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| UK to double aid to Gaza and West Bank in bid to boost Palestinian export trade | UK to double aid to Gaza and West Bank in bid to boost Palestinian export trade |
| (4 months later) | |
| Britain is to double aid for economic development in Gaza and the West Bank over the next five years as part of its efforts to improve the Palestinian economy. | Britain is to double aid for economic development in Gaza and the West Bank over the next five years as part of its efforts to improve the Palestinian economy. |
| The new aid programme, worth £38m from 2018 to 2023 – compared with £16m in the previous five years – was disclosed by Alistair Burt, the Middle East minister. | The new aid programme, worth £38m from 2018 to 2023 – compared with £16m in the previous five years – was disclosed by Alistair Burt, the Middle East minister. |
| But economists and exporters in Gaza said aid was not sufficient in itself, and warned that only by applying political pressure on Israel would the main barriers to trade be lifted. | But economists and exporters in Gaza said aid was not sufficient in itself, and warned that only by applying political pressure on Israel would the main barriers to trade be lifted. |
| “The effort spent by European countries is not enough, they can make more political pressure on Israel. It’s very little pressure,” said Omar Shaban, an economist with Pal-Think, a Gaza-based thinktank. | “The effort spent by European countries is not enough, they can make more political pressure on Israel. It’s very little pressure,” said Omar Shaban, an economist with Pal-Think, a Gaza-based thinktank. |
| “The need is to find a way to convince the Israeli government of the importance of exports, to cross it with their interest.” | “The need is to find a way to convince the Israeli government of the importance of exports, to cross it with their interest.” |
| The Israeli government’s own estimate of the amount required to rehabilitate key areas of Gaza dwarf the sum announced by Burt, which comes in any case amid sharply declining foreign aid. | The Israeli government’s own estimate of the amount required to rehabilitate key areas of Gaza dwarf the sum announced by Burt, which comes in any case amid sharply declining foreign aid. |
| According to Israeli estimates, approximately $1bn would be required to begin alleviating Gaza’s humanitarian crisis – including upgrading its gas supply, water desalination and electricity infrastructure, and rebuilding the Erez crossing industrial zone destroyed by Israel. | According to Israeli estimates, approximately $1bn would be required to begin alleviating Gaza’s humanitarian crisis – including upgrading its gas supply, water desalination and electricity infrastructure, and rebuilding the Erez crossing industrial zone destroyed by Israel. |
| The new aid money comes amid mounting concern over the trajectory of the Palestinian economy, not least in Gaza. The World Bank, which has predicted a continuing decline in Palestinian growth, noted that unemployment in the occupied territories last year stood at 27%, with joblessness in Gaza at 44%. | The new aid money comes amid mounting concern over the trajectory of the Palestinian economy, not least in Gaza. The World Bank, which has predicted a continuing decline in Palestinian growth, noted that unemployment in the occupied territories last year stood at 27%, with joblessness in Gaza at 44%. |
| Tensions in the region have escalated dramatically in recent weeks, with Israel carrying out its biggest air strikes in Hamas-controlled Gaza since the war in 2014, in response to more than 200 rockets and mortars being fired into the country. | Tensions in the region have escalated dramatically in recent weeks, with Israel carrying out its biggest air strikes in Hamas-controlled Gaza since the war in 2014, in response to more than 200 rockets and mortars being fired into the country. |
| The money, half of which will be funnelled through the World Bank, will create hundreds of jobs, enhance water and electricity infrastructure, and help boost exports to Israel and beyond, Burt said. | The money, half of which will be funnelled through the World Bank, will create hundreds of jobs, enhance water and electricity infrastructure, and help boost exports to Israel and beyond, Burt said. |
| It is hoped the funding will also promote cooperation between Israel and Palestine, lowering barriers to growth and delivering reforms to taxes and custom revenue collected by Israel, to aid the financial stability of the Palestinian Authority. Every year, Palestine loses £220m under the current collection scheme – roughly half of donor aid. | It is hoped the funding will also promote cooperation between Israel and Palestine, lowering barriers to growth and delivering reforms to taxes and custom revenue collected by Israel, to aid the financial stability of the Palestinian Authority. Every year, Palestine loses £220m under the current collection scheme – roughly half of donor aid. |
| Gaza is in the grip of a protracted energy crisis and its only power station closed this week, leaving residents without electricity for 18 hours a day. Economic growth plummeted from 8% in 2016 to 0.5% last year, with half the labour force in Gaza unemployed and a deterioration in basic services like water and electricity putting the public at risk, according to the World Bank. | Gaza is in the grip of a protracted energy crisis and its only power station closed this week, leaving residents without electricity for 18 hours a day. Economic growth plummeted from 8% in 2016 to 0.5% last year, with half the labour force in Gaza unemployed and a deterioration in basic services like water and electricity putting the public at risk, according to the World Bank. |
| Only 4% of water in Gaza is safe to drink at present, with the risk of waterborne diseases heightened by a lack of sewage treatment plants. | Only 4% of water in Gaza is safe to drink at present, with the risk of waterborne diseases heightened by a lack of sewage treatment plants. |
| In March, the bank said economic decline in the Gaza strip had become too steep to be tackled by international aid, urging greater freedom of trade for the territory. | In March, the bank said economic decline in the Gaza strip had become too steep to be tackled by international aid, urging greater freedom of trade for the territory. |
| Announcing the new programme, Burt said: “A thriving Palestinian economy is crucial to achieving peace with Israel but wages in Gaza are now lower than two decades ago and Palestinians could slide even deeper into poverty without urgent action. | Announcing the new programme, Burt said: “A thriving Palestinian economy is crucial to achieving peace with Israel but wages in Gaza are now lower than two decades ago and Palestinians could slide even deeper into poverty without urgent action. |
| “Our new approach to supporting the economy in Gaza and the West Bank will help create desperately needed jobs, boost exports and collect taxes so that the Palestinian Authority can invest properly in vital services such as education and healthcare.” | “Our new approach to supporting the economy in Gaza and the West Bank will help create desperately needed jobs, boost exports and collect taxes so that the Palestinian Authority can invest properly in vital services such as education and healthcare.” |
| Burt urged all parties to refrain from actions “which make peace more difficult”. | Burt urged all parties to refrain from actions “which make peace more difficult”. |
| “That means Hamas and other terrorist groups must cease all violent and provocative actions, and Israel must reverse it’s restrictive measures and work with the international community to ease the difficult conditions in Gaza,” he said. | “That means Hamas and other terrorist groups must cease all violent and provocative actions, and Israel must reverse it’s restrictive measures and work with the international community to ease the difficult conditions in Gaza,” he said. |
| Earlier this month, the UN special coordinator for the Middle East urged Israel to open Kerem Shalom, the main cargo crossing between Gaza and Israel, saying the Gaza strip needed commerce and trade. The crossing, which was closed by Israel due to incendiary kites and balloons sent over from Gaza, has been subject to a strict blockade for the past 11 years. | Earlier this month, the UN special coordinator for the Middle East urged Israel to open Kerem Shalom, the main cargo crossing between Gaza and Israel, saying the Gaza strip needed commerce and trade. The crossing, which was closed by Israel due to incendiary kites and balloons sent over from Gaza, has been subject to a strict blockade for the past 11 years. |
| Israel says the blockade is aimed at preventing terrorist groups from bringing in weapons. Gaza is also subjected to import restrictions on goods that Israel believes could be used for military purposes. | Israel says the blockade is aimed at preventing terrorist groups from bringing in weapons. Gaza is also subjected to import restrictions on goods that Israel believes could be used for military purposes. |
| Those items include fertiliser, restrictions on which have rerpotedly damaged fruit exports. Ahmad al-Shafae, manager of a strawberry growers’ association in Gaza, said production costs have soared because of the blockade. | Those items include fertiliser, restrictions on which have rerpotedly damaged fruit exports. Ahmad al-Shafae, manager of a strawberry growers’ association in Gaza, said production costs have soared because of the blockade. |
| Trump cuts cause 250 job losses at UN agency for Palestinian refugees | |
| “One problem is the Israeli restriction on agriculture materials considered by Israelis as dual use. These materials make us use the small lands we have in the most professional way and sufficiently. One of the materials that farmers need, and which is not allowed, is sterilisation – the fertilisers that keep the quality of the crops.” | “One problem is the Israeli restriction on agriculture materials considered by Israelis as dual use. These materials make us use the small lands we have in the most professional way and sufficiently. One of the materials that farmers need, and which is not allowed, is sterilisation – the fertilisers that keep the quality of the crops.” |
| Egyptian strawberries cost 4-5 euros a box, he said, but he would need to charge 10 euros a box to break even. | Egyptian strawberries cost 4-5 euros a box, he said, but he would need to charge 10 euros a box to break even. |
| “I believe it’s political problem before it’s a technical one,” al-Shafae said. | “I believe it’s political problem before it’s a technical one,” al-Shafae said. |
| A government spokesperson said: “The UK’s longstanding position on the Middle East peace process is clear: we support a negotiated settlement leading to a safe and secure Israel living alongside a viable and sovereign Palestinian state; based on 1967 borders with agreed land swaps, Jerusalem as the shared capital of both states, and a just, fair, agreed and realistic settlement for refugees.” | A government spokesperson said: “The UK’s longstanding position on the Middle East peace process is clear: we support a negotiated settlement leading to a safe and secure Israel living alongside a viable and sovereign Palestinian state; based on 1967 borders with agreed land swaps, Jerusalem as the shared capital of both states, and a just, fair, agreed and realistic settlement for refugees.” |
| Aid | Aid |
| Department for International Development (DfID) | Department for International Development (DfID) |
| Gaza | Gaza |
| Israel | Israel |
| Palestinian territories | Palestinian territories |
| Middle East and North Africa | Middle East and North Africa |
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