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Gaza's Moribund Economy

By Khaled Mohammed**

January 2, 2006 

Amnah Audeh's family has never had the money to buy meat or chicken.

It is one o'clock on a cold winter night in Rafah. A young man is huddled on the doorstep of a shack. The night gets colder. It's now three o’clock, and he is still sitting outdoors. Is he an amateur astronomer? Or is he a self-appointed watchman to warn of Israeli spy drones?

No. Hani Al Najjar, 23, is awake at such a late hour because his 19-year-old brother Mahmud has the "early shift" in the bed they share. Actually, Western readers wouldn't call the thin mattress on the floor a "bed," but western-style beds are an impossible luxury for most families in Gaza. When Mahmud leaves for school, Hani gets some sleep indoors. "There is no room for both of us to lie down inside," he explains. The "house" of the family — a family of eight — was originally built long ago to shelter goats, but the Al-Najjar family was grateful to rent it after their house was bulldozed by the Israeli Army during an incursion in 2003.

In the same ramshackle neighborhood, Amnah Audeh, a 53-year-old housewife, says she has one simple, but perhaps impossible goal. "The dream of my family is to taste beef or chicken. We have never had the money to buy meat, or any really good meal. We simply can't afford it," she says sadly. Open a refrigerator in any refugee camp home: Most often you will find bottles of water and little else. The lack of potable tap water means everyone in Gaza must purchase bottled water, or else they will risk serious disease. Of course, that means less money for a nutritious diet.


A UN report said that 64 percent of the entire population were surviving on less than 2.20 US dollars a day, and half of them fit the UN definition of "extreme poverty cases."


Gaza — despite the existence of one border crossing now operating to Egypt under joint Egyptian and Palestinian control — is still the biggest prison in the world. Poverty in Gaza is steadily worsening as the Israeli military continues its stranglehold on all crossing points for cargo. Materials to rebuild destroyed houses cannot enter; Gazan goods cannot reach market; Gazans cannot seek employment across the border.

The same is true for the Palestinians trapped behind the closed borders in the West Bank, and in many cases, cut off from their land, jobs, and schools by the illegal apartheid wall.

Today, more than three quarters of the 1.3 million Palestinians in Gaza live below the poverty line, the United Nations announced last week. In the five years since the start of the Intifada, unemployment throughout Palestine has risen from 10 percent to over 30 percent. A UN report, compiled by all UN agencies working in the region, said that 64 percent of the entire population were surviving on less than 2.20 US dollars a day, and half of them fit the UN definition of "extreme poverty cases" with less than 1.6 US dollars. In Gaza, 78 percent live below the poverty level.

Filippo Grandi, Deputy head of the UN agency for Palestinian refugees, UNRWA, said, "The situation has been exacerbated by the Israeli Army's constant closures in the occupied West Bank and in Gaza, even though the last troops were withdrawn from Gaza in September."

Ironically, despite the extreme poverty, Palestine is rich in talent. Literacy rates, especially among younger Palestinians, are high, and many poor families make enormous sacrifices to send their children to Gaza's universities. On graduation, however, the young men and women discover they cannot put their skills to work in a salaried job. As Nigel Parry, head of the World Bank mission to the Palestinian territories recently pointed out, the local economy is in such disarray that even the Palestinian Authority can no longer pay its civil servants and government employees.


Nigel Roberts placed the blame for Palestine's desperate poverty and stagnant economy squarely on the Israeli restrictions, closures, and continuing occupation.


Palestinian cabinet minister Hind Khuri said that international assistance is vital. "The situation is so bad that the government cannot possibly solve it on its own," she said. "In previous years, we received billions of dollars in financial aid, but due to the continuing occupation, the humanitarian situation is constantly worsening, and I cannot realistically foresee improvement without international aid," she added.

The Palestinian Authority had made significant progress in infrastructure and health care before the Intifada, but the Israeli Army's systematic destruction of water and sewer systems during the last five years wiped out virtually all the gains. Illness and malnutrition rates have risen.

In a phone interview, Nigel Roberts, the World Bank representative in the Palestinian territories, placed the blame for Palestine's desperate poverty and stagnant economy squarely on the Israeli restrictions, closures, and continuing occupation. When there is no movement of people, no flow of goods and services, there can be no viable economy.

"Stagnant" seems almost too mild a word for Gaza's moribund economy. But as long as the powerful forces in the First World refuse to apply serious pressure on Israel to ease its stranglehold on Palestine, Mrs. Audeh, and hundreds of thousands of other mothers in Gaza, will dream in vain of serving a few grams of chicken to their children.


**Khaled Mohammed A young journalist from Rafah, Gaza

The articles posted on this page reflect solely the opinions of the authors.

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