9/12/06

Bleeding Palestine Financially

It is not the Israeli incursions alone that are destroying Gaza and its people. In the understated prose of a World Bank report published last month, the West Bank and Gaza face "a year of unprecedented economic recession. Real incomes may contract by at least a third in 2006 and poverty to affect close to two thirds of the population." Poverty in this case means a per capita income of under $2 a day."

It is the worst year for us since 1948 [when Palestinian refugees first poured into Gaza]," says Dr Maged Abu-Ramadan, a former ophthalmologist who is mayor of Gaza City. "Gaza is a jail. Neither people nor goods are allowed to leave it. People are already starving. They try to live on bread and falafel and a few tomatoes and cucumbers they grow themselves."

The few ways that Gazans had of making money have disappeared. Dr Abu-Ramadan says the Israelis "have destroyed 70 per cent of our orange groves in order to create security zones." Carnations and strawberries, two of Gaza's main exports, were thrown away or left to rot.

An Israeli air strike destroyed the electric power station so 55 per cent of power was lost. Electricity supply is now becoming almost as intermittent as in Baghdad.

The Israeli assault over the past two months struck a society already hit by the withdrawal of EU subsidies after the election of Hamas as the Palestinian government in March. Israel is withholding taxes owed on goods entering Gaza. Under US pressure, Arab banks abroad will not transfer funds to the government.

Two thirds of people are unemployed and the remaining third who mostly work for the state are not being paid. Gaza is now by far the poorest region on the Mediterranean. Per capita annual income is $700, compared with $20,000 in Israel.

[Excerpt of an article by Patrick Cockburn in Gaza, The Independent]

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