Gaza Private Sector Post-War Status and Needs

Israeli forces conducted a major combined military operation in the Gaza Strip for a period of 22 days (December 27, 2008 – January 18, 2009), where “Israeli forces used aerial bombing, tank shelling and armored bulldozers to eliminate the productive capacity of some of Gaza's most important manufacturing plants during their 22 days of military action in the Gaza Strip”1. A ceasefire was through on Jan. 18th, 2009, put a temporary end to the fighting, pending the conclusion of broader arrangements to sustain a ceasefire as envisaged in Security Council resolution 1860. The operation resulted in extensive casualties and destruction of homes, livelihoods, and infrastructure. The Gaza private sector was hardly affected, where most industrial establishments, agricultural land and support infrastructure were either totally or partially destroyed and are currently unable to operate. It is significant to note that the Gaza private sector situation prior this operation was not ideal and was heavily affected by the 18 months (June 2007 – December 2008) constraints by restrictions on amounts and types of good allowed through the borders, and total banning of export operations, leading to the closure of an estimated 95% of industrial establishments (i.e. 3750 establishments) and laying off 94% of workers (i.e. 33 thousands); and complete halt of construction works. The economic situation has been deteriorating since the year 2000 in the Gaza Strip, where private sector establishments were struggling to survive through continuous closure, stagnation and military incursions. The private sector direct damages incurred during previous Israeli incursions and airstrikes for the period from September 2000 to March 2007, were estimated at about US$400 million (i.e. US$332 million at agricultural sector, US$37 million at industrial sector, US$24 million at trade sector, and US$5 million at tourism sector)2. Nevertheless, the private sector establishments were always determinate to cope through changing environment to maintain operations and market presence. The current private sector needs in Gaza are extensive, and require a fast and effective response of development organizations and aid agencies, in order to re-activate the private sector operations. As the representative of the private sector in Gaza, the Private Sector Coordination Council (PSCC), which is comprised of the major private sector associations in Palestine, PSCC has: 1. Participated in the efforts led by the UN Country Team, represented by UNDP, in assessing and documenting damages of private sector establishments. 2. Implemented a quick assessment scan of damages and needs with the representatives of industrial and agricultural associations.