As it enters the 1990's Israel faces crucial political, economic and social challenges. Its parliamentary system is proving increasingly ineffective, prompting demands for electoral and constitutional reform; its economy is beset by stagnation, inflation and unemployment and its economic difficulties feed and exacerbate exisiting social and political tensions. This book considers the impact of these problems and their implication for the future direction of Israeli politics and society. Different chapters examine the social and ideological divisions that beset Israel, the roots of the country's economic problems, the dynamics of the Israeli political system and recent developments within political parties.