Economy

Economy

The occupation looks different in Areas A, B, and C. This is what it looks like in Area G, Gaza, where Israel: Back
09

Takes it upon itself to manage Gaza’s economy

Israel takes the liberty of deciding what products are worth manufacturing in Gaza and selling outside of it, impacting the profitability and feasibility of different branches of industry. According to the Coordinator of Government Activities’ (COGAT) response to a Freedom of Information Application filed by Gisha, the principles that guide COGAT in the making of such decisions are “considerations relating to manufacturing capabilities, as well as supply and demand in the relevant markets.”

10

Created and exploits a captive market in Gaza

Israel’s control over the sole land crossing through which goods are transported into and out of Gaza, gives it the power to restrict what goods come in and out. As such, it influences almost every aspect of Gaza’s economy and the job market.

11

Holds critical influence over the cost of living in the Strip

seeing as Israel is the near sole source of all products and goods coming into Gaza.

22

Damages crops inside Gaza

Private Israeli planes hired by the ministry of defense spray herbicides along the fence that separates Gaza and Israel, supposedly in order to provide Israeli forces stationed on the fence with a clear line of vision into Gaza. Large swathes of crops inside Gaza are damaged each time, including some that are grown more than 500 meters away from the fence. The health of farmers and local residents may also be jeopardized as a result of the spraying of herbicides. Local farmers live in constant fear of the spraying and have already sustained profound financial damage because of it.

30

Influences job numbers in the construction sector

Occasionally, in acts of collective punishment, Israel halts the entry of construction materials into Gaza, either partially or completely. In addition to the delays this causes to reconstruction following three major military operations in the Strip, the restrictions leave thousands of individuals employed in the construction sector out of work. About 70,000 Gaza residents make their living in this sector directly and indirectly.

32

Enforces use of its currency in Gaza

The economy of the occupied Palestinian territory, in both Gaza and the West Bank, is based on the Israeli currency, the shekel. Fiscal policies affecting the strength of this currency are designed and carried out by the Bank of Israel. Israel also determines the value added tax (VAT) rate and other important financial policies. This is one way Israel wields significant control over monetary activity in Gaza.

36

Only allows Gaza-grown eggplants and tomatoes to be marketed in Israel

In March 2015, for the first time since the closure was imposed in 2007, Israel began allowing the sale of Gaza produce in its own territory. However, sales are subject to a quota of up to 400 tons of eggplant and tomatoes per month. The price of Gaza produce is significantly lower, which could be of benefit to Israeli consumers. The proximity and size of the Israeli market make it a natural destination for Gaza growers.

37

Allows marketing furniture in Israel but prohibits importing the wood needed to build it

In September 2015, Israel declared that for the first time since the closure was imposed it would allow furniture manufacturers from Gaza to market their products in Israel. However, in March 2015, Israel had announced that wood planks thicker than 5 centimeters were to be considered a “dual-use” item (eventually expanding this classification to cover wood planks thicker than 1 cm), effectively blocking their entry into the Gaza Strip. Gaza carpenters were left wondering how to manufacture furniture without wood.

42

Determines what agricultural goods can and cannot be sold in the West Bank

After Operation Protective Edge, Israel allowed Gaza suppliers to market agricultural produce to the West Bank and Israel for the first time since 2007. As noted, only eggplant and tomatoes can be sold in Israel. The Coordinator of Government Activities in the Territories published a list of the types of vegetables Israel allows Gaza growers to sell in the West Bank, omitting many high-quality crops Gaza growers would happily sell, including potato, spinach, peas and beans.