Arab-Israelis are automati- cally exempt from service; however, many choose to join. The Ultra-Orthodox are allowed to observe religious principles and study at Yeshivot instead of serving. A small contingent of orthodox or pacifist Israeli females can opt for two years of community service in the Sherut Leumi, which works on ecological projects and immigrant integration. Poor in natural resources, stymied by socialist inefficiencies, and carrying the bur- dens of large defense expenditures and Jewish refugee absorption, Israel for years relied upon substantial financial assistance from diaspora Jewish communities and foreign governments . Throughout the last few years, how- ever, the country has begun to reap the fruits of extensive privatization, free trade with the US and the European Community, and the development of a high-tech export-oriented economy of $32.5 billion. From 1990-1996, Israel's GDP growth rate was the highest among the economies of the OECD , averaging 6% per year. Its per capita GDP was the 21st highest in the world in 2000. Israel's trade deficit has been a persistent problem, and its reduction has been a primary goal of every Israeli government. The deficit now approaches $300 mil- lion, though it is decreasing in relative terms: exports now finance around 75% of imports, as opposed to 14% in 1950. In total, Israel's industrial exports have grown over 1550 times since 1948 and are now over $20 billion. The country's main indus- tries are chemicals, diamond cutting and polishing, textiles, high-tech products, and military hardware. Israel is also a leader in desert agriculture and plant genetics. Israel's economy has always suffered from high inflation. By the early 1980's, the annual inflation rate had reached three digits. In 1985, when inflation threatened to reach four digits, the government implemented an emergency stabilization pro- gram that has helped curb inflation substantially; the new Israeli shekel has held relatively steady against the dollar for the past six years. The two greatest burdens on Israel's economy are defense and social spending. The former has declined markedly as a result of the peace process-expenditures on defense now comprise only 10% of the GDP, as opposed to 23% in 1980. Immi- gration, however, continues to exert pressure on the economy. Since it attained independence, Israel has absorbed 2.6 million immigrants, four times the number of Jews living in the country in 1948. In the early 1990s alone over 800,000 immi- grants, primarily from the former Soviet Union, flooded the country, driving unem- ployment to 11.2% in 1992. Because Israel has always been committed to providing social services, the immigration boom has been a financial strain. Over 50% of pub- lic expenditure is spent on health care, unemployment assistance, and other social service programs. At the same time, recent immigration has flooded Israel with highly educated workers and professionals.