From Socialist Hegemony to Right-Wing Populism: Israel’s Political Metamorphosis

This article is intended for readers less familiar with Israel’s political history who seek to understand its transformation from socialist dominance to right-wing populism. Rather than providing a comprehensive historical review, it offers an overview of key political shifts that have reshaped Israel’s governance, economy, and democracy. From the decline of Mapai’s dominance in 1977 to the rise of Likud and the increasing influence of nationalist and religious factions, this transformation has culminated in proposed judicial reforms that are currently reshaping Israel’s democratic framework.

For nearly three decades after Israel’s establishment in 1948, Mapai, later part of the Alignment (Ma’arach), exercised political and economic dominance. Rooted in Labor Zionism, its leadership under David Ben-Gurion built the new state on the principles of centralized governance, state-led economic development, and a strong welfare system. Given the challenges of state-building—mass immigration, security threats, and economic hardship—this highly centralized model was arguably the most practical and effective for ensuring national stability in the early years. The Histadrut, Israel’s powerful labor federation, controlled large sectors of the economy, providing employment, social benefits, and public services. However, while this system fostered economic stability, it also concentrated power within a predominantly Ashkenazi elite, limiting political competition and alternative movements.

Among those most affected by this centralization were Jews from North Africa and the Middle East, often collectively referred to as Mizrahi Jews. This group included communities primarily from Iraq, Morocco, Tunisia, Libya, and Yemen, who arrived in large numbers in the 1950s and 1960s. Many faced significant economic hardships, housing shortages, and social discrimination, particularly in peripheral development towns and transit camps (Ma’abarot). The Labor-led establishment often overlooked these grievances, contributing to growing resentment that would later influence Israel’s political realignment.

The Six-Day War (1967) shifted Israel’s political discourse toward security and territorial expansion. The newly occupied territories created ideological divisions: while the Labor establishment took a cautious stance on long-term control, the right-wing camp saw settlement expansion as a national and religious priority. The Yom Kippur War (1973), which exposed military failures and economic instability, further eroded public trust in the Labor government, particularly among Mizrahi and Sephardi voters, who increasingly felt disconnected from the ruling elite.

In 1977, Menachem Begin’s Likud won a historic victory, marking the “Mahapach” (upheaval) that ended three decades of Labor dominance. Likud reduced state control over the economy, privatized industries, and weakened Histadrut influence, shifting Israel toward a market-driven economic model. At the same time, Likud strengthened its ties with religious and nationalist factions, including the settler movement, integrating them into state policy. Unlike the Labor elite, which had often dismissed Mizrahi concerns, Begin’s Likud embraced Mizrahi and Sephardi voters, increasing their political representation.

However, while Likud capitalized on Mizrahi discontent, it did not fully address their economic and social concerns. In response, the Shas party emerged in the 1980s, representing Mizrahi and Sephardi Jews with a blend of religious conservatism and socioeconomic demands. Founded by Rabbi Ovadia Yosef, Shas challenged both Labor and Likud, advocating for expanded welfare policies, funding for religious institutions, and greater political inclusion. Over time, Shas became a key coalition partner in right-wing governments, further reinforcing Israel’s shift toward religious and nationalist politics.

By the 2000s, Israel’s political landscape had shifted further to the right. The collapse of the Oslo Accords, a key peace agreement between Israel and the Palestinian Authority, led to the breakdown of negotiations and a resurgence of violence. The assassination of Prime Minister Yitzhak Rabin in 1995, carried out by a right-wing extremist opposed to the peace process, deeply shocked the nation and fueled political polarization. This, combined with the outbreak of the Second Intifada (2000–2005)—a period of intense Palestinian uprising—intensified security concerns and disillusioned many with the peace process. These events weakened the center-left, creating an opening for Likud and its ultra-Orthodox allies to consolidate their influence. The alliance between nationalist, religious, and populist factions played a crucial role in Benjamin Netanyahu’s return to power in 2009.

Netanyahu’s tenure has been defined by economic liberalization, a strong security-oriented approach, and growing political polarization. His coalitions, which have included ultra-Orthodox and nationalist factions, have promoted policies that increase executive influence over the judiciary and reduce judicial oversight. The judicial reform (or revolution), initiated in 2023 and ongoing at the time of writing this article, represents one of the most significant constitutional shifts in Israel’s history. The proposed reforms aim to limit the Supreme Court’s power to strike down government decisions, increase political influence over judicial appointments, and reduce legal oversight of executive actions, potentially altering Israel’s system of checks and balances.

These proposals have sparked widespread opposition, with mass protests, legal challenges, and criticism from former security officials, business leaders, and international observers. Hundreds of thousands of Israelis have taken to the streets in what has become one of the largest protest movements in the country’s history, arguing that the reforms threaten judicial independence and democratic principles. Opposition parties, civil society organizations, and former government officials have warned that these changes could weaken Israel’s democratic framework and centralize executive power. Despite significant public resistance and divisions within the governing coalition, the government has continued to advance the reforms, prompting intense domestic and international debate.

Israel has undergone a profound political transformation—from the socialist, state-driven ethos of Mapai to the nationalist, neoliberal, and increasingly polarized governance of the Likud-led right. While the 1977 transition reflected legitimate demands for political and economic inclusion, the current trajectory raises critical questions about the future of Israel’s democracy. Whether the country can navigate these challenges while maintaining its democratic character remains one of the most pressing issues of its time.

*For further reading:

(1) The Blogs: A Grave Reminder: The Crisis of Justice in Netanyahu’s Political Maneuvering | Haim V. Levy | The Times of Israel

(2) The Blogs: Leadership Legacies: Netanyahu’s Governance Compared with Ben-Gurion’s Core Principles | Haim V. Levy | The Times of Israel