UN Report: Gaza and West Bank's Economy Pushed Back Over a Decade by Ongoing Conflict
UN report reveals devastating impact of war on Gaza and West Bank economy, pushing it back over a decade The released findings by UNDP highlight the dire economic conditions faced by the Palestinian enclave
According to a recent analysis by the United Nations Development Programme (UNDP), Israel's military actions against Hamas have the potential to severely damage the Palestinian economy in Gaza and the West Bank for many years. The organization's report, released on Thursday, presents a bleak outlook on the economic conditions in the Palestinian enclave. The report takes into account the high casualty toll, with over 10,700 people reported dead as a result of the Israeli response to the terror attack on October 7, as stated by the Palestinian Ministry of Health in Ramallah, which gathers information from sources within the Hamas-controlled enclave.
According to Abdallah Al Dardari, director of the UNDP Regional Bureau for Arab States, the latest conflict has led to a significant increase of 300,000 Palestinians living in poverty. The United Nations Relief and Works Agency reports that nearly 1.5 million individuals in Gaza have been displaced since the onset of the fighting last month. Furthermore, Israel's blockade on fuel, coupled with severe limitations on the distribution of food, water, and medical supplies, has resulted in a pressing humanitarian crisis.
According to a UNDP analysis, key economic indicators such as employment rates and GDP have significantly declined in both Gaza and the West Bank.
The report highlights that the recent conflict has resulted in a 61 percent reduction in employment in Gaza and a 24 percent reduction in the West Bank. Additionally, Palestinian GDP is estimated to have dropped by 4.2 percent, amounting to a loss of approximately $857 million compared to pre-war projections.
If the war continues for another month, the projected GDP loss would increase to $1.7 billion, representing an 8.4 percent decline.
"That is enormous," exclaimed Al Dardari during an interview. "Having monitored and written about conflicts for three decades, I have never witnessed such an astonishing upheaval transpire in such a brief interval," he divulged to CNN.
A bakery destroyed by Israeli airstrikes at Nuseirat Refugee Camp in Deir al Balah, Gaza on October 18, 2023.
Ashraf Amra/Anadolu/Getty Images/File
In 2020, the World Bank reported that 61 percent of Gaza's population was living below the poverty line, indicating the pre-existing severe poverty in the region even before Israel's October campaign. Gaza, home to approximately 2 million people, has faced significant restrictions on access imposed by Israel and Egypt for the past 17 years, leading to its characterization by NGO Human Rights Watch as an "open-air prison."
The economic downturn has worsened due to the recent outbreak of war.
According to a report by the UNDP, the number of individuals living in poverty in Gaza and the West Bank has increased by almost 20 percent after one month of fighting. Al Dardari predicts that if the war were to continue for another month, the overall rise in poverty-stricken population would surpass 34 percent, equating to an additional 500,000 individuals.
The densely developed area has suffered extensive structural damage during the four-week Israeli campaign. According to the United Nations Office for the Coordination of Humanitarian Affairs, approximately half of the housing stock has been damaged or destroyed by the bombardment, and 40 percent of educational facilities have been damaged.
According to a report by the United Nations Development Programme (UNDP), the conflict so far is expected to result in an 11 to 16-year setback in "human development" across Gaza and the West Bank. This estimation is based on a UNDP assessment of educational, health, and economic indicators that contribute to the states score on the Human Development Index.
If the fighting were to persist for another month, the Palestinian economy would suffer a setback equivalent to 19 years of development, according to Al Dardari.
"That implies that Palestine would regress to the state it was in during 2001 or 2002," he explained. "All the investments made by the international community and the Palestinian people in areas such as healthcare, education, economic growth, and business would be rendered null and void, erasing all progress achieved since 2002."
Israeli officials have not provided any explicit information regarding the anticipated duration of the military campaign in Gaza. However, they have consistently expressed that the operation is expected to be protracted, with the objective of completely eradicating Hamas through the combined efforts of airstrikes and ground attacks. Just this Wednesday, Israeli Prime Minister Benjamin Netanyahu restated his stance, asserting that he would not endorse a ceasefire until the approximately 240 individuals held captive in Gaza were freed.
Questions have recently been raised about the management of Gaza after the war, following Netanyahu's statement on Monday that Israel should have an "overall security responsibility" in the Palestinian enclave indefinitely. His advisors clarified that Israel would aim for security control rather than governing power in the region.
Due to the uncertainty surrounding the duration of the campaign, UNDP has not provided an estimate of the reconstruction costs in Gaza once a ceasefire is reached. Al Dardari mentioned that UNDP would probably participate in rebuilding the damaged enclave eventually, but he cautioned that the process would be complicated if Israel's blockade continues.
"From a technical point of view," he said, "a massive reconstruction exercise and a blockade dont go hand in hand."
In the midst of the Israel-Palestinian conflict, Palestinians can be seen riding on animal-drawn carts while civilians are seeking refuge in the south, departing from the north of Gaza. This scene was captured on November 9, 2023, in the central Gaza Strip by Mohammed Salem, a photographer working for Reuters.
