Business & Economy

While Palestinian fishermen have recently been allowed to resume some fishing activities in the Gaza Strip’s coastal waters following a near total ban since June 2006, restrictions on where they can fish continue to undermine the industry. More than 40,000 Gazans depend on the fishing industry as their primary source of income. However, they have become progressively impoverished in the last six years, requiring assistance. The World Food Programme (WFP), United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) and other humanitarian agencies now provide food and support job creation for the fishing families.

After having experienced a modest recovery in 2003-05, the Palestinian economy suffered another decline in 2006, as a result of the domestic and international political difficulties. Although hard data are scarce, real GDP is estimated to have fallen within a range of 5 to 10 percent in 2006, less than initially had been feared, but still leaving average real per capita GDP at almost 40 percent below its 1999 level. Stronger-than-expected official and private inflows have helped prevent a much sharper decline in incomes and consumption in 2006, thus cushioning the overall contraction. But with a larger decline in investment, from an already low level, this also signals a further hollowing out of the Palestinian economy.

The Gaza Strip in the Occupied Palestinian Territories continues to suffer daily power cuts eight months after Israel bombed its only power station, leaving health services relying on expensive generators and residents without regular electricity or water. The cuts have continued despite new transformers being installed in November 2006 at the privately owned Gaza Power Generating Company (GPGC) power station. All six of the original transformers were destroyed by Israeli warplanes days after Palestinian militants kidnapped an Israeli soldier last June. The cuts have left hospitals relying on diesel generators supplied with fuel financed by foreign donors.

Israeli moves to control movement in and out of the city of Nablus are thwarting humanitarian aid efforts and damaging the local economy, according to aid agencies and local residents. Israeli checkpoints surrounding the city of more than 200,000 people mean that no vehicle can leave or enter Nablus without an Israeli permit. The United Nations Office for the Coordination of Humanitarian Affairs (OCHA) said that such permits are difficult to obtain, particularly for Palestinians. Liz Sime, from the US-based global humanitarian organisation CARE International, said that, “[our] teams lose up to two hours each time they try to exit Nablus, raising costs at an unreasonable rate”.

The Food and Allied Workers’ Union (FAWU) condemns Shoprite Checkers, Pick ‘n Pay and Fruit and Veg for the import of avocado pears from Israel. FAWU is appalled at the insensitivity towards the plight of the Palestinian people by the procurement of supplies from an oppressive, apartheid country like Israel. It seems like rubbing salt in the wounds of Palestinians to procure supplies. FAWU is convinced that the import of these goods are in contravention of the spirit of various International Labour Organisation (ILO) conventions. FAWU calls on the above retailers to immediately cease importing produce from Israel.