National Early Recovery and Reconstruction Plan for Gaza 2014-2017_FINAL...

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3.3 Economic Sector
The private sector in Gaza has undergone more than a decade of strife since 2000. The nearly complete halt in imports to and
exports from Gaza after 2007 resulted in a dramatic drop in manufacturing and agricultural outputs, as most items essential to
private sector revitalization remain on banned lists and are inaccessible.
Although the blockade was slightly eased in 2010 to allow imports of consumer goods and construction materials for donor
funded projects, restrictions on imports of construction and raw materials to the private sector are still fully in place; similarly,
exports to the West Bank and Israeli markets, which traditionally absorbed around 85 percent of Gaza’s exports, are still restricted.
Combined with the destruction of the tunnels that were the only other unofficial supply line for Gaza (enabling an estimated
$700 million annual trade), the blockade has effectively suffocated the economy. Significantly, engagement in innovative and
business-upgrading activities has dropped among Palestinian firms in recent years, driven primarily by diminished levels of
activity among Gaza firms.
The most recent assault has been a further, severe shock. Thousands of factories and commercial establishments are damaged or
destroyed and the agricultural and fishing industries are in ruins. Unemployment, which was already at unacceptably high levels,
has been exacerbated. Sustainable recovery will require significant efforts to generate private sector-led growth.
3.3.1 Agriculture and Fishing
Prior to the Assault
Since the 1990s, agriculture in Gaza has been in a steady and serious decline. While Israeli military restrictions on access and
movement have been destructive in all economic sectors, the agricultural sector has been one of the worst hit. Seventeen
percent of Gaza is largely off-limits, including 35 percent of its agricultural land, while more than 3,000 fishermen do not have
access to 85 percent of the maritime areas agreed in the 1995 Oslo Accords. As a result, fewer crops are now grown and the fish
catch has decreased dramatically. Overall, land and sea restrictions affect 178,000 people, 12 percent of Gaza residents, and result
in annual estimated losses of almost $80 million from agricultural production and fishing.