Moroccan-born Amir Peretz's struggle to become prime minister spotlights Israel's ethnic divide

Adam Entous:

Nestled between the Negev Desert and the Gaza Strip, Sderot lies at Israel's margins, physically and economically. Joblessness is high in the dusty frontier town, hit frequently by rockets fired from nearby Gaza.

Peretz was four when he arrived here with his family from Morocco, part of a wave of Jewish immigrants from Middle Eastern or North African countries -- known as Sephardim -- who have long felt sidelined by Israelis of European origin, known as Ashkenazim.

An avowed socialist with a bushy moustache, Peretz broke through one glass ceiling in November by toppling Polish-born elder statesman and Nobel peace laureate Shimon Peres to take the helm of the centre-left Labour party.

But since then, Labour has been plagued by high-level defections and disarray, putting a spotlight on an ethnic divide within Israeli society largely unseen by the outside world.

Since it was founded in 1948, Israel has never elected a Sephardi to be its prime minister even though Sephardim make up roughly half the country's Jewish population.

"The prejudice is very deep inside," said Ami, a Moroccan-born Israeli playing backgammon at a Jerusalem market. Michael, standing nearby, said he hoped Peretz's candidacy could change attitudes. "Maybe he will open the door," he said.

Peretz rarely talks about what he has called Israel's "ethnic demons". Asked in a recent interview whether Ashkenazim were leaving Labour because he was Sephardi, Peretz said: "I hope that the ballots will show otherwise."

Labour hoped the choice of Peretz would expand its appeal to largely underprivileged Sephardi Jews, who have seen the party as an elitist and out-of-touch bastion for Ashkenazim.

Sephardi Jews have traditionally split their votes between the right-wing Likud party and the ultra-Orthodox Shas party.

After a brief surge in support following Peretz's leadership victory, however, Labour has struggled to woo new backers.

Labour veterans have criticised Peretz's inexperience and said his old-school socialism is a recipe for economic failure. When Peres defected to the centrist Kadima party -- formed by Ariel Sharon before his stroke and now led by interim Prime Minister Ehud Olmert -- Labour lost some Ashkenazi backers.

Labour does not expect to do more than to come in a distant second in the March 28 election.

Peretz's mannerisms, accent and union-boss background are the butt of jokes on one popular Israeli television show, and turn off some Israelis, including many within the Russian community, the country's most influential electoral bloc.

"They say he looks like Stalin and they don't like him because he's from Morocco," laments Yehodit Uliel, who runs Peretz's campaign in Sderot.

Playing the ethnic card