Before 1948, the region that would become the State of Israel was a complex and contested area with a long history of different peoples and empires. It was a part of the British Mandate for Palestine, established after World War I under the League of Nations. The mandate was intended to administer the territory and prepare it for eventual self-governance, with the Balfour Declaration of 1917 promising to support the establishment of a "national home for the Jewish people" in Palestine.
The period leading up to the establishment of Israel was marked by significant tensions and conflicts between the Jewish and Arab communities living in the region. The Jewish community, which had been growing steadily since the late 19th century, was seeking to establish a homeland after centuries of persecution and the horrors of the Holocaust. Meanwhile, the Arab population, which was the majority at the time, was opposed to the idea of a Jewish state on what they considered to be their land.
The Arab Palestinian economy was indeed affected by the political turmoil and the struggle for control over the land. The situation was further complicated by the influx of Jewish refugees from Europe, which put additional pressure on resources and led to economic strain. As the conflict escalated, there were instances of violence and retaliation on both sides, leading to a climate of fear and uncertainty.
The statement that "250,000 Palestinian Arabs fled or were expelled" refers to the mass displacement known as the Nakba, which means "catastrophe" in Arabic. This occurred during the 1948 Arab-Israeli War, which broke out after the declaration of the State of Israel by David Ben-Gurion. The reasons for the Nakba are a matter of historical debate, with some arguing that it was the result of a planned expulsion by Jewish forces, while others claim that the Palestinians left due to the chaos of war and the fear of violence.
On 14 May 1948, David Ben-Gurion, the head of the Jewish Agency, declared the establishment of the State of Israel. This declaration was made in the face of significant opposition from Arab states, which immediately launched military operations against the newly declared state. The ensuing conflict, which lasted until 1949, resulted in significant territorial changes and further displacement of populations.
The establishment of Israel marked a pivotal moment in the history of the region and the world. It represented the fulfillment of a long-held dream for many Jews and the beginning of a new chapter for the Jewish people. However, it also set the stage for ongoing conflict and tension between Israel and its Arab neighbors, a situation that continues to this day.

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The Arab Palestinian economy collapsed and 250,000 Palestinian Arabs fled or were expelled. On 14 May 1948, the day before the expiration of the British Mandate, David Ben-Gurion, the head of the Jewish Agency, declared "the establishment of a Jewish state in Eretz-Israel, to be known as the State of Israel."read more >>