Early recovery, reconstruction and development of Gaza

During the recent emergency Arab Summit in Cairo, Egypt proposed a $53 billion plan for the reconstruction of Gaza over five years. The plan focuses on urgent relief, reconstruction, and long-term economic development. According to the report titled "Early Recovery, Reconstruction, and Development of Gaza," the plan consists of two phases of reconstruction and suggests the establishment of a fund under international oversight.

Following the recent war on Gaza, reports indicate that direct losses amounted to $29.9 billion, while economic and social losses were estimated at $19.1 billion, bringing the total losses and needs to $53.2 billion. The most severely impacted sectors include housing ($16.3 billion), trade and industry ($8.1 billion), health ($7.6 billion), education ($4.1 billion), and transportation ($2.9 billion). Poverty in Gaza has reached unprecedented levels, with unemployment sharply rising 80% of the population is currently unemployed.

The destruction caused by the war has left Gaza with serious humanitarian and economic consequences that will take a long time to overcome. Given the dire situation, accelerating early recovery is crucial to ensure regional stability and provide economic and social opportunities. A major challenge facing Gaza is the widespread damage to infrastructure. Over 31,000 housing units were completely destroyed, while 55,000 others are no longer habitable. Additionally, 31% of educational facilities were destroyed, severely affecting the education of 350,000 students.

The early recovery phase must focus on providing urgent humanitarian aid due to the destruction of agriculture and local production. In terms of housing, the recovery plan aims to rebuild 15,000 homes within 6 to 12 months of initiating operations. The removal of rubble and rebuilding of essential infrastructure alone requires $3 billion in funding during this phase. One of the biggest challenges to early recovery is the blockade on Gaza, which prevents approximately 70% of essential materials from entering the region. This restriction hinders humanitarian teams’ ability to carry out relief and reconstruction operations. Furthermore, 80% of Gaza’s population is completely dependent on humanitarian aid, complicating the situation further.

The recovery and reconstruction process in Gaza, as outlined in the report, requires significant financial resources to meet the needs of the affected sectors. Key sectors include housing ($15.2 billion), roads ($3.45 billion), and electricity ($1.5 billion). The health, trade, and industry sectors require $6.9 billion, while education needs $3.8 billion. Agriculture and social protection require $4.2 billion, and transportation, water, and sanitation need $2.9 billion and $2.7 billion, respectively. Additionally, rubble removal will require $1.25 billion. International organizations and donor countries could provide $1.2 billion during the first phase, along with $200 million in investments for vital infrastructure projects.

The report concludes that while early recovery in Gaza presents significant challenges, it is not impossible. With swift and effective action and the necessary financial resources, Gaza could be in a better position for recovery in the future. Although the challenges are substantial, there are significant opportunities for sustainable recovery through international cooperation.

Raad Mahmoud Al-Tal is head of the Economics Department – University of Jordan- [email protected]