UN warns Gaza facing economic crisis

The UN's World Food Program has warned that Gaza was facing a rapidly escalating crisis as a result of Israel's two-month-old…

The UN's World Food Program has warned that Gaza was facing a rapidly escalating crisis as a result of Israel's two-month-old offensive there.

"Industries which were once the backbone of Gaza's economy and food system, such as the agriculture and fishing industries, are suffocated by the current situation and risk losing all viability," said Arnold Vercken, the local WFP director.

Rising criminality and a return to kidnapping illustrate the precariousness of the situation and this deters foreign investment and much needed job creation
UN WFP director in Gaza Arnold Vercken

The crisis has left 70 per cent of Gaza's population lacking food and forced the WFP to increase the number of Gazans receiving aid to 220,000 from 160,000, the WFP said. They include poor farmers, fishermen and others.

The Rome-based agency cautioned that the crisis in Lebanon should not result in Gaza being overlooked. "In contrast to Lebanon, where humanitarian food aid needs have been essentially met, the growing number of poor in Gaza are living on the bare minimum and face a daily struggle to cover their daily food needs," the WFP said in a statement.

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With power and water supplies low and unreliable, farmers forced to buy power and water to maintain their crops are increasing prices at a time when people can't afford it, the UN agency said. As a result, farmers are struggling to sell their produce and make ends meet.

Fishermen also are in dire straits - the industry paralysed by a total closure of the Gaza coastline since June 25th. "WFP food assistance is acting as a band-aid in an attempt to prevent a further decline of livelihoods and nutrition among the poorest," Mr Vercken said.

"Rising criminality and a return to kidnapping illustrate the precariousness of the situation and this deters foreign investment and much needed job creation."