Israeli citizens can change their government democratically. Although Israel has no formal constitution, a series of basic laws has the force of constitutional principles. A largely ceremonial president serves as chief of state while the prime minister, appointed by his or her party, serves as head of government. The unicameral Knesset (parliament) is composed of 120 seats and members are elected by popular vote for four-year terms. Israel features a wide range of political parties.

Arab residents of East Jerusalem, while not granted automatic citizenship, were issued Israeli identity cards after the 1967 Six-Day War. However, by law, Israel strips Arabs of their Jerusalem residency if they remain outside the city for more than three months. Arab residents have the same rights as Israeli citizens, except the right to vote in national elections. They do have the right to vote in municipal elections and are eligible to apply for citizenship. Many choose not to seek citizenship out of solidarity with Palestinians in the West Bank and Gaza Strip and because they believe East Jerusalem should be the capital of an independent Palestinian state. East Jerusalem's Arab population does not receive a share of municipal services proportionate to its numbers. Arabs in East Jerusalem do have the right to vote in Palestinian Authority elections.

Israel was ranked 26 out of 146 countries surveyed in Transparency International's 2004 Corruption Perceptions Index. Sharon was cleared of involvement in a bribery and corruption scandal that emerged early in the year. Sharon and his son Gilad, were allegedly bribed by an Israeli businessman seeking Greek government approval to develop property on a Greek island. While Israel's state prosecutor recommended in March that Sharon be indicted, the attorney general dropped the case in June out of lack of evidence.

Press freedom is respected in Israel. While media reports on security matters are subject to a military censor, the scope of permissible reporting is wide. Editors may appeal a censorship decision to a three-member tribunal that includes two civilians. Publishing the praise of violence is prohibited under the Counter-terrorism Ordinance. Israeli authorities prohibit expressions of support for groups that call for the destruction of Israel.

Arabic-language publications are censored more frequently than are Hebrew-language ones. Newspapers are privately owned and freely criticize government policy. Internet access is widespread and unrestricted. In March, the Organization of Arab Journalists in Israel called for the creation of an Arabic-language television channel, claiming that Israel's Arab community is underserved by the national media.

In May, Israeli police arrested British journalist Peter Hounam who allegedly violated a court order barring interviews of Mordechai Vanunu, an Israeli citizen released from jail in April after serving an 18-year sentence for spying and discussing Israel's reputed nuclear capability. Hounam was freed shortly after his arrest. In August, the Supreme Court denied a government appeal to uphold a ban on granting Palestinians Israeli press credentials. Israel's Government Press Office earlier ceased issuing press cards to Palestinians on security grounds; the government claimed some Palestinians posing as journalists used the cards to gain entry into Israel to carry out or abet terrorist attacks. In September, Israel deported a British freelance journalist who had been prevented from entering the country because of her political activities with the International Solidarity Movement (ISM), a group sympathetic to Palestinians. According to Israel, ISM members obstruct Israeli operations in the West Bank and Gaza strip, endangering themselves and others.

Freedom of religion is respected. Christian, Muslim, and Baha'i communities have jurisdiction over their own members in matters of marriage, burial, and divorce. In the Jewish community, the Orthodox establishment generally handles these matters. As a result, the law does not allow civil marriages, which prevents Jews and non-Jews from marrying. Many Israelis choose to marry in civil ceremonies outside the country, rather than submit to a religious ceremony. In February 2002, the Supreme Court for the first time formally recognized Jewish conversions performed by Reform and Conservative rabbis in Israel. While the ruling allows those converted by non-Orthodox rabbis to be listed as Jews in the official population registry, the Orthodox establishment can still refuse services - such as weddings - to Reform and Conservative converts.

In 2003, the Sharon cabinet disbanded the Religious Affairs Ministry, effectively putting rabbinic courts under the control of the Justice Ministry. The decision cleared the way for increased allocations of state resources to non-Orthodox religious institutions, including those attached to the Reform and Conservative movements. The move was seen as a further erosion of the Orthodox monopoly on Israel's religious affairs.

Freedom of assembly and association is respected. Israel features a vibrant civic society that includes a diverse array of nongovernmental organizations. Demonstrations, including those outside government buildings and the official residence of the prime minister, are permitted. Demonstrations by Jewish protestors in or near the West Bank are sometimes treated differently, and usually draw a greater security force. In December, Israeli troops fired on Israeli demonstrators protesting at a section of the West Bank security barrier, wounding one person in the leg. In September a state prosecutor opened a criminal investigation into a right-wing activist thought to have caused incitement by making threatening remarks towards Sharon.

Workers may join unions of their choice and enjoy the right to strike and to bargain collectively. Three-quarters of the workforce either belong to unions affiliated with Histadrut (the national labor union) or are covered under its social programs and collective bargaining agreements. Foreign workers in the country legally enjoy wage protections, medical insurance, and guarantees against employer exploitation. Illegal workers are often at the mercy of employers, and many are exploited.

The judiciary is independent, and procedural safeguards are generally respected. Security trials, however, may be closed to the public on limited grounds. The Emergency Powers (Detention) Law of 1979 provides for indefinite administrative detention without trial. The policy stems from emergency laws in place since the creation of Israel. Most administrative detainees are Palestinian. In September, thousands of Palestinian prisoners staged an 18-day hunger strike to protest prison conditions. Israel insisted conditions were satisfactory and that the prisoners were demanding extra privileges such as telephone calls, which Israel was refusing. There are approximately 7,000 Palestinians in Israeli jails.

While extended full political rights, some one million Arab citizens of Israel (roughly 19 percent of the population) receive inferior education, housing, and social services relative to the Jewish population. Israeli Arabs are not subject to the military draft, though they may serve voluntarily. Those who do not join the army are not eligible for financial benefits - including scholarships and housing loans - available to Israelis who have served.

In 2003, an independent commission issued its findings of a public inquiry into the shooting deaths of 13 Arab Israelis by police in October 2000. The police opened fire on rioters demonstrating in support of the Palestinian uprising. The report identified discrimination against Israel's Arab minority as the primary cause of the riots and led to the initiation of criminal investigations of several of the police officers who had opened fire, labeling them "prejudiced." While the 800-plus-page report was criticized by some for not going far enough - and by others for excusing Arab violence - it was generally regarded as an important breakthrough in addressing the social and economic disparities between Jewish and Arab Israelis. In January 2004, Sharon declared that every state-run company must have at least one Arab-Israeli on its board of directors. Salah Tarif, an Arab-Israeli, is a member of Sharon's cabinet. An Arab-Israeli judge also sits on the Supreme Court.

Some Israeli analysts, including supporters of Arab minority rights, cautioned against the radicalization of segments of Israel's Arab population and of Arab residents of East Jerusalem. Several Arab-Israelis and East Jerusalem residents were arrested in 2004 for involvement in terrorism.

While the state protects wide personal autonomy, the Law of Citizenship, passed in 2003, bars citizenship to Palestinians from the West Bank and Gaza who marry Arab-Israelis. The law, extended for six months in July 2004, would ostensibly lead to the separation of families or to their relocation from Israel. As the law is not retroactive, it does not affect Palestinians previously granted citizenship. Some human rights groups characterized the law as racist. Israel maintained the law was necessary because some Palestinians have opportunistically married Arab citizens of Israel so they can move to the country to more easily carry out terrorist attacks or to slowly shift the demographic reality in their favor.

Most Bedouin housing settlements are not recognized by the government and are not provided with basic infrastructure and essential services.

Freedom of movement is sometimes affected by security alerts and emergency measures that can subject Israelis to delays at roadblocks and public places. Israeli security forces and police sometimes carry out random, spot identity checks of civilians. By law, all citizens must carry national identification cards.

Women have achieved substantial parity at almost all levels of Israeli society. Women are somewhat underrepresented in public affairs; 18 women sit in the 120-seat Knesset. In the May 1999 election, an Arab-Israeli woman, Husaina Jabara, was elected to the Knesset for the first time. Arab women citizens and residents face some societal pressures and traditions that negatively affect their professional, political, and social lives. The trafficking of women for prostitution has become a problem in recent years.