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Press Conferences | UNCTAD

UNCTAD Press Conference: Report on Programme of Assistance to the Palestinian People 25 October 2023

LINK to the press release: https://mailchi.mp/unctad/palestine-report?e=5b97b4c2da

LINK to UNCTAD PDF report on its Programme of Assistance to the Palestinian People 2023: https://unctad.org/system/files/official-document/tdbex74d2_en.pdf 

Launch of the UNCTAD report on its Programme of Assistance to the Palestinian People 2023

Speakers:  

  • Richard Kozul-Wright, Director, Division on Globalization and development Strategies
  • Mutasim Elagraa, Coordinator, UNCTAD Assistance to the Palestinian People

 

UNCTAD PRESS RELEASE: https://mailchi.mp/unctad/palestine-report?e=5b97b4c2da

PRESS RELEASE
EMBARGO

The contents of this document and the related report must not be quoted or summarized in the print, broadcast or electronic media before

25 October 2023, 10.00 a.m. GMT

(6:00 am in New York, 12 p.m in Geneva)

UNCTAD/PRESS/PR/2023/025
Original: English
 

ORIGINAL: ENGLISH

PRIOR TO CURRENT CRISIS, DECADES-LONG BLOCKADE HOLLOWED GAZA’S ECONOMY, LEAVING 80% OF POPULATION DEPENDENT ON INTERNATIONAL AID

Inflation, a shrinking fiscal space, a decline in foreign aid and the build-up of debt kept the economy of the Occupied Palestinian Territory below its 2019 pre-pandemic level.

Geneva, 25 October 2023 – The latest report by the United Nations Conference on Trade and Development (UNCTAD) on its assistance to the Palestinian people says 2022 was another bad year for Palestinians.

Against a backdrop of heightened political tensions, deepening dependency on the occupying Power and a stalled peace process, the Palestinian economy continued to operate below potential in 2022 as other persistent challenges intensified.

These include loss of land and natural resources to Israeli settlements, endemic poverty, a shrinking fiscal space, declining foreign aid and the build-up of public and private debt.

Economy still reeling from COVID-19 shock

Even though the Palestinian GDP grew by 3.9% in 2022, per capita real GDP was still 8.6% below its 2019 pre-pandemic level. In Gaza, real GDP per capita was 11.7% below the 2019 level and close to its lowest level since 1994.

Unemployment remained high at 24% across the Occupied Palestinian Territory, 13% in the West Bank and 45% in Gaza – with women and youth hit hardest. Poverty increased, rendering 40% of the population in need of humanitarian assistance.

With the rise in global food and energy prices, poorer households suffer disproportionately because food accounts for a greater share of their total expenditure.

Three decades after the Oslo Accords, the hoped-for convergence between the Palestinian economy and Israel’s remains obstructed by occupation policies. Instead, the two economies have diverged, with the Palestinian per capita GDP currently standing at just 8% of Israel’s.

Forced economic dependence

The report highlights the Palestinian economy’s forced dependency on Israel. Excessive production and transaction costs and barriers to trade with the rest of the world have resulted in a chronic trade deficit and a pervasive, lopsided dependence on Israel, which accounted for 72% of total Palestinian trade in 2022.

Meanwhile, lack of a national currency and reliance on the Israeli shekel leave little space for monetary policy while the strong shekel exchange rate undermines the already impaired competitiveness of Palestinian producers in domestic and foreign markets.

The dearth of jobs forces many Palestinians to seek employment in Israel and settlements. In 2022, 22.5% of employed Palestinians from the West Bank worked in Israel and settlements, where the average wage is higher. But broker fees and other associated costs account for 44% of gross pay, wiping out the premium over the average domestic wage, which indicates that search for employment in Israel and settlements is largely driven by limited employment opportunities in the domestic economy.

Over-reliance on precarious employment in Israel and settlements exposes the Palestinian economy to shocks in a volatile environment characterized by frequent crises, while lack of monetary and fiscal space leaves little room for effective policy response to shocks and crises, the report warns.

Since its birth in 1994, the Palestinian government has coped with unique and complex economic, political and social responsibilities far greater than the political and economic resources at its disposal. 

In the past, donor aid helped soften the impact of occupation. However, in 2022 the Palestinian government received just $250 million in donor budget support and $300 million for development projects. This is a steep decline from a total $2 billion, or 27% of GDP in 2008, to less than 3% of GDP in 2022. 

Gaza: A decade and a half of suppressed development

Since June 2007, Gaza suffered several military operations and has been under a land, sea and air closure. Gazans need permits to move in and out of the strip through two land crossing points controlled by Israel.

Restrictions on the movement of people and goods, destruction of productive assets in frequent military operations and the ban on the importation of key technologies and inputs have hollowed out Gaza’s economy.

Investment in 2022 diminished to 10.7% of Gaza’s GDP - or a meagre 1.9% of the Palestinian GDP. Between 2006 and 2022, Gaza’s real GDP per capita shrank by 27%, while its share in the Palestinian economy contracted from 31% to 17.4%.

The restrictions on movement also impede access to health and other essential services, as 80% of Gazans depend on international aid.

Living in Gaza in 2022 meant confinement in one of the most densely populated spaces in the world, without electricity half the time, and without adequate access to clean water or a proper sewage system.

It meant a 65% probability of being poor, 41% probability of dropping out of the labour force in despair, and for those looking for work, a 45% probability of being unemployed, the report concludes.   

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About UNCTAD

UNCTAD is the UN’s leading institution dealing with trade and development. It is a permanent intergovernmental body established by the United Nations General Assembly in 1964.

UNCTAD is part of the UN Secretariat and has a membership of 195 countries, one of the largest in the UN system. UNCTAD supports developing countries to access the benefits of a globalized economy more fairly and effectively.

We provide economic and trade analysis, facilitate consensus-building and offer technical assistance to help developing countries use trade, investment, finance and technology for inclusive and sustainable development.

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Catherine Huissoud, +41 22 917 5549, +41 79 502 4311,
catherine.huissoud@unctad.orghttp://unctad.org/press

To receive our press material, please register at:
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Teleprompter
[Other language spoken]
Do you want to start or you want me to go ahead?
Hi, good morning everyone.
[Other language spoken]
[Other language spoken]
[Other language spoken]
[Other language spoken]
There were, of course, many Member States that still wanted to speak, so we got delayed with the stakeout.
I'll pass the floor to the **** Commissioner.
Few opening remarks and then we'll take questions.
**** Commissioner, please.
[Other language spoken]
[Other language spoken]
As you know, I visited Cairo, Rafa al Arish Aman last week.
I met senior officials from, and I mean senior officials from Egypt, the Palestine, Jordan.
But I also had a chance to engage with human rights defenders and civil society actors, Palestinian, Egyptian, Israeli and Jordanian human rights defenders and, and civil society actors.
I and I, as I mentioned, I visited the AL Arish Hospital where you had a number of Palestinians who had been evacuated because of grave injuries.
And I was really struck by the horrific wounds that I saw of many patients from Gaza, including numerous children.
I've also heard in the past from a number of Israeli families whose loved ones had been abducted by the Palestinian armed groups about their anguish.
As I told this morning, we have seen an conflagration, a conflagration of violence that has been unleashed in the occupied Palestinian territory.
Both in Gaza and the West Bank, but also in Israel, there has been a breakdown of the most basic respect for humane values.
The killing of so many civilians cannot be dismissed as collateral damage.
The only winner of such a war is likely to be extremism and further extremism.
I think we have seen this as many histories, lessons from the past that this unfortunately fuels extremism.
Warnings by my office and others about human rights violations over many years have been ignored, not only in Israel and the in the occupied Palestinian territory, but also by states with influence on the parties to this crisis.
This needs to change.
For this conflict to be enduringly resolved, we need justice, accountability, and the prevailing and the strong voice of human rights, the voice of reason.
Our work to report and document violations and our advocacy for human rights will persevere until this voice is heard and this work is done.
I I'll just share with you a couple of urgent calls for action.
It's absolutely clear with the adoption of the Security Council resolution that was adopted last night, the parties must give immediate effect to what the Security Council has asked them to do and that was made very clear in the resolution.
But there must also be a ceasefire based on humanitarian and human rights grounds.
There needs to be an end to the fighting, not only to deliver the urgently needed basic necessities of life, electricity, water, fuel and so forth, but also to create the political space for a path out of this horror.
International human rights and humanitarian law must be immediately and fully respected, including the principles of necessity, distinction, precaution and proportionality.
All forms of collective punishment must come to an end.
All hostages must be released.
We need rapid and unimpeded humanitarian assistance throughout Gaza, including fuel and at the scale required, and this must be facilitated.
I understand that the Philippe Lazarini, the Andra head of, of the, of the we'll talk to you later today and give you more details on this, but we also need more entries into Gaza, including through Israel.
I mean, KRM Shalom is is 1 crossing where this could be done.
I also stress the importance of full access to Israel and the occupied Palestinian territory, including Gaza, for my office to ensure full and independent monitoring and documentation and to coordinate the protection work within the humanitarian response.
Israeli authorities must take immediate measures to ensure that the security Israeli security forces comply with their obligations as an occupying power to protect certain Palestinians in the occupied Palestinian West Bank, including from violence by settlers.
All states with influence must seek common ground to disempower extremists by offering hope to build an enduring peace through justice and the guarantee of equal rights.
Without genuine accountability, we know that contested narratives cannot be resolved and people will be unable to contemplate a shared common future alongside each other.
And it is clear that the status quo was untenable and that the Israeli occupation must end.
My office will continue to do its utmost to assist all parties to step back from the precipice to which extremism and violence have led.
Our strongest assets will remain our principled independence, our consistent standing on the international laws and standards that can ensure enduring peace through respect for every human life.
[Other language spoken]
[Other language spoken]
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[Other language spoken]
Regarding the UN Security Council resolution on Gaza adopted yesterday demanding humanitarian posts, I want to ask how binding you think this decision will be for Israel and what would be the consequences if the state doesn't follow?
And also, considering the current humanitarian situation, how long should it take to turn this resolution check into an action?
[Other language spoken]
So it's very clear what the Security Council resolution itself says.
It needs to be implemented immediately.
It also has a monitor, It has a mechanism by which the UN is asked to report back on its implementation.
So it's absolutely clear.
I mean, it's the beginning of what is needed to act to, to mitigate the extremely precarious humanitarian situation in Gaza.
So it has to be implemented at once.
[Other language spoken]
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I was wondering if you could say a little bit about your discussions for entry into Gaza and as well as you've requested and if you're hopeful that that that could go ahead and when.
And also on the issue of the the investigation that you mentioned in your speech, the international investigation, what kind of form would you expect that to take and how hopeful would you be of success given the lack of cooperation with previous investigations in in this area?
[Other language spoken]
I think first of all, I've asked Israel to give me access both to Israel, but also to the occupied Palestinian territory.
I've not yet received a response, which means hope, as I keep saying, hope springs eternal.
I think it is very important for me to go to Israel and also I've I've been at the disposal of both Palestinians and Israelis to find a way out of this current crisis.
Because one of the missing links that we have seen over so many years is the one that you have mentioned accountability, justice and truth telling, including on the basis of when you have conflicting narratives.
You need an investigation that is, that is independent in order to make sure that we can actually get out of otherwise a polarised, totally binary view of of what is happening or what happened.
So for me, it's one big lesson learnt which actually in a way refreshes the human rights narrative in all of this.
Because that's what human rights is about.
It is about accountability, it is about justice, it is about truth telling.
So I hope that there is a big lesson to be learnt for the international community, for all parties to this conflict, to finally heat the recommendations that we have made, my office has made for decades.
**** Commissioner, correct me if I'm wrong, but it looks like there's one country in the world that is stopping the United Nations from doing their humanitarian work in a situation that 200 other countries and yourself have have called carnage and horrible situation.
What does it say about the United Nations if one country can stop humanitarian work that is so badly needed?
What leverage do you have to change the stance of that one country, Israel?
Well, we actually go back to the very difficult thing that one has to explain to the outside world.
There is, on the one hand, all of us working for the United Nations, working under its flag.
We have 102 colleagues that have been killed.
This is unprecedented, as you know, and we mourn.
And for these colleagues who have been in Gaza doing the type of services that are needed on the humanitarian front, on the development front, and, and that is very telling.
And then there are the member states.
I mean, that finally the Security Council acted on it is extremely important.
Obviously we need much more.
We need this to continue and we need to make sure that it is at the end of the day about international law and about accountability, as I I said before, where also the whole human rights dimension plays, plays an incredibly important role when it comes to humanitarian assistance.
I can only hope that finally this will be implemented as a matter of urgency because as you know, the needs are enormous and we can only hope that all our humanitarian partners are able to do their work.
But for that, you need humanitarian space, you need access, you need protection, you need deconfliction, and that's what is needed.
[Other language spoken]
Unfortunately, the figures gone up to 100 and three 103, so I wasn't aware.
So 103 colleagues who died.
Associated Press Hi.
[Other language spoken]
Thank you for coming to see us.
I have two very quick questions, one of which is there are leaflets being dropped on the eastern side of Han Yunus urging evacuation.
Where are those people supposed to go right now?
And then the second question is about Shifa.
There have been some regalia, various military goods apparently have been turned up inside the around the hospital.
Was this raid justified by the by the Israelis?
Well, on the first one, when it again, international humanitarian law is clear, if the principles of necessity, precaution, distinction, proportionality require certain military operation to be undertaken, there are obligations on the part of the military actor to ensure that those who are evacuated get an effective warning, are able to find safety, are able to be accommodated, get food, get shelter and that it's only temporary.
That's what international humanitarian law says.
We know the situation in Gaza.
It's one of the most densely populated zones in the world.
We have been absolutely clear that at the current moment, we do not consider any part of Gaza to be safe.
So it's clear that when you look at this type of operations, we need to make sure that the international humanitarian law perspective, the various criteria that need to be attached to it are made loud and clear on Archiva Hospital.
As I said, we have seen unfortunately the deterioration of of of medical facilities and hospitals.
[Other language spoken]
I think the figure is was 100.
I can't remember exactly what the figure is on The Who, but WHO has given us the figures of how many of the hospitals are actually no longer properly functioning, which is of course extremely distressing.
[Other language spoken]
So you need to go the extra extra mile to make sure that patients, medical personnel are protected in the current.
We have seen in this particular case contradictory and contradictory statements.
This actually is the type of thing where you would actually want an independent international investigation to find out what is actually happening if there were guns that were currently found inside which is which, which is what I say that is precisely what needs to be investigated.
Sorry, we've only got time for one more question.
Merci beaucoup plant, Israel.
[Other language spoken]
[Other language spoken]
Not the documentation, not the monitoring.
Don't let me see all the possible Basque combo.
[Other language spoken]
[Other language spoken]
The problem marked you help us gonna Pennsylvania sufismore axe.
[Other language spoken]
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Thank you everyone.
[Other language spoken]