Subscribe to Print Edition | Mon., December 08, 2008 Kislev 11, 5769 | | Israel Time: 10:38 (EST+7)
Haaretz israel news English
web haaretz.com
Haaretz Toolbar
Diplomacy
Defense Jewish World Opinion National
Print Edition
Car Rental
Books Haaretz Magazine Business Real Estate GA 2008 Travel Week's End Anglo File
Karni border crossing between Israel and the Gaza Strip seen closed for traffic earlier this year. (Limor Edery)
Last update - 00:00 12/07/2007
World Bank: Gaza Strip may face 'irreversible' economic collapse
By Reuters

The World Bank said on Thursday the prolonged closure of Israel's border crossings with Hamas-controlled Gaza could lead to the coastal strip's "irreversible" economic collapse.

The international lending agency delivered that stark assessment during a closed-door meeting of aid groups and private sector organizations.

Israel has largely closed the Karni commercial crossing, Gaza's economic lifeline, in an effort to isolate Hamas after it seized control of the Gaza Strip a month ago.
Advertisement
Egypt has also kept mainly shut Gaza's border crossing with the Sinai since mid-June.

Israel has allowed humanitarian aid into the territory through smaller crossings.

While aid groups said this should be sufficient to head off a food shortage in the territory of 1.5 million people, they warned Gaza's economy would be devastated.

Almost all Gaza businesses depend on imported raw materials and other supplies that must pass through the strip's shuttered crossings with Israel.

"The pillars of Gaza's economy have weakened over the years. Now, with a sustained closure on this current scale, they would be at risk of virtually irreversible collapse," Faris Hadad-Zervos, the World Bank's acting country director for the West Bank and Gaza, told the aid groups.

A copy of the World Bank's presentation was obtained by Reuters from a participant in the meeting.

"A solution must be reached very soon, if not immediately... Otherwise, Gaza's dependence on humanitarian assistance could become a long-term and comprehensive situation. These impacts will be difficult to reverse," Hadad-Zervos said.

According to statistics compiled by the Palestine Trade Center and the Palestinian Federation of Industries, more than 3,190 Gaza businesses have temporarily shut down in the last month. Some 65,800 workers have also been temporarily laid off.

Up to 54 percent of employment in Gaza is generated by the private sector, representing more than 100,000 jobs.

Hadad-Zervos said a loss of a third of those jobs would translate into unemployment levels of over 37 percent, up from 30 percent at the beginning of the year. He said unemployment could reach the unprecedented level of 44 percent.

Israel wants to isolate Hamas in the Gaza Strip, while allowing funds and goods to flow to President Mahmoud Abbas's emergency administration in the West Bank.

Israel controls the land crossings between Gaza and Israel, as well as Gaza's air space and territorial waters
Bookmark to del.icio.us  
 
Not the old settlers
Some settler factions have adopted the tactics of factions in Gaza.
Carrot and stick
Obama says U.S. must talk to Iran but threats against Israel unacceptable.
  1.   Pals are very special,Germans&Japanese didn`t suffer "irreversibl 20:37  |  Absolute Sweden 12/07/07
  2.   Shortage of Raw Materials Is A Good Thing 20:45  |  Brad 12/07/07
  3.   `irreversible damage`? 20:47  |  Margie in Tel Aviv 12/07/07
  4.   Er, could it be the use of resources? 20:56  |  Johnson 12/07/07
  5.   The High Cost of Terrorism 21:03  |  Jane 12/07/07
  6.   I guess the people of Gaza should make an intifada 21:06  |  Steven 12/07/07
  7.   Mission accomplished for some 21:10  |  Natallie Durson 12/07/07
  8.   irreversible collapse of qassam builders 21:14  |  peter 12/07/07
  9.   Oh my Gosh! Those poor innocents! Someone, HELP them!! 21:19  |  Concerned 12/07/07
  10.   Premises of this article all wrong 21:32  |  Chick 12/07/07
  11.   Cry me a river palis 21:34  |  Twogunz 12/07/07
  12.   For Gods sake 21:34  |  lee 12/07/07
  13.   We shouldn`t let them starve 21:35  |  Yonatan 12/07/07
  14.   General Durson # 4 21:37  |  Twogunz 12/07/07
  15.   The business of TERROR takes precedence over the business ofTRADE 21:39  |  Alan 12/07/07
  16.   Someone help them??? Please Concerned... 21:41  |  Lee 12/07/07
  17.   I don`t understand something... 21:43  |  Jerusalem Shmuel 12/07/07
  18.   World Bank 21:53  |  L. Gomberoff 12/07/07
  19.   "prolonged closure of Israel`s border " 22:00  |  Zev 12/07/07
  20.   Price of Palestinian terror and land theft, economic collapse 22:00  |  sam gorin 12/07/07
  21.   To Margie in Tel Aviv & others 22:03  |  Ramzi, a Palestinian 12/07/07
  22.   Shmuel in Jerusalem 22:09  |  Ramzi, a Palestinian 12/07/07
  23.   the palestinian cesspool 22:13  |  real vision 12/07/07
  24.   Natallie Durson 22:17  |  FinanceDoc 12/07/07
  25.   What happened to the billions the World Bank already gave them? 22:19  |  Nannette 12/07/07
  26.   Durson and the lot of her ilk 22:28  |  GZLives 12/07/07
  27.   `irreversible damage` 22:34  |  dbw 12/07/07
  28.   and why is karni closed??? 22:35  |  uzi 12/07/07
  29.   ramzi number 21 22:42  |  UZI 12/07/07
  30.   no bombs, no checkpoints - its that simple 22:43  |  click is a fool 12/07/07
  31.   So what? 22:43  |  Dave McPherson 12/07/07
  32.   ramzi 22:52  |  doc 12/07/07
  33.   If only they were not in control of their own destiny! 22:59  |  SA 12/07/07
  34.   No surprise 23:07  |  Jeffrey 12/07/07
  35.   Palestinian RAMZI answer this 23:09  |  Kate 12/07/07
  36.   #21 Ramzi 23:22  |  R.Alkalai 12/07/07
  37.   They are well armed for a militia of a starving people. 23:44  |  ScotGuy 12/07/07
  38.   Ramzi, a Palestinian 23:55  |  simon 12/07/07
  39.   To Ramzi in Maryland 00:00  |  Pastaneta 13/07/07
  40.   Gaza strip collapse -a deserving dessert 00:05  |  Nat Weinstein 13/07/07
  41.   Jane no matter how bad 00:26  |  Mark Lincoln 13/07/07
  42.   1Absolute Sweden,aren`t you forgetting the Marshall Plan in 00:26  |  lakshmi 13/07/07
  43.   Financial demise of Gaza 00:30  |  Chaim Gorenstein 13/07/07
  44.   # 7 Fatma, I wish y are right, but it is not... 00:30  |  Misha 13/07/07
  45.   Reasonable person would blame terrorism 00:34  |  Tal 13/07/07
  46.   23Real Vision,you certainly have tunnel vision,israel was able to 00:37  |  lakshmi 13/07/07
  47.   Grace 00:53  |  Joel Weltman 13/07/07
  48.   Natalie Dearie 00:55  |  GABE1 13/07/07
  49.   liar,liar liar! 01:02  |  gershon 13/07/07
  50.   #21 Ramzi 01:28  |  * BEN JABO 13/07/07
  51.   Lakshmi # 27 01:40  |  ChanahS 13/07/07
  52.   The Gaza Commune #1 01:50  |  Joel Weltman 13/07/07
  53.   Lakshmi # 31. Tunnel vision is surely better than no 01:52  |  ChanahS 13/07/07
  54.   The Gaza Commune #2 01:52  |  Joel Weltman 13/07/07
  55.   # 7 Natalli Durson 01:56  |  ChanahS 13/07/07
  56.   Ramzi # 22 01:58  |  ChanahS 13/07/07
  57.   "Economic Collapse"? 02:29  |  phillipe theodosius 13/07/07
  58.   This would be a normally desirable outcome in war. 02:30  |  bernard ross 13/07/07
  59.   #30 Actually, No, Tal. 02:33  |  Johnboy 13/07/07
  60.   Gaza, a swamp infested 02:37  |  Noah 13/07/07
  61.   of course it is our fault 02:38  |  rich 13/07/07
  62.   Confused Lakshmi 02:43  |  Peter 13/07/07
  63.   #32 Water 03:04  |  Joel Weltman 13/07/07
  64.   39Chanah this theme of israel making the desert bloom 03:20  |  lakshmi 13/07/07
  65.   Hi Ramzi 03:35  |  Jerusalem Shmuel 13/07/07
  66.   #36-2 Ramzi - here`s why the port is blocked 05:29  |  * BEN JABO 13/07/07
  67.   Border crossings 07:06  |  Philippe 13/07/07
  68.   Raw materials 07:07  |  Philippe 13/07/07
  69.   Chanah S # 55 07:10  |  Philippe 13/07/07
  70.   #66 *BEN JABO the one trick pony 09:12  |  Johnboy 13/07/07
  71.   #70 Johnboy - Yes, it`s always the same 13:44  |  * BEN JABO 13/07/07
  72.   Why is it always ISRAEL? 15:46  |  Richard 13/07/07
  73.   people who support these closures are sick and short-sighted 19:25  |  Deborah 13/07/07
  74.   to Ramzi, a pali 22:52  |  Igor D. 13/07/07
  75.   palis are being played like a violin 22:57  |  Igor D. 13/07/07
  76.   too late # 9. they are already being helped 22:59  |  Igor D. 13/07/07
  77.   #73 Deborah - KS 00:04  |  * BEN JABO 14/07/07
  78.   #64 lakshmi - too much water 03:58  |  * BEN JABO 14/07/07
  79.   #64 & #78 lakshmi water? 08:08  |  * BEN JABO 15/07/07
 Read & React
Burston: Hebron, Feiglin, & self-hating Jews of the right
Responses: 4
Defense official: Settler attacks could worsen tensions with Muslim world
Responses: 28
Zbigniew Brzezinski: Israel's push for Iran strike may hurt U.S. ties
Responses: 32
Moshe Arens: Like Neville Chamberlain, Barak will realize mistake of Gaza truce
Responses: 5


More Headlines
10:37 Likud members set to pick Knesset line-up as polls open for primary
10:16 Zbigniew Brzezinski: Israel's push for Iran strike may hurt U.S. ties
10:23 Hebron, Feiglin, and the self-hating Jews of the right
08:37 ANALYSIS / Israeli deterrence against Hamas is weakening
07:37 Defense official: Settler attacks could worsen tensions with Muslim world
10:22 'JNF using trees to thwart Bedouin growth in Negev'
09:11 JEWISH WORLD / To be or not to be Jewish, that is the question
04:40 Israel and Morocco quietly discussing Livni visit to Rabat
10:13 Obama: We must talk to Iran, but threats against Israel unacceptable
09:37 Trial over murder of 4-year-old Rose Pizem postponed again
10:21 'Waltz with Bashir' earns best documentary award at international film festival
10:22 IDF soldier who hit Haaretz photographer set to face charges
02:24 Olmert's travel planner quizzed in corruption affairs
05:34 Israel Police: Less violent crime here, but New Yorkers appreciate their cops more
Previous Editions
Special Offers
Advertisement
Summer in Israel
Israeli style - Tzofim Chetz V'Keshet 2009
Living in Israel Studying in English
Click & Meet our students from all around the world
Fattal Hotel Chain
Perfectly located hotels on best resorts of Israel.
Car rental in Israel
Shlomo Sixt Receive $15.00 from our low rates.
Eldan Rent a Car
Israel's leading car rental company offers you a 20% discount on all online reservations
Jewish Singles Personal Ads
Find the love of your life on JDate.com
Hebrew Summer courses
From $39.95
Junkyard
Junk a car - get free towing nationwide and a tax-deductible receipt
Home | TV | Print Edition | Diplomacy | Opinion | Arts & Leisure | Sports | Jewish World | Underground | Site rules |
Real Estate in Israel | Travel to Israel with Haaretz | Hotels Israel | Restaurants Israel | Tourist attractions Israel | Shops Israel
birthright Israel | Search engine marketing
Haaretz.com, the online edition of Haaretz Newspaper in Israel, offers real-time breaking news, opinions and analysis from Israel and the Middle East. Haaretz.com provides extensive and in-depth coverage of Israel, the Jewish World and the Middle East, including defense, diplomacy, the Arab-Israeli conflict, the peace process, Israeli politics, Jerusalem affairs, international relations, Iran, Iraq, Syria, Lebanon, the Palestinian Authority, the West Bank and the Gaza Strip, the Israeli business world and Jewish life in Israel and the Diaspora.
© Copyright  Haaretz. All rights reserved