Gaza

Population: 1650000
Location:Palestinian Territories, Western Asia

Socio-Economic Background, Environment and Land Use

Gaza is an urban economy, heavily reliant on intensive trade, communication and movement of people; however the area has been essentially isolated since 2005 given land and sea restrictions, which has led to an unviable economy. The Gaza Airport, funded by donor countries and which opened in 1998, and the Gaza Seaport project, which started in 2000, were both destroyed by the Israeli army when the second Palestinian uprising (intifada) against Israeli occupation inflamed. As of 2014, the airport is not operational and the construction of the Gaza seaport has not resumed even though the 2005 Agreement on Movement and Access (AMA), following the Israel's withdrawal from Gaza, re-announced the start of the works. The transfer of goods to the West Bank and exports to Israel, both traditional markets for Gazan goods, is banned with a few exceptions. For the goods entering Gaza, Israel collects customs and value added tax. Restrictions on the movement of people are in place. Citing security concerns, the Israeli military has also imposed restrictions on access to farmland on the Gaza side of the fence, and to fishing areas along the Gaza Strip coast - the Access Restricted Areas (ARAs).

Gaza has been and continues to be kept alive through external funding and the illegal tunnel economy under the Egypt-Gaza border. According to an ILO report, the tunnel economy has benefited Hamas as they have received a considerable share of the benefits from it. The tunnel economy has taken a sharp hit as Egypt's military has destroyed most of the 1,200 tunnels from June 2013 onwards, which were primarily used to smuggle construction materials for the private sector and subsidized Egyptian fuel. According to OCHA, the closure of these tunnels led to a sharp spike in unemployment, an increase in food prices, and chronic electricity shortages resulting from interruptions to the operation of the Gaza Power Plant (GPP), severely disrupting the provision of basic services.

The people of Gaza remain worse off than they were in the 1990s, despite increases in real gross domestic product (GDP) per capita over the past three years. One of the main reasons for the economy’s inability to recover to pre-2000 levels is the blockade of Gaza. The Palestinian Ministry of National Economy estimates that the blockade led to costs or unrealized growth worth US$ 1.9 billion in 2010 alone. Moreover, Israel’s Operation ‘Cast Lead’ in the Gaza Strip in December 2008 to January 2009 caused a total of US$ 181 million in direct and US$ 88 million in longer-term costs for Gaza’s agriculture; generated US$ 44 million in environmental costs and almost US$ 6 million in water and sanitation infrastructure damages.

Unemployment is high and affects women and youth in particular. High levels of food insecurity persist in the Gaza Strip, with a total of 66% of households classified as food insecure or vulnerable to food insecurity (UN, 2012). The main cause of food insecurity is the affordability of food and non-food items, resulting from the lack of income-earning possibilities for Gaza households. Gaza’s GDP per capita is expected to grow only modestly in the coming years, making it ever more difficult for Gazans to secure a living. The current import/ export conditions are unsustainable, putting Gaza’s economy at a competitive disadvantage, and eroding the resiliency of the private sector to create jobs, which is a key component for the affordability of food and non-food basic requirements for families. If the current political status quo continues, the situation will only become more challenging.

Agriculture plays an important but limited role in Gaza, with about 40% of Gaza under cultivation. The agriculture sector continues to be characterized by small-scale (mainly family-based) farming. Exports of small amounts of strawberries, flowers and cherry tomatoes (mostly to Europe) are too minor to have a substantial impact on the overall economic situation. Given the water crisis, there is a trend to use fewer water-intensive and more salt-resistant crops, such as dates, which is in fact a return to the traditional crops of Gaza. The climate vulnerability of residents of Gaza is compounded by the expected environmental impacts of climate change. Increased amounts of precipitation will lead to reduced yields for rain-fed agriculture, and could also mean a greater frequency of flash floods. Reduced amounts of precipitation will lead to increased strain on groundwater resources. According to Clemens Messerschmid, it should not be overlooked however that in former times Gaza was esteemed for its high-quality water resources and regarded as an oasis. The climate did not change over the last thousand years, but the number of inhabitants began to explode with the mass expulsions from Israel in 1948.

Political Environment

Peace Negotiations Between Israel and the State of Palestine

Direct negotiations between Israel and the State of Palestine began on 29 July 2013 following an attempt by United States Secretary of State John Kerry to restart the peace process. The negotiations were scheduled to last up to nine months to reach a final status to the Palestinian-Israeli conflict by mid-2014. A deadline was set for establishing a broad outline for an agreement by April 29, 2014. On the expiry of the deadline, negotiations collapsed (AFP, 2014). The PA confirmed that the continuation of the negotiations depended on Israel agreeing in writing to: recognizing the 1967 borders of the Palestinian state, with East Jerusalem as its capital; releasing 1,200 prisoners; lifting the blockade of Gaza; returning Church of Nativity deportees; ceasing the construction of Jewish settlements in East Jerusalem and other locations; uniting fifteen thousand Palestinian families, giving them full citizenship; and preventing Israelis from entering areas of the PA and Area C.

Fatah-Hamas Reconciliation

In April 2014, a reconciliation agreement between Fatah and Hamas was announced, which builds on the talks between Hamas and Fatah first in Doha in February 2012 and expanded later in Cairo in May 2012. This development could see the Palestinian territories under a unified leadership for the first time in years. The next steps would be the announcement of an interim government in the weeks to come, with elections possible by early 2015.

Legal Environment

Water Rights

In the long-term, Palestinian water rights will be negotiated with Israel and the other riparian countries in accordance with international law and best practice with regard to the management of trans-boundary water resources. In the meantime, the Oslo II Agreement regulates the temporary allocations of water utilization to Palestinians. The Oslo II Agreement was primarily based on actual water abstraction at that time (1995), although it also included a slight increase to allow for population growth. Its aim was to regulate water allocations over a 5-year interim period, until a final agreement was reached between the State of Palestine and Israel. This interim period was not supposed to last 20 years and the Oslo II Agreement did not address what force (if any) it would have beyond the interim period. For this reason, the Oslo II Agreement utilization figures no longer meet the minimal requirements of the Palestinian people. Although there is an urgent need to amend these figures (due to population change and other environmental and socio-economic factors), this agreement is still frequently cited as a reference during discussions at Joint Water Committee (JWC) meetings.

Additional comments from the 2014 PWA report:

• Under the Oslo II Interim Agreement, the Israelis are to supply 5 additional MCM/ year to Gaza, and Palestinians are authorized to develop an additional 78 MCM/ year in the West Bank (compared with their water use in 1995);
• The Oslo II Interim Agreement does not clearly deal with abstraction rights on the Coastal aquifer; it does not include any figures on either the Israeli or Palestinian abstraction rate in 1995. It merely states that both sides should maintain the existing utilization.

According to different expert sources, the reasons for the Oslo accords not detailing how much Palestinians and Israelis can extract from the Coastal aquifer are:

• Extractions from the aquifer in Gaza will not affect the aquifer yield in Israel due to the direction the water flows, so Israel is not worried how much it is extracted from Gaza since it will not affect it.
• On the other hand, extractions from the Coastal aquifer from the Israeli side will affect availability in Gaza. Israeli over extraction of the Coastal aquifer affects the yield in Gaza but there is no good data of how much exactly. Even though it might be limited, for Gaza even limited impact of this extraction has big consequences.
• Israel had already embedded in the Oslo accords the separation of Gaza from the West Bank, which is part of the long-term planning of Israel.

According to international law, Israel as the upstream riparian in the shared groundwater flow system is clearly responsible for an "equitable and reasonable" allocation of resources. It would therefore have to supply Gaza with considerably more water.

Case Studies Related to Gaza

• Gaza Strip Water Management

Articles linked to Gaza

Riparians	Water Features

Projects and Initiatives	Agreements and Treaties
	Other - Israeli-Palestinian Interim Agreement on the West Bank and Gaza Strip (Oslo II Agreement)