Tuesday, December 12, 2023

Palestinian economy severely impacted by Israel-Hamas war: World Bank

Washington (AFP) – The Israel-Hamas war in Gaza is having a severe impact on the Palestinian economy, the World Bank said Tuesday, adding that a sharp economic contraction is likely this year and next.


AFP
Issued on: 12/12/2023 
© MAHMUD HAMS / AFP

The conflict, sparked by Hamas' cross-border attacks on October 7 that killed 1,200 people, according to Israeli figures, and saw around 240 hostages taken back to Gaza, is now dragging on into its third month.

The human toll of Israel's fierce response has been extreme: More than 18,400 people in Gaza have been killed, the majority of them women and children, according to the Hamas-run health ministry.

The UN estimates 1.9 million of Gaza's 2.4 million people have been displaced by the war, half of them children, as Israel's overwhelming aerial bombardment in the days after October 7 was subsequently accompanied by a ground invasion aimed at destroying Hamas.

UN agencies and aid groups fear the Palestinian territory will soon be overwhelmed by starvation and disease, and are pleading with Israel to boost efforts to protect civilians.

Beyond the immediate human cost, the Israel-Hamas conflict has also "severely impacted the Palestinian economy," the World Bank announced in a statement published Tuesday.

Gaza's contribution to the overall Palestinian economy, which includes the West Bank, had already shrunk from around 36 percent in 2005 to just 17 percent last year, according to the Palestinian Central Bureau of Statistics.

Israel's fierce response to the Hamas attacks on October 7, along with the shuttering of its borders to Palestinian workers from both Gaza and the West Bank, is likely to severely impact the Palestinian economy, according to the Bank.

Despite Gaza's small economic contribution, the World Bank now expects the overall Palestinian economy to contract by 3.7 percent this year, down sharply from its pre-war forecast of a 3.2 percent increase.

Next year, the situation is expected to be even worse.

Whereas the World Bank previously anticipated growth of 3.0 percent in 2024, it now expects an overall contraction of 6.0 percent -- on the assumption that the severity of the conflict decreases next year.

If the war drags on, the economic impact could deteriorate further.

In response to the conflict, the World Bank has announced some financial support aimed at meeting the immediate needs of the population in Gaza.

On Tuesday, the development lender announced an additional $20 million in funds for medical care, humanitarian needs, and financing for food vouchers and parcels in the besieged Palestinian territory, on top of the $15 million already delivered.

The package, some of which required approval by the Bank's board of directors, will provide "emergency relief for the affected people of Gaza," the World Bank said.

© 2023 AFP


Middle East leaders have few answers for 'day after' Gaza war


Doha (AFP) – Middle East leaders gathered in Qatar sought ideas for what happens after the Gaza war, but remained firmly opposed to putting their own troops or international forces into the ravaged territory.

Issued on: 12/12/2023 - 
The Gaza war has claimed more than 18,000 lives, according to the Hamas-run health ministry 
© Menahem KAHANA / AFP

The Palestinian question is extremely delicate for leaders in the Arab world, where the war has sparked massive protests in several countries.

At the annual Doha Forum that ended Monday, Qatar reiterated that no Arab country would send in forces to stabilise the situation after the guns of Israel and Hamas fall silent.

"No one from the region will accept... to put boots on the ground (following after) an Israeli tank. This is unacceptable," said Qatar's Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani.

But he also opposed any international force in Gaza under current conditions. "We shouldn't always talk about the Palestinians as if they need some guardian," he said.

The Palestinians were represented by the Palestinian Authority, which has power in the Israeli-occupied West Bank territory, but not Gaza, which is in the hands of Hamas militants.

Despite their rivalry, Palestinian Authority prime minister Mohammad Shtayyeh said Hamas could not be eradicated.

Thani said no regional power would put troops into Gaza after the war 
© SALIM MATRAMKOT / AFP

They are "an integral part of the Palestinian political mosaic," he told the forum.

Yet, eradication is precisely what Israel is seeking with its war -- in retaliation for Hamas's unprecedented attack of October 7 which killed 1,200 people and saw some 240 hostages taken back to Gaza, according to Israeli figures.

The ensuing Israeli offensive has killed more than 18,400 people in Gaza, according to the Hamas-run health ministry.

On Tuesday, Israeli Prime Minister Benjamin Netanyahu said following a conversation with US President Joe Biden that there was "disagreement" between the allies over "the day after Hamas".

The Israeli premier said he hoped "we will reach agreement here" but he vowed not to "repeat the mistake of Oslo," referring to 1993 peace accords signed in the United States.
'Heart of all conflicts'

Jordan's Prime Minister Bisher Khasawneh warned that failure to deal with "the day after" the war would mean "uglier scenes in a year or two".

He hoped the war would act as a "wake-up call", especially as the conflict threatens a wider regional conflagration.
The war has sparked mass protests around the region 
© FADEL SENNA / AFP

The war has encouraged groups linked to Iran, which backs Hamas, to launch attacks on US and allied forces in Iraq and Syria, while Yemen's Huthis have fired missiles and Israel is engaged in near-daily cross-border clashes with Hezbollah in Lebanon.

The Israel-Palestinian question is "at the centre and the heart of all conflicts in the region," said Sheikh Mohammed.

"What's coming out of Gaza every day is not just affecting those forces in Lebanon or Yemen. It also affects an entire generation that might be radicalised because of these images," the Qatari premier added.

But concrete policies were lacking at the forum, which excluded high-level representatives from key regional players Saudi Arabia, Lebanon and Egypt.

The United States, Israel's key diplomatic and military ally, has previously indicated the Palestinian Authority could govern both Gaza and the West Bank in the aftermath of hostilities.

But the Palestinians say a much more fundamental response is needed, one that takes seriously "an independent, sovereign, viable state of Palestine on all the Palestinian territories" in Shtayyeh's words.

Jordan's premier said the war should be a 'wake-up call' to the region 
© SALIM MATRAMKOT / AFP

Qatar, which hosts the Hamas leadership, said it is still working on a fresh truce like the one last month that saw a one-week break in fighting and scores of Israeli hostages exchanged for Palestinian prisoners and humanitarian aid.

But Sheikh Mohammed warned Israel's relentless bombardment in Gaza was "narrowing this window" for a ceasefire.

"There is a collective responsibility on all of us to stop the killing, to go back to the table to find a lasting solution," he said.

© 2023 AFP

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