The New Social Economy in Israel: From the Kibbutz Ideal to Social-Tech Entrepreneurship

Abstract

Israel is not estranged to social economy. Indeed, the political economy of the state during the pre-establishment era and continuing for about three decades into statehood could be described as socialist-nationalist, or at least quasi-socialist. This was the case until the 1980s, when—following a major economic crisis—the Israeli economy took a turn towards neoliberalism which has subsequently deepened socio-economic inequality. More recently, however, a new form of social economy has emerged and is gathering momentum. The new social economy is characterised by three features which distinguish it from the social economy of Israel’s early days. First, it is based on individual entrepreneurship rather than on collective entrepreneurship. Second, in line with Israel’s development as a ‘start-up nation’ with a flourishing high-tech industry, the new social economy often takes the form of social-tech entrepreneurship. Third, it is focused on solving concrete social or environmental problems and is not linked to any overarching ideology.