What can Israel do to improve its economy and the lives of inhabitants in the face of a long and costly conflict?

Inspecting Israel’s economic history to formulate two data-driven policies for a resilient and optimistic future.

1 Abstract

After a review of literature surrounding the immigration, conflict, and foreign aid that has shaped Israel's economy since before its founding in 1948, this paper presents two policy recommendations supported by analysis of data from the WITS, OECD, and OECD's PISA. First, to open trade corridors with bordering Arab nations, more immanently between Gaza and the West Bank. Second, to target funding and increase public expenditure in schools to reduce inequality. These recommendations aim to make Israel's economy more resilient, mitigate conflict, better integrate with its neighbors, and look to an optimistic future in the face of the ongoing war in Gaza.

Key Words: Israel, Palestine, Economy, Policy, Education, Inequality, Trade

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