The Challenge of Transformation
After playing a prominent role in Israeli society, the kibbutz movement went into decline from the mid-’50s to the mid-’70s, resulting in a loss of status and influence. The rise of the right-wing Likud party in 1977 brought changes in economic policies, which dislodged the kibbutz movement from its previously powerful position. The resulting financial crisis led many kibbutzim into bankruptcy, forcing a radical reorganization that culminated in a renewal effort, which included various degrees of privatization.
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