UN Report Highlights Comprehensive Recovery Plan To Restore Palestinian Economy By 2034

A recent UN assessment highlights the need for a comprehensive recovery plan to revitalise the Palestinian economy. This plan should integrate humanitarian aid with strategic investments and lift economic restrictions. The goal is to align with Palestinian development plans by 2034. The ongoing conflict in Gaza and tensions in the West Bank have set back development by nearly 69 years, according to a new UN report.

The report, titled "Gaza war: Expected socioeconomic impacts on the State of Palestine," was produced by the UN Development Programme (UNDP) and the UN Economic and Social Commission for Western Asia (UNESCWA). It stresses that without lifting economic restrictions, recovery efforts may not restore pre-war levels or advance forward solely through humanitarian aid. Achim Steiner, UNDP Administrator, emphasised that unrestricted recovery efforts are crucial for progress.

Steiner stated, "Projections in this new assessment confirm that amidst the immediate suffering and horrific loss of life, a serious development crisis is also unfolding – one that jeopardises the future of Palestinians for generations to come." He added that even with annual humanitarian aid, it might take over a decade for the economy to regain its pre-crisis level.

The report builds on findings from November and May, predicting poverty in Palestine will rise to 74.3% in 2024. This increase will affect 4.1 million people, including 2.61 million newly impoverished individuals. The assessment uses multidimensional poverty indicators to examine deprivation's extent and depth.

The report outlines three early recovery scenarios following a ceasefire. It suggests embedding a robust early recovery strategy within the humanitarian assistance phase as conditions improve on the ground. This approach aims to lay foundations for sustainable recovery.

In addition to $280 million in humanitarian aid, $290 million is allocated annually for recovery efforts. This funding is expected to boost productivity by one per cent each year, helping the economy recover and realign with Palestinian development goals.

The assessment underscores that without enabling recovery and investing in development, relying solely on humanitarian aid may not suffice. A strategic approach combining various elements is essential for long-term progress.

The report concludes that addressing these challenges requires coordinated efforts from international stakeholders. By lifting economic restrictions and investing strategically, there is potential for significant improvement in Palestine's socioeconomic landscape.

With inputs from WAM