Gaza City, Gaza, Palestine

Economy | After Oslo | Following Hamas takeover | 2012 fuel crisis | Current budget

🇵🇸 Gaza, also referred to as Gaza City, is a Palestinian city in the Gaza Strip, and the largest city in the State of Palestine. Inhabited since at least the 15th century BCE, Gaza has been dominated by several different peoples and empires throughout its history.

The Philistines made it a part of their pentapolis after the Ancient Egyptians had ruled it for nearly 350 years.

Under the Roman Empire Gaza experienced relative peace and its port flourished. In 635 CE, it became the first city in Palestine to be conquered by the Muslim Rashidun army and quickly developed into a centre of Islamic law. However, by the time the Crusaders invaded the country starting in 1099, Gaza was in ruins. In later centuries, Gaza experienced several hardships—from Mongol raids to floods and locusts, reducing it to a village by the 16th century, when it was incorporated into the Ottoman Empire. During the first half of Ottoman rule, the Ridwan dynasty controlled Gaza and under them the city went through an age of great commerce and peace. The municipality of Gaza was established in 1893.

Gaza fell to British forces during World War I, becoming a part of Mandatory Palestine. As a result of the 1948 Arab–Israeli War, Egypt administered the newly formed Gaza Strip territory and several improvements were undertaken in the city. Gaza was captured by Israel in the Six-Day War in 1967, but in 1993, the city was transferred to the newly created Palestinian National Authority. In the months following the 2006 election, an armed conflict broke out between the Palestinian political factions of Fatah and Hamas, resulting in the latter taking power in Gaza. Egypt and Israel consequently imposed a blockade on the Gaza Strip. Israel eased the blockade allowing consumer goods in June 2010, and Egypt reopened the Rafah Border Crossing in 2011 to pedestrians.

The primary economic activities of Gaza are small-scale industries and agriculture. However, the blockade and recurring conflicts have put the economy under severe pressure. The majority of Gaza's inhabitants are Muslim, although there is also a tiny Christian minority. Gaza has a very young population, with roughly 75% under the age of 25. The city is currently administered by a 14-member municipal council.

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Economy The economy of the Gaza Strip is severely hampered by Egypt and Israel's almost total blockade, the high population density, limited land access, strict internal and external security controls, the effects of Israeli military operations, and restrictions on labor and trade access across the border. Per capita income (PPP) was estimated at US$3,100 in 2009, a position of 164th in the world. Seventy percent of the population is below the poverty line according to a 2009 estimate. Gaza Strip industries are generally small family businesses that produce textiles, soap, olive-wood carvings, and mother-of-pearl souvenirs.

The main agricultural products are olives, citrus, vegetables, Halal beef, and dairy products. Primary exports are citrus and cut flowers, while primary imports are food, consumer goods, and construction materials. The main trade partners of the Gaza Strip are Israel and Egypt.

The EU described the Gaza economy as follows: "Since Hamas took control of Gaza in 2007 and following the closure imposed by Israel, the situation in the Strip has been one of chronic need, de-development and donor dependency, despite a temporary relaxation on restrictions in movement of people and goods following a flotilla raid in 2010. The closure has effectively cut off access for exports to traditional markets in Israel, transfers to the West Bank and has severely restricted imports. Exports are now down to 2% of 2007 levels".

According to Sara Roy, one senior IDF officer told an UNWRA official in 2015 that Israel's policy towards the Gaza Strip consisted of: "No development, no prosperity, no humanitarian crisis".

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After Oslo (1994–2007) Economic output in the Gaza Strip declined by about one-third between 1992 and 1996. This downturn was attributed to Israeli closure policies and, to a lesser extent, corruption and mismanagement by Yasser Arafat. Economic development has been hindered by Israel refusing to allow the operation of a sea harbour. A seaport was planned to be built in Gaza with help from France and The Netherlands, but the project was bombed by Israel in 2001. Israel said that the reason for bombing was that Israeli settlements were being shot at from the construction site at the harbour. As a result, international transports (both trade and aid) had to go through Israel, which was hindered by the imposition of generalised border closures. These also disrupted previously established labor and commodity market relationships between Israel and the Strip. A serious negative social effect of this downturn was the emergence of high unemployment.

For its energy, Gaza is largely dependent on Israel either for import of electricity or fuel for its sole power plant. The Oslo Accords set limits for the Palestinian production and importation of energy. Pursuant to the Accords, the Israel Electric Corporation exclusively supplies the electricity (63% of the total consumption in 2013). The amount of electricity has consistently been limited to 120 megawatts, which is the amount Israel undertook to sell to Gaza pursuant to the Oslo Accords.

Israel's use of comprehensive closures decreased over the next few years. In 1998, Israel implemented new policies to ease security procedures and allow somewhat freer movement of Gazan goods and labor into Israel. These changes led to three years of economic recovery in the Gaza Strip, disrupted by the outbreak of the al-Aqsa Intifada in the last quarter of 2000. Before the second Palestinian uprising in September 2000, around 25,000 workers from the Gaza Strip (about 2% of the population) worked in Israel on a daily basis.

The Second Intifada led to a steep decline in the economy of Gaza, which was heavily reliant upon external markets. Israel—which had begun its occupation by helping Gazans to plant approximately 618,000 trees in 1968, and to improve seed selection—over the first 3-year period of the second intifada, destroyed 10 percent of Gazan agricultural land, and uprooted 226,000 trees. The population became largely dependent on humanitarian assistance, primarily from UN agencies.

The al-Aqsa Intifada triggered tight IDF closures of the border with Israel, as well as frequent curbs on traffic in Palestinian self-rule areas, severely disrupting trade and labor movements. In 2001, and even more so in early 2002, internal turmoil and Israeli military measures led to widespread business closures and a sharp drop in GDP. Civilian infrastructure, such as the Palestine airport, was destroyed by Israel. Another major factor was a drop in income due to reduction in the number of Gazans permitted entry to work in Israel. After the Israeli withdrawal from Gaza, the flow of a limited number of workers into Israel resumed, although Israel said it would reduce or end such permits due to the victory of Hamas in the 2006 parliamentary elections.

The Israeli settlers of Gush Katif built greenhouses and experimented with new forms of agriculture. These greenhouses provided employment for hundreds of Gazans. When Israel withdrew from the Gaza Strip in the summer of 2005, more than 3,000 (about half) of the greenhouses were purchased with $14 million raised by former World Bank president James Wolfensohn, and given to Palestinians to jump-start their economy. The rest were demolished by the departing settlers before they were offered a compensation as an inducement to leave them behind. The farming effort faltered due to limited water supply, Palestinian looting, restrictions on exports, and corruption in the Palestinian Authority. Many Palestinian companies repaired the greenhouses damaged and looted by the Palestinians after the Israeli withdrawal. In 2005, after the Israeli withdrawal from the Gaza Strip, Gaza businessmen envisaged a "magnificent future". $1.1 million was invested in an upscale restaurant, Roots, and plans were made to turn one of the Israeli settlements into a family resort.

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Following Hamas takeover (2007–present) The European Union states: "Gaza has experienced continuous economic decline since the imposition of a closure policy by Israel in 2007. This has had serious social and humanitarian consequences for many of its 1.7 million inhabitants. The situation has deteriorated further in recent months as a result of the geo-political changes which took place in the region during the course of 2013, particularly in Egypt and its closure of the majority of smuggling tunnels between Egypt and Gaza as well as increased restrictions at Rafah". Israel, the United States, Canada, and the European Union have frozen all funds to the Palestinian government after the formation of a Hamas-controlled government after its democratic victory in the 2006 Palestinian legislative election. They view the group as a terrorist organization, and have pressured Hamas to recognize Israel, renounce violence, and make good on past agreements. Prior to disengagement, 120,000 Palestinians from Gaza had been employed in Israel or in joint projects. After the Israeli withdrawal, the gross domestic product of the Gaza Strip declined. Jewish enterprises shut down, work relationships were severed, and job opportunities in Israel dried up. After the 2006 elections, fighting broke out between Fatah and Hamas, which Hamas won in the Gaza Strip on 14 June 2007. Israel imposed a blockade, and the only goods permitted into the Strip through the land crossings were goods of a humanitarian nature, and these were permitted in limited quantities.

An easing of Israel's closure policy in 2010 resulted in an improvement in some economic indicators, although exports were still restricted. According to the Israeli Defense Forces and the Palestinian Central Bureau of Statistics, the economy of the Gaza Strip improved in 2011, with a drop in unemployment and an increase in GDP. New malls opened and local industry began to develop. This economic upswing has led to the construction of hotels and a rise in the import of cars. Wide-scale development has been made possible by the unhindered movement of goods into Gaza through the Kerem Shalom Crossing and tunnels between the Gaza Strip and Egypt. The current rate of trucks entering Gaza through Kerem Shalom is 250 trucks per day. The increase in building activity has led to a shortage of construction workers. To make up for the deficit, young people are being sent to learn the trade in Turkey.

In 2012, Hamas leader Mahmoud Zahar said that Gaza's economic situation has improved and Gaza has become self-reliant "in several aspects except petroleum and electricity" despite Israel's blockade. Zahar said that Gaza's economic conditions are better than those in the West Bank. In 2014, the EU's opinion was: "Today, Gaza is facing a dangerous and pressing humanitarian and economic situation with power outages across Gaza for up to 16 hours a day and, as a consequence, the closure of sewage pumping operations, reduced access to clean water; a reduction in medical supplies and equipment; the cessation of imports of construction materials; rising unemployment, rising prices and increased food insecurity. If left unaddressed, the situation could have serious consequences for stability in Gaza, for security more widely in the region as well as for the peace process itself".

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2012 fuel crisis Usually, diesel for Gaza came from Israel, but in 2011, Hamas started to buy cheaper fuel from Egypt, bringing it via a network of tunnels, and refused to allow it from Israel.

In early 2012, due to internal economic disagreement between the Palestinian Authority and the Hamas Government in Gaza, decreased supplies from Egypt and through tunnel smuggling, and Hamas's refusal to ship fuel via Israel, the Gaza Strip plunged into a fuel crisis, bringing increasingly long electricity shut downs and disruption of transportation. Egypt had attempted for a while to stop the use of tunnels for delivery of Egyptian fuel purchased by Palestinian authorities, and had severely reduced supply through the tunnel network. As the crisis broke out, Hamas sought to equip the Rafah terminal between Egypt and Gaza for fuel transfer, and refused to accept fuel to be delivered via the Kerem Shalom crossing between Israel and Gaza.

In mid-February 2012, as the crisis escalated, Hamas rejected an Egyptian proposal to bring in fuel via the Kerem Shalom Crossing between Israel and Gaza to reactivate Gaza's only power plant. Ahmed Abu Al-Amreen of the Hamas-run Energy Authority refused it on the grounds that the crossing is operated by Israel and Hamas' fierce opposition to the existence of Israel. Egypt cannot ship diesel fuel to Gaza directly through the Rafah crossing point, because it is limited to the movement of individuals. In early March 2012, the head of Gaza's energy authority stated that Egypt wanted to transfer energy via the Kerem Shalom Crossing, but he personally refused it to go through the "Zionist entity" (Israel) and insisted that Egypt transfer the fuel through the Rafah Crossing, although this crossing is not equipped to handle the half-million liters needed each day.

In late March 2012, Hamas began offering carpools for people to use Hamas state vehicles to get to work. Many Gazans began to wonder how these vehicles have fuel themselves, as diesel was completely unavailable in Gaza, ambulances could no longer be used, but Hamas government officials still had fuel for their own cars. Many Gazans said that Hamas confiscated the fuel it needed from petrol stations and used it exclusively for their own purposes.

Egypt agreed to provide 600,000 liters of fuel to Gaza daily, but it had no way of delivering it that Hamas would agree to.

In addition, Israel introduced a number of goods and vehicles into the Gaza Strip via the Kerem Shalom Crossing, as well as the normal diesel for hospitals. Israel also shipped 150,000 liters of diesel through the crossing, which was paid for by the Red Cross.

In April 2012, the issue was resolved as certain amounts of fuel were supplied with the involvement of the Red Cross, after the Palestinian Authority and Hamas reached a deal. Fuel was finally transferred via the Israeli Kerem Shalom Crossing, which Hamas previously refused to transfer fuel from.

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Current budget Most of the Gaza Strip administration funding comes from outside as an aid, with large portion delivered by UN organizations directly to education and food supply. Most of the Gaza GDP comes as foreign humanitarian and direct economic support. Of those funds, the major part is supported by the U.S. and the European Union. Portions of the direct economic support have been provided by the Arab League, though it largely has not provided funds according to schedule. Among other alleged sources of Gaza administration budget is Iran.

A diplomatic source told Reuters that Iran had funded Hamas in the past with up to $300 million per year, but the flow of money had not been regular in 2011. "Payment has been in suspension since August", said the source.

In January 2012, some diplomatic sources said that Turkey promised to provide Haniyeh's Gaza Strip administration with $300 million to support its annual budget. In April 2012, the Hamas government in Gaza approved its budget for 2012, which was up 25 percent year-on-year over 2011 budget, indicating that donors, including Iran, benefactors in the Islamic world, and Palestinian expatriates, are still heavily funding the movement. Chief of Gaza's parliament's budget committee Jamal Nassar said the 2012 budget is $769 million, compared to $630 million in 2011.

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Asia/Gaza/Gaza_Strip 
<b>Asia/Gaza/Gaza_Strip</b>
Image: OneArmedMan

Gaza City is rated E+ by the Global Urban Competitiveness Report (GUCR) which evaluates and ranks world cities in the context of economic competitiveness. E+ cities are strong regional gateway cities. Gaza City has a population of over 590,481 people. Gaza City also forms part of the wider Gaza Strip which has a population of over 2,047,969 people.

To set up a UBI Lab for Gaza City see: https://www.ubilabnetwork.org Twitter: https://twitter.com/UBILabNetwork

Twin Towns, Sister Cities Gaza City has links with:

🇲🇦 Agadir, Morocco 🇪🇸 Barcelona, Spain 🇧🇷 Brasília, Brazil 🇪🇸 Cáceres, Spain 🇵🇹 Cascais, Portugal 🇦🇪 Dubai, UAE 🇫🇷 Dunkirk, France 🇹🇷 Osmangazi, Turkey 🇮🇷 Tabriz, Iran 🇮🇱 Tel Aviv, Israel 🇳🇴 Tromsø, Norway 🇮🇹 Turin, Italy
Text Atribution: Wikipedia Text under CC-BY-SA license | GUCR

North of: 31.517

🇵🇸 Gaza 31.517

🇨🇳 Binhu 31.528

🇮🇳 Hoshiarpur 31.53

🇵🇰 Lahore 31.533

🇲🇦 Chichaoua 31.533

🇺🇸 Sierra Vista 31.533

🇺🇸 Waco 31.546

🇵🇸 Beit Lahia 31.55

🇨🇳 Langzhong 31.558

🇨🇳 Taicang 31.564

South of: 31.517

🇨🇳 Xinwu 31.517

🇵🇸 Hebron 31.517

🇵🇸 Jabalia 31.517

🇲🇦 Essaouira 31.51

🇲🇦 Tinghir 31.5

🇨🇳 Chenjia 31.483

🇨🇳 Mianyang 31.468

🇮🇳 Una 31.468

🇺🇸 San Angelo 31.443

🇺🇸 Bisbee 31.433

East of: 34.45

🇵🇸 Gaza 34.45

🇵🇸 Jabalia 34.467

🇹🇿 Singida 34.498

🇵🇸 Beit Lahia 34.5

🇹🇷 Mezitli 34.528

🇺🇦 Poltava 34.55

🇮🇱 Ashkelon 34.565

🇮🇱 Ashquelon 34.567

🇹🇷 Mersin 34.633

🇮🇱 Ashdod 34.643

Antipodal to Gaza City is: -145.55,-31.517

Locations Near: Gaza City 34.45,31.517

🇵🇸 Gaza 34.45,31.517 d: 0  

🇵🇸 Jabalia 34.467,31.517 d: 1.6  

🇵🇸 Beit Lahia 34.5,31.55 d: 6  

🇮🇱 Ashkelon 34.565,31.663 d: 19.5  

🇮🇱 Ashquelon 34.567,31.667 d: 20  

🇵🇸 Khan Younis 34.303,31.344 d: 23.8  

🇵🇸 Khan Yunis 34.3,31.333 d: 24.9  

🇵🇸 Rafah 34.253,31.283 d: 32.1  

🇮🇱 Kiryat Gat 34.768,31.615 d: 32  

🇮🇱 Ashdod 34.643,31.788 d: 35.2  

Antipodal to: Gaza City -145.55,-31.517

🇵🇫 Papeete -149.566,-17.537 d: 18408.8  

🇦🇸 Pago Pago -170.701,-14.279 d: 16818.6  

🇹🇴 Nuku'alofa -175.216,-21.136 d: 16853.9  

🇼🇸 Apia -171.76,-13.833 d: 16699.8  

🇺🇸 Hilo -155.089,19.725 d: 14227.1  

🇺🇸 Maui -156.446,20.72 d: 14091.5  

🇺🇸 Kahului -156.466,20.891 d: 14072.5  

🇺🇸 Maui County -156.617,20.868 d: 14071.9  

🇺🇸 Wailuku -156.505,20.894 d: 14071.4  

🇺🇸 Honolulu -157.85,21.3 d: 13997.5  

Bing Map

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