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National Early Recovery and Reconstruction Plan for Gaza 2014-2017_FINAL

National Early Recovery and Reconstruction Plan for Gaza 2014-2017_FINAL

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373.3 Economic SectorThe private sector in <strong>Gaza</strong> has undergone more than a decade of strife since 2000. The nearly complete halt in imports to <strong>and</strong>exports from <strong>Gaza</strong> after 2007 resulted in a dramatic drop in manufacturing <strong>and</strong> agricultural outputs, as most items essential toprivate sector revitalization remain on banned lists <strong>and</strong> are inaccessible.Although the blockade was slightly eased in 2010 to allow imports of consumer goods <strong>and</strong> construction materials <strong>for</strong> donorfunded projects, restrictions on imports of construction <strong>and</strong> raw materials to the private sector are still fully in place; similarly,exports to the West Bank <strong>and</strong> Israeli markets, which traditionally absorbed around 85 percent of <strong>Gaza</strong>’s exports, are still restricted.Combined with the destruction of the tunnels that were the only other unofficial supply line <strong>for</strong> <strong>Gaza</strong> (enabling an estimated$700 million annual trade), the blockade has effectively suffocated the economy. Significantly, engagement in innovative <strong>and</strong>business-upgrading activities has dropped among Palestinian firms in recent years, driven primarily by diminished levels ofactivity among <strong>Gaza</strong> firms.The most recent assault has been a further, severe shock. Thous<strong>and</strong>s of factories <strong>and</strong> commercial establishments are damaged ordestroyed <strong>and</strong> the agricultural <strong>and</strong> fishing industries are in ruins. Unemployment, which was already at unacceptably high levels,has been exacerbated. Sustainable recovery will require significant ef<strong>for</strong>ts to generate private sector-led growth.3.3.1 Agriculture <strong>and</strong> FishingPrior to the AssaultSince the 1990s, agriculture in <strong>Gaza</strong> has been in a steady <strong>and</strong> serious decline. While Israeli military restrictions on access <strong>and</strong>movement have been destructive in all economic sectors, the agricultural sector has been one of the worst hit. Seventeenpercent of <strong>Gaza</strong> is largely off-limits, including 35 percent of its agricultural l<strong>and</strong>, while more than 3,000 fishermen do not haveaccess to 85 percent of the maritime areas agreed in the 1995 Oslo Accords. As a result, fewer crops are now grown <strong>and</strong> the fishcatch has decreased dramatically. Overall, l<strong>and</strong> <strong>and</strong> sea restrictions affect 178,000 people, 12 percent of <strong>Gaza</strong> residents, <strong>and</strong> resultin annual estimated losses of almost $80 million from agricultural production <strong>and</strong> fishing.

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