The Reasons Behind the Impasse in the Reconstruction of Gaza and the Way Ahead

Wednesday, 8 April 2015. The Palestine Economic Policy Research Institute (MAS) hosted in its headquarters in Ramallah the first discussion of its Roundtable Program for the year 2015 on the predicament of the reconstruction of the Gaza Strip. The video-conference meeting was attended by representatives of public, private, and civil institutions as well as trade unionists from the West Bank and Gaza. The main presentations were given by Dr. Mufid Al-Hasayneh, Minister of Public Works and Housing, Mr. Samir Huleileh, PADICO CEO, and – from Gaza – Mr. Osama Kuheil, former Head of the Palestinian Contractors Union.

In his presentation, Al-Hasayneh showed scenes of the destruction, carnage, and bloodshed which the Gaza Strip suffered during the Israeli attack whose repercussions still bear witness to the cruelty of the war. The stalled reconstruction process and the delay in removing the rubble have exacerbated suffering, and now there are about 43 thousand families, whose homes were totally destroyed, staying in UNRWA schools, he pointed out. Out of the $5.4 billion pledged at the Cairo Conference last October (with around 50 percent allocated to reconstruction), the Strip received only $200 million, he remarked, adding that around 80 percent of the funds received so far were made available by UNRWA and UNDP. Al-Hasayneh extended his sincere thanks to the countries that provided financial aid or housing units, such as Qatar, Saudi Arabia, Kuwait, and the European Union states. He also spoke about the Serry Plan, saying that he came to know its details not long ago and that he did not endorse it. The international community has not adequately pressured Israel to lift the blockade and allow the entry of construction material, such as cement, with daily needs estimated at about 5-8 thousand tons, he regretted. The Palestinians should be united and the government should supervise and remain responsible for the reconstruction efforts, he concluded.

Samir Huleileh, in turn, emphasized the role of the Palestinian government and its agencies in reconstruction, a role that actually started with the Cairo Conference. He paid tribute to the donor countries that have fulfilled their obligations, such as Saudi Arabia, Qatar, and Kuwait. Given the adverse conditions, the results are, though, unsatisfying, he resented. An internal assessment of the inadequacy of the results needs to be carried out, he demanded. Reflecting on the reasons behind such ineffectiveness, he said that the political assumptions for the reconstruction plan were not mature: the political situation was unripe, a national consensus has never been achieved, and the Israeli blockade still exists. The mission in Gaza needs greater efforts at all levels, with a remarkable part borne by the PNA, he advised. Many actions need to be performed to ensure solid results: keeping basic services (particularly water, electricity, sanitation, and waste) outside the political bickering, entrusting a specific agency with the implementation of a unified mechanism to resolve the recurring problems facing the reconstruction efforts, and allowing the private sector to assume its role in reducing unemployment, he recommended.

In his presentation, Mr. Osama Kuheil enumerated three main reasons behind the delayed reconstruction, saying these points are not addressed openly by decision-makers who still evoke them only reluctantly behind closed doors. First, the private sector organizations are to be held accountable, as they would merely allot relief coupons to cover up the crimes of the occupation. Meanwhile, the union government is inattentive and does not address issues of concern in any 1 This document is an English translation of the original Arabic text. In the event of discrepancies between the original text and the English translation, the Arabic text shall prevail. definite matter. Second, there will be no real reconstruction with closed crossings. Third, the donors have agendas and they always insist on their own methods of allocating funds, with no adequate consideration to the needs of the population. Above, Kuheil added, national forces do not have the resolve to play a decisive role in the reconstruction efforts, thus laying aside their vested interests. He concluded his talk with voicing his concern over the harsh conditions that drive young people to seek better opportunities through emigration.

Feedback from the audience focused mainly on the importance of achieving national reconciliation and arriving at a national consensus that responds to supreme national interests. The audience viewed this as a necessity and a priority, and highlighted the demands of the Palestinians in Gaza and their humanitarian needs as well as the urgency of alleviating their hardships. The audience suggested establishing a government-led ad hoc commission that comprises of different stakeholders (from the private sector, NGOs, and donors) with a scope powers that is wide enough to allow it to form efficient technical teams capable of effectively procuring services, appointing necessary personnel, managing tenders, performing accounting audit, and overseeing the implementation of reconstruction projects. A potential commission should be the only agency entrusted with the reconstruction efforts, with an independent budget and a free hand to make decisions as it deems appropriate. Furthermore, the donors should pressure Israel to open the crossings, stressing that the PNA should refuse the de minimis construction materials that are allowed under very strict Israeli supervision and big-ticket bureaucracy.

The roundtable was moderated by Dr. Samir Abdullah, MAS Director of Research, from Ramallah and Dr. Maher Tabba', Director of Public Relations and Information at the Gaza Chamber of Commerce and Industry, from Gaza. The meeting was opened by Dr. Samir Abdullah, who identified the main obstacle to the reconstruction efforts: namely the Palestinian political divide and the stalled national reconciliation. This predicament, he cautioned, serves as a perfect pretext for the occupier to keep the Strip under a tight blockade and machinate for dubious deals to exclude the Gaza Strip from the Palestinian national project. He warned of the current situation, predicting that Israel might capitalize on the dire straits to keep the Palestinian factions busy with internal conflicts.