The Economy of Israel

The Economy of Israel

The Economy of Israel

The Economy of Israel


The material for this book was mainly collected during my stay in Israel from the summer of 1948 to the spring of 1957, and I have had the opportunity of feeling Israel's economic pulse during my work as an editor, adviser to the Ministry of Finance and the Ministry of Trade and Industry, business consultant, member of various investigating government commissions, etc. During this period I advanced the arguments, presented in this book, in several hundred articles, broadcasts and lectures. Like others, who have written critically of official policy, I have found the Israeli authorities prepared to accord liberal freedom of expression to all shades of opinion--a rare occurrence amongst the states of the Middle East. Unfortunately this tolerance is not always extended to critics of Israeli life who express their views in a language other than Hebrew.

Part B of this book, completed in February 1958, was accepted by the University of London as a thesis in partial fulfilment of the requirements for the degree of Ph.D.(Econ.) London.

Mr. D. Core, Professor E. Devons, Mr. W. Koenigsberger, Mr. H. H. Liesner, Mr. R. Ney, Dr. O. Rabinowicz, Mr. B. S. Yamey and two senior Israeli civil servants, who wish to remain anonymous, read part or all of an earlier draft of this book; whilst I have benefited greatly from their comments and advice, they clearly bear no responsibility for the contents of the book. To Mr. B. Temkin fell the unenviable task of saving the reader from having to plough through a book full of linguistic monstrosities. Miss R. Johnson laboured on the preparation of the Index. Only I can be aware what debt I owe to my wife, for without her encouragement this book would never have been started and without her co-operation would never have been completed.

The publishers and editors of Commentary (New York), Daily Telegraph (London), Davar (Tel-Aviv), Economic Quarterly (Tel-Aviv), Haaretz (Tel-Aviv), Jerusalem Post (Jerusalem), Jewish Chronicle (London), Land Economics (Wisconsin), Mondes d'Orient (Paris), Spectator (London), are thanked for permitting the reproduction of material which first appeared in articles in which I tried out those ideas that form the theme of this book.


Jerusalem/London, February 1959.

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