The Dual Stricture of the Israeli Economy: Is Technology the Solution?

Yaron Katz


The main concern of this research is the conflict between technology and society. It concentrates on the in the Israeli society, which is split in half: on the one hand it is in the information era, with highly advanced technology sector, while on the other hand it is still considered a developing country in terms of social development among large segments of society. The dual structure of the economy means that despite being known as the “Start-Up Nation”, Israel has one of the highest poverty rates with the gap between the rich and the poor is widening. The research argues that the problem is the dual structure: the nation is leading the world in technological development, but the services provided to its citizens are limited to the extent that poverty is high. The research further claims that the solution is technology: the technological advantage of Israel promoted its economy, which has grown more rapidly than most other advanced economies, after the government made a strategic decision to promote technology by providing financial support for in research and development. The rise in social and sectorial media allows the poorest parts of society—the Ultra-Orthodox and the Israeli-Arabs—to adopt technology and benefit from the leading role of the country in technological development and global competition. This means that while technology created the problem of dual structure—it also allows the segments of society that are considered poor and underdeveloped to use advanced media services within their communities.

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