http://www.foreignpolicy.com/articles/2012/04/05/Israel_Is_a_Democracy?page=full
Like the United States, we have our flaws. But to say Israel is undemocratic is just dead wrong.
At 64, Israel is older than more than half of the democracies in the world. The Jewish state, moreover, belongs to a tiny group of countries — the United States, Britain, and Canada among them — never to have suffered intervals of non-democratic governance. Since its inception, Israel has been threatened ceaselessly with destruction. Yet it never once succumbed to the wartime pressures that often crush democracies.
On the contrary, conflict has only tempered an Israeli democracy that affords equal rights even to those Arabs and Jews who deny the state’s legitimacy. Is there another democracy that would uphold the immunity of legislators who praise the terrorists sworn to destroy it? Where else could more than 5 percent of the population — the equivalent of 15 million Americans — rally in protest without incident and be protected by the police. And which country could rival the commitment to the rule of law displayed by the Jewish state, whose former president was convicted and jailed for sexual offenses by three Supreme Court justices — two women and an Arab? Israeli democracy, according to pollster Khalil Shikaki, topped the United States as the most admired government in the world — by the Palestinians.