Israel

Israel operates under a parliamentary system with proportional representation and no minimum threshold that matters — parties with as few as 3.25% of the vote enter the Knesset, producing fragmented legislatures where coalition governments depend on small parties that extract policy concessions disproportionate to their electoral mandate. Ultra-Orthodox parties have held coalition-making power in most governments despite representing roughly 13% of the population, securing exemptions from military service and funding for religious education. The economy is driven by a technology sector that produces more NASDAQ-listed companies per capita than any country except the United States, fuelled by military R&D spillover (Unit 8200 alumni dominate cybersecurity startups) and immigration-driven human capital. The ongoing occupation of Palestinian territories creates a governance duality: democratic institutions operate within Israel's recognised borders while military administration governs the West Bank, producing two legal systems applied based on nationality rather than geography.