Israel has changed. The country was born in Europe's shadow, haunted by the Holocaust and inspired by the Enlightenment. But for Israelis today, Europe is hardly relevant, and the country's ties to the broader West, even to America, are fraying. Where is Israel heading? How do citizens of an increasingly diverse nation see themselves globally and historically?

In this revealing portrait of the new Israel, Diana Pinto presents a country simultaneously moving forward and backward, looking outward and turning in on itself. In business, Israel is forging new links with the giants of Asia,...