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The aim of this article is to gain insight into the current demographic issues and the national policies of Israel in the field of population development. Demography plays a powerful role in understanding the Israeli society and the changes it has experienced over time. The 'demographic struggle' presents the constant effort of the Jewish population to maintain, regardless of the costs, the numerical majority of the Jews in Israel. The central means to achieve the demographic dominance are the immigration and fertility rate, therefore the control over these factors of social life is of primary importance to the Israeli authorities. The methods of managing and influencing the two demographic indicators are discussed in the article in details, since the differences between the Arab and Jewish communities in this area are crucial. The article presents also briefly the role of demography in constituting ethnic democracy in Israel.