Trade and Development Board, 74th executive session - Item 6: Report on UNCTAD assistance to the Palestinian people

President,
Your excellencies,
Distinguished delegates,

It is now incumbent on me to present to you the main findings of our latest Report on UNCTAD’s Assistance to the Palestinian People.

Mr. Mutasim, officer-in-charge of the assistance to the Palestinian unit, will then elaborate further on some of these findings. Thank you very much for all the work that has been done.

Before I start, I would like to repeat what I said yesterday in my initial statement to the Board. We present this report in very trying times, where the conflict between Israel and Gaza brings unimaginable suffering to millions.  Since I last presented the report last year, the situation for the Palestinian economy, which was already dire before these hostilities, with over 1.6 million people dependent on humanitarian aid, has, as is obvious, significantly worsened.

I want to echo the call of the UN’s Secretary General, Antonio Guterres condemning the horrific loss of civilian lives on both, the attack perpetrated by Hamas on 7th October and the continued bombardment of the IDF hitting civilians, hospitals, shelters, schools, and UN facilities in Gaza. The protection of civilians must be paramount, as you correctly said dear President, no party to an armed conflict is above international humanitarian law. “The images of suffering are heart breaking and soul crushing”. We must find a way to hold on to our common humanity as did Terence, a North-African former slave, who became a famous playwright in Ancient Rome. Terence said, and I quote, “I am human, and nothing human is foreign to me”. I used this quote in my address to the students of the 2023 graduation ceremony at Science PO this year and I asked the students “please take this phrase with you wherever you go”, I ask the same from you today.

Excellencies,

The way forward is clear and was clearly spelled by the UNSG. A humanitarian ceasefire. Now. All parties respecting all their obligations under international humanitarian law. Now. What does this mean? For all parties to respect their obligations under international humanitarian law. This means the protection of civilians, hospitals, UN facilities, shelters, and schools. This means the unconditional release of the hostages.  This means unfettered access to deliver supplies to all people in need in Gaza. And the end of the use of civilians as human shields. None of these appeals should be conditional on the others.

This UNCTAD report, which uses data from last year, sheds light on the significant challenges that the Palestinian economy faced even before the start of the current war.

In 2022, despite a 3.9 percent growth in GDP, the per capita real GDP in Palestine was still well   below its 2019 level. The situation is particularly dire in Gaza, where real GDP was in 2022 almost 12 percent below the 2019 level, marking a significant regression. Unemployment rates were alarmingly high, standing at 24 percent across the Occupied Palestinian Territory, with 45 percent unemployment in Gaza alone.

Our report highlights that the Palestinian economy is also significantly dependent on Israel, with 72 percent of its total trade in 2022. This dependency is further exacerbated by the lack of a national currency and the reliance on the Israeli shekel, which restricts the ability to implement effective monetary policies. Similarly, the lack of jobs forces many Palestinians to seek employment in Israel and settlements. In 2022, 22.5 percent of employed Palestinians from the West Bank worked in Israel and settlements, where the average wage is higher. But if you take into account broker fees and other associated costs account for 44 percent of gross pay, wiping out the premium over the average domestic wage, which indicates that search for employment in Israel and settlements is largely driven by limited employment opportunities in the domestic economy.

Furthermore, the Palestinian government has faced a steep decline in donor aid. In 2022, they received only US$550 million in total, a significant drop from the US$2 billion in 2008. This decline has made it even harder for the Palestinian economy.

In Gaza, the economic situation was even more critical. Since 2007, Gaza has been under a land, sea, and air closure, severely impacting its economy. Investment in Gaza’s GDP has plummeted, and its share in the Palestinian economy has significantly decreased. The population faces enormous challenges, including restricted access to essential services, with 80 percent of Gazans depending on international aid. Living in Gaza in 2022 meant confinement in one of the most densely populated spaces in the world, without electricity half the time, and without adequate access to clean water or a proper sewage system. It meant a 65 percent probability of being poor, 41 percent probability of dropping out of the labour force in despair, and for those looking for work, a 45 percent probability of being unemployed.

Your excellencies,

This report reveals the structural crisis that was present in the State of Palestine even before the current conflict started. The numbers I have presented to you today speak for themselves, and they speak with heart-breaking urgency. As UNCTAD, we remain committed to providing assistance to the Palestinian People that are undergoing a dramatic humanitarian crisis and reiterate our commitment to international law and to peace.  

I thank you.