yitzhak Shamir.  
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The summer of 2004 saw renewed instability in the government, as disagreement over the Gaza disengagement plan resulted in Sharon's firing two ministers of the National Union Party and accepting the resignation of a third from the National Religious Party in order to secure cabinet approval of the plan (it was endorsed on June 6, 2004). Continuing divisions within the Likud on next steps then prompted Ariel Sharon to leave the party in November 2005 to form the Kadima ("Forward") party and call new elections for March 2006. However, Sharon was unexpectedly incapacitated in January 2006 due to a severe stroke and leadership of Kadima shifted to Acting Prime Minister Ehud Olmert, who on March 28 led the party to 29 seats in the Knesset. Labor came in second with 19 seats, and Shas and Likud tied with 12. After intensive coalition negotiations, a new, Kadima-led government, with Labor as "senior partner", was sworn in on May 4, 2006.  
 
The summer of 2004 saw renewed instability in the government, as disagreement over the Gaza disengagement plan resulted in Sharon's firing two ministers of the National Union Party and accepting the resignation of a third from the National Religious Party in order to secure cabinet approval of the plan (it was endorsed on June 6, 2004). Continuing divisions within the Likud on next steps then prompted Ariel Sharon to leave the party in November 2005 to form the Kadima ("Forward") party and call new elections for March 2006. However, Sharon was unexpectedly incapacitated in January 2006 due to a severe stroke and leadership of Kadima shifted to Acting Prime Minister Ehud Olmert, who on March 28 led the party to 29 seats in the Knesset. Labor came in second with 19 seats, and Shas and Likud tied with 12. After intensive coalition negotiations, a new, Kadima-led government, with Labor as "senior partner", was sworn in on May 4, 2006.  
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==Foreign Relations==
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===Foreign Relations===
 
In addition to seeking an end to hostilities with Arab forces, against which it has fought five wars since 1948, Israel has given high priority to gaining wide acceptance as a sovereign state with an important international role.  
 
In addition to seeking an end to hostilities with Arab forces, against which it has fought five wars since 1948, Israel has given high priority to gaining wide acceptance as a sovereign state with an important international role.  
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A wave of Jewish immigration beginning in 1989, predominantly from the countries of the former U.S.S.R., brought nearly a million new citizens to Israel. These new immigrants, many of them highly educated, now constitute some 13% of Israel's 6.7 million inhabitants. Their successful absorption into Israeli society and its labor force forms a remarkable chapter in Israeli history. The skills brought by the new immigrants and their added demand as consumers gave the Israeli economy a strong upward push and in the 1990s, they played a key role in the ongoing development of Israel's high-tech sector.  
 
A wave of Jewish immigration beginning in 1989, predominantly from the countries of the former U.S.S.R., brought nearly a million new citizens to Israel. These new immigrants, many of them highly educated, now constitute some 13% of Israel's 6.7 million inhabitants. Their successful absorption into Israeli society and its labor force forms a remarkable chapter in Israeli history. The skills brought by the new immigrants and their added demand as consumers gave the Israeli economy a strong upward push and in the 1990s, they played a key role in the ongoing development of Israel's high-tech sector.  
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*GDP (2006 est.): $170.3 billion.
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*Annual growth rate (2006): 4.8%.
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*Per capita GDP (2006): $26,800.
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*Currency: Shekel (4.13 shekels = 1 U.S. dollar; 2007 est.).
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*Natural resources: Copper, phosphate, bromide, potash, clay, sand, sulfur, bitumen, manganese.
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*Agriculture: Products--citrus and other fruits, vegetables, beef, dairy, and poultry products.
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*Industry: Types--high-technology projects (including aviation, communications, computer-aided design and manufactures, medical electronics, fiber optics), wood and paper products, potash and phosphates, food, beverages, tobacco, caustic soda, cement, construction, plastics, chemical products, diamond cutting and polishing, metal products, textiles, and footwear.
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*Trade: Exports (2006 est.)--$42.86 billion. Exports include polished diamonds, electronic communication, medical and scientific equipment, chemicals and chemical products, electronic components and computers, machinery and equipment, transport equipment, rubber, plastics, and textiles. Imports (excluding defense imports, 2006 est.)--$47.8 billion: raw materials, diamonds, energy ships and airplanes, machinery, equipment, land transportation equipment for investment, and consumer goods. Major partners--U.S., U.K., Germany; exports--U.S., Belgium, Hong Kong; imports--U.S., Belgium, Germany, Switzerland, U.K.
    
During the 1990s, progress in the Middle East peace process, beginning with the Madrid Conference of 1991, helped to reduce Israel's economic isolation from its neighbors and opened up new markets to Israeli exporters farther afield. The peace process stimulated an unprecedented inflow of foreign investment in Israel, and provided a substantial boost to economic growth in the region over the last decade. The onset of the intifada beginning at the end of September of 2000, the downturn in the high-tech sector and Nasdaq crisis, and the slowdown of the global economy have all significantly affected the Israeli economy. However, despite the recent conflicts in Gaza and Lebanon, the Israeli economy grew during 2006.  
 
During the 1990s, progress in the Middle East peace process, beginning with the Madrid Conference of 1991, helped to reduce Israel's economic isolation from its neighbors and opened up new markets to Israeli exporters farther afield. The peace process stimulated an unprecedented inflow of foreign investment in Israel, and provided a substantial boost to economic growth in the region over the last decade. The onset of the intifada beginning at the end of September of 2000, the downturn in the high-tech sector and Nasdaq crisis, and the slowdown of the global economy have all significantly affected the Israeli economy. However, despite the recent conflicts in Gaza and Lebanon, the Israeli economy grew during 2006.  
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