The Research On The New Economic Policy Of Begin Government

On 17 May 1977,the Likud,headed by Begin,won the elections,becoming the biggest party in the political stage of Israel.After Likud came into power,faced with harsh economic situation of the later for the Labor Party,soon laid out the New Economic Policy to cushion the crisis.With the implementing of the New Economic Policy,the neoliberal economy became the guiding ideology to recover the economy of the country.The main principles of Begin government’s New Economic Policy were selling state-owned enterprises,canceling foreign exchange control and carrying out foreign exchange management liberalization,which became more obvious in liberal tendencies.After going through four finance ministers,Israeli economy did not recover but deteriorate.Its inflation was out of control and kept going high.With Begin’s being out of office after the Lebanon War,the New Economic Policy came to its end.Although Begin’s promise of controlling inflation and redeveloping economy did not come true,the New Economic Policy still brought a new look to Israel.Israel started peace negotiation with Egypt,and signed the Camp David Accords and the Treaty of Peace with Egypt,the Middle East peace process had started.And subsequent Israel governments adopted the freedom-oriented reform.Since 1984,with the unity of Likud and Labor Party and American support,the Israeli economy had lifted it from the economic crisis of hyperinflation in the late 1980s,and regained the recovery of economic vitality.