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Tuesday, November 01, 2005
FEATURE-Border closures shut door on Gaza revival hopes
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FEATURE-Border closures shut door on Gaza revival hopes
01 Nov 2005 22:30:05 GMT
Source: Reuters
By Jui Chakravorty
GAZA, Nov 2 (Reuters) - Palestinian construction magnate Mahmoud el-Farah wishes he could buy his cement direct from Turkey now that Israeli troops have left the Gaza Strip.
However, all imports and exports still have to go through Israel because of its concern that militants could smuggle in weapons -- a cause of continued frustration for Gaza businesses and a threat to the economic gains from the Israeli withdrawal.
"Sometimes we have items sitting at the Israeli port for six months," Farah complained, describing the delays to which he and other Gaza businessmen have become resigned.
For Farah, it makes planning difficult. For those dealing in perishable goods, such difficulties can spell ruin.
The hope in Gaza and abroad was that the Israeli pullout might bring about economic revival and turn the territory into an example for Palestinian statehood as a way of strengthening prospects for peace.
Although Israel ended its 38-year military rule on Sept. 12, to Palestinian celebrations, passage to and from Gaza has, if anything, become more difficult since then.
Complaining that Israel needed to do more to help, international envoy James Wolfensohn noted that the number of trucks carrying exports from Gaza to Israel had dropped from 35 a day before the pullout to a mere handful.
"We must of course assure security for Israel -- but the best security will be hope and work for the Palestinians," said Wolfensohn in a leaked letter to the quartet of international mediators that back a U.S.-sponsored peace "road map".
LESS THAN $2 A DAY
More than 65 percent of Gaza's nearly 1.4 million people live on less than $2 a day, and over 35 percent are unemployed, according to the Palestinian Central Bureau of Statistics.
The economy has collapsed since the start of the Palestinian uprising in 2000, crippled by border closures that Israel says prevent militant attacks and sapped by years of corruption and mismanagement under the Palestinian Authority.
Israel says it is worried at the prospect of arms being smuggled to militants in the Gaza Strip and the possibility that suicide bombers could sneak from there into Israel.
"On the economic front, we will be as forthcoming as we can," said Mark Regev of the Israeli Foreign Ministry.
"We understand there are real needs, and we'll do what we can, but we can't just open up the borders immediately, because of security concerns. We'll do things incrementally."
The situation has been complicated by a series of flare-ups that have hampered talks on crossings since Israel left.
"As far as business is concerned, the pullout didn't mean anything," said Gaza economist Salah Abdul-Shafi.
Israel has agreed to a new crossing point for goods at Kerem Shalom, the junction of its borders with Gaza and Egypt -- although it would not be expected to open for about a month.
Any goods passing into Gaza through Kerem Shalom will still be inspected by the Israelis.
Palestinians have said they could accept such an arrangement in the short term, but they ultimately want unfettered access through the border to Egypt, as well as at their airport and sea port, plus safe passage to the West Bank.
The airport was destroyed during the uprising. The two sides are in talks on building a new port for ships but do not agree on how it will be managed.
REDUCE DEPENDENCE
The eventual Palestinian aim is to reduce the dependence Gaza built up on Israel's far more prosperous economy since the territory was captured in 1967.
Grocery stores along the dusty streets of Gaza have shelves stacked with products made in Israel. Hebrew writing adorns everything from shampoo to dairy products.
Rather than trying to import goods from further afield and have the headache of guiding them through Israeli ports and then the crossings to Gaza, many local businessmen buy direct from Israel, which also deprives the Palestinian Authority of revenue because of its "customs envelope" deal with Israel.
More than 75 percent of Palestinian imports come from Israel and more than 95 percent of its exports are sold to Israel, said Mahmoud Samhouri, economic adviser to the Palestinian Foreign Ministry.
"We'd like to see that percentage change once we have our own outlets, such as an airport or a port, or when we have more freedom of movement across the borders," he added.
Israel has said it could accept such steps eventually, but agreement looks far off while violence continues.
The immediate worry for Gaza is the coming harvest.
It will be augmented this year by produce from greenhouses abandoned by evacuated Jewish settlers, who built a thriving business in Gaza supplying fruit and vegetables to Europe.
Foreign donors bought the greenhouses from the settlers and they were quickly replanted by the Palestinians with tomatoes and peppers, set to ripen over the coming weeks.
The greenhouses alone have created an extra 3,000 jobs and will provide estimated additional annual revenue of $50 million. But to reap the rewards, about 150 trucks a day must bring the crops out of Gaza.
Otherwise, the harvest is likely to go to waste.
"Commercial success will depend to a significant extent on adequate export arrangements," said Wolfensohn. "Time is short, and optimism is a fragile commodity."
http://www.alertnet.org/thenews/newsdesk/L30682016.htm
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