The History of Keren Hayesod - UIA

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In truth, Keren Hayesod was an Israeli fund before there was an Israel and the State of Israel would not have been established if not for Keren Hayesod, without its path of building the country, without the means that it invested here – if not for this tool through which the Jewish masses were included in laying the foundations of a Jewish society
MK Itzhak Ben-Aharon, Israel's future prominent union leader, 1955 

The first full decade that followed the birth of the State of Israel was marked by huge waves of immigration, primarily from North Africa, Yemen, Kurdistan and Iraq. Within a few years, Israel’s population tripled, resulting in great distress and a heightened demand for social, educational and cultural services. Keren Hayesod redoubled its building efforts, helping to establish dozens of urban settlements, such as Sderot in 1951 and Eilat in 1956, as well as kibbutzim and moshavim. Keren Hayesod provided major funding for these communities, establishing new fundraising campaigns around the world and renewing its presence in Germany (1955). Keren Hayesod’s prominent role led the Knesset, Israel’s parliament,to pass the Keren Hayesod Law in 1956, recognizing the organization’s unique status as the official fundraising arm of the State of Israel the world over (apart from the US).