Academic Paper: The Economic Implications of Forced Displacement in Gaza Strip: From Livelihood Collapse to Dependence on Humanitarian Aid (Arabic)

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Dr. Raed Muhammad Hillis examines the catastrophic economic repercussions of forced displacement in Gaza Strip (GS) amid the ongoing Israeli genocidal war since 7/10/2023. The study underscores that the territory is experiencing an almost complete collapse of its economic system, characterized by the disintegration of productive infrastructure and near-complete dependency on humanitarian aid.

The significance of this study, issued by the Al-Zaytouna Center for Studies and Consultations, lies in its provision of a contemporary and rigorously documented analysis of GS’s economic conditions. The findings indicate that approximately 200 thousand jobs have been lost, with the unemployment rate rising from about 45% in Q3 2023 to nearly 68% in Q4 2024. Furthermore, more than 82% of productive enterprises have ceased operations, the Gross Domestic Product (GDP) contracted by 81% in Q4 2023, and the annual decline reached approximately 22% relative to 2022.

The agricultural sector has suffered extensive destruction, affecting between 80% and 96% of agricultural assets, which has resulted in a collapse of local food production by over 90% and pushed the entire population of GS below the poverty line, with nearly half a million people approaching the brink of famine.

Hillis notes in this paper that humanitarian aid has effectively become the nearly exclusive source for meeting the population’s basic needs; however, it covers only 10% of actual requirements. This situation threatens to transform the local economy into a purely “relief-based economy” and entrenches a state of economic dependency that is likely to persist for decades.

The researcher emphasized that overcoming this crisis requires a shift from emergency humanitarian response to a comprehensive developmental approach. This approach should encompass the reconstruction of infrastructure, support for productive sectors, strengthening local food systems, and the empowerment of vulnerable groups, thereby laying the foundations for sustainable economic and social recovery. He further noted that the continuation of the war and the expansion of displacement would render the recovery process increasingly difficult and complex unless an integrated strategic vision is adopted, one that simultaneously addresses both humanitarian and developmental dimensions.

The paper concluded with a set of key recommendations, highlighting the necessity of rebuilding critical infrastructure and essential service networks, launching productive economic programs such as “cash-for-work” and small-scale enterprises, supporting community and urban agriculture, and establishing local markets. In addition, it underscored the importance of empowering women and youth through financial assistance and vocational training programs, enhancing governance mechanisms and partnerships to promote transparency in resource management, and integrating risk management into recovery plans through early-warning systems and strategic reserves.