Israel: Self-help or Client State?

Only one economy in the Middle East can really be considered as developed—Israel. Living standards are high, and compare favourably with European levels, as by 1975 per capita gross national product amounted to $4100, well above the United Kingdom figure of $3735.1 The country boasts a highly diversified economic structure and produces not only goods for immediate consumption, but also so-called ‘higher order’ goods in the production process, such as components used in local assembly industries, and even machinery. Yet, although most of the new economic activities have only been established for a short time, and in other countries would be regarded as infant in nature, Israeli producers of both industrial and agricultural commodities have managed to keep costs down, and can compete successfully in world markets.