GAZA CITY: The United Nations Development Programme (UNDP) has released a report indicating that the impacts of war have regressed development in Gaza by an alarming 69 years. The findings underscore the severe economic and social implications of ongoing conflicts in the region, and the urgent need for substantial recovery efforts.
According to Emirates News Agency, the report emphasizes that without the removal of economic restrictions and significant investments in recovery and development, the Palestinian economy is unlikely to surpass pre-war levels, relying solely on humanitarian aid. The UNDP suggests a holistic recovery and reconstruction approach, integrating humanitarian aid with strategic investments and lifting economic constraints, to align Palestinian development with future plans by 2034.
UNDP Administrator Achim Steiner noted the challenges, stating, “The assessment indicates that, even if humanitarian aid is provided each year, the economy may not regain its pre-crisis level for a decade or
more.” The report explores various recovery scenarios, with the most optimistic being the Non-Restricted Early Recovery (NRER) scenario, which involves lifting restrictions on Palestinian workers and restoring withheld clearance revenues to the Palestinian Authority.
In this NRER scenario, an annual allocation of $290 million for recovery efforts, alongside $280 million in humanitarian aid, could boost productivity by 1 percent each year, potentially revitalizing the Palestinian economy. However, the report cautions that such outcomes are contingent on unrestricted recovery initiatives.
The report further projects a significant decline in development as measured by the Human Development Index (HDI), with the State of Palestine’s HDI dropping to 0.643 by 2024-a level consistent with 2000, effectively setting back development by 24 years. For Gaza, the HDI is anticipated to fall to 0.408, akin to conditions in 1955, effectively erasing over 69 years of progress. Meanwhile, the West Bank’s HDI is expected to d
ecrease to 0.676, reflecting a 16-year regression, with potential for further deterioration if military actions in the area intensify.