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August 31, 2007

Gaza on the brink of total chaos

Israeli and Palestinian businesspeople advocate for the reopening of the Karni crossing.
RHONDA SPIVAK

According to prominent Gaza businessman and engineer Ali Abu Shahleh, "the collapse of the Gaza economy will lead to chaos."

Abu Shahleh was the keynote speaker at a forum this month entitled Gaza's Economy ... Where To? which was held at East Jerusalem's stately Ambassador Hotel, under the auspices of the Israel-Palestine Centre for Research Information (IPCRI). Abu Shahleh spoke to a diverse crowd of Palestinians, Europeans and some Israeli Jews, and directed criticism at Israel, Hamas and Fatah for their roles in the closure of the border crossings into Gaza.

"The Palestinian people cannot wait too long for the reopening of the border crossings into Gaza," said Abu Shahleh, who ran unsuccessfully in Palestinian elections in 2006 for a third-way party that only won two seats. "They will wait until the international summit in the fall to see if U.S. efforts bear fruit. After that, if there is no change, the people may explode and the explosion will be directed at everybody who is involved in closing Gaza's borders – at Hamas, at Fatah and Israel. Desperate people can do anything ... Palestinians in Gaza will not be willing to see Palestinians in the West Bank get wealthier, while they starve."
Since the Hamas takeover of the Gaza Strip on June 12, the Karni crossing, which had served as the main passageway of goods into and out of Gaza, has been open only for the transfer of humanitarian aid. Israel and the Palestinian Authority continue to search for a viable alternative to Hamas border guards manning the crossings.

Prior to Hamas's violent takeover, the Fatah-led Palestinian Authority was responsible for operating the crossings.

"I am not Hamas and I am not Fatah and I am being kidnapped by all parties," said Abu Shahleh. He is involved in a project to build 3,000 residential apartments in Gaza, which are being donated by the United Arab Emirates. "I was on the design team," he noted. "We'll have to stop building within two months, because we'll be out of materials. I used to have 30 people on staff. Now I can only employ two."

Dr. Salam Fayyad, Fatah's newly appointed Palestinian Authority prime minister, and Palestinian academic Hanan Ashrawi were the only two candidates for the third-way party elected to the Palestinian parliament. Abu Shahleh was the eighth candidate on the list.

"Israel is using economic pressure [by closing the border] to get concessions from the Palestinians," he said. "Under the unity deal between Hamas and Fatah, there were 700 trucks per day of imports and 37 trucks a day of exports that passed in and out of Gaza through the Karni crossing. Since the Hamas takeover in mid-June, there are only 110 trucks per day of [humanitarian aid] that are allowed into Gaza and zero exports." In a tone of desperation, he added: "We want trade, not aid."

Abu Shahleh also had harsh criticism for Hamas. "Hamas accepted to have elections under the Palestinian Authority, which was itself created under Oslo. Hamas has to admit that they have to consider all of the agreements that were signed. If Hamas cares about the Palestinian people, they need to dialogue [with Israel]. Hamas signed a unity agreement that said that if there will be any violent resistance against Israel, it has to be agreed by all factions of Palestinians, but Hamas breached this. Under the unity agreement, Hamas has to give the ability to negotiate agreements to [PA Chairman Mahmoud] Abbas, so why did they not let him negotiate?"

Abu Shahleh said he could never agree to the way that the Hamas militia came to power last June. "We need new elections," he said, citing polls that show "that 70 per cent of the people in the West Bank and Gaza feel Hamas has made mistakes and that 65 per cent of Palestinians want new elections." A 20-something Palestinian woman in the crowd agreed with him. A middle-aged Palestinian man asked him about the stream of Gaza businessmen who have been fleeing to the United Arab Emirates and Yemen to escape the economic chaos in Gaza. Other Palestinian businessmen in the crowd shook their heads in dismay.

Abu Shahleh painted a picture of economic ruin for Gaza. "There are containers of carnations waiting at the [Karni] crossing to be exported," he said. "We will lose them all. Fruit ready for export has rotted.... As of the middle of July, 50 per cent of the factories in Gaza were closed. There were plans for the United States to spend $155 million on a project to build a needed water carrier through Gaza, but the U.S. has stopped the project. Prior to Hamas's violent takeover, one person in Gaza had to feed eight people in a family. Now, one person has to feed 15 people."

This Rosh Hashanah marks a shemitah (sabbatical) year in Israel, where Jewish farmers are obliged to let the land lay fallow and not be farmed. "When it is a shmitah year, Israel [usually] imports all its agricultural goods from Gaza. But now, Israel has made economic agreements to import agricultural goods from Jordan instead," said Abu Shahleh.

Meanwhile, in the last month, Israeli businessmen in the private sector have also begun to agitate for the opening of the Karni crossing. Israeli businesses in textile, metal, furniture and food sectors are suffering. Israeli builders have been prevented from working with Gazan subcontractors, which has raised costs and made it hard to remain competitive. Uriel Lynn, president of the Federation of Israeli Chambers of Commerce, has called on the Israeli government to do its utmost in opening the border, by setting up a private security company if necessary.

According to Gershon Baskin, co-chief executive officer of IPCRI along with Palestinian Hanna Seniora, there are currently efforts being made to involve a third party in negotiating a way to reopen the Karni crossings. "The government of Turkey, the Turkish Federation of Industry and the government of Norway, who have some contacts with Hamas, have been approached," he said. "For an agreement to occur, not only Israel [and] the PA in Ramallah, [but also] the donor states – the United States and Europe, would have to approve of the arrangement. Hamas would have to be a silent partner in order to guarantee the safety of the personnel of the third party who would man the crossing."

Under these circumstances, it is not surprising that an agreement has remained elusive.

As for a future Fatah-Hamas unity deal, Baskin said, "PA President Abbas and Prime Minister Fayad will not re-enter any unity government with Hamas that will result in freezing them out of getting international aid."

Baskin rejected the notion that Israel could negotiate a peace treaty "only with Palestinians in the West Bank. The West Bank and Gaza must both be a Palestinian state together," he insisted – but added, "there is no government in Gaza that one can deal with."

In the meantime, IPCRI has just created the Israel-Palestinian Business Forum. "This is being formed to serve the needs of those Palestinians and Israelis who want to work together and who believe that economic co-operation can help ease the political problem," said Baskin.

Still, Timea Spitka, who teaches mediation at Ben-Gurion University and attended the event, noted: "I am one of the only optimistic people around who thinks the Israeli-Palestinian conflict can be solved.... The only other optimist is Gershon Baskin. Everyone else I speak to is pessimistic."

Rhonda Spivak is a Winnipeg freelance writer who spends several months of the year in Israel.

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