Gaza Strip Two Years Through Siege!

June 14, 2009 marks the second year of closure of the Gaza Strip for movement of both people and goods. The large majority of these movements are classified under the humanitarian functions with only limited quantities of exports mainly cash crops. This in turn has materialized in high unemployment specifically in the industrial sector, complete or partial closure of industrial establishments as well as tremendous increase in obtaining production inputs through the tunnels. After two years of closure, punctuated by the Gaza War, there has been no improvement at the crossings. The ability to rebuild Gaza and revitalize its economy is dependent on fully opening the commercial crossings to permit inbound movements of industrial inputs, construction materials, and equipment, as well as outbound movement of finished products into local and external markets. The opening of the crossings is not yet occurring. In short, the Palestinian private sector in Gaza has lost its competitive edge in the local and external markets which has become more difficult and costly to reverse. Most Gaza industries are export-oriented and used to have purchase and supply contracts with Israeli and other firms. Before closure, Gaza manufacturers imported 95% of their inputs. About 76% of their furniture products, 90% of their garments and 20% of their food products were exported to Israel, and some to the West Bank.