A very good example of the social economic system is the “Kibbutz” system in Israel which stands out as the most successful participatory system that has been tried to date. The Kibbutz is a collective community in Israel that had its inception in collective agriculture in 1909 prior to the formation of Israel. Currently, besides agriculture, the kibbutz system has spread to another form of economic activities predominantly high tech enterprises and industrial enterprises. Because Kibbutzim is derived from socialist philosophy it is in contrast to the ideals of capitalism. This is a voluntary collective community in which a single person does not own the kibbutz or any income derived from its activities.

Kibbutzim is a combination of socialism and Zionism, but in contemporary times there have been several changes in the way the Kibbutz system is organized and the way that business is run which has considerably changed the lifestyles of members of the Kibbutz. The industrial output from these alternate economies constitutes around 9% and agricultural output makes up around 40% of the country’s agricultural produce. Because of its precarious location, many Kibbutz’s are currently into high-tech military production, in fact, the Kibbutz Sasa generated around $850 million in annual revenue from its military industry

Kibbutzim started in the early 1900’s when Jewish pioneers employed by the Palestine Land Development Company pledged a collective responsibility for the working of the farm. These communes were established with Jewish National Funds under the sponsorship of the Zionist Organization. The initial Kibbutz had a certain number of members which made it seem like one large family. This family system eventually turned into self-sufficient villages which combined industry and agriculture. The main sources of labor for the Kibbutz were Jewish volunteers from several countries who worked mainly for the progression of the community and not for any personal gain or benefit.

These volunteers played a lead role in the expansion of the Jewish National Home and developed the primary model for the socialist society of the future. During the 1930 many volunteers and settlers were settled hastily to forestall attacks from the Arabs and obstacles by the administration. During that time that part of the world was ruled by the British and these settlements played a vital part in the defense of the Jewish Homeland and the establishment of the Zionist State. With the establishment of Israel and its recognition as an independent country by many countries and its membership of the UN, the Kibbutz expanded and flourished which gave further strength to the system

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