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Notes Chapter One. The Israeli Polity 1. For example, for the elections to the 12th Knesset (1988), the Labor party granted representation on its Knesset list to seven constituencies : Tel Aviv, Haifa, Jerusalem, Moshavim, Kibbutzim, the northern region, and the southern region. The National Religious party (NRP) divided its list among its four organized factions. Even the small party of the Independent Liberals divided its five realistic places among different constituencies. 2. Jerusalem Post, December 27, 1979. 3. Ibid. March 21, 1975. 4. After resigning from premiership, Ben-Gurion settled in a surprise move in a Negev kibbutz (Sde Boker). He explained his withdrawal from office by the need to take a repose from political life. 5. The Lavon Affair that originated with the capture of an Israeliled intelligence network in Egypt (1954) caused a crisis in the Israeli defense establishment. It brought about the resignation of Defense Minister Lavon, who was charged with having the responsibility for the ill-advised order to activate an Israeli-led intelligence network to carry out acts of sabotage in Egypt, in an attempt to delay the evacuation of the British Army from that country. The establishment of a judicial inquiry commission did not clear up the issue and did not reveal the culprits. Ben-Gurion resigned when his call for renewed and thorough investigation of the affair was rejected by Mapai's leadership. A comprehensive analysis of the Lavon Affair may be found in Yanai (1969). 6. The number of Knesset mandates gained by the Labor party (Alignment) in the 1973 election to the 8th Knesset dropped from fifty-six in the 1969 elections to fifty-one. 7. Although the documentation relating to party finance is sparse, testimonies of those involved (e.g. Asher Yadlin, a former Labor party's leader) indicate that the "system" (i.e., diverting public funds for party 379 Notes Chapter One. The Israeli Polity 1. For example, for the elections to the 12th Knesset (1988), the Labor party granted representation on its Knesset list to seven constituencies : Tel Aviv, Haifa, Jerusalem, Moshavim, Kibbutzim, the northern region, and the southern region. The National Religious party (NRP) divided its list among its four organized factions. Even the small party of the Independent Liberals divided its five realistic places among different constituencies. 2. Jerusalem Post, December 27, 1979. 3. Ibid. March 21, 1975. 4. After resigning from premiership, Ben-Gurion settled in a surprise move in a Negev kibbutz (Sde Boker). He explained his withdrawal from office by the need to take a repose from political life. 5. The Lavon Affair that originated with the capture of an Israeliled intelligence network in Egypt (1954) caused a crisis in the Israeli defense establishment. It brought about the resignation of Defense Minister Lavon, who was charged with having the responsibility for the ill-advised order to activate an Israeli-led intelligence network to carry out acts of sabotage in Egypt, in an attempt to delay the evacuation of the British Army from that country. The establishment of a judicial inquiry commission did not clear up the issue and did not reveal the culprits. Ben-Gurion resigned when his call for renewed and thorough investigation of the affair was rejected by Mapai's leadership. A comprehensive analysis of the Lavon Affair may be found in Yanai (1969). 6. The number of Knesset mandates gained by the Labor party (Alignment) in the 1973 election to the 8th Knesset dropped from fifty-six in the 1969 elections to fifty-one. 7. Although the documentation relating to party finance is sparse, testimonies of those involved (e.g. Asher Yadlin, a former Labor party's leader) indicate that the "system" (i.e., diverting public funds for party 379 380 Land of Paradoxes needs} has long been in operation. A word of caution is in order: Yadlin's evidence should be taken with reservation, since he was convicted of fraud and held a grudge against his co-party-members (Labor) who allegedly deserted him despite his life-long devoted service. 8. Before the final agreements with the EEC were concluded in 1987, 70 percent of imports to Israel required licensing (Free Economy 1988). 9. Haaretz, July 21, 1989. 10. The government companies included, among others, the Israeli Electricity Company, the national airline El AI, Israel Chemicals, Israel Aviation Industry, the Dead Sea Works, Mekorot and Tahal (water resource planning and distribution). 11. The phenomenon, of course, is not unique to the Israeli economy. See Arian 1985: 31. 12. Haaretz...

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