Economical situation in Gaza Strip

            In the beginning, I will not write statistics about this topic but  I concern this in generally,  I f you interested ab...

           

In the beginning, I will not write statistics about this topic but I concern this in generally, If you interested about this statistics, you can read the Economic Forecast Report, 2007 issued by Palestinian monetary Authority.

The general economic situation in Gaza Strip is almost nonexistent due to several factors, most prominently: 

(1) Continuation of the split between the two regions of homeland: 

 This is the major factor which is leading to the political instability that constitutes a direct obstacle of economic growth. In 2007, Hamas controlled the Palestinian Authority institutions in Gaza Strip and the Palestinian Authority  in west bank did not acceptable for this and the international community considered this control illegal, so there are many countries boycotted dealing and lack of sense of responsibility with Gaza Strip.

 (2)Weakness of Gaza Strip institutions:

 This factor is a result of the previous factor, the weakness of the public sector, coupled with the inability of the private sector to act as an engine of economic growth.

 (3) Sanctions imposed on Gaza Strip:

The israeli-imposed measures and obstacles on Gaza Strip, which their adverse impact on investor confidence, there is not enough electricity needed for institutions and the unemployment rate is increasing.

 (4) Siege and blockade:

 The ongoing israeli siege and blockade of Gaza Strip (GS) alongside the closure of Rafah Crossing, Which adversely impact the trade exchange and overall economic activity in the Strip.

I think the typical solutions for this situation is: 

 (1) Start the unification of the two parts of the homeland (Reconciliation) and Agreement on a national unity government that can work professionally to rebuild institutions.
 (2) Pressure on the international community to lift the siege and blockade on Gaza Strip to facilitate commercial traffic. 
(3) Strengthening Egyptian-Palestinian relations and full opening of Rafah Crossing and working to maintain public security.
 (4) Encouraging investors and provide them with some facilities to build productive projects that would push the economy forward and reduce unemployment.

Finally, we know the israeli-occupation is the main reason that effects the developing process of our economic situation, However There is no occupation in the world that can prevent people for developing themselves but there are people who prevent themselves for developing.

HussamEdeen A. Muhaisen