UN experts call for an end to Israel’s financial control over Palestinian territories.
United Nations experts have raised alarms regarding the dire economic consequences stemming from Israel’s ongoing military operations in Gaza and the broader ramifications for the Palestinian territories. Their comprehensive report articulates the enormity of the challenges faced by the population, emphasizing how the conflict has compounded existing hardships and brought about widespread destruction of essential infrastructure.
In particular, the experts highlight that Gaza’s economic realities have been drastically altered as a result of ongoing violence, stringent blockades, and the relentless siege. This precarious situation has resulted in a catastrophic decline in the region’s economic vitality. Reports indicate that commercial, agricultural, and industrial sectors have faced devastating damage, with unemployment rates escalating to alarming levels, now surpassing 80 percent. Concurrently, the region’s Gross Domestic Product (GDP) has seen a severe contraction, and trade activities have ground to a halt.
In addition to economic devastation, the experts have pointed to an existential humanitarian crisis facing Gaza. Cited in the recent report from the UN-backed Integrated Food Security Phase Classification, famine conditions have been officially recognized in various regions of Gaza, underscoring the escalating levels of poverty and food insecurity. The significant challenges are further exacerbated by a liquidity crisis as many financial institutions, including banks and ATMs, have been rendered inoperable, essentially cutting off access to essential funds. With the blockade stifling the influx of new currency, the impact of rampant inflation has made wage earners’ compensation almost unrecognizable.
Challenges are not limited to Gaza alone; the occupied West Bank also experiences increasing financial pressure. Israel’s decisions to withhold tax revenue owed to the Palestinian Authority have further strained the local economy, violating the Oslo Accords and impeding financial stability in the region.
The situation is aggravated by new regulatory intentions from Israeli Finance Minister Bezalel Smotrich, who has proposed eliminating waivers for Israeli banks that facilitate transactions with Palestinian institutions. Such a move, if enacted, could remove Palestinian access to the global financial system, deepening the crisis. The suspension of work permits for approximately 100,000 Palestinian laborers has also significantly reduced income streams that once contributed to a quarter of the gross national income.
Amid these challenges, international watchdogs emphasize that Israel’s actions contravene its obligations under international law as an occupying power. This situation raises pressing concerns regarding the rights of Palestinians to economic self-determination and control over their own natural resources. The UN has previously reported on the involvement of corporate entities, including major U.S. technology firms, in facilitating conditions that contribute to the ongoing humanitarian crises.
The issues highlighted by UN experts underline the urgent need for diplomatic engagement and awareness surrounding the humanitarian and economic challenges facing Palestinians as they strive for stability and growth in the region.
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