Political climate
Israel is a parliamentary democracy. It has no written constitution, but does have a strong legal foundation based on English common law, regulations from the Palestine Mandate period (when the region was under British administration), and in some personal cases, religious law. The Israeli Government and its powers are regulated by the 1948 Declaration of Establishment, the Basic Laws of the Parliament, and the Israeli Citizenship Law. The head of state is the president, whose role is largely ceremonial.
Israel claims the disputed city of Jerusalem as its capital; parliament and many government offices are located in West Jerusalem, but most countries’ embassies are in Tel Aviv.
In Israel, voting rights begins at 18 years of age. Elections are held every four years, or earlier if the situation requires. The political system is subject to some mild uncertainty, with elections having been held regularly in recent years. Coalition Governments are common, as it is uncommon for a single party to win an outright majority of seats and, even then, the winning party usually seeks an encompassing, consensual position by inviting minor parties into the government. The political process was changed in the early 1990s to include the direct election of a prime minister by the population; the prime minister, who must be a member of the unicameral 120-member Parliament (Knesset), is elected by the largest single number of votes, and then forms a government by gaining majority support in the Knesset. This system was designed to create greater certainty and stability in the electoral process.
It is important to stress, however, that the political machinations usually have little impact on Israeli business. There is broad support within the mainstream parties for an open, liberal economy, and elections and changes of government rarely have a major impact on business and trade. In fact, the trend in the past decade or so under several different governments has been towards greater economic reform and openness.
Civil unrest is common at present but often localised. Israel’s occupation of the West Bank and Gaza (Israel withdrew from the Gaza Strip in 2006) has led to continual confrontations with the Palestinian populations in these areas and, more recently, with Israeli Arabs as well. Israeli settlers in these areas have also engaged in violence in the past. There are occasional terrorist attacks within Israel proper, which have targeted civilians. Since September 2000, there has been a renewed Palestinian uprising ('the Al-Aqsa Intifadah') that has claimed several hundred lives on all sides, and that has seen a rise in the incidence of violence.
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