How the occupation dictates Israeli economic policy


March 21, 2018
Arthur Goodman
The longer military rule over millions of Palestinians persists, the less Israel will invest in education, health, and welfare. 

Israeli tank at Gaza border

Shlomo Swirski, in +972, writes, “The hasty and rather under-reported deliberations on Israel’s 2019 state budget, approved by the Knesset on Thursday, present us with an opportunity to raise an important question: should the country stick to the policy of reducing public expenditures, especially social expenditures, relative to the rate of economic growth?”

In the case of Israel, such stability is sorely needed, given the high political and military instability, represented most clearly in Palestinian resistance to the ongoing Israeli occupation. That instability is one of the main factors pushing successive Israeli administrations to adopt a highly cautious and conservative fiscal policy. Put differently, Israel is willing to continue with the occupation even at the price of very low social expenditures.” (read more)

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