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Israel Growth Strategy

Israel Science Foundation Project:

Israel Growth Strategy in the Post-Fordist Era: Ideology, Security and Economy ( Start: October 2019).

PI: Arie Krampf

The literature on Comparative Capitalism and Growth Models Theory explain variations between economic regimes on the basis of a broad array of economic factors. This literature has done a very good job in challenging the orthodox rational choice institutional theories, which predict convergence of economies towards a common model of “best practices”.

This research contributes to the literature on Comparative Capitalism, by arguing that variations of regimes and growth model are also affected by non-economic factors, which affects actors preferences—state and private actors—and therefore the emerging institutional, economic and political equilibria. The research focuses on a specific type of non-economic factors: policy makers perceptions of security threats.  

In this research, we focus on two proposed mechanisms which explain how security issues can affect the growth strategy in the post-Fordist era. The first mechanism is economic statecraft, understood as state interference in the domestic and international economy in order to improve its economic, military and political position. The second mechanism that link security threats perceptions and the growth strategy is the national discourses of legitimization.

The research aims to provide three key contributions. First, it will raise the question of Israel’s model of capitalism and growth strategy in the post-Fordist era. Second, the research will trace incremental changes which took place in Israel’s growth model during the 2000s, after the ascendance of the right-wing parties. Finally, the research will explore the security-economy linkage in the post-Fordist era. This line of research, we believe, is essential in order to explain the political undercurrents which have shaped the political-economic regime in Israel during recent years.