Economic situation in Gaza very difficult
Palestine, Politics, 5/19/2006

Isdud Al Najjar, Mercy Corps' program manager in Gaza, said the situation is very difficult, and it is getting worse and worse, stressing most of the families in the Gaza Strip are suffering from the border closure policy, price increases, lack of cash and cuts in international aid to the Palestinian National Authority.

Al-Najjar, who was interviewed by Mercy Corp, said government employment accounts for nearly a quarter of the economy, and those workers haven't been paid in three months. Many farmers aren't able to export their vegetables to Israel because of long closures at the main crossing point. Taxi drivers cannot cover fuel costs because of price increases and shortages. Most families now depend on handouts from the United Nations' World Food Programme or charity to eat.

He added that people are selling what they have to meet their basic needs. "Women are selling their jewelry, men are selling their televisions and cars. Children are darting in and out of traffic selling things like gum and chocolates," he said "the shops are nearly deserted. People are buying nearly everything on credit - even a haircut at the barbershop. Children are walking to school because their families don't have enough money to pay for transportation."

Al-Najjar revealed that people are witnessing the first rationing of bread in living memory. The majority of basic goods in Gaza are imported, so the border closures have reduced supply and raised prices - in particular for sugar and wheat flour, which together represent about 80 percent of the caloric intake of Palestinians.

"On average, the prices of basic commodities have increased by 32.5 percent since January 2006, according to the World Food Programme. What's more, concerns about Avian Flu have led to the slaughter of many birds, further decreasing the food supply. As a result, the poorest households are cutting back on meals and relying on charitable assistance," he pointed out.

For the last several weeks, he said, Mercy Corps has teamed with a local organisation to provide more than 200 people with disabilities with vital medical supplies that alleviate some of their financial burden and allow them to participate in their community. These items include crutches, walkers, sanitation supplies, medical beds, air mattresses and diapers.

"Now, we're launching an emergency-aid effort to help 300 poor families with food, milk and other items, like kerosene cooking fuel. Donations will help more poor and vulnerable families secure some of their basic needs," he indicated.

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