This is the fifth volume of the annual publication of the Institute of Contemporary Jewry at the Hebrew University of Jerusalem. This volume is an up-to-date examination by noted specialists of the issues and developments that have shaped the state and the people of Israel over the past forty years, with special emphasis on the most recent trends. The volume presents in a concise form a review of the most recent research on Israeli politics and society, affording the general reader as well as the specialist an in-depth introduction to the key developments affecting Israel from within. Highlights include: Dan Horowitz and Moshe Lissak on key issues and conflicts that will determine Israel's future course; Pnina Morag-Talmon and Eliezer Ben-Rafael on the emergence of Israeli multi-ethnicity; Sammy Smooha on the growing politicization of Israel's Arab minority; Aviezer Ravitzky on the dilemmas facing the Haredi, or ultraorthodox population; and Itzhak Galnoor and Erik Cohen on the underpinnings of Israeli democracy and social consensus in the light of recent events.