The Palestinian National Early Recovery and Reconstruction Plan for Gaza 2009-2010 SECTION B: IMPACT OF THE CRISIS
With much of the remaining capital stock destroyed by the recent Israeli offensive, the economy will take years to recover and require significant assistance to do so. However, if the crossing points are not opened for free access for people and goods, outside help will merely slow down a terminal decline. The following sections describe in detail the status of key economic subsectors following Israel’s onslaught.
a) Agriculture and Food Security During the 1990s, the agriculture sector produced mostly for the domestic Palestinian market, with a small but thriving export industry providing high-value agricultural products to Israel and beyond. However, the halt in exports and the prohibition on importing fertilizer, pesticides, packaging materials and other inputs led to the loss of more than 40,000 jobs in the sector. PalTrade estimates total agricultural export losses at $30 million in the 2007/2008 season. For example, only 109 out of 2,500 tons of strawberries produced were allowed out, resulting in losses of about $7 million. About 17% of cut flower production was exported, which led to losses of around US$6.5 million, while the remainder of the crop was used for animal feed. In addition, no cherry tomatoes were exported, resulting in a loss of approximately US$1.5 million. Already severely hampered by border closures, the sector was extensively damaged by the recent Israeli assault, which resulted in widespread destruction of cultivated lands, greenhouses, livestock and poultry farms, water wells, irrigation networks and other productive agricultural assets. A thorough but preliminary damage assessment of the various subsectors put direct losses caused by the military assault at over $180 million, and the assault and prolonged closure mean the sector will likely be impacted for years to come.
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