Death dealers: Dynamics of Israel’s permanent war economy

Abstract

This study critically explores Israel’s permanent war economy, examining its core principles and strategic impacts. It analyzes how the war economy is integral to Israel’s settler-colonial structures and functions, fulfilling various ideological, geopolitical, and financial goals through a sustained conflict footing, rather than being a transient occurrence. To this end, the study identifies and analyzes four key dynamics underpinning Israel’s war economy: First, acute societal militarism serves as an economic growth engine, nurturing skilled military capital and advanced technologies that feed the war economy system. Second, the role of American patronage is examined as a key enabler of the Israeli war economy. In the absence of a traditional colonial metropole, the United States functions as an imperial sponsor, providing extensive military aid, technological transfers, financial assistance, and diplomatic backing–without which Israel’s military posture would be inconceivable. Third, the article investigates Israel’s exploitation of the occupied Palestinian territories as a laboratory for testing, optimizing and marketing military systems’ performance to international clients. Fourth, examines how Israel’s arms export multiplies revenues for the Israeli war economy while also providing diplomatic leverage to advance Israel’s geopolitical agendas and foreign policy objectives.