It is absurd to speak about petty corruption by officials when institutionalized corruption persists on a mammoth scale. The government bribes the opposition with portfolios. The ruling party bribes influential local figures with sinecures. Minorities are bribed with subsidies.
There is a critical difference between Swedish and Israeli socialism. Swedes are a relatively homogenous crowd, while Israelis have well-defined groups of spongers: Haredim, Arabs, blacks, and elderly immigrants. The corruption is especially heinous in regard to blacks: besides direct subsidies (financial rather than a fixed number of bananas per family), they hugely benefit from minimum-wage laws, which means that hardworking Jews are subsidizing those falashas. Many Jews don’t even understand that minimum wage is the largest tax they pay.
It is this corruption that allows government to perform its anti-Israeli tricks. Haredim accepted the Gush Katif eviction after Sharon threw their leaders a bone of slightly bigger subsidies. Settlers keep silent about the destruction of outposts because the government subsidizes settlements.
But aren’t subsidies natural for a state? Not at all. The government does not obtain the funds miraculously. It taxes and distributes. The nation as a whole receives no favor from government for which people should reciprocate gratefully. Rather, government bribes them and pushes them into compliance with their own money. The absurdity of the situation lies in the fact that government legally robs decent, hardworking Jews to buy the support of others for policies detrimental to those Jews. Their own money is taken away and turned against them.
In classical Athenian democracy only people of certain means were allowed to vote. In Israel, tax-negative citizens must be barred from voting. Incidentally, that would disenfranchise Arabs, and also discourage government from politically motivated subsidies.