Economic History Of Israel And Saudi Arabia Essay

3721 WordsMar 18, 201515 Pages
Eytan Davidovits Professor Hill Economics 191 20, March 2015 Economic History of Israel and Saudi Arabia Israel and Saudi Arabia are two countries in close proximity to each other, yet seem to be different in almost every metric. Saudi Arabia has a $744 Billion GDP, while Israel only $290 Billion (The World Bank), yet when breaking the GDP into GDP per capita, Saudi Arabia lags behind Israel at with a GDP per capita of $25, 961 whereas Israel is at $36,051. Israel and Saudi Arabia both became economic powerhouses of the Middle East, while remaining vastly different from each other in terms of their institutions. Their histories are unique, illustrating various ways a country can develop. Israel as a country is quite new, only 67 years old. Israel was founded in 1948 after being given to the Jewish people by Great Britain. Soon after Israel declared independence, all of the pseudo governmental Jewish institutions that were set up during the period under British rule, combined to form government departments. However, due to the state of its economy as well the more socialist leanings of the main political party, in the beginning there was strong government intervention. Following its founding, Israel’s economy was jumpstarted through a large amount of foreign aid as well as immigration. Immigration was a pillar of the founding of the Jewish state with Holocaust survivors coming in droves from Europe to Israel. After just three years of it’s founding, Israel doubled its
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