The Contradictions of Economics Reform in Israel

The liberalization of Israel's political economy is far-reaching and potentially fragile. Binyamin Netanyahu's aspirations to emulate the American model of political economy patently contradict his drive to defend "Greater Israel" and preserve the primordial foundations of Israel's individual and collective identity. Liberals on the left of Israel's political spectrum are caught in a bind of their own. Repulsed by Netanyahu's brand of Zionism, let alone that of the religiously orthodox nationalists, their aspirations for a liberalized economy and a more pluralistic and less intrusive state are compromised by traditional Zionist convictions which require a substantial role for the state in administering collective tasks.