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Israel Location : Middle East, bordering the Mediterranean Sea, between Egypt and Lebanon Capital City : Jerusalem; note - Israel proclaimed Jerusalem as its capital in 1950, but the US, like nearly all other countries, maintains its Embassy in Tel Aviv Curreny : new Israeli shekel (ILS) Languages Spoken : Hebrew (official), Arabic used officially for Arab minority, English most commonly used foreign language Climate : temperate; hot and dry in southern and eastern desert areas National Holiday : Independence Day, 14 May (1948); note - Israel declared independence on 14 May 1948, but the Jewish calendar is lunar and the holiday may occur in April or May Background Information Following World War II, the British withdrew from their mandate of Palestine, and the UN partitioned the area into Arab and Jewish states, an arrangement rejected by the Arabs. Subsequently, the Israelis defeated the Arabs in a series of wars without ending the deep tensions between the two sides. The territories occupied by Israel since the 1967 war are not included in the Israel country profile, unless otherwise noted. On 25 April 1982, Israel withdrew from the Sinai pursuant to the 1979 Israel-Egypt Peace Treaty. Outstanding territorial and other disputes with Jordan were resolved in the 26 October 1994 Israel-Jordan Treaty of Peace. In keeping with the framework established at the Madrid Conference in October 1991, bilateral negotiations were conducted between Israel and Palestinian representatives (from the Israeli-occupied West Bank and Gaza Strip) and Syria, to achieve a permanent settlement; however, these efforts were derailed/postponed by the outbreak of Israeli-Palestinian violence in September 2000. On 25 May 2000, Israel withdrew unilaterally from southern Lebanon, which it had occupied since 1982. Geographical Note there are 231 Israeli settlements and civilian land use sites in the West Bank, 42 in the Israeli-occupied Golan Heights, 25 in the Gaza Strip, and 29 in East Jerusalem (August 2001 est.); Sea of Galilee is an important freshwater source Economy Israel has a technologically advanced market economy with substantial government participation. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel is largely self-sufficient in food production except for grains. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable current account deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, which is its major source of economic and military aid. The influx of Jewish immigrants from the former USSR during the period 1989-99 coupled with the opening of new markets at the end of the Cold War, energized Israel's economy, which grew rapidly in the early 1990s. But growth began moderating in 1996 when the government imposed tighter fiscal and monetary policies and the immigration bonus petered out. Growth was a strong 6.4% in 2000. But the outbreak of Palestinian unrest in late September 2000 and the declines in the high-technology and tourist sectors led to a 0.6% drop in GDP in 2001. Religions Jewish 80.1%, Muslim 14.6% (mostly Sunni Muslim), Christian 2.1%, other 3.2% (1996 est.) Ports : Ashdod, Ashqelon, Elat (Eilat), Hadera, Haifa, Tel Aviv-Yafo International Disputes - Risks to travellers : West Bank and Gaza Strip are Israeli-occupied with current status subject to the Israeli-Palestinian Interim Agreement - permanent status to be determined through further negotiation; Golan Heights is Israeli-occupied (Lebanon claims the Shab'a Farms area of Golan Heights)
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Israel
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