Israel certainly faces many challenges, but the most threatening is from within. Citing a study of 34 members of the Organization for Economic Cooperation for Economic Development (ECED) the publication Jewish World (http://sdjewishworld.wordpress.com/...) notes that the level of poverty in Israel today is greater than in Mexico. What is more troubling is a study of ECED nations that found After Turkey and Israel only Mexico have more young people between the age of 15 and 29 years of age who are not working or studying. This waste of human potential is shameful but is a consequence of the inequality and corruption that plague these nations. For Israel the situation is a dire as in Mexico where conditions are similar with crime syndicates battling for control of drug and prostitution turf and the markets for guns from America while the control of the economy is not so concentrated as in Israel, the political situation is paralyzed by the constant feeling of violence and uncertainty, as in Israel (see: http://www.dailykos.com/...).
The only way out of this vector of social stagnation for Israelis is to vote out of office all the members of the present parties and vote in new people who are not influenced by the money and threats of the oligarchs and crime families. This is a large order, certainly given America's election laws (the most recent Supreme Court decision allows unlimited contributions), would make such an effort near impossible, but an organized campaign for clean elections where contributions would be an issue could make a difference in a road to an open economy and greater opportunity.