SUCCESS STORIES FROM POST WAR RISK MANAGEMENT: THE CASE OF ISRAEL

Abstract

As the history of Israel's economic development shows, the small area, the small population and the lack of rich natural resources are not an obstacle to economic growth, the development of science and technology and the improvement of living standards. It was facilitated by the entrepreneurial inclinations and qualities of the people, the support of foreign countries and the Diaspora, as well as a relatively stable and healthy political system. Despite the difficult conditions, the economy resisted the absorption of many immigrants, ensuring the security of the state, creating a modern economic infrastructure. In particular, in the early 1990s, the number of repatriates arriving in Israel increased sharply, mainly from the former Soviet Union (see Greater Alia). In total, more than 600,000 people arrived between 1990 and 1996. In the short run, the wave of immigration led to a sharp increase in the budget expenditures for their adoption, housing and maintenance at the initial stage, an increase in unemployment, which exceeded 10% of the able-bodied population. However, in the mid-1990s, it became clear that factors such as the emergence of a large number of skilled workers in the labor market and the sharp increase in domestic demand had a positive effect that transcended temporary difficulties.