Israeli sanctions ‘will ruin plans to rebuild

[sPizor]

Donors from 90 nations gather in Paris today to pledge billions of dollars to rebuild the shattered Palestinian economy, but economists and human rights groups say that the huge cash injection will be wasted if Israel does not lift crippling roadblocks and travel restrictions.

Oxfam, the World Bank and the International Committee for the Red Cross (ICRC) have said that Israeli curbs on movement into and within the West Bank and Gaza Strip have strangled the Palestinian economy.

The situation is particularly dire in Gaza, which has been suffering a total closure of its borders by Israel and Egypt since the radical Islamist movement Hamas seized power there in June. The coastal territory’s economy has been effectively wiped out by six months of isolation.

“Without the political dimension, without sufficient pressure or concern to change the Israeli policy . . . the extra money is going to be of very little help,” Mike Bailey, of Oxfam, said in Jerusalem. “Development aid and investment into economic growth for the Palestinian state is going to be severely undermined, if not completely negated, by the current movement and access restrictions that we see within the West Bank and around the borders of Gaza.”
Blockade drains life from Gaza

The movement of goods into Gaza had been intermittent at best since Hamas won Palestinian elections early last year
Multimedia

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Background

* Q&A: Hamas and Gaza

* 97 days and counting for BBC's man in Gaza

* Now war is with the enemy within

* The little girl trapped by a quirk of war

Related Links

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* Analysis: Gaza sanctions may increase tension

Tony Blair has been charged with creating a growing economy since he became the international community’s co-ordinator in the region this summer. His job is to revitalise the Palestinian economy, allowing a viable state to emerge. Aid groups say that this is not possible without dramatic concessions by Israel, which is wary of Palestinian militants renewing their attacks on its cities.

In a rare public statement, the ICRC called on Israel to “lift the retaliatory measures that are paralysing life in Gaza”. It also urged Palestinian factions to stop targeting civilian areas.

Béatrice Mégevand-Roggo, the ICRC head of operations for the Middle East and North Africa, said: “The measures imposed by Israel come at an enormous humanitarian cost, leaving the people living under occupation with just enough to survive but not enough to live a normal and dignified life.”

At the donors’ conference in Paris, co-chaired by Mr Blair and regarded as the crucial economic counterpoint to last month’s peace summit in Annapolis, Maryland, governments will be asked to stump up $5.6 billion (£2.8 billion) for a three-year reconstruction plan. The World Bank, however, said in a report that if Israeli restrictions remained in place, the projected influx of cash would only slow a “downward cycle of crisis and dependence”. It said that even if donors pledged the full amount being asked but Israel did not lift roadblocks, the Palestinian economy would keep shrinking by 2 per cent a year. If, on the hand, the restrictions were seriously reduced, the plan could revitalise the Palestinian private sector and push growth into double digits.

The worst outcome would be a failure to secure full donations and the continuation of Israel’s strict closures. That scenario could trigger a sharp fall in growth and “the already growing poverty levels will rise dramatically”, the bank report said. But if there were full donor support and considerable easing of movement, it would revive the private sector and “drive growth rates to even double-digit levels”.

Life in poverty

- Palestinian GDP fell by more than 5 per cent last year to $1,700 (£840) per capita

- Unemployment among the four million Palestinians reached almost 24 per cent last year

- Last year the Palestinian Authority spent $1,022 million. Its total revenue over the same period was only $570 million

- The average hourly pay of a semi-skilled Palestinian worker is just under $1.5. In Israel it is $9.81

- The Palestinian Authority has received $10 billion in international aid since its formation in 1993

Source: HM Government report

[BloodY_HunteR]

thanks for the news, lets go for the meteo! LOL

[Ryan[ProFreshENT]]

wow, thanks 4 the news.

[Juggalette]

Nice copy & paste..

More of our money being wasted? Meh.