By most accounts the state of Israel, which celebrated its 66^th birthday last week is a good place to live in. A hundred years ago there were some sixty thousand Jews in what Israelis, following Old Testament usage, like to call Ha-Aretz, “The Land.” Currently there are some six million. No other country, not even the United States or any developing country, has seen such a tremendous increase in such a short time.

According to various international sources, per capita GDP—probably the best available index of relative wealth—stands at about $ 33,000 per year. That is 64 percent of the U.S figure. Considering that, as far as the best available estimates allow, a century ago the equivalent figure was just 4 percent, that is not a bad performance. Moreover, as tourists will notice, the Israeli shekel, while not quite freely convertible, has become as hard as stone. $ 33,000 put Israel in place 25 out of 194 countries on this earth, just behind New Zealand but ahead of quite some other members of the Organization for Economic Cooperation and Development. Considering its size, in terms of computer science, material science, medical science, the number of patents taken out each year, the number of new books published, the number of museums, and, recently the number of Nobel laureates Israel has nothing to be ashamed of.

The demographic picture is also interesting. Israel attracts immigrants—considering the size of its population, it occupies place number four among 36 “developed” countries. Not only do immigrants provide labor, but they may help create an open-minded country with a vibrant, multifaceted, culture. The percentage of those who live in wedlock is relatively high, that of divorces low; this preference for family life may explain why the suicide rate is also quite low. The number of children per woman is much higher than the average in OECD countries. The life expectancy of both men and women is also higher. Though many orthodox men and many Arab women do not work, overall participation in the labor forces is higher than the OECD average.

But who said Israel should be compared with developed countries of roughly similar size such as Sweden, Switzerland, or the Netherlands? After all, it is located neither in Western Europe, nor in North America, nor in happy Oceania. Instead, its founders have chosen one of the least stable, most turbulent, regions on earth. Considering these facts, and also that it used to be a colonial country that only gained its independence in 1948, perhaps a better comparison would be with the world’s remaining 160 or so “developing” countries. Such a comparison will show that Israel towers head and shoulders over practically all the rest. The more so in view of the fact that it has never known a single day when it was officially at peace with all its neighbors; and the more so in view of the fact that, of all the 100-plus countries that gained their independence since World War II, only India, Malta and Israel have always maintained their democracy.

To be sure, there are problems. By and large, though, they are the problems of rich developed countries, not of poor developing ones. At one time Israel used to be a socialist society with an exceptionally low Gini coefficient (the graph that measures economic inequality among different parts of the population). This started changing in the mid-1980s, leading up to the present situation where the gaps between rich and poor are said to be larger than anywhere else except the U.S. The environment is not protected too well—it took public opinion and the government quite a while to realize how important this issue is. The level of educational achievement, as distinct from the average number of years spent at school, is not among the highest either. Like so many other developed countries Israel is attracting large numbers of illegal immigrants who enter it in search of work and with whom it does not quite know what to do.

The most important problems of all are defense on one hand and the occupied territories on the other. The continuing need for defense is reflected in the country’s exceptionally powerful armed forces. Those forces consume about 7 percent of GDP compared with about 4.5 percent in the U.S, 4.4 in Russia, and around 1 percent in most European countries. They pack an enormous punch that might well be the envy of much larger forces.

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Yet things have changed. From 1948 to 1973 inclusive Israel was a beleaguered fortress that stumbled from one major war to the next. Since then the existential threat has receded to the point where, in spite of much foolish talk about Iran’s nuclear program, it barely any longer exists. To be sure, there is some terrorism, whether in the form of knifings, shootings, suicide bombers, and the like or in that of rockets coming across the border. Another war against Hezbollah, Hamas, or both cannot be ruled out. Such a war, however, would probably not amount to much more than pinpricks.

That leaves the major, major problem of the occupied territories. What brought the territories under Israeli rule back in 1967 was an Arab threat that was perceived as existential and led to a preemptive war. Thanks to the leadership and courage displayed first by Menahem Begin and then by Ariel Sharon, Israel has rid itself of most of them. Most of the time, the border with those areas is reasonably quiet. Had it been completely quiet, then those Israelis, and there are many, who favor a withdrawal from other territories would have had a much, much easier time persuading the rest.

Several Israeli prime ministers have made unsuccessful attempts to achieve peace with Syria which would include the return of the Golan Heights to that country. Just who is to blame for the failure of those attempts need not concern us here; as long as the Syrian civil war continues, there will be nobody to negotiate with. That leaves the West Bank and the Arab-inhabited parts of East Jerusalem. How many people live in those areas is not clear. Almost three million, says the Palestinian Authority. Rather less than 2 million, say some Israeli demographers. Either way, the situation whereby Israel keeps such large numbers of Palestinians under its rule is intolerable—not militarily, but politically, socially, psychologically, legally, and, last not least, morally. As the growth of Jewish terrorism proves, in the long run it may very well lead to civil war. One might compare Israel to a policeman who is chained to a criminal. “I am free,” he keeps shouting; “but he [the criminal] is not.”

How to break the stalemate? Netanyahu, whom many consider both a liar and a coward, will not do so. If only because the Right will prevent such a move, neither will the Left. What is needed is another Rabin, another Begin, another Sharon or even another Olmert (during his term as prime minister, he was planning to give up at least part of the West Bank). It was not that the times called for them; it was they who changed or tried to change the times. At the moment no such figure may be seen on the horizon.

But then hasn’t Ha-Aretz always been the land where miracles sometimes happen?