Israel  

Israel ranks within the top 20 in terms of physical capital per worker. The rate of unemployment is just above the global average at 8%, while inflation rates, at just over 0.5% per year, are the second lowest worldwide. The domestic savings rate is slightly below the global median at 18%, but household expenditure, at a quarter of GDP, is moderate, indicating an adequate market for Israeli firms. The proportion of loans that have defaulted in Israel is very low at less than 2%, and the interest margin between borrowers and lenders is also low at 2.4 percentage points, placing Israel in the top quartile worldwide. With the third lowest concentration of raw material exports, Israel is not dependent on revenue from raw materials. Israel ranks in the top 30, globally, with regard to its exports as a capacity to import, and foreign direct investment in Israel is above the global average at 6% of GDP.

Only five formal procedures are required for start up businesses in Israel, very few barriers to entry when compared to most other countries. Internet infrastructure is sound, with bandwidth levels registering in the top third worldwide, the number of secure internet servers per person ranking the country in the top 20, and access to personal computers at 24 per 100 people, ranking the country above the global average. Both ICT and high-tech exports are well above the international median, ranking the country in the top 30, globally. Additionally, royalty receipts are high, placing the country in the top 20, worldwide.

Israelis have unrestricted political rights and very high levels of civil liberties. Israel has a large number of democratic institutions and organisations, and there are many constraints on the power of the executive, ranking the country in the top 10 worldwide on this variable. There are consistently high degrees of open political competition for the role of chief executive and elections are free and fair due to consistent regulation. Elections to the legislative branch are also characterised by free and fair competition, and the judiciary is independent from other branches of the Israeli government. The Israeli political system is in the top 20 most stable, globally, having not had a fundamental regime change since the country’s formation more than 50 years ago.

Israel’s primary enrolment rates are very high at 97% and there are also adequate numbers of teachers, with one educator for every 13 primary pupils, ranking the country in the top 20 globally. Secondary enrolment rates rank just above the international average at 92%, and tertiary enrolment is high, with 58% of the eligible population enrolled in higher education. Additionally, there is near gender equality, with 101 girls for every 100 boys in Israeli schools. Educational funding per student compares very well within the region and ranks in the top 25 worldwide. The level of training provided to the workforce is also comparatively high, with an average of 5.4 years of secondary schooling and 4.5 tertiary years, ranking the country in the top 15 countries on both variables.

Israel has the sixth highest proportion of doctors and nurses worldwide, and ranks in the top 20 with respect to the number of hospital beds per person. Health-adjusted life expectancy, at 71, is very high, and both the proportion of undernourished citizens and the infant mortality rate are low, at roughly 4% and four per 1,000 live births, respectively. There is universal access to improved sanitation facilities; however, only 58% of Israelis are happy with their quality of water, ranking the country in the bottom quintile worldwide.* Additionally only 21% of the population consider themselves to have significant health problems, but just four-fifths are happy with their general level of health, ranking the country below the global average.* Furthermore, nearly one-third claim to have experienced pain recently, while only 62% of Israelis feel well rested, ranking Israel in the bottom quintile for both variables.*

Israel faces significant security challenges related to refugees, internally displaced persons, and targeted violence towards communities with a history of discrimination. Israel also loses many of its most educated citizens to human flight and a significant number of Israelis were victims of civil violence in 2007. With respect to domestic crime, Israel performs moderately well as the homicide rate is below the global average at 36 deaths per one million people. Moreover, while one-sixth of Israelis reported having had property stolen in 2008, only 4% were assaulted, ranking the country near the global average.* However, a higher than average three-quarters feel safe walking the streets at night in Israel.*

In Israel, the rule of law is applied equally and universally, and the regulatory quality of commercial activity is also high, placing the country in the top 30 worldwide on both variables. Additionally, Israeli government procedure is among the 25 most efficient in the world. A comparatively high 79% of Israelis have confidence in the country’s military while 87% and 92% of Israeli citizens believe that there is widespread corruption within local business and local government, respectively.* Despite the free and fair electoral process, only 40% believe in the honesty of the electoral process, while just over half approve of the judicial system.*

Israelis have unconstrained freedom to practise their religious beliefs, speak freely without fear of government censorship, and travel freely within and out of their own country. However, less than threequarters of respondents are happy with the level of choice in their daily lives, which is an average number, internationally.* Israel also scores very poorly in variables relating to its level of tolerance as only 40% are tolerant of ethnic minorities, ranking Israel in the bottom 10 countries globally, while under half recommend their neighbourhood as a good place for immigrants to live, ranking Israel in the bottom 15.*

Less than a quarter of Israelis would trust their fellow citizens, a low proportion worldwide, but a high 88% feel they can rely on their family and friends.* When asked, 18% reported that they had volunteered in the previous month and over half reported donating to charity, ranking the country in the top 15 countries in the Index on this variable.* Furthermore, roughly 50% claimed to have helped a stranger, a high proportion internationally.* Israel is not very religious, with less than half of its citizens considering religion to be an important part of their daily lives, ranking the country 71st, internationally, and suggesting limited access to religious support networks.* Data concerning group membership and friend importance were unavailable.

* Data taken from the Gallup World Poll

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