Economists and owners of lending institutions in Gaza reiterated that the recent war on the strip devastated the major industrial institutions and the private sector almost entirely.
Thus, they demanded the authority and the donors to move in an attempt to save this sector; in addition to compensating the affected and designing plans to ensure economic revival. During the workshop entitled “Gaza economy…the effects of the war and the siege”, organized this month by the Palestinian network for small lending in cooperation with the coordinating council of the private sector, speakers emphasized the need to initiate programs for reconstruction including the machine and equipment that had been completely destroyed.
They indicated that, according to the preliminary statistics, the damages caused for the industrial institutions reached 113 million dollars including mineral and food establishments.
They emphasized that the war was primarily economic; hence, it targeted the industrial and civil sectors providing the evidence of the deliberate Israeli attacks on the infrastructure of the economy in Gaza.
Heavy losses
An official at the general union of Palestinian industries, Amr Hamad, said: “the losses incurred in the private sector of the Gaza Strip since the Palestinian uprising till the recent Israeli war is more than 400 million dollars”. He added that the strip was exposed to a crisis which restricted its development over this period. Hamad said that the war had destroyed 700 institutions completely or partially.
To illustrate, the mineral enterprises were the most affected in terms of devastation magnitude while food establishments most affected in terms of costs. He added, “19 prefabricated concrete factories out of 72 projects were completely destroyed. In addition, in Gaza only, it has been recorded that 200 industrial establishments were destroyed excluding the 101 establishments which were destroyed in northern Gaza Strip”.
An official in charge of the general union of industries stated that most of the destruction was caused to the equipments and machinery as damaging ratio reached 50% out of 311 million dollars that are the losses of the enterprises during the war; pointing out that 27% of theses losses were the share of raw materials which is considered dangerous except the case in which the authority initiate other programs in the future.
Hamad pointed to the deliberate targeting of major factories in Gaza Strip during the war; he said; “the destruction of Al Wadiya- three factories which employ 100 people besides the concrete and gas factories in the strip demonstrate that the occupation deliberately targets the economic infrastructure”.
Losses of tunnels destruction
Eng. Ali Abu Shahla, official in the coordinating council of the private sector, illustrated that the closure of the crossing points resulted in the closure of 95% of Gaza factories belonging to the private sectors which were counted to be 3500 establishments; noting that before the war the capital in the strip had been eroded to half a billion out of 2 billion which represent the total share of Gaza in the amounts of these sectors capitals in the west bank and Gaza Strip, which reached 5 billion.
Abu Shahla raised the point of tunnels investment which has flourished in Gaza recently; explaining that it has negatively affected the banks, currency and the movement on the crossing points in the Stip. Abu Shahla said, “The number of the tunnels, before the war, reached 1100 recruited 6 workers on the Palestinian side.
These tunnels caused losses mounted to millions of dollars as a result of collapse or destruction by Israeli military aircrafts”. He pointed that the tunnels weakened the international pressure mounted on Israel to open Gaza crossing points as it helps bring in some types of goods; noting that the tunnels were the cause of a liquidity crisis that encounters Gaza banks since all types of currency are being transferred to the Egyptian side who not only accept it, but also trade it back to Israel”.
Claims and proposals
The private sector’s coordinator, who is also a member in one of the Palestinian dialogue committees, has pointed that the losses of the private sector as a result of the recent war were 1.5 billion dollars. Further, he demonstrated some reservations concerning the absence of a governmental movement either in Gaza or the West Bank to save and support it.
He added, “the migration of capital’ owners and the departure of the workers to other crafts as a result of closure and destruction is considered a huge loss that is difficult to compensate in the private sector; in addition, the war completely devastated the major gas and concrete factories in the strip”.
A member in the dialogue committee emphasized that any reconstruction or implementation for any operating programs in relation to all sectors would not succeed until the conflict ends.
Then, an agreement would be reached concerning a joint program to support the economy even if it was not the end for the political disagreement between both systems.Abu Shahla demanded the instatement of the security path till the establishment of a path between Gaza strip and west bank to support the economy in Gaza.
He also called the Palestinian authority to review “Paris agreement” with the occupation to determine the quantity and quality of the materials that the Palestinians import from outside.He suggested, at the end, to review the use of Israeli currency besides insuring its access; in addition to preventing Israel from exploiting it by mounting a pressure on the authority. Moreover, he pointed to the idea of expanding Rafah crossing point from the west side to be a path for both people and goods in an attempt to be liberated from occupation’s control “the idea is previously put forward by the world bank”.
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