How does the Israeli economy work?

Question

They have no oil. I've never seen anything with 'made in Israel' on it. How do they earn a living? How do they afford to have the best equipped army in the region? How do they have such a high standard of living? Is it all donated by wealthy Jewery around the world? Or does it all come from religious tourism?

It just seems strange that most of the surrounding economies are reasonably poor whilst Israel is wealthy.

Answer 1

Japan has no oil, either, and they have a very comfortable living standard...

As to never having seen anything made in Israel, you just didn't look closely enough. If you take Zocor and recently switched to a generic, chances are that generic is made by Teva Pharmaceutical in Israel. Diamonds on engagement rings of many women you know were cut in Israel. AOL Instant Messenger is based on a product called ICQ originally developed in Israel (AOL acquired ICQ in mid-1990s for $300 million). If you program in PHP, you have heard of Zend, but you probably don't know that Zend is based in Ramat Gan, Israel.

Israel exports about $45 billion dollars worth of goods and services a year (which is a lot for a small country whose GDP is about $120 billion). About half of those exports go to the U.S. So total Israeli exports into the U.S. are about $20 billion, while total U.S. imports exceed $1.6 trillion; a drop in the ocean...

How does Israel afford a well-equipped army? Two tricks, (1) Israel receives massive military aid from the U.S., and (2) Israel does not pay its soldiers, it conscripts them instead. Israeli conscription is universal, even women serve (mostly in administrative, medical, and support capacities).

Donations from wealthy Jewry from around the world, interestingly, are not a big thing for Israel. Wealthy Jewry from around the world is largely reformist, and that doesn't sit well with largely orthodox religious leadership in Israel.

As to the differences between Israel and surrounding countries, there is one that explains it all: prevailing level of education.

Answer 2

Israel has an economy backed by the US and many Zionist societies world wide and threatening actions to some countries like Germany and the Holocaust myth. The Israelis live on Agriculture in part which they are good at, and Hi Tech which they are well educated in. The reason why you do not see made in Israel often is because they sell it without referring to them since they are not accepted in most countries that take their products. But look at Hi Tech they one of the world leaders in miniature aviation of very small planes for various applications worldwide, the other is computer services and development in software, R&D projects from US military. Also if you look deeper you will find a large number of Israeli companies involved in Mobile Telephony software particularly in Billing which is a huge source of money in that talking frenzies that cover the world now. that is why they look that economically prosperous and mind you they do not pay the whole value for their military bill. Nothing to do with what is around them and no relation at all with these countries.

Answer 3

Israel is a high tech monster - if you have ever used im - then you have used technology developed by Israeli's for example.

However, most exports form Israel don't make the American Market because they usually only enter the European market. Currently there at least 100 Israeli public companies trading on American stock exchanges and over 1000 on the Tel Aviv stock exchange.

From the CIA World fact book:

Economy - overview:
Israel has a technologically advanced market economy with substantial government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel imports substantial quantities of grain, but is largely self-sufficient in other agricultural products. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable current account deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, which is its major source of economic and military aid. The bitter Israeli-Palestinian conflict; difficulties in the high-technology, construction, and tourist sectors; and fiscal austerity in the face of growing inflation led to small declines in GDP in 2001 and 2002. The economy rebounded in 2003 and 2004, growing at a 4% rate each year, as the government tightened fiscal policy and implemented structural reforms to boost competition and efficiency in the markets. In 2005, rising consumer confidence, tourism, and foreign direct investment - as well as higher demand for Israeli exports - boosted GDP by 4.7%.

Answer 4

It's run by Jews. Jews know how to make money.

They make weapons for others and sell them. They make lots of science-based products -- high tech gadgets. They sell of-season agricultural produce in Europe. And yes they earn lots from tourism, (a) pilgrims and sightseers (b) Jews from everywhere visiting (c) Eilat as a winter-sunshine destination. They have some very special shrines like Jerusalem and Nazareth that people want to see, not just Christians.

Their army is paid for by the USA (so-called "military aid").

Answer 5

They have markets, supermalls, stores. They have everything we have!! Los Angeles live on most of tourism! So is Israel!
Go take a trip, and get to know Israel!

Answer 6

lot of high tech work. USA funds.

Answer 7

similar to rock n roll, dude...sex and drugs

Answer 8

it doesnt