The Governance of Aid to Palestine After the War on Gaza

A sustainable and vibrant Palestinian national economy has always been hampered by Israel’s economic interests, enshrined in the 1994 Paris Protocol. In the West Bank, the Palestinian economy has been stifled by movement restrictions, territorial fragmentation, and ever-expanding settlements and settler infrastructure. In the Gaza Strip, the blockade imposed by Israel in 2007, has resulted in disastrous levels of economic ”de-development” and reliance on humanitarian assistance.1. 

Israel’s blockade of the Gaza Strip has shaped the economic climate and conditions impacting over 2 million Palestinians living there. From 2005-2023, the blockade effectively isolated Gaza Strip from the rest of Palestine, leading to a significant loss of many of its domestic trade links as well as severe restrictions on its import and export capacities. Additionally, the blockade resulted in the loss of vast amounts of cultivable land, crippling the agricultural sector and other local industries and exacerbating poverty and food insecurity. Israel also prohibits the construction and operation of air or seaports and restricts the import of critical production inputs and technology.

The Gaza Strip has been routinely subjected to Israeli military attacks, the largest and most disastrous of which has been ongoing since October 2023. Previous offensives (in 2009, 2012, 2014, and 2021) caused tremendous loss of life, injury, and internal displacement as well as recurrent destruction of all physical infrastructure—from residential and commercial units to educational facilities, healthcare centers, irrigation canals, water pumping systems, electricity networks, internet networks, and factories. These operations also damaged capital stock and productive assets, including agricultural lands, crops, livestock sheds, greenhouses, fruit trees, storage facilities, boats, fishing equipment, and agribusinesses.

Israel’s blockade and continuous military incursions on Gaza Strip have had dire economic consequences. As of 2022, Gaza Strip’s GDP was a mere 17.4% of the total Palestinian economy, its aid dependency had reached 80% and the unemployment rate hit a staggering 45%.2. These grave indicators have worsened considerably since, as documented in MAS and international publications issued so far.3