The first transition of power occurred in 1977 when Likud took control of
the government from Labor; the second took place in 1992 when Labor re-
gained political domination. Several factors contributed to the second tran-
sition, including the social realignment of certain groups, economic condi-
tions, a change in society's value systems, and external events--including
three wars. The quality of leadership and effective campaign strategies were
also conducive to political change.

Likud's victory over the Labor alignment in the 1977 election marked the
beginning of a new era. At first, many observers believed Begin's victory
was an aberration in the country's politics caused by the intrusion of the
DMC, which had been formed a few months before the Ninth Knesset elec-
tion from a diverse coalition of political figures who were disenchanted
with both Labor and Likud. Many former Labor supporters voted for the
DMC or joined its leadership. Thus, it was argued that if the DMC were
co-opted into Begin's coalition cabinet or if it disintegrated after outliving
its usefulness, the alignment would again capture the votes of those who
had defected to the DMC in protest over thirty years of entrenched Labor
rule.

During the 1977 campaign, Likud blamed Labor for the national eco-
nomic plight. Its leaders argued that inflation was the number-one enemy of
the people and promised to reduce it from 30 percent to 15 percent within
a year. Within five years, Likud said, it would raise the GNP at least 40 per-
cent by encouraging investment, reducing the adverse trade balance, ending
bureaucratic interference, and abolishing currency controls. Both state and

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