Israel is a parliamentary democracy and the world's only Jewish state, though its population includes citizens from many different ethnic and religious backgrounds.

Israel is bordered by Lebanon in the north, Syria and Jordan in the east, and Egypt in the south-west. Israel has a population of over seven million people, in an area of around 22,000 square kilometres (8500 square miles).

Israel has a technologically advanced economy and is ranked 23rd on the 2005 United Nations Human Development Index.

History

Historical roots

The first historical record of the word "Israel" comes from an Egyptian stele documenting military campaigns in Canaan. Although this stele which referred to a people (the determinative for 'country' was absent) is dated to approximately 1211 BCE, [4] Jewish tradition holds that the Land of Israel has been a Jewish Holy Land and Promised land for 3,000 years. The land of Israel holds a special place in Jewish religious obligations, encompassing Judaism's most important sites — including the remains of the First and Second Temples of the Jewish King, Solomon. Connected with these two versions of the temple are religiously significant rites which stand as the origin for many aspects of modern Judaism. [5] Starting around the 11th century BCE the first of a series of Jewish kingdoms and states established intermittent rule over the region that lasted more than a millennium.

Under Assyrian, Babylonian, Persian, Greek, Roman, Byzantine, and (briefly) Sassanian rule, Jewish presence in the region dwindled because of mass expulsions. In particular, the failure of the Bar Kochba Revolt against the Roman Empire in 132 CE resulted in a large-scale expulsion of Jews. It was during this time that the Romans gave the name Syria Palaestina to the geographic area, in an attempt to erase Jewish ties to the land.[6] The Mishnah and Jerusalem Talmud, two of Judaism's most important religious texts, were composed in the region during this period. The Muslims conquered the land from the Byzantine Empire in 638 CE. The area was ruled by various Muslim states (interrupted by the rule of the Crusaders) before becoming part of the Ottoman Empire in 1517.

Geography and Climate

Israel is bordered by Lebanon in the north, Syria and Jordan in the east, and Egypt in the south-west. It has coastlines on the Mediterranean in the west and the Gulf of Eilat (also known as the Gulf of Aqaba) in the south.

During the Six-Day War of 1967, Israel captured the West Bank from the Hashemite Kingdom of Jordan, the Golan Heights from Syria, Gaza Strip (which was under Egyptian occupation), and Sinai from Egypt. It withdrew all troops and settlers from Sinai by 1982 and from the Gaza Strip by September 12, 2005. The future status of the West Bank, the Gaza Strip, and the Golan Heights remains to be determined.

The total area of the sovereign territory of Israel — excluding all territories captured by Israel in 1967 — is 20,770 km² or 8,019 mi²; (1% water). The total area under Israeli law — including East Jerusalem and the Golan Heights — is 22,145 km² or 8,550 mi²; with a little less than one per cent being water. It should be noted however that UN resolution 497 states the application of Israeli law to the Golan Heights is "null and void and without international legal effect". The total area under Israeli control — including the military-controlled and Palestinian-governed territory of the West Bank — is 28,023 km² or 10,820 mi² (~1% water).

The climate of the coastal areas can be very different from that of the mountainous areas, particularly during the winter months. The higher areas like the Golan Heights can get cold, wet and often snowy and even Jerusalem experiences snow spells every couple of years. The coastal regions, where Tel Aviv and Haifa are located, have a typical Mediterranean climate with cool, rainy winters and hot, dry summers.

Government

Legislature

Israel's unicameral legislative branch is a 120-member parliament known as the Knesset. Membership in the Knesset is allocated to parties based on their proportion of the vote, via a proportional representation voting system. Elections to the Knesset are normally held every four years, but the Knesset can decide to dissolve itself ahead of time by a simple majority, known as a vote of no-confidence. Twelve parties currently hold seats.

Executive
The President of Israel is Head of State, serving as a largely ceremonial figurehead. The President selects the leader of the majority party or ruling coalition in the Knesset as the Prime Minister, who serves as head of government.

Military

Israel's military consists of a unified Israel Defense Forces (IDF), known in Hebrew by the acronym Tzahal (צה"ל). Historically, there have been no separate Israeli military services. The Navy and Air Force are subordinate to the Army. There are other paramilitary agencies that deal with different aspects of Israel's security (such as Magav and Shin Bet). The IDF was based on paramilitary underground armies, chiefly Haganah.

The IDF is one of the best funded military forces in the Middle East and ranks among the most battle-trained armed forces in the world, having been involved in five major wars and numerous border conflicts. In terms of personnel, the IDF's main resource is the training quality of its soldiers and expert institutions, rather than sheer numbers of soldiers. It also relies heavily on high-tech weapons systems, some developed and manufactured in Israel for its specific needs, and others imported (largely from the United States).

Most Israelis (males and females) are drafted into the military at age 18. Exceptions are Israeli Arabs, those who cannot serve because of injury or disability, women who declare themselves married, or those who are religiously observant. Compulsory service is three years for men, and two years for women. Circassians and Bedouin also actively enlist in the IDF. Since 1956, Druze men have been conscripted in the same way as Jewish men, at the request of the Druze community. Men studying full-time in religious institutions can get a deferment from conscription. Most Haredi Jews extend these deferments until they are too old to be conscripted, a practice that has fueled much controversy in Israel.

Following compulsory service, Israeli men become part of the IDF reserve forces, and are usually required to serve several weeks every year as reservists until their 40s.

Economy

Israel has a technologically advanced market economy with substantial government participation. It depends on imports of fossil fuels (crude oil, natural gas, and coal), grains, beef, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel is largely self-sufficient in food production except for grains and beef. Diamonds, high technology, military equipment, software, pharmaceuticals, fine chemicals, and agricultural products (fruits, vegetables and flowers) are leading exports. Israel usually posts sizable current account deficits, which are covered by large transfer payments from abroad and by foreign loans (although some economists would say the deficit is a sign of Israel's advancing markets). Israel possesses extensive facilities for oil refining, diamond polishing, and semiconductor fabrication.

Roughly half of the government's external debt is owed to the United States, which is its major source of economic and military aid. A relatively large fraction of Israel's external debt is held by individual investors, via the Israel Bonds program. The combination of American loan guarantees and direct sales to individual investors, allow the state to borrow at competitive and sometimes below-market rates.

The influx of Jewish immigrants from the former USSR topped 750,000 during the period 1989–1999, bringing the population of Israel from the former Soviet Union to one million, one-sixth of the total population, and adding scientific and professional expertise of substantial value for the economy's future. The influx, coupled with the opening of new markets at the end of the Cold War, energized Israel's economy, which grew rapidly in the early 1990s. But growth began slowing in 1996 when the government imposed tighter fiscal and monetary policies and the immigration bonus petered out. Those policies brought inflation down to record low levels in 1999.

High technology industries have taken a pre-eminent role in the economy, particularly in the last decade. Israel’s limited natural resources and strong emphasis on education have also played key roles in directing industry towards high technology fields. As a result of the country’s success in developing cutting edge technologies in software, communications and the life sciences, Israel is frequently referred to as a second Silicon Valley. Israel (as of 2004) receives more venture capital investment than any country of Europe, and has the largest VC/GDP rate in the world, seven times that of the United States. Outside the U.S. and Canada, Israel has the largest number of NASDAQ listed companies.

Israel produces more scientific papers per capita than any other nation - 109 per 10,000 people. It also boasts one of the highest per capita rates of patents filed. Twenty-four percent of Israel's workforce holds university degrees - ranking third in the industrialized world, after the U.S. and Netherlands - and 12 percent hold advanced degrees.

Another leading industry is tourism, which benefits from the plethora of important historical sites for Judaism and Christianity and from Israel’s warm climate and access to water resources. The important diamond industry has been affected by changing industry conditions and shifts of certain industry activities to the Far East.

As Israel has liberalized its economy and reduced taxes and spending, the gap between the rich and poor has grown. As of 2005, 20.5% of Israeli families (and 34% of Israeli children) are living below the poverty line, though around 40% of those are lifted above the poverty line through transfer payments.[citation needed]

Israel's GDP per capita, as of 28 July 2005, was $20,551.20 per person (42nd in the world). Israel's overall productivity was $54,510.40, and the amount of patents granted was 74/1,000,000 people.

As of May 2006 average monthly wages per employee were: 7,333 shekels or 1,655 USD. Percent of unemployed persons - first quarter 2006: 8.7%