The discourse on the complexity of relations between the State of Israel and the Jewish diaspora begins with understanding two central foundational concepts – "Israel" as the center of Jewish concentration in the sovereign nation-state, versus "diaspora" describing the Jewish dispersion residing outside its borders. The term "diaspora" is derived from the Greek word for "dispersion," though some scholars criticize it as not objectively representing the Jewish reality where about half of the people live outside Israel.

The term "exile" is an alternative with negative connotations, reflecting the perception that Jews living outside the nation-state exist in an unnatural and imperfect state of exile. The word "exile" also expresses the theological idea that the dispersion of the Jewish people from their land was a divine punishment until the sin is rectified, and the Jewish aspiration is to return to the homeland upon receiving pardon.

During periods of Jewish sovereignty in ancient Israel (First and Second Temple periods) and in our time (the current State of Israel period), the attitude towards Jews outside the sovereign boundaries was towards "diaspora." Conversely, during periods of exile and absence of Jewish sovereignty in the Land of Israel, the term "exile" was used as an expression of the Jewish desire to return to the homeland.

In theological terms, exile was considered a byproduct and punishment from God for the sins of the people, and Jews were required to amend their ways to receive divine pardon that would end the exile and dispersion and allow their return home. In modern times, the discussion of "Israel and the diaspora" deals with the relationship between internal Jews residing in Israel and external Jews living outside it, with the largest concentration of diaspora Jews currently found in the United States.

Between 1948-1970, world Jewry, especially American Jewry, which included relatives and survivors of the Holocaust, viewed the young State of Israel as a vital and secure refuge and enthusiastically supported it. Their support was manifested through various channels, including significant financial contributions from American Jewry, which demonstrated deep identification with Israel. Despite this stance creating tension with the American government, American Jews expressed overwhelming support for Israel's security policy in the second half of the 1950s.

Jewish-American leaders took an active part in the public struggle against American pressure on Israel, while simultaneously trying to influence the American administration to change its harsh policy towards Israel. However, in the 1950s, some Jewish community leaders criticized the emphasis on Israel as the sole center of Jewish life and demanded recognition of the legitimacy of Jewish existence outside the nation-state's borders.

Currently, about half of the Jewish people live within the sovereign borders of the State of Israel, and the other half is dispersed in Jewish communities outside its borders, i.e., in the "diaspora."

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