Israel is a multi-party, parliamentary democracy with a President as head of state and a 120-member legislature (the Knesset) chosen by list-based proportional representation. The party leader able to command the most seats in the Knesset becomes Prime Minister and selects a Cabinet to exercise executive power. In 2006, the newly formed Kadima party gained 29 seats giving it a mandate to form the government in coalition with the Labour Party with 19 seats. In all, 12 parties have seats in the Knesset.

Kadima has the highest proportion of women candidates; 6 women among the top 30 candidates on their list were elected, while their coalition partners, Labour, had 5 women on their top 20 list. Women hold high-level positions in government. Arabs, including Druze, have seats in the Knesset; those elected are largely supported by the Arab community. The first Arab has been appointed as a permanent justice to the High Court of Justice since the establishment of the state.

The law prohibits discrimination on the basis of sex, marital status, race, political beliefs or age. Human rights groups report that these laws are not enforced and accuse the government of doing little to reduce discrimination against the country's Arab citizens.

The judiciary is independent and has ruled against the government in security cases. Legislation prohibits torture and abuse, but complaints have been filed alleging security forces use both.

The International Committee of the Red Cross reports that 498 minor Palestinians, as young as 13, are held in prison. Citizens aged 18 and older and Palestinians 16 and older are treated as adult prisoners. NGOs charge that minors are physically and mentally abused, denied access to their families and to legal representation during interrogation. Palestinians detained in Israel fall within the jurisdiction of military law. Wiretapping and opening of mail are allowed in security cases.

Religious court systems hear cases concerning marriage and divorce for the Jewish, Muslim, Christian and Druze communities. Jews in Israel can only marry in Orthodox Jewish services, and those marrying someone from another faith must marry abroad to gain recognition of the marriage. The Law of Return grants citizenship and residence rights to Jewish immigrants and their immediate family members. There is no freedom of movement between the occupied territories and Israel, where the construction of a security barrier has been condemned internationally. Israel reports that the barrier has led to a 45% reduction in the number of Israelis killed in Palestinian attacks.

21% of the population live below the poverty line, while unemployment is reported at 11%, and higher among the Arab population.

The public perception of corruption in the executive and legislative branches has increased as a result of some high-profile investigations.

Public access to government information is provided. Freedom of speech and of the press are guaranteed in law. Hate speech and incitement to violence are prohibited, and the Prevention of Terrorism Ordinance makes it illegal to express support for terrorist organisations as defined by the government. Israeli media covers the occupied territories except for combat zones where access is restricted. Journalists claim that limitations are placed on their on their freedom of movement within the occupied territories. Reports considered sensitive on national security grounds can be censored. Foreign journalists sign an agreement to submit sensitive articles and photographs to the military censor, but they do not usually comply, and news broadcasts abroad are reported without censorship.

Trafficking of women for prostitution is a problem.
The association representing homosexuals in Israel reports incidents of verbal and physical harassment witnessed by police who do not take action. Participants in a gay pride parade in Jerusalem were harassed.

Education is compulsory for ages 5 to 16 and free for citizens of Israel to age 18. 90% of students complete compulsory schooling. Students aged 14 to 18 who have not completed compulsory schooling are obliged to attend special classes. Secular Jews and Arabs have a separate school system from that for Orthodox Jews. Ultra-Orthodox Jewish schools are not part of the public system but receive government funding. The secular school syllabus includes lessons in both Hebrew and Arabic. The political climate has had an adverse affect on children, such as the cancellation of extra-curricular activities in fear of travel dangers.

The education system faces the challenge of assisting Jewish immigrants of various backgrounds to adjust to Israeli society. Only 41% of the population was born in the country. Arab children born in Israel are a homogenous group and account for 25% of Israel's public school population; they are not eligible to participate in a special education programmes that provide academic assistance to students from disadvantaged backgrounds.

Government spending on children is lower in predominantly Arab areas than in Jewish areas. Schools in Arab communities are poorly maintained and overcrowded, lacking special education services and counsellors. The Israeli government's report to the UN stated that the state's investment per Arab pupil was approximately 60% of investment per Jewish pupil.

Many suicide bombings have taken place near schools or universities or in places where young people congregate, resulting in increased psychological trauma of children and teachers. Education funds that were to be used for increased support to students experiencing difficulties are being used to provide counselling to students. Higher education includes 7 universities and the Open University. Israeli Arabs are under-represented in student bodies. High school graduation rates for Arabs are significantly lower than for Jews. The percentage of Jewish students beginning university studies is 21.5% compared with 11.5% of members of other religions. For Bedouin children, the pre-school attendance is the lowest in the country, and the high school dropout rate is the highest.

On average, teachers in Jewish schools have a higher level of education and more years of teaching experience than Israeli Arab teachers, who have had fewer opportunities to obtain academic credentials: it is only in the last 5 or 6 years that Arab training colleges received accreditation to provide academic degrees. More in-service training is reported to be provided to Jewish than to Arab teachers. Teachers' wages are determined by their teaching experience and their level of education. Because teachers in Jewish schools have, on average, a higher level of education and more years of experience, they are paid more than teachers in Arab schools with the result that less money for teachers' salaries goes to Arab schools.

A 3-year ECE programme begins at age 3. At this level 7% of education is private. The Net Enrolment Rate (NER) is 95%.

Education is compulsory for ages 5 to 15. Primary school begins at age 6 and continues for 6 years. The NER is 98% (49% female). Of students who enrol in Grade 1, 99% reach the last grade of primary school. 2% of students repeat grades. There are 52,454 primary teachers (87% female). The pupil/teacher ratio (PTR) is 15 : 1.

Secondary education begins at age 12 and is completed in 6 years. 35% of students in upper secondary education study in technical vocational programmes. The NER is 89%. 2% of students repeat grades. There are 60,919 secondary teachers, 22,767 (78% female) in lower secondary and 38,152 (67% female) in upper secondary. The PTR is 11 : 1 in lower secondary and 9 : 1 in upper secondary schools.

301,326 students (56% female) study in tertiary institutions, for a Gross Enrolment Rate of 57%. At this level 84% of education is private. 11,974 Israeli students study abroad, mainly in the USA (5,575), Cuba (847), Portugal (595), Spain (488) and France (405).

Special education students are mainstreamed into regular school settings. Special education teachers require special training or a temporary permit to be qualified under the Special Education Law. Psychologists, paramedical professionals and other non-teachers employed in special education must be qualified or licensed according to the standards of their profession.

Human Rights Watch reports that 90 special education teachers in special education schools in the Southern Arab areas are not certified. The government acknowledged the gap in a report to the UN: "Many special education teachers [for Palestinian Arab students] lack appropriate training, although their number is diminishing due to the opening of suitable frameworks of study." Tel Aviv University has devised a computer-supported programme to help disabled children learn social skills. The programme has been introduced for students with learning disabilities, mental retardation or emotional or behavioural disorders.

A residential education programme for adolescent boys and girls, mostly school dropouts in trouble with the law, provides individualised academic and vocational courses, work experience and round-the-clock guidance services. Anti-discrimination legislation does not prohibit discrimination based on disability. A range of benefits are provided to the disabled, including income maintenance, housing subsidies and transportation support.

Refugees are provided with all the protections under the 1951 UN Convention Relating to the Status of Refugees and its 1967 Protocol, and the government has established a system to protect refugees. Palestinians are considered to be under the protection of the UN Relief and Works Agency for Palestine Refugees (UNRWA) and not eligible for refugee status in the country.

The Orr Commission of Inquiry's report stated that "the government's handling of the Arab sector has been primarily neglectful and discriminatory. It did not show sufficient sensitivity to the needs of the Arab population, and did not take enough action to allocate state resources in an equal manner." The annual report of the Israeli-Arab advocacy NGO stated that 45% of Arab families were poor, in contrast to 15% of Jewish families. Human Rights Watch reports that the government provides 1 teacher for every 16 Jewish primary school children compared to 1 teacher for every 19.7 Arab children.

The Bureau of Statistics notes that the median number of school years for the Jewish population is 3 years more than for the Arab population. An affirmative action plan to promote the hiring of Israeli Arabs in the civil service has been adopted. Every state-run company's corporate board must now have at least 1 Arab board member. Israeli Arabs are not required to perform mandatory military service, but those who do not serve in the army have less access to social and economic benefits for which military service is a prerequisite. Approximately 140,000 Bedouin live in the Negev. Bedouin villages receive basic services but are among the poorest communities in the country. The school dropout rate is very high, and 31% of school-age children in unrecognised settlements are reported to be illiterate.

Legally, academic freedom is not restricted, and Internet access is readily available. Of 5,000 university professors and lecturers working in Israeli universities, fewer than 60 are Israeli Arabs. Israel Security Authority approval is needed for appointments of teachers and administrators in Arab schools.

The Knesset committee, reviewing the status of the Arab Israeli education system, criticised this practice. The issue of academic freedom in Israel has been debated worldwide, and calls have been made for boycotts of Israeli academics who do not denounce their government's policy towards Palestinians; others contend that a move to silence Israelis in their critique of government policy vis-à-vis the Occupied Territories has gained in strength in the post-9/11 era. University professors are said to be subject to such criticism, and calls are made for their support.

The Equality of Women law provides equal rights for women in the workplace, the military, education, health, housing and social welfare; it entitles women to protection from violence, sexual harassment, sexual exploitation and trafficking. Equal pay for work of equal value is legislated, but the Central Bureau of Statistics reports that men's wages are 23% higher than women's. 56% of women work in lower-wage jobs. Religious courts adjudicate personal status law.

Both Jewish and Muslim women are subject to restrictions of their rights. A Jewish woman is not allowed to initiate divorce proceedings without her husband's consent. Some Islamic law courts in the country have held that a Muslim woman may not request a divorce but must give her consent if a divorce is granted to the husband. Violence against women is a problem.

Children aged 15 who have completed their education up to Grade 10 may be employed as apprentices. Children aged 14 may work during school holidays provided the work does not harm their health. Working hours of children are restricted; time for rest and education must be provided. The restrictions are enforced. There are reports of illegal child labour in the country among undocumented Palestinian children.

Citizen workers may form and join trade unions. There are 2 trade union federations: Hastert (the General Federation of Labour in Israel) and Histadrut Haovdim Haleumit (National Federation of Labour). Both are affiliated to international organisations. Unions are independent of the government. Collective bargaining takes place, and much of the non-Histadrut work force is covered by Histadrut's collective bargaining agreements. Labour laws apply to Palestinians holding East Jerusalem identity cards and to the Druze on the Golan Heights. Non-resident workers are entitled to be represented and protected by collective bargaining agreements. In lieu of dues they pay an agency fee that entitles them to union protection. The right to strike is exercised. If essential public services are affected, the government can request a judicial back-to-work order. Strikes over unpaid public sector wages took place. Forced or compulsory labour is prohibited. The minimum wage, calculated periodically and adjusted for cost-of-living increases, is currently US$900 (3,335 NIS) a month, approximately 47.8% of the average wage. It is supplemented by special allowances for citizens. The maximum hours of work are 42.5 hours a week. A government permit is needed to hire Palestinian workers from the occupied territories. They are employed on a daily basis and, unless employed on shift work, are not authorised to spend the night in the country. Palestinian workers are not eligible for all National Insurance Institute benefits. The ministry deducts a union fee and the required contributions for insurance.