Israel's Economy
The Kibbutz Experiment
How kibbutzim began as collective farming communities sharing all property, and why most privatised after the 1980s crisis.
Kibbutzim were collective communities.
Origins
The first kibbutz, Degania, was founded in 1910.
How they worked
- Shared property and income.
- Communal dining and childcare.
- Members worked in farming and later industry.
Role
Kibbutzim played a big role in agriculture and early Israeli society.
Crisis
After the 1985 inflation and debt crisis, many kibbutzim faced financial trouble.
Privatisation
Most kibbutzim privatised: members now earn differential wages and own homes.
Economics
Equal sharing weakened incentives, and talented members left.
The new salary
A kibbutz member who once received the same budget as everyone now earns a salary based on her job.
Thinking kibbutzim still share everything
Most have privatised.
Key takeaways
- Kibbutzim shared property and income.
- Degania was founded in 1910.
- The 1980s crisis hurt them.
- Most privatised.
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