Kibbutz, one of the types of Jewish rural settlements in Israel, has been studied mainly on the social aspects of its village community. Its productive function can be, however, analysed only from the view point of economic relation between Kibbutz and its surrounding economic circumstances. This method of study on Kibbutz is necessary for the understanding of the agrarian structure of the nation which has developed during Jewish colonisation in Palestine.
The principles of Kibbutz system of production are communal ownership of properties and denial of employment. These principles impose a functional position of independent household upon Kibbutz so that Kibbutz can not expand its own re-production by a capitalistic way. At the same time, these principles, which are kept just within a framework of village community by the voluntary will of its members, do not imply any initial motives to transform the outside capitalists system although the original idea of such co-operative organisation developed in Socialist Zionism aimed at overcoming the class-struggle of capitalists economy. The prcess of Kibbutz economy shows its complete dependence on the outside economic situation. This fact means the development of Kibbutz system has always been controled by the socio-economic development on the scale of Palestine.
