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HE WORLD food and fuel crisis in 1972-74 caused severe problems for policy-makers in many countries. It marked a period of sharp debate over M options and a reassessment of policies. Israel was no exception. Policymakers there have had to examine all options for their ability to meet the basic goal of survival. Although survival is a goal sought after by all nations, none have faced stronger challenges to its realization. An analysis of the factors which led Israeli policy-makers to choose one set of options over another during a period of world crisis can be instructive to their counterparts in other nations as well.The basic options available to policy-makers are not mutually exclusive but can be arranged on a spectrum with complete self-sufficiency at one end and complete dependence at the other. Policy-makers in all countries must decide whether to opt for a strategy of self-sufficiency or for one of dependence on regional or world markets. This is especially important in regard to the basic necessities of food and fuel. However, no policy-maker is able to choose absolute self-sufficiency or absolute dependence. Choices are not as clear-cut as theorists might imply and are severely limited by resource constraints. The smaller the country, the less possibility its policy-makers usually have to choose the self-sufficient option. Burma provides an example of the extent this option can be pursued if policy-makers choose this option and are not disturbed by surrounding powers. Such an option calls for policies which will limit consumption to those items that can be produced in the country. The dependent option would involve choosing an opposite set of policies which would not limit consumption and would produce for export those items in which the country had a comparative advantage.These options correspond to different perceptions of the global economy. Adherents of classical liberal economic thought view existing international economic relationships as mutually beneficial to all nations. They believe that global as well as national economic growth and efficiency dictate that all states open themselves to foreign goods and capital and that they specialize in the production of those goods in which they possess a comparative advantage even though this means dependence on the global economy. Downloaded from company to do business in Israel if it desired to continue to operate in Arab countries.Because of these difficulties, Israeli policy-makers had little choice other than a a strategy of economic dependence, at least in the short run. However, they did have the options of pursuing policies aimed at eventual self-sufficiency or of complete integration into the U.S. or world market. Israeli policy-makers attempted to increase self-sufficiency wherever and whenever possible.

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