Part 361

Capital: Jerusalem note: Israel proclaimed Jerusalem as its capital in 1950, but the US, like nearly all other countries, maintains its Embassy in Tel Aviv

Administrative divisions: 6 districts (mehozot, singular - mehoz); Central, Haifa, Jerusalem, Northern, Southern, Tel Aviv

Independence: 14 May 1948 (from League of Nations mandate under British administration)

National holiday: Independence Day, 14 May 1948 (Israel declared independence on 14 May 1948, but the Jewish calendar is lunar and the holiday may occur in April or May)

Constitution: no formal constitution; some of the functions of a constitution are filled by the Declaration of Establishment (1948), the basic laws of the parliament (Knesset), and the Israeli citizenship law

Legal system: mixture of English common law, British Mandate regulations, and, in personal matters, Jewish, Christian, and Muslim legal systems; in December 1985, Israel informed the UN Secretariat that it would no longer accept compulsory ICJ jurisdiction

Suffrage: 18 years of age; universal

Executive branch: chief of state: President Ezer WEIZMAN (since 13 May 1993) was elected for a five-year term by the Knesset; election last held 24 March 1993 (next to be held NA March 1998); results - Ezer WEIZMAN elected by Knesset head of government: Prime Minister Shimon PERES (since 15 November 1995) was appointed by the president following the assassination of Prime Minister Yitzhak RABIN cabinet: Cabinet was selected from and approved by the Knesset

Legislative branch: unicameral parliament (Knesset): elections last held NA June 1992 (next to be held 29 May 1996); results - percent of vote by party NA; seats - (120 total) Labor 44, Likud 32, MERETZ 12, Tzomet 8, National Religious Party 6, SHAS 6, United Torah Jewry 4, Democratic Front for Peace and Equality (Hadash) 3, Moledet 3, Arab Democratic Party 2; note - the distribution of seats as of January 1996 is as follows - Labor Party 45, Likud bloc 33, MERETZ 12, National Religious Party 6, SHAS 6, Tzomet 5, United Torah Jewry 4, Democratic Front for Peace and Equality (Hadash) 3, Moledet 2, Arab Democratic Party 2, Yi'ud 1 (in coalition), Right of Israel 1

Judicial branch: Supreme Court

Political parties and leaders: members of the government: Labor Party, Prime Minister Shimon PERES; MERETZ, Minister of Environment Yossi SARID; Yi'ud, Gonen SEGEV not in coalition but voting with the government: Democratic Front for Peace and Equality (Hadash), Hashim MAHAMID; Arab Democratic Party, Abd al Wahab DARAWSHAH opposition parties: Likud Party, Binyamin NETANYAHU; Tzomet, Rafael EITAN; National Religious Party, Zevulun HAMMER; United Torah Jewry, Avraham SHAPIRA; Moledet, Rehavam ZEEVI; Peace Guard (independent), Shaul GUTMAN; SHAS, Arieh DERI; Right of Israel, leader NA note: Israel currently has a coalition government comprising three parties that hold 58 seats of the Knesset's 120 seats

Other political or pressure groups: Gush Emunim, Israeli nationalists advocating Jewish settlement on the West Bank and Gaza Strip; Peace Now supports territorial concessions in the West Bank and is critical of government's Lebanon policy

International organization participation: AG (observer), BSEC (observer), CCC, CE (observer), CERN (observer), EBRD, ECE, FAO, IADB, IAEA, IBRD, ICAO, ICC, ICFTU, IDA, IFAD, IFC, ILO, IMF, IMO, Intelsat, Interpol, IOC, IOM, ISO, ITU, OAS (observer), OSCE (partner), PCA, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UPU, WHO, WIPO, WMO, WToO, WTrO

Diplomatic representation in US: chief of mission: Ambassador Itamar RABINOVICH chancery: 3514 International Drive NW, Washington, DC 20008 telephone: (202) 364-5500 FAX: (202) 364-5610 consulate(s) general: Atlanta, Boston, Chicago, Houston, Los Angeles, Miami, New York, Philadelphia, and San Francisco

US diplomatic representation: chief of mission: Ambassador Martin S. INDYK embassy: 71 Hayarkon Street, Tel Aviv mailing address: PSC 98, Box 100, APO AE 09830 telephone: (3) 519-7575 FAX: (3) 517-3227 consulate(s) general: Jerusalem

Flag: white with a blue hexagram (six-pointed linear star) known as the Magen David (Shield of David) centered between two equal horizontal blue bands near the top and bottom edges of the flag

Economy -------

Economic overview: Israel has a market economy with substantial government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Industry employs about 22% of Israeli workers, agriculture, forestry, and fishing 3.5%, and services the rest. Israel is largely self-sufficient in food production except for grains. Diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are leading exports. Israel usually posts current account deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, which is its major source of economic and military aid. To earn needed foreign exchange, Israel has been targeting high-technology niches in international markets, such as medical scanning equipment. The influx of Jewish immigrants from the former USSR, which topped 525,000 during the period 1990-95, increased unemployment, intensified housing problems, and strained the government budget. At the same time, the immigrants bring to the economy valuable scientific and professional expertise.

GDP: purchasing power parity - $80.1 billion (1995 est.)

GDP real growth rate: 7.1% (1995 est.)

GDP per capita: $15,500 (1995 est.)

GDP composition by sector: agriculture: 3.5% industry: 22% services: 74.5%

Inflation rate (consumer prices): 10.1% (1995)

Labor force: 1.9 million (1992) by occupation: public services 29.3%, industry 22.1%, commerce 13.9%, finance and business 10.4%, personal and other services 7.4%, construction 6.5%, transport, storage, and communications 6.3%, agriculture, forestry, and fishing 3.5%, other 0.6% (1992)

Unemployment rate: 6.3% (1995 est.)

Budget: revenues: $41 billion expenditures: $53 billion, including capital expenditures of $NA (1996)

Industries: food processing, diamond cutting and polishing, textiles and apparel, chemicals, metal products, military equipment, transport equipment, electrical equipment, potash mining, high-technology electronics, tourism

Industrial production growth rate: 10.3% (1995 est.)