In 1948, when the State of Israel was founded, 125,000 people were members of credit cooperative societies, which provided over 20 percent of all market financing. For several years this number continued to rise, reaching a total of 250,000 members in more than 100 credit cooperative societies. Credit associations — part of the thriving cooperative movement of early Zionism — symbolized the attempt to create a new and just Jewish society by fusing socialist and capitalist ideals. From the mid-1950s, however, (...) in a rapid process of centralization of Israel’s capital market and financial institutions, almost all credit associations were absorbed into Israel’s commercial banks and dissolved. Today, Israel’s two largest banks control over 63 percent of credit provision, and 90 percent of credit is provided to less than 1 percent of borrowers. The official policy of the Bank of Israel is to rule out the establishment of credit associations, credit unions or other non-bank financial institutions. In the light of current renewed interest in "social businesses," i.e., innovative business models designed to achieve desired social outcomes, this Article traces the waning of credit associations in Israel, and the role law has played in that process. Their disappearance from the capital market marked not only a change in economic policy, but also the final abandonment of the ideals which underlay the provision of cooperative financial services: mutuality, partnership and solidarity. (shrink)

This article discusses the legal concept of excessive use of force by analyzing a particular incident that took place in Israel in the summer of 1997: eighty families, faced with dire housing needs, squatted in vacant apartments in an immigrant absorption center in the town of Mevasseret Zion near Jerusalem. After a period of failed attempts to persuade the families to leave the apartments peacefully, the police moved to evacuate the families, and did so by use of massive force. In (...) the article I describe the violent measures used by the State, and analyze the media portrayal of the squatting and the evacuation. I argue that both these forceful measures and the media portrayal of the squatting and evacuation cumulatively took part in constructing the squatters as criminal deviants rather than political protesters. I claim further that we should understand the concept of use of force not only as a means to achieve certain ends by the state, but also as a mechanism through which the state constructs a social problem and presents it in a manner beneficial to its own interests. Excessive use of force, in this sense, is not just a disproportionate response to a real or perceived threat posed by an individual or group, but a means by which the state fosters a belief that the individual or group present some danger, which must be tackled through the use of a certain level of force. By drawing a line between the legitimate and illegitimate use of force, the state affirms its monopoly on violence, which ultimately can be used to suppress political resistance. (shrink)