FARUK DOKUMACIFARUK DOKUMACIA COUNTRY ANALYSEA COUNTRY ANALYSEISRAELISRAEL
The Elements in The StudyThe Elements in The Study MAIN INTRODUCTION ANDMAIN INTRODUCTION ANDINFORMATION ABOUT ISRAELINFORMATION ABOUT ISRAEL ECONOMIC INDICATORS OF ISRAELECONOMIC INDICATORS OF ISRAEL PERIODICAL ANALYSE OF ISRAELPERIODICAL ANALYSE OF ISRAELECONOMYECONOMY ISRAEL’S ECONOMIC GROWTH:ISRAEL’S ECONOMIC GROWTH:SUCCESS WITHOUT SECURITYSUCCESS WITHOUT SECURITY
LOCATION OF ISRAEL IN THE WORLDLOCATION OF ISRAEL IN THE WORLD
INFORMATION ABOUT ISRAELINFORMATION ABOUT ISRAEL Capital CityCapital City: Jerusalem: Jerusalem Population:Population: 7.148.0007.148.000 Land:Land: 20.770 km220.770 km2 Language:Language: HebrewHebrew
INFORMATION ABOUT ISRAELINFORMATION ABOUT ISRAEL Independence Day:Independence Day: 14 May 194814 May 1948 President:President: Shimon PeresShimon Peres Prime Minister:Prime Minister: Ehud OlmertEhud Olmert Currency:Currency: New Israel ShekelNew Israel Shekel
POPULATION ANALYSE INPOPULATION ANALYSE INISRAELISRAEL Population Growth Rate:Population Growth Rate:1.154%1.154% Life Expectancy:Life Expectancy:79.6 years79.6 years Literacy Level (Literacy Level ( reading and writingreading and writing):):97.1%97.1% Ethnicity:Ethnicity:76.4% Jewish, 23.6%76.4% Jewish, 23.6% MostlyArabicMostlyArabicMuslimMuslim
MAIN ECONOMIC INDICATORSMAIN ECONOMIC INDICATORS GDP :GDP : 170.3 Billion Dollars170.3 Billion Dollars Growth (GDP):Growth (GDP): 5.1% (2006 est5.1% (2006 est)) GDP per capitaGDP per capita: 26.800 Dollars: 26.800 Dollars ( The highest income leveled 10% of total( The highest income leveled 10% of totalpopulation is getting 28.3% of all the income inpopulation is getting 28.3% of all the income inthe country )the country ) ( The lowest income leveled 10% of total( The lowest income leveled 10% of totalpopulation is getting 2.4% of all the income inpopulation is getting 2.4% of all the income inthe country )the country )
MAIN ECONOMIC INDICATORSMAIN ECONOMIC INDICATORSGDPGDP 2.5% Agriculture2.5% Agriculture 30.3% Industry30.3% Industry 67.2% Service67.2% Service
MAIN ECONOMIC INDICATORSMAIN ECONOMIC INDICATORS Foreign Direct Investments:Foreign Direct Investments:12.1billion dollars12.1billion dollars Foreign Debt:Foreign Debt:81.98 billion dollars81.98 billion dollars
MAIN ECONOMIC INDICATORSMAIN ECONOMIC INDICATORS Imports:Imports:46.96 billion dollars46.96 billion dollars Main Import Partners:Main Import Partners:USA(12.4%)USA(12.4%)Belgium(8.2%)Belgium(8.2%)Germany( 6.7%)Germany( 6.7%) Exports:Exports:43.73 billion dollars43.73 billion dollars Main Export Partners:Main Export Partners:USA(38.4%)USA(38.4%)Belgium(6.5%)Belgium(6.5%)Hong Kong(5.9%)Hong Kong(5.9%)
MAIN ECONOMIC INDICATORSMAIN ECONOMIC INDICATORS Main Export Products:Main Export Products:machinerymachineryhardwarehardwaresoftwaresoftwarediamonddiamondagricultural productsagricultural productschemical productschemical productstextiletextile Main Import Products:Main Import Products:raw materialsraw materialsmilitary defence sectormilitary defence sectorraw diamondraw diamondgrain(food)grain(food)common goodscommon goods
MAIN ECONOMIC INDICATORSMAIN ECONOMIC INDICATORS The Elements Determine Today’s StructureThe Elements Determine Today’s Structure1.Small national market forces economy to be1.Small national market forces economy to beexport orientedexport oriented2.Since there is not much water source, it was a2.Since there is not much water source, it was aneccessary to improve agricultural technologyneccessary to improve agricultural technology3.Qualified Jewish labor force migrated to the3.Qualified Jewish labor force migrated to thecountrycountry
MAIN ECONOMIC INDICATORSMAIN ECONOMIC INDICATORSIn Israel, altough there are manyIn Israel, altough there are manyprivate entrepreneurs, stateprivate entrepreneurs, statehas a ciritical for employment andhas a ciritical for employment andproduction. However, state’s roleproduction. However, state’s rolehas declined with the privatizationhas declined with the privatizationof some state organizations,of some state organizations,banks and with the openedbanks and with the openedenergy sector to the globalenergy sector to the globalcompetitioncompetition
PERIODICAL ANALYSE OFPERIODICAL ANALYSE OFISRAEL ECONOMYISRAEL ECONOMY 1948-19671948-1967In this foundation years Israel gaveIn this foundation years Israel gavegreat importance to Jewish migrationgreat importance to Jewish migrationUntill 1951 ,totally 687000 JewishUntill 1951 ,totally 687000 Jewishmigrated to the country by doublingmigrated to the country by doublingJewish population to 1.4 millionJewish population to 1.4 million and tilland till60’s it is redoubled again60’s it is redoubled again
PERIODICAL ANALYSE OFPERIODICAL ANALYSE OFISRAEL ECONOMYISRAEL ECONOMYAlthough consumed a hugeAlthough consumed a hugeamount of national sources, thisamount of national sources, thismigration had a boom affect in themigration had a boom affect in thegrowth of construction and durablegrowth of construction and durablegoods production industrygoods production industry
PERIODICAL ANALYSE OFPERIODICAL ANALYSE OFISRAEL ECONOMYISRAEL ECONOMYThe main objectives were only aThe main objectives were only arapid growth, employment andrapid growth, employment andincreasing the populationincreasing the populationEarly years, Israel had deficits.Early years, Israel had deficits.However, the money coming fromHowever, the money coming fromJewishs abroad, from USA aid andJewishs abroad, from USA aid andfrom Germany as compensation helpedfrom Germany as compensation helpedthese deficits to be financed.these deficits to be financed.( totally: 1/6 of GDP )( totally: 1/6 of GDP )
PERIODICAL ANALYSE OFPERIODICAL ANALYSE OFISRAEL ECONOMYISRAEL ECONOMY 1967-19831967-1983After the war against Arabs, West BankAfter the war against Arabs, West Bankand Gaza Strip was captured by Israel andand Gaza Strip was captured by Israel andbecame a market also became anbecame a market also became anunskilled labor force source for Israel.unskilled labor force source for Israel.The war has created a huge demandThe war has created a huge demandand this demand helped Israel’s economyand this demand helped Israel’s economyto be activated with more efficiencyto be activated with more efficiency
PERIODICAL ANALYSE OFPERIODICAL ANALYSE OFISRAEL ECONOMYISRAEL ECONOMYInIn 70’s migration came to a70’s migration came to apoint to stop, also overall worldpoint to stop, also overall worldeconomy’s recession mainlyeconomy’s recession mainlyresulting from high petroliumresulting from high petroliumprices in 70’s limited the ability toprices in 70’s limited the ability tocope with the shocks and changescope with the shocks and changesWhile the inflation was 34%While the inflation was 34%in 1977 , it became 54% in 1978 andin 1977 , it became 54% in 1978 andit boomed till 140% between 1979it boomed till 140% between 1979and 1983and 1983
PERIODICAL ANALYSE OFPERIODICAL ANALYSE OFISRAEL ECONOMYISRAEL ECONOMY From Crisis to ReformFrom Crisis to ReformPrice level was freezed for 3 monthsPrice level was freezed for 3 monthsWages were freezed for 8 monthsWages were freezed for 8 monthsInflation decreased till 20% levelsInflation decreased till 20% levelsSubsidies and government expendituresSubsidies and government expenditureswere limitedwere limitedDeficit reduced from 13.2% of GDP to 2.8% ofDeficit reduced from 13.2% of GDP to 2.8% ofGDP.GDP.
PERIODICAL ANALYSE OFPERIODICAL ANALYSE OFISRAEL ECONOMYISRAEL ECONOMYAfter 1990-1991 peace andAfter 1990-1991 peace andseperation of Russia, cretaed newseperation of Russia, cretaed newJewish migrations especially fromJewish migrations especially fromRussia.Russia.After 90’s it was observed that GDPAfter 90’s it was observed that GDPper capita and expected life time wasper capita and expected life time wasvery high.very high.
ISRAEL’S ECONOMIC GROWTH:ISRAEL’S ECONOMIC GROWTH:SUCCESS WITHOUT SECURITYSUCCESS WITHOUT SECURITY About the ViolanceAbout the ViolanceIsrael territory have not beenIsrael territory have not beencaptured by its enemiescaptured by its enemies .. Harbours,Harbours,factories, univerisities did not stopfactories, univerisities did not stopactivities, Transportation andactivities, Transportation andcommunication was not hurt. Alsocommunication was not hurt. Alsoterrorism did not stop industry.terrorism did not stop industry.
ISRAEL’S ECONOMIC GROWTH:ISRAEL’S ECONOMIC GROWTH:SUCCESS WITHOUT SECURITYSUCCESS WITHOUT SECURITY MigrationMigrationIn the foundation time of Israel and afterIn the foundation time of Israel and afterthe seperetion of Russia, there was a peak inthe seperetion of Russia, there was a peak inmigrationmigrationThis high migration level has increasedThis high migration level has increasedthe overall demand level, and growth, alsothe overall demand level, and growth, alsoefficiency in labor force by migratingefficiency in labor force by migratingqualified labors.The war has not effected thequalified labors.The war has not effected themigration level because it s not resultedmigration level because it s not resultedfrom only economic reasons, it s resultedfrom only economic reasons, it s resultedfrom mainly Jewish ideology and identity.from mainly Jewish ideology and identity.
ISRAEL’S ECONOMIC GROWTH:ISRAEL’S ECONOMIC GROWTH:SUCCESS WITHOUT SECURITYSUCCESS WITHOUT SECURITY Tranfers from AbroadTranfers from AbroadDonations from Jewishs livingDonations from Jewishs livingabroad, and wealth transfers withabroad, and wealth transfers withmigration, Germany compensations,migration, Germany compensations,and USA aid has made Israel theand USA aid has made Israel thenumberone country in foreign aid pernumberone country in foreign aid percapita. In the war time aids from Jewishcapita. In the war time aids from Jewishpeople abroad has increasedpeople abroad has increased
ISRAEL’S ECONOMIC GROWTH:ISRAEL’S ECONOMIC GROWTH:SUCCESS WITHOUT SECURITYSUCCESS WITHOUT SECURITY Industry and Military ComplexIndustry and Military ComplexDefence industry in Israel have a vitalDefence industry in Israel have a vitalshare in export related growth. By force ofshare in export related growth. By force ofenemies around the country the defenceenemies around the country the defencesector is very large. Israel is the fifth biggestsector is very large. Israel is the fifth biggestdefence sector exporter in the world . It s thedefence sector exporter in the world . It s themost modernized sector in the country. Inmost modernized sector in the country. In80’s 65% of governmental research and80’s 65% of governmental research anddevelopment expenditures was aboutdevelopment expenditures was aboutdefence industry.defence industry.High technology used in defence sectorHigh technology used in defence sectorhas also effected the other sectors tohas also effected the other sectors todevelopdevelop
TABLES GDP and Export GrowthIsrael had economic growth when itsexports are increasing, as exports aredeclined growth has also decrased.These informations can let us to say,the growth is export oriented
According to PurchaisingPower Parity, NationalIncome per Person In the next graph, sixteeen countriesare a sample of devoloped anddeveloping countries.Israel with 23.415dollar level is just between thedeveloped and developing countries.
According to PurchaisingPower Parity, National Incomeper Person05000100001500020000250003000035000400004500050000egypt czech r. ISRAEL uk usaExport Growth3-B Sütun 205000100001500020000250003000035000400004500050000egypt4317turkey czechrp.ISRAEL23415spain japan usa41319
Labor Force Efficiency As we will see in the graph, after thecirisis in 2001, the level in 2000 couldnot be catched up.. However, thegrowth in labor force efficiency hasbeen increasing year by year
Labor Force Efficiency0123456789102000 2001 2002 2003 2004labor productivity,annual percentagechange
Inflation Israel suffered from high inflation levelespecially in 80’s. Although thegovernments have tried to decrase itdid not work efficiently.However ,nowadays Israel has minus inflationwhich is very hard to find it around theworld.
Research and DevelopmentPercentage in National Income Israel is the number one country withresearch and development shareaccording to the national income.Coordination between the defencesector and civilian technology has avery important role on this event.
Research and DevelopmentPercentage in National Income Annul inflation,1986-2006 (end-of period) Annulinflation,1986-2006 (end-of period) Annulinflation,1986-2006 (end-of period)1,11,31,92,12,2 2,22,5 2,6 2,6 2,63,23,544,90123456irelandc.republicuksingaporefrancetotalOECDdenmarkgermanyusakoreajapanfinlandswedenisrael
Global Competition Technological readiness , scientificresearch institutions’ quality andavailability of scientists in Israel is veryhigh degrees in the world.
Global CompetitionIsrael is the 1 st by availabiity ofsicentists and engineers 1. Israel 2. Japan 3. Finland 4. India 5. France
Global CompetitionIsrael is 4th by quality of scientific institutions 1. Switzerland 2. USA 3. UK 4. Israel 5. Japan
Global CompetitionIsrael is the 3th by technological readiness 1. Finland 2. Japan 3. Israel 4. Germany 5. USA
Sectorial Export 48% of exports are high technologyindustry products. However, lowtechnology products are only 7% ofaggregate exports. This simply tells thatIsrael is an important high technologyproduct exporter.
SOURCES USEDDURING THE STUDY www.wikipedia.org Dış Ekonomik İlişkiler Kurulu (www.deik.org.tr) DTM Ihracatı Geliştirme Etüd Merkezi (www.dtm.gov.tr) İzmir Ticaret Odası (www.izto.org.tr) Roger Owen, Şevket Pamuk 20. Yuzyılda Ortadogu EkonomileriTarihi Linda Sharaby, Israel’s Economic Growth: Success WithoutSecurity Central Bureau of Statistics ( www.cbs.il) www.imf.org www.gov.il www.oecd.org