Gaza economy on the brink as 85% of residents live on aid
rc...@mailinator.com
By Donald Macintyre in Jerusalem
Published: 06 July 2007
Gaza's industry is in a state of collapse because imports and exports
to the Strip have been blocked by Israel since Hamas won internal
control of the territory three weeks ago after the civil conflict.
The emergency Palestinian government in Ramallah, in the West Bank, is
being urged to do more to avert an economic collapse in the Gaza
Strip; 75 per cent of its factories are unable to function because of
Israel's closure of the Karni cargo crossing. The emergency
administration was set up by President Mahmoud Abbas after the formal
dismissal of the Hamas Prime Minister, Ismail Haniyeh.
The dire prospects for Gaza's economy since Hamas assumed control of
security there is underlined in a report by Gisha, the Israeli human
rights agency, which says that 85 per cent of Gaza residents are now
dependent on humanitarian aid while production inside the Strip runs
down.
The report says that the price of raw materials for household and
industrial consumption has already risen by between 15 per cent and 34
per cent and that 30,000 factory workers are likely to lose their
jobs. The figure constitutes one-tenth of those in work, supporting
210,000 dependents.
The closures, backed by the international community, which is
continuing to boycott Hamas, have affected exports, including those of
fruit and vegetables, and imports since 12 June. There are now
shortages of flour and sugar for food manufacture. A further shortage
of cement is halting construction and the UN Development Programme has
announced a freeze on development projects as a result.
Some politically unaffiliated businessmen in Gaza say that ministerial
opposition in Ramallah to a Hamas-led administration in Gaza is
scuppering efforts to reopen the crossings. Israel argues that Hamas's
takeover of internal security, and militants' continuing attacks on
the crossings, has also left a vacuum on the Palestinian side which
makes it impossible to re-open the crossings.
Two mortar shells fired by Palestinian militants yesterday landed near
the Erez crossing, between Israel and Gaza. But the Gisha report
argues that the continued delivery of humanitarian aid into Gaza
demonstrates that "it is possible to open Gaza's crossings and to
permit Gaza residents the passage of goods necessary to live in
dignity".
Ahmed Youssef, an aide to Mr Haniyeh, said this week that efforts were
under way to find a private-sector solution to the provision of
security on the Palestinian side of the crossings, but Israel would
need to agree to such a solution.
Sari Bashi, Gisha's director, said that Israel "is attempting to
achieve political objectives by exerting pressure on 1.4 million
women, men and children, whose suffering is to bring out the desired
change - the overthrow of the Hamas". The report cites as evidence a
decision by the Israel Customs Authority to delete from its computers
the codes required to allow imports into Gaza. "Cargo intended for the
Gaza Strip will not be released until further notification," said
Reuven Meltzer, the deputy head of customs.
The collapse of the Gaza economy is also hitting Israeli businesses.
The report quotes the chairman of Israel's Association of
Industrialists, Shraga Brosh. "The economic boycott on the Gaza
Strip... will result in a humanitarian disaster, fueling flames and
leading to deterioration of the security situation - a situation that
will be destructive to the Israeli economy," he said.
Mark Regev, Israeli Foreign Ministry spokesman, said: "The alternative
is for the Palestinian side to get its act together and revert to
previous agreements."
http://news.independent.co.uk/world/middle_east/article2739759.ece