Ref: 30/2008

Date: 17 August  2008

PCHR publishes report on ‘Destruction of Gaza Economy’

The Palestinian Center for Human Rights (PCHR) is publishing an investigative report on the “Destruction of Gaza’s Economy.” Focusing on Gaza’s economy during the period 15 June 2007 -14 June 2008, the report highlights the continuing impacts of the Israeli Occupation Forces (IOF) siege and closure of the Gaza Strip,

The report concludes that successive strategic decisions taken by IOF to tighten the siege imposed on the 1.5 million civilians of the Gaza Strip represented the final blow to Gaza’s already seriously damaged economy. These decisions deliberately inflicted heavy blows on Gaza’s depleted economic sectors, causing further unsustainable losses. In addition, the report also reviews the massive and systematic destruction as a result of IOF’s continuing collective punishment of the civilian population of the Gaza Strip. The continued closure of the six Gaza Strip crossings, and draconian restrictions of the supply of goods, have ruined Gaza’s economic sectors, further exacerbating chronic unemployment and poverty levels.

The report findings include:  

• IOF decision to tighten the siege of the Gaza Strip since June 2007 has devastated Gaza’s economy, by enforcing unsustainable restrictions on deliveries of industrial, agricultural, fishing and constructions sectors materials. Only basic levels of goods were permitted to enter Gaza, insufficient to meet the overall needs of the civilian population. In addition, IOF prevented the export of Gaza’s commercial products. Minimal amounts of strawberries and cut flowers, amounting to less than 10% of the overall amounts produced, were permitted to be exported via Israel during the reporting period.
• IOF also severely reduced fuel supplies to Gaza. An average of 6.5% of Gaza’s daily requirement of benzene, 23.1% of diesel and 37.6% of cooking gas were imported during the reporting period.
• Continuing restrictions on imports of construction materials, including aggregate, iron and cement, caused the near complete destruction of the construction sector. Out of Gaza’s 120 registered construction companies, only five companies survived the reporting period. An estimated 42,000 construction workers were laid off.
• The losses sustained by the construction sector and related industries has been estimated at some $58 million. Construction and infrastructures projects valued at $240 million were suspended during the reporting period.
• Sustained losses of wood and furniture industries have been estimated at $110 million. Workshops and factories have been forced to close due to lack of materials, and exports being denied. As a direct result, some 6,600 people working in the sector were laid off during the reporting period.

Finally, the report presents recommendations that, if rigorously applied, could actively contribute to alleviating the total collapse of Gaza’s economy. These include the responsibility of the international community to excerpt effective pressure on IOF to end their destructive siege of the Gaza Strip, and to commit without delay to the provisions of International Humanitarian Law and International Human Rights Law.