World Bank: 11 Days War, Gaza Strip Recovery Fund Reaches IDR 7 Trillion

Illustration of the impact of Israeli air strikes on the Gaza Strip. (Wikimedia Commons/RafahKid Kid)

JAKARTA - The Gaza Strip needs recovery funds of up to 485 million US dollars, or around Rp. 7,024,861,250,000, within the next two years after the 11-day war with Israel last May, according to the World Bank.

The immediate priority is to provide assistance, repair damaged infrastructure and restore essential services disrupted by the conflict to at least pre-conflict levels, the World Bank said in a statement.

The World Bank further said critical recovery needs include cash for around 45,000 Palestinians, food and non-food assistance, as well as providing an additional 20,000 full-time jobs for next year.

Another priority is meeting housing needs, after more than 4,000 houses were destroyed or partially damaged. The need to increase food production is also a top priority, along with the rehabilitation of physical assets.

The initial assessment by the World Bank was conducted between 25 May and 25 June in partnership with the United Nations and the European Union, immediately following the cessation of hostilities, and in collaboration with the Palestinian Authority, estimating physical damage of up to 380 million US dollars and economic loss of 190 million US dollars.

Illustration of conditions in the Gaza Strip. (Wikimedia Commons/gloucester2gaza)

"The 11 days of hostilities in May 2021 in Gaza resulted in the deaths of more than 260 people, including 66 children and 41 women, and exacerbated previous traumas, particularly among children. The human toll was exacerbated by the overall damage and loss to the social sector, infrastructure , productive and financial," said the World Bank.

Gaza's economy, which has been under an Israeli blockade since 2007, could shrink 0.3 percent in 2021, compared with the 2.5 percent annual growth expected before the armed clashes, according to the World Bank.

Meanwhile, unemployment among Palestinians in Gaza stands at around 50 percent, more than half of the population lives in poverty and 62 percent of Palestinians experience food insecurity after the May clashes.

"The humanitarian crisis is exacerbated in an economy with very limited relations with the outside world. With this assessment, we hope to mobilize donor support to help restore dignified living and livelihood conditions in Gaza, leading the way to recovery," said the World Bank Director for the Bank of the Bank of Israel. West and Gaza Strip Kanthan Shankar.

"This is another unfortunate episode where Palestinians in Gaza see themselves in the midst of conflict and destruction," continued Shankar.

Illustration of a destroyed school in the Gaza Strip. (Wikimedia Commons/International Solidarity Movement)

The World Bank estimates that the physical damage caused by hostilities ranged from US$290 million to US$380 million, with the social sector bearing the brunt of the damage and accounting for more than half of the total damage.

In addition, the World Bank said the conflict resulted in economic losses in the form of a cut in the flow of the economy, production and services ranging from 105 million US dollars to 190 million US dollars.

"Conflict significantly weakens the livelihoods and safety nets of the most vulnerable," the World Bank said.

"Palestinians in Gaza have suffered cumulative, human and economic losses, repeated hostilities over the past three decades, as well as prolonged restrictions on the movement of people and commercial goods at border crossings, restrictions on fishing off the coast of Gaza and now the fallout from the COVID-19 pandemic. , explained the World Bank.

The UN Special Coordinator for the Middle East Peace Process Tor Wennesland said the assessment carried out by the World Bank and its partners was an important step. He called on the international community to come together to support the ongoing efforts.

Meanwhile, EU Representative Sven Kühn von Burgsdorff said the civil causality and devastating socio-economic impact of these hostilities reminded of the need to address the root causes of conflict.

"Gaza's recovery must be supported by a meaningful peace process that will bring security and dignity to all. The sustainability of Gaza's recovery will largely depend on the progress of the political process and negotiated solutions. Palestinian unity and democratic renewal through free and fair elections are also very important, " he said.