The situation of Israel is in many ways unique. No other country has absorbed so many immigrants relative to its size. Few other countries have been able to grow so fast, modernize so extensively and maintain a free society and a republican democracy. It has achieved this despite the active hostility of many of its neighbours and whilst undertaking enormous economic, military, political and social commitments. However, its economy has been undergoing a crisis phase. Its rate of economic growth has slowed drastically and there are now serious doubts about whether it can continue to finance such extensive commitments.
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