[link|http://www.jta.org/page_view_story.asp?intarticleid=11019&intcategoryid=1|http://www.jta.org/p...9&intcategoryid=1]
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Jewish and Arab children always have attended separate schools in Israel. Except for a handful of integrated schools, and except for a marginal number of Arabs who attend Jewish schools, the two communities are segregated in education.
In contrast to the United States, where public pressure was a driving force behind school integration, neither Jews nor Arabs in Israel ever pushed to merge the separate school systems, which are divided by language, culture and curriculum.
On the contrary, Arab citizens would like to make their school system, now closely controlled by the government, into the core of a "cultural autonomy" for Israeli Arabs. They want a separate administration of Arab education, which would have absolute autonomy over management and curriculum.
This, they feel, would allow them to instill a Palestinian national consciousness in the young generation to an extent that is impossible as long as the Israeli government still has control.
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In other words, what you call "theocracy", Arabs call "cultural autonomy"