Dash was established on 2 November 1976 through the merger of several liberal movements including
Shinui, along with a number of prominent public figures including
Yigael Yadin,
Amnon Rubinstein,
Shmuel Tamir,
Meir Amit and
Meir Zorea, as well as business leaders, academics and some
Arabs. The party's creation reflected growing public dissatisfaction with the dominant political establishment, particularly the ruling
Alignment, which and its precursor parties, had governed Israel since the state's formation in 1948. Following the
Yom Kippur War in 1973, the Alignment had faced several political scandals, including the suicide of Housing Minister
Avraham Ofer after a police investigation into alleged misuse of party funds, the conviction of Bank of Israel governor-designate Asher Yadlin for bribery (the
Yadlin affair) and the
Dollar Account affair involving
Leah Rabin, wife of Prime Minister
Yitzhak Rabin, having an overseas bank account, which was illegal in Israel at the time. Initially named
Democrats–Shinui (דֵּמוֹקְרָטִים־שִׁינּוּי,
Demokratim–Shinui), the party soon adopted the name Democratic Movement for Change and became widely known by its acronym, Dash. The new party attracted significant public interest, with more than 37,000 people joining shortly after its formation. It introduced internal
primary elections to select its electoral list, a system intended to emphasise democratic participation and reduce cronyism. Prior to this, Israeli parties had used internal committees to determine their lists. Since the late 1970s many Israeli parties—with the exception of the
Haredi parties
Shas and
United Torah Judaism—have adopted similar primary systems. In the
1977 Knesset elections Dash won 15 of the 120 seats, the strongest showing by a third party since
1961. It became the third-largest faction after
Menachem Begin's
Likud and the Alignment, whose representation declined from 51 to 32 seats. The elections marked a significant political shift, as Likud formed its first government (a 61-seat coalition with
Ariel Sharon's
Shlomtzion, the
National Religious Party and
Agudat Yisrael). Dash's success came largely at the expense of the Alignment, particularly among higher-income and better-educated
Ashkenazi Jews, indirectly contributing to Likud's victory. In November 1977 Dash joined Begin's coalition government, receiving several ministerial positions; Meir Amit became
Minister of Transportation and Minister of Communications, Shmuel Tamir was appointed
Minister of Justice, and Yigael Yadin became Deputy Prime Minister. However, internal divisions soon emerged within the party regarding its role in the government, leading to a gradual breakdown. On 14 September 1978 Dash split into three factions; seven MKs re-established Shinui, another seven formed the
Democratic Movement and Assaf Yaguri founded
Ya'ad. Shinui and Ya'ad left the coalition, while the Democratic Movement, including Tamir and Yadin, remained. ==Aftermath==