INVESTIGATION: Yezid Sayegh on the Hamas economy in Gaza

Later today, the Israeli Foreign Ministry is expected to publish a new list — of items forbidden to enter Gaza. This is the revamp of Israel’s sanctions policy that was announced in the wake of the 31 May Israeli attack on the Freedom Flotilla attempting to “break the siege on Gaza” by sea, which resulted in the deaths of 8 Turkish men and one American student.

But why is this list being announced by the Israeli Foreign Ministry?

Probably to emphasize, first of all, that Israel and Gaza are two different entities. Despite considerable evidence to the contrary, Israel has insisted since its unilateral withdrawal, in September 2005, of 8,000 Israeli settlers and the troops protecting them, that it is no longer occupying Gaza.

Since September 2007, following an Israeli Government decision to declare Gaza an “enemy entity” or “hostile territory”, the Israeli siege on Gaza has been administered by the Israeli Ministry of Defense — and in particular, its COGAT [Coordinator of Government Activities in the Territories] department — without any other government supervision or oversight, than a warning by the Israeli Supreme Court, in response to a lawsuit brought by a group of Israeli and Palestinian human rights groups [with GISHA in the lead] not to allow a “humanitarian crisis” to develop.

Some international organizations believe that a this threshold has already been passed, several years ago.

And, there are continuous reports that this Israeli policy toward Gaza is not completely unappreciated by the Ramallah-based Palestinian Authority, who also want to subdue if not topple Hamas and restore their control in the Gaza Strip. This commonality of interests supports the Israeli “siege”.

But, to the extent that a humanitarian crisis has not — yet — become a humanitarian disaster, resulting in a huge number of deaths among the 1.5 million people trapped by the siege in the Gaza Strip, is due, some argue, to the organization and coping strategies developed by Hamas.

It is worth noting that since the Israeli naval assault on the Freedom Flotilla, COGAT as reportedly been too busy to accept many scheduled deliveries of goods into Gaza, according to some reports in Ramallah — COGAT has been preoccupied with searching and inspecting the cargo of the Freedom Flotilla. Israel promised to deliver what was not forbidden to Gaza — and the entry of this material is only taking place now. This concerns a reported 70 truckloads worth of items, including electric wheelchairs.

COGAT in the past week has managed a steady increase in the number of truckloads it is allowing to pass through to Gaza per day — it is now hovering around, or even surpassing 150 truckloads per day [this should be compared, however, to the pre-2007 levels of between 400 and 600 truckloads a day, for 1.4 million people].

Yezid Sayegh, Professor of Middle East Studies in the Department of Wars Studies at King’s College London who is currently on leave to Brandeis University [his bio also says he is a former adviser and negotiator in the Palestinian delegation to the peace talks with Israel – but doesn’t say which ones] wrote an analysis of “Hamas Rule in Gaza -Three Years On”, published in March 2010, that says:

“Gaza has developed a unique economy based on a combination of three main inputs: smuggling (through the tunnels dug under the border with Egypt at Rafah); monthly subventions worth $65 million from the Fayyad government to pay its employees and operate Gaza’s power plant; and the services and salaries provided by international NGOs and, especially, UNRWA.

“These inputs relieve the Hanieh government of a considerable burden, much as a considerably greater scale of foreign aid relieves the Fayyad government. At $540 million, the Hanieh government’s declared budget for 2010 is a fraction of the $2.78 billion budget of its West Bank counterpart; but with only 32,000 employees to the latter’s 145,000, its costs are far lower. Even so, the Hanieh government is believed to collect no more than $5 million a month in local revenue, or even less, if its own informal figures are to be believed. It has avoided taxing the tunnel trade in civilian goods entering from Egypt, with the result that commodity prices have dropped since the start of 2010. The bulk of government income derives instead from foreign sources: contributions from the Muslim Brotherhood International (Hamas’s mother organization), collections from zakat committees, and a portion of the assistance believed to reach the Hamas leadership in Damascus from Iran”…

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