Newsdeck

Middle East Crisis

Gaza needs billions in aid to reverse years of restrictions -UN trade body

Gaza needs billions in aid to reverse years of restrictions -UN trade body
Egyptian volunteers handle humanitarian aid bound for Palestinians in the Gaza Strip, at the Rafah border crossing, Egypt, 24 October 2023. More than 5,000 Palestinians and over 1,400 Israelis have been killed, according to the Israel Defense Forces (IDF) and the Palestinian health authority, since Hamas militants launched an attack against Israel from the Gaza Strip on 07 October. EPA-EFE/KHALED ELFIQI

GENEVA, Oct 25 (Reuters) - Gaza needs billions of dollars in international economic aid to compensate for years of restrictions that have stifled its economy and curbed its development, according to a report published on Wednesday by the United Nations trade body.

In its report on the economic development of the Occupied Palestinian Territory for 2022, the United Nations Conference on Trade and Development (UNCTAD) highlighted the dire economic conditions in Gaza, even prior to Israeli strikes on the enclave in reprisal for the deadly Oct. 7 attacks by Hamas gunmen in southern Israel.

“Donors and the international community need to extend significant economic aid to repair the extensive damage Gaza has experienced under prolonged restrictions and closures and frequent military operations, which has stifled the economy and decimated infrastructure,” the report said.

“While donor aid is important to assist the people of Gaza, it should not be viewed as a substitute for ending the restrictions and closures and calling on Israel and all parties to bear their responsibilities under international law.”

Speaking to reporters in Geneva, Richard Kozul-Wright, director of UNCTAD’s division on globalization and development strategies, said it was difficult to fully assess how much money would be needed to buttress the economy in Gaza, which is controlled by the Hamas militant group.

“It’s very difficult to make a proper assessment until things stop,” he said, referring to the current conflict. “But it’s going to be in the billions of dollars.”

 

FALLING AID

Last year Palestinian authorities received only $250 million in donor budget support and $300 million for development projects, the report said.

There has also been a steep decline in foreign aid between 2008 and 2022, from $2 billion – representing 27% of gross domstic product (GDP) – to $550 million, or less than 3% of GDP, last year.

Nearly half of Gaza’s population is unemployed and more than half lives in poverty, the report said. Although workers in Gaza have been allowed access to Israel’s job market for the first time in recent years, the number of permits issued — around 1% of employed workers in Gaza — are too few to counter poverty.

“Border closures and repeated military operations have set in motion a vicious circle of economic and institutional collapse…,” it said.

“The impact is not confined to the short term. Indirect and long-term effects will reverberate through future generations.”

By Gabrielle Tétrault-Farber

(Reporting by Gabrielle Tétrault-Farber; Editing by Bernadette Baum and Gareth Jones)

Gallery

Comments - Please in order to comment.

Please peer review 3 community comments before your comment can be posted

We would like our readers to start paying for Daily Maverick...

…but we are not going to force you to. Over 10 million users come to us each month for the news. We have not put it behind a paywall because the truth should not be a luxury.

Instead we ask our readers who can afford to contribute, even a small amount each month, to do so.

If you appreciate it and want to see us keep going then please consider contributing whatever you can.

Support Daily Maverick→
Payment options