Indeed Capitalism is far better for the Israeli people because, when it is purely capitalist, it allows all to compete. It is true that capitalism can suffer from corruption, just as every economic system does, and that is when it becomes evil. Greed & Corruption are a challenge for every nation.
I believe that Israelis can and will be an economic light amongst nations. One big problem is that our enemies are constantly trying to hurt Israels economy through the BDS movement. Just yesterday over Shabbat I heard from a man who is involved in local government and he said that they are combating these Boycott, Divest, and Sanction kooks at every turn.