The Hadera Paper Plant and Mapai’s Economic Development Policy in the First Years of Israeli Statehood
Keywords:
American Israeli Paper Mills (AIPM) Plant in Hadera, Mapai, Eliezer Kaplan, Levi Eshkol, Pinchas Sapir, Israel in the 1950s, Histadrut Labor FederationAbstract
This article explains the Israeli government’s policy on industrial development in the state’s first years by examining the American Israeli Paper Mills (AIPM) plant in Hadera. The plant, established by a group of private investors led by Joseph Mazer, an American paper industrialist, was one of Israel’s major enterprises in the 1950s and the first Israeli industry based on American capital.
One assumes that the socialist party in power, Mapai, would favor the Histadrut labor federation (associated with Mapai) over the private sector. The article shows that AIPM’s private sector initiative won wide support from the Mapai led governments despite a similar initiative by the Histadrut.
The article also looks at the considerations of Mapai’s principal economic ministers – Eliezer Kaplan, Levi Eshkol and Pinchas Sapir – who supported AIPM regardless of public criticism. My conclusion is based on Israel’s overarching economic development policy in this period.
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