February 1, 2009

End the Embargo on Gaza

Report of the International Committee of the Red Cross

The root cause of the seriously deteriorated economic situation of the Gaza population is restrictions. There are restrictions on inputs to produce food and goods; restrictions on movement to access land and sea to grow and harvest food; and restrictions on moving and marketing food and finished products. The cumulative effect of all these restrictions have led to a progressive increase in food insecurity for a large proportion of the population. The situation as it currently stands is unsustainable and the recovery of employment opportunities is fundamental for the economic and social well-being of the population.

Go here for more assessments by the International Red Cross on conditions in the Gaza Strip.

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EXCERPT: CONCLUSIONS of the ICRC Household Economy Assessment on Gaza Strip May-July 2008

Vulnerable groups include fisher folk, farmers, and the unemployed. The "chronic" poor include fisher folk and farm labourers, and the long-term unemployed. Medium wealth group boat owners, low-middle wealth group farmers and the skilled newly unemployed have seen their livelihoods deteriorate steadily since the onset of the embargo and so are thus considered the new poor.

The most food insecure fishermen are the 1,100 living in Khan Younis and Rafah areas, where the restrictions are tightest. The entire farming sector is highly deteriorated, but farmers in the Buffer Zone and especially those in the South, have been much worse affected, because of their inability to plant and / or take care of their lands, due to repeated incursions and destruction over the last two years. The "poor" and "very poor" households who did not receive regular food aid, largely made up on non-refugee Gazans, have relied to a higher degree on loans/transfers and/or sale of assets, than those in the same wealth group who are included in food distributions. There needs to be better targeting of these groups, as they remain one of the most food insecure.

The loss of job opportunities and the increase in the cost of living, by no less than 40% since May 2007, has necessitated the prioritisation of household expenditures. Now, 60 to 74% of household expenditures are devoted to food for more than half of the population, while incurring heavy indebtedness and over-reliance on family support. Mitigating factors that have prevented the total collapse of the economy are the resumption of payment of salaries to the public sector employees and the continued and increased provision of humanitarian assistance. The dependency ratio is becoming alarmingly high in Gaza – each person earning an income is now supporting, on average, 8.6 others. This situation has the potential to actually ensnare the employed in a downward spiral which will result in more people slipping in to the vulnerable categories.

Though before June 2007 most of the poor households were already having a very limited diet diversity, the embargo has had a devastating effect for a large proportion of households who progressively have had to make major changes in the composition of their food basket, shifting towards the low cost high energy cereals, sugar and oils and away from the higher cost animal products, fruits and vegetables. When the annual consumption of the various foods is converted to kcal per person per day, households were obtaining more than 80% from cereals (primarily wheat flour), sugar and oil. The actual food basket is considered to be insufficient from a nutritional perspective, the exposure to micronutrient deficiencies is increased which, in turn, will affect their health and well being in the long term. In Gaza, food insecurity and undernutrition, including micronutrient deficiencies, occurs in the absence of overt food shortage. Chronic malnutrition is on a steadily rising trend and micronutrient deficiencies are of great concern, particularly iron, iodine and Vitamins A and D.

No improvement in the actual situation is foreseen without a rapid resolution of the current crisis. If the embargo is maintained, economic disintegration will continue and wider segments of the Gaza population will become food insecure. The unemployment levels will increase (private sector workers, agriculture and fishery labourers). If this scenario plays out, then reliance on humanitarian assistance, transfers/remittances and household indebtedness will become the primary sources of income and food. How long such a situation could be sustained is uncertain.

The removal of restrictions on trade, restoration of the ability of people to move freely throughout Gaza and the reinstatement of normal maritime limits can reverse the trend of impoverishment, however, the prolongation of the restrictions risks permanently damaging households’ capacity to recover and undermines their ability to attain food security in the long-term.

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69. Male population in most Shoka communities have to overnight in nearby villages or in Rafah city, as they fear the frequent IDF incursions; only children, women and the elderly remain at their homes.

70. Fayyad government remains the largest contributor to Gaza’s salary bill, with a monthly total of USD 94 million to 77,000 people. Source: ICG

71. The dependency ratio can be defined as the number of people supported by one income.