Israel’s military operations and prolonged closure of Gaza, has
caused economic damage of $16.7 billion between 2007 and 2018,
driving the poverty rate up almost fourfold compared to what it
might have otherwise been, the UN trade and development agency
UNCTAD said in a report
published on Wednesday.
Gaza’s economy was on the verge of collapse, notes the report for
the UN General Assembly, entitled “Economic costs of the
Israeli occupation for the Palestinian people: The Gaza Strip
under closure and restrictions”.
The damage from Israel’s military operations was equivalent to
around six times the Palestinian enclave’s annual gross domestic
product (GDP) in 2018, or 107 per cent of the total Palestinian
GDP, the report said.
Driver of poverty
Gaza’s poverty rate stood at 40 per cent in 2007 but it would
have fallen to 15 per cent in 2017 if not for the prolonged
military operations, but instead, it has risen to 56 per cent, it
said.
The depth of inequality was also far more severe than it could
have been.
The “poverty gap”, a measure of how far from the poverty line
households are on average, was 20 per cent in 2017, but would
have been around 4.2 per cent if not for the impact of military
operations, the report said.
Between 2007 and 2017, Gaza’s economy grew by 5 per cent, or less
than half a percentage point per year, and its share in the
overall Palestinian economy halved from 37 per cent to 18 per
cent, UNCTAD’s Coordinator of the
Assistance to the Palestinian People, Mahmoud Elkhafif, told a
press conference.
Prolonged impact of military action
The report aimed to quantify the impact of three major rounds of
Israeli military hostilities since 2008 and the prolonged
economic and movement restrictions imposed since Hamas took
control in the Gaza Strip.
“The result is the near collapse of the regional Gaza economy
while trade is severely restricted from the rest of the
Palestinian economy and the world”, the report said.
Blockade plea
“Lifting what amounts to the blockade of Gaza is essential for it
to trade freely with the rest of the Occupied Palestinian
Territory and the world and restore the right to free movement
for business, medical care, education, recreation and family
bonds. Only by fully lifting the debilitating closure, in line
with Security Council
resolution 1860 (2009), can we hope to sustainably resolve
the humanitarian crisis.”
Most people in Gaza had no access to safe water, regular and
reliable electricity supply or even a proper sewage system, the
report said.
UNCTAD’s analysis of the potential economic upside of ending
Israeli military operations and travel restrictions did not
include wider benefits to the Palestinian people, such as the
income from a natural gas field off the shores of Gaza.
More investment
The report recommended the Palestinian government should be
allowed to develop those energy resources, and Gaza’s economic
potential should be boosted with investments in seaports,
airports and water and electricity projects.
Richard Kozul-Wright, Director of UNCTAD’s Division on
Globalization and Development Strategies, said the 2 million
Palestinians living in Gaza were now facing a health emergency
because of the COVID-19 pandemic. But he
added that there was “cautious optimism” that the incoming U.S.
administration of President-elect Joe Biden could lead to a
positive change of tone in Washington, DC.
“That obviously raises hopes that there may be changes in the
relationship between Israel and Palestine,” he said.
