you're right, also a third world country could have an army that behaves, a democratic process that works, etc. Shavit meant a 'banan republic' a state in which the army leaders are corrupt, the military, the commercial and the political elites are intertwined and corrupt. like in this case.
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Turkish army: 2 ISIS fighters killed in U.S.-led coalition drone attack in northern Syria (Reuters)
from the article: Has Israel become a third-world country?