Palestine is perhaps one of the least independent countries in the world, with revenues, electricity, oil and other resources collected or provided by neighboring countries. And this neighboring country happens to be Israel, which controls the lifeblood of the Palestinian economy.
This situation makes many wonder, why is Palestine willing to hand over its economic life to a neighboring state that does not deal with it. However, the truth is that Palestine has no choice. Because of the siege by Israel, the territory of Palestine is actually only two areas of the West Bank and the Gaza Strip, and these two areas are separated by Israel, forming an island-like existence.
Although Palestine declared statehood in 1988, its actual statehood has made very limited progress. The Palestinian domestic administrative system exists only nominally, but in reality communication and exchanges between the two regions are very limited by the ongoing disputes and conflicts with Israel over territorial issues. Even if Palestine wanted to travel abroad, it needed Israel's consent. This situation has led to the heavy dependence of the Palestinian economy on Israel.
In 1994, in order to ensure smooth border trade, Palestine signed an economic agreement with Israel. Under the agreement, Palestinian customs duties and personal income tax for those working in Israel are collected by Israel on behalf of Israel and transferred to Palestine. This is due to the lack of an independent customs and tax-collecting authority in Palestine, while many territories and nationals are effectively administered by Israel.
As a result, the daily lives of the Palestinian people have been greatly affected. The food, energy and electricity they need are imported from Israel and can only be purchased using Israeli currency. It is difficult and unnecessary for Palestine to issue its own currency. The entire economic system is completely dependent on Israel, and it has become the norm to hand over one's own money bags to neighboring countries.
Israeli currency: New Sherk
The larger and populous West Bank is relatively better off because it advocates peace with Israel and maintains relative stability, so the economy is better. The Gaza Strip, in the south, however, faces a very different situation. As a result of the radical attitude of the inhabitants of the region towards Israel and the severe restrictions on movement, the Gaza Strip is surrounded by a wall hundreds of kilometres long and 10 metres high, forming a vast open-air prison.
Israel High Wall
Israel High Wall
The Gaza Strip is not large, equivalent to the Fengtai District and Xicheng District of Beijing combined, but it is such a small area to accommodate millions of people. Due to economic constraints, there are almost no decent industries in the region, and the unemployment rate is as high as a horrific 70%. The only hope for young people here is to cross the tall wall and go to next door Israel to find work and earn a living, but this is not an easy task because Israel has restrictions on it. Compounding the problem, the Gaza Strip often faces food, water and electricity shortages due to restrictions on access.
However, the people of the Gaza Strip have not given up, creatively using underpasses to sustain their economic life. The Gaza Strip is bordered by Israel to the east and north, while Egypt borders to the south, and despite high walls above ground, it can be traversed underground. The people of Gaza dug thousands of tunnels to connect Egypt's nearest city, forming a labyrinthine network that crisscrossed the city. These tunnels are not only used to transport goods, from jeans to everything from cars, but also to transport zoo animals and even brides.
Gaza tunnels
Gaza authentic economy
The construction of these tunnels is very expensive, but it is funded by local residents, who have money, and those who do not have money to dig tunnels through loans. By collecting tolls to get back and forth, these tunnels have become an important part of the economy of the Gaza Strip. It is estimated that at least 2/3 of the goods are transported through underground passages. At the same time, the construction of underground passages has also created demand for infrastructure industries and provided employment opportunities in the Gaza Strip.
Unfortunately, however, the latest round of conflict has left the Gaza Strip almost in ruins. All we can see now is the ruins, silently speaking of the brutality of the conflict. The question of Palestine began in 1948, and 75 years later, the land seems to have changed a lot, but in fact nothing seems to have changed. The Palestinian economy remains plagued and its people live in ongoing conflict and destruction.
Palestine's economic problems did not happen overnight, and their solution required the attention and joint efforts of the international community. Only by bridging regional divisions and achieving peace and stability can the Palestinian people have independent and sustainable economic development.