The Implications of the Israeli Disengagement Plan on Economic Recovery in the Gaza Strip

Linda Wafi, School for International Training

Abstract

The following inquiry addresses the issue of economic recovery in the Gaza Strip, which was recently evacuated by the Israeli army under what was known as the disengagement plan. Despite the fact that Israel removed all its 38 year-old settlements and military outposts from the strip, Israel still controls all aspects of life in the strip, including freedom of movement, trade, natural resources and the access to those resources.

This question posed in this research is to what extent does the disengagement plan allow Palestinians to recover their economy. In an attempt to answer this question, this paper addressed the policies and imperatives imposed on the Gaza Strip for the past 38 years of Israeli occupation. Through reviewing the official documents released by the Israeli government and the documentations of economic policies and sanctioned enforced in the GS, this paper shows that those sanctions that have obstructed the emergence of a indigenous Palestinian economy for decades have not changed after the disengagement. The findings of this inquiry also demonstrate that the disengagement plan has left the GS completely dependent on Israeli economy and completely isolated from the global market.

This paper could be used as a document that includes many of the economic sanctions and issues that need to be addressed by the international community and donor countries/agencies. This paper could be used a case study for economic reconstruction in conflict situations, where decades of financial aid and international assistance have failed in achieving economic recovery or self-sustainability.