The Herut movement’s socio-economic philosophy and its implementation after the 1977 political upheaval

Abstract

ABSTRACTThis article examines the Herut movement’s social and economic alternative to the ruling Mapai party, characterised by a liberal-individualistic outlook and a general vision of converting the centralised economy to an economy in which private initiative and competition dominate. On 17 May 1977 the Herut movement became the ruling party through its Likud electoral bloc, with economic reforms quickly following. These reforms encountered difficulties: the declared ‘economic turnabout’ harmed the strength of the economy. Inflation rates reaching several hundred per cent, frequent devaluations, and a loss of faith in the Israeli currency threatened stability. Nevertheless, from the social perspective, Herut did indeed succeed in bettering the conditions of its loyal voters in the development towns and distressed neighbourhoods.