This paper examines how Israel's educational system attempts to deal with major social, geographic, religious, economic, and political problems. Problems are presented in two main categories--internal and external. Internal problems include high immigration levels, religious and cultural differences among various Jewish sects and between Jews and Israeli Arabs, a high inflation rate, negative attitudes among Israeli youth regarding Israel's social and political policies, and the paucity of Israel's natural resources when compared with her Arab neighbors. External problems center on Israel's location amidst unfriendly Arab nations. Israel's traditional education system consists of free and compulsory education for ages five through 16, free education from ages 16 through 18, vocational schools, professional and technical schools, universities with selective entrance requirements, and education for Israeli Arabs under a separate but equal policy. Many innovations have been developed by the Ministry of Education and Culture to help those citizens whose needs are not being met within this traditional system. Innovations include upgrading rural Israeli Arab schools, recruiting teachers to serve in rural areas, designating rural teaching an alternative to army service, offering Hebrew language classes, hiring university students as tutors in elementary and secondary schools, and training young mothers with little or no formal education to work with other women in rural areas on topics such as child development. (DB)