The Economic Situation in Gaza: Facts and Figures

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Is the Israeli and Egyptian blockade of Gaza causing consequences as dire as those described by the human rights organizations? U.S. Secretary of State Hillary Clinton said in testimony before Congress on April 22, 2009, that the situation in Gaza is different from how it has been described. In response to a question by Congressman Keith Ellison (D-Minn.), Clinton said: "Congressman, the crossings are no longer completely closed. There are many items that are being transported through the crossings....We have looked at the lists and a lot of what has been said was not permitted to cross [into Gaza] is just not accurate."12
A survey by Israel's Coordinator of Government Activities in the Territories presents the scope of connections between Israel and Gaza in 2009:13
  • Health: 10,544 patients and their companions left Gaza in 2009 for medical treatment in Israel. 4,883 tons of medical equipment and medicines entered Gaza that year in coordination with the Palestinian Authority and international agencies. Israel helped the Palestinian Authority stem the spread of avian (bird) flu in Gaza; 44,500 doses of vaccine were sent to Gaza through the World Health Organization, and three patients left Gaza for medical care in Israel. In addition, two elevators were transferred to hospitals in Gaza, as well as mammogram equipment for breast cancer detection and a computerized CT system.
  • Electricity: Israel continued to supply electricity to Gaza from its power plant in Ashkelon. In addition, 41 truckloads of equipment were transferred for the maintenance of the electrical system in Gaza. Between April and October 2009, Siemens carried out maintenance work on the power system in Gaza, to which more than 100 million liters of diesel fuel were delivered for its operation.
  • Communications: 45 truckloads of communication equipment were sent to Gaza at the request of the Palestinian Authority.
  • Water and sewage: 95 truckloads of equipment for water and sewage systems, as well as 3,720 tons of chloride for water purification, were transferred during 2009. Israel assisted the North Gaza Wastewater Treatment Plant Project by transferring 48 truckloads of equipment for the project.
  • The private sector: 77 percent of the contents of trucks sent into Gaza in 2009 were for the private sector. 257 Palestinian businessmen exited Gaza to Israel, the West Bank, and abroad. 10,871 head of cattle were transferred to Gaza, mainly for the Ramadan and Eid al-Adha holidays. In preparation for winter, 3,607 tons of glass for windows was transferred to Gaza.
  • Money: Over NIS 1.1 billion (approximately $300 million) was transferred to Gaza in 2009 to fund salaries and the activities of international organizations. In addition, NIS 40 million (approximately $10 million) in worn banknotes were replaced. In February 2010, Israel and the Palestinian Authority reached an agreement on the transfer of social security payments and pensions to beneficiaries in Gaza who have worked in Israel. The money is to be transferred to Palestinian banks in the West Bank, and the Palestinian Authority can then deliver the money to beneficiaries in Gaza.
  • Humanitarian aid: 141,390 tons of humanitarian aid were transferred by the international community through Israel, including 115,043 tons of food and 2,990 tons of medicines and medical equipment.
  • Entry of international organizations: 21,200 foreign staff members and over 400 diplomatic delegations entered Gaza in 2009.
  • UNRWA: 3,282,000 liters of fuel and diesel were transferred for use by UNRWA. In addition, special equipment for summer camps, including swimming pools, ice cream machines, musical instruments, and sports equipment were transferred to UNRWA.
  • Agricultural export: The export of flowers and strawberries was approved as part of a joint project with the government of the Netherlands. Since the beginning of the project, more than 7 million flowers and 54 tons of strawberries were exported.
  • Leaving Gaza: As noted, 10,544 patients (and their companions) exited Gaza. 147 students exited Gaza for academic studies abroad, in response to requests made by the international community. 374 Christians exited Gaza to spend Christmas in Israel and Bethlehem, while 100 Christians exited Gaza to participate in the pope's visit to the Holy Land in May 2009. 17 representatives exited Gaza to participate in the Fatah General Convention in Bethlehem, and approval was given for players on the Palestinian soccer team to leave Gaza for training and friendship games in the West Bank and abroad.
    According to the report of the Coordinator of Government Activities in the Territories, a total of 7,233 truckloads of humanitarian aid from the international community passed from Israel to Gaza in 2009. In addition, the Crossings and Border Authority of Hamas also published a report detailing the traffic through the border crossings for 2009, showing that 63,480 people passed through the Rafah crossing to and from Egypt during the year.14
 
The Flow of Funds to Gaza under the Hamas Government
The governor of the Central Bank of the Palestinian Authority, Jihad al-Wazir, reported that since June 2007 (the date of the Hamas military takeover of Gaza), overall monetary transfers to Gaza have totaled over $5 billion from governmental and extragovernmental sources.15 He was referring to the funds sent to pay the salaries of civil servants in Gaza, international organizations operating in Gaza such as UNRWA, and foreign communication networks that operate in the Strip. Al-Wazir confirmed that 56 percent of the PA budget is designated for Gaza. Mahmoud Abbas told the Saudi newspaper Al-Watan on December 31, 2009, that the Palestinian Authority in Ramallah transfers 58 percent of its budget to the Hamas government to pay its expenses for electricity and water, while the Hamas government collects taxes from the residents for the services that it receives for free. He stated that the import tunnels under the Gaza border provide all the consumer goods required in Gaza, except for iron and cement.16
Gaza receives additional aid funds directly from Iran and the Arab countries. The Hamas government's health minister, Bassam Naim, reported on March 21, 2010, that the Hamas government received a grant of $40 million from the Islamic Development Bank and the Qatar Red Crescent Society to purchase equipment for the hospitals in Gaza.17
In addition, the Hamas government also benefits from aid that is given on the purchase of goods and services for Gaza. Until November 20, 2009, the European Union paid the cost of industrial diesel fuel to operate Gaza's power plant, an amount estimated at NIS 50 million per month (over $13 million), for a total exceeding $156 million per year.18
The Hamas government also receives funds to cover the cost of electricity that is supplied by Israel.19
...and that doesn't include the stuff smuggled in the tunnels when they are not smuggling rockets and weaponry

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