Publications on Economics and National Security

It is imperative that a multiyear budget for the Ministry of Defense and the IDF be prepared for the years 2021-2025, once the multiyear Gideon plan ends. This plan will also be the key for jumpstarting the procurement processes required within the framework of the new US aid program (2019-2028), which is a key to future IDF buildup. Defining a formula that links budgets to GDP or GDP per capita could be one of the most important elements in shaping the defense budgets in shekels for the next multiyear plan.

On July 6, 2018, the first tariffs imposed by the United States and China on one another following the American initiative to reduce its trade deficit with China took effect. Prior to that, the US imposed tariffs on steel and aluminum from the European Union, Mexico, and Canada, which responded with their own tariffs. The change in the global trade regime is in line with Trump’s guiding principle: America First. However, the intensifying trade struggles present a more difficult challenge to the US efforts to achieve a broad political...

Two developments of recent weeks threaten to reduce significantly the possibility of exporting Israel’s natural gas. One is Erdogan’s victory in the Turkish elections and the expansion of his powers, which reduce and perhaps eliminate the chances of an underwater gas pipeline from Israel to Turkey. The second is (unverified) initial reports regarding new gas reserves off the coast of Egypt*, which threaten the existing deal to export gas from Israel to Egypt, as well as Israel’s plan to make use of Egypt’s liquefaction...

A new budget year (2019) begins in the United States in October 2018, and with it the multi-year aid program for Israel for the years 2019-2028, amounting to $38 billion. Of this, $33 billion comes from the State Department foreign aid program, and $5 billion from the Defense Department, to fund joint projects on missile defense (this was not included in the previous multi-year aid program). However, the terms of the new aid program are more stringent: Israel agrees that the aid is not intended to purchase fuels, and its ability to...

Economic trade between Israel and the EU countries has flourished over the past decade. Despite political disagreements, Europe is still Israel’s largest and most important market, both for exports and for imports. This dominance is particularly reflected in the Israeli food market, in Israel’s import of vehicles, in the pharmaceuticals market, and in technological and scientific cooperation. The immigration crisis and the terrorist threats in Europe have spurred a significant increase in defense exports from Israel to Europe, and in...

Various motives have led the EU to strengthen its relations with the Gulf Cooperation Council (GCC), the regional bloc that includes Saudi Arabia, the United Arab Emirates (UAE), Bahrain, Qatar, Oman, and Kuwait. To this end, the EU has over the years even presented a long list of diplomatic initiatives and policy measures. However, despite the potential for stronger relations, achievements have been limited and many of the initiatives never bore fruit. Consequently, notwithstanding the strategic importance of the Gulf, the European...

The European Union in Turbulent Times: Challenges, Trends, and Signifcance for Israel maps, reviews, and analyzes the urgent issues on the European agenda. The essays in this collection review the political, social, and economic consequences of these issues and assess their significance, both for Europe and for Israel.

Turkey is one of the most technologically, economically, and institutionally developed countries in the Middle East. At the same time, it is one of the countries most exposed to cyber threats. The Turkish government has taken steps in recent years to narrow the existing gaps in defense against cyber threats, but its efforts in this area have not yet produced the desired results. This article analyzes Turkey’s national cyber defense deployment and cites a number of structural challenges resulting from long-standing Turkish policy. The...

According to the state budget for 2019, approved by the Knesset on March 15, 2018, the Defense Ministry budget will stand at NIS 72.9 billion gross and NIS 55.3 billion net (11.5 percent of the state budget). The Defense Ministry’s budget for 2019 represents the fourth year in the IDF’s five-year plan (the Gideon Plan for 2016-2020), during which it must start to formulate a new five-year plan. The budget includes the budget for the first year of the US multi-year aid package (2019-2028), which is less flexible than its predecessor....

In the course of 2017, the Institute for National Security Studies (INSS) conducted a research study to examine the situation in the Gaza Strip, with a focus on the prevailing political, economic, infrastructural, and security conditions, including their cumulative manifestations and their short term and long term implications. The aim of the project was to provide a knowledge base for reevaluation of Israeli policy toward the region and for an international reconstruction project. Underlying this aim is the understanding that the...

With a link between Gaza’s economic situation and the repeated armed clashes between Israel and Hamas, a sustainable solution to the conflict must address this economic dimension. The solution, which needs to be facilitated by international support, should be at the top of the Israeli government’s agenda before a new war erupts. This article describes briefly the key indicators of the Gaza economy and possible future developments.

This article examines the implications of Gaza’s water crisis for public health. The Strip’s water problems are inseparable from its energy woes; this linkage is addressed in greater detail elsewhere in this collection. The article first reviews the general factors that have worsened Gaza’s water crisis recently; this is followed by an overview of the current domestic water supply and state of water sanitation in Gaza. It then describes water-related risks to public health, particularly chemical and biological contamination, and...