ESCWA: War on Gaza Sets Backs Development by 69 Years

The impact of the year-long war in Gaza and escalations in the West Bank has set development in the State of Palestine back by about 69 years, according to a new UN report released on Tuesday.

“Without lifting economic restrictions, enabling recovery, and investing in development, the Palestinian economy may not be able to restore pre-war levels and advance forward by relying on humanitarian aid alone,” Gaza war: Expected socioeconomic impacts on the State of Palestine, concludes, produced by the UN Development Programme (UNDP) and the UN Economic and Social Commission for Western Asia (ESCWA).

The analysis suggests three recovery scenarios for Palestine. Given that the recovery will be a long-term process, the report assessed both the immediate impact projected for 2025 and the long-term impact anticipated by 2034, a decade after the start of the conflict.

“Our assessments serve to sound the alarm over the millions of lives that are being shattered and the decades of development efforts that are being wiped out,” said ESCWA Executive Secretary Rola Dashti.

“It is high time to end the suffering and bloodshed that have engulfed our region. We must unite to find a lasting solution where all peoples can live in peace, dignity and reap the benefit of sustainable development and where international law and justice are finally upheld.”

Projections estimate that the gross domestic product (GDP) will contract by 35.1 per cent in 2024 compared with a no-war scenario, with unemployment potentially rising to 49.9 per cent.

Three recovery scenarios

Building on findings published in November and May, the report estimates that poverty in Palestine will rise to 74.3 per cent in 2024, affecting 4.1 million people, including 2.61 million people who are newly impoverished.

The assessment also examines the extent and depth of deprivation, employing multidimensional poverty indicators and includes recovery prospects for Palestine after a ceasefire is reached as well as three early recovery scenarios.

The non-restricted early recovery scenario sees restrictions on Palestinian workers lifted and withheld clearance revenues restored to the Palestinian Authority.

In addition to $280 million in humanitarian aid, $290 million is allocated annually for recovery efforts, resulting in an increase in productivity by one per cent annually, enabling the economy to recover and putting Palestinian development back on track.

Unrestricted aid can help

The assessment suggests that a comprehensive recovery and reconstruction plan, combining humanitarian aid with strategic investments in recovery and reconstruction along with lifting economic restrictions, could help put the Palestinian economy back on track to realign with Palestinian development plans by 2034.

But, this scenario can only play out if recovery efforts are unrestricted, said UNDP Administrator Achim Steiner.

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 said.

“The assessment indicates that, even if humanitarian aid is provided each year, the economy may not regain its pre-crisis level for a decade or more.”

As conditions on the ground allow, he said, the Palestinian people need a robust early recovery strategy embedded in the humanitarian assistance phase, laying foundations for a sustainable recovery.

Humanitarian situation deteriorating

The humanitarian situation is catastrophic and deteriorating daily, said UNDP’s Chitose Noguchi, briefing reporters in Geneva from Deir Al-Balah, Gaza, where many displaced people are currently living.

“The State of Palestine is experiencing an unprecedented setback in development to the year 1955,” she said.

“Restrictions that are currently stifling the economy must be lifted,” she stressed, underlining the new assessment conclusion’s importance for the region. Currently, assessments are being conducted in Lebanon and Syria.

Read the full report here.

UN News

CrossFireArabia

CrossFireArabia

Dr. Marwan Asmar holds a PhD from Leeds University and is a freelance writer specializing on the Middle East. He has worked as a journalist since the early 1990s in Jordan and the Gulf countries, and been widely published, including at Albawaba, Gulf News, Al Ghad, World Press Review and others.

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Trump, Netanyahu Rift Hits Rock Bottom: View From Amman

By Saleem Ayoub Quna

The Epic Fury Operation launched by the US against Iran in February 2026, will go down in modern history as the first open military conflict, where a superpower like the United States, has willingly and openly played the role of a war-proxy, on behalf of its smaller ally, Israel.

The difference of attitude between the two close allies, US and Israel, in relation to what they perceived as Iran’s threat, imminent or potential, was a key factor behind the gradual crumbling of the American-Israeli coordinated military and intelligence efforts, to bring down the regime in Tehran.


Israel under Benjamin Netanyahu’s extreme right-wing government, kept saying Iran posed an imminent existential threat to Israel, and therefore it must be brought down by force. While the US position was constrained by its previous international commitments on the issue of Iran’s nuclear ambitions, as stipulated in the 2015 Joint Comprehensive Plan of Action (JCPOA), signed between Iran and the P5+1 powers, during the administration of President Obama.


Since that moment Netanyahu kept vigorously urging, more likely lecturing the US and the West, on the dangers of the JCOPA agreement. When Donald Trump was elected President in 2017, things took an important and completely different turn. In the following year, he took the United States out of that internationally-backed deal as he had promised to do during his election campaign. He also kept his promises of moving the US Embassy to Occupied Jerusalem and recognize the occupied Syrian Golan Heights as part of Israel.


These symbolic and important gestures, whetted Netanyahu’s appetite for more American concessions to Israeli demands.


Netanyahu’s golden opportunity came when Trump was re-elected to his second term in 2023, the same year when Hamas launched its massive assault on the Israeli settlements in the so-called “Gaza enevlope”. Other militias connected and supported by Iran, including the Houthis in north Yemen, Hezbollah in south Lebanon, Syria under the previous regime and Shia factions in Iraq coordinated their efforts to stand by Hamas during that long and unprecedented confrontation with Israel.

For its part, Iran did not shy from making it clear that it helped create this “chain” of resistance factions to encircle Israel from three directions.

The second turning magical point in the US position on the issue of direct military intervention against Iran came about when Israel succeeded in serving Hezbollah, the severest military blow ever, in the pagers’ operation and the subsequent assassination of Hezbollah’s top leaders, including its charismatic Secretary-General Hassan Nasrallah on Sept 27, 2024.


Trump was very impressed with all of that Israeli action and Netanyahu gave himself the full credit for this unexpected success.


Accordingly, Netanyahu’s plan to Trump was simple. Based on the Israeli accumulated intelligence and expertise on the Iranian internal scene and emulating its operation against Hezbollah leaders in Lebanon, accompanied by massive American air strikes would provide both allies with the best chance to finish the Ayatollahs in Tehran once and for all!


But as events unfolded, all of Netanyahu’s plans, personally and strongly endorsed by Trump and his military aides, suddenly started crumbling, one after the other. His relations with Trump slipped into stages of deterioration by the day and week as the closure of the Hormuz Strait by Iran, started hurting the world economy led by the US.


Here new red lights went on and the phone calls between the two men became more intense and vulgar. Then Trump decided to pass on the torch to his deputy, JD Vance, who seemed comfortable to tell Netanyahu what Trump avoided to do!


Conclusion: It is tricky to switch roles of allies in wars. A smaller entity can always stay safe as long as its leaders know the limits of their power and leverage. When people like Netanyahu think they have more power and clout than they actually have, versus their stronger ally, then irritation starts to brew, especially in the case of Trump who likes to show he is always in the driving seat. It also means that the leadership on the side of stronger partner has some problems of its own!


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Will The US-Iran Deal Last?

By Ali Bakir

On June 15, Pakistan’s Prime Minister Shehbaz Sharif announced via the US social media platform X that a peace deal between the US and Iran had been reached, following over two months of mediation by his country. Sharif expressed gratitude to Qatar, Saudi Arabia, and Türkiye for their significant contributions, stating that the official signing ceremony would take place on June 19 in Switzerland. Following this announcement, a memorandum of understanding was signed electronically by US President Donald Trump and Vice President JD Vance on the US side, and by Iranian Parliament Speaker Mohammad Bagher Ghalibaf on the Iranian side.

The reported agreement is characterized as a framework peace deal aimed at ending the 2026 Israel/US-Iran war and transitioning the current ceasefire into a broader diplomatic process. Although the text of the agreement has not yet been published, key reported elements include immediate cessation of military operations, reopening of the Strait of Hormuz to international shipping, and a 60-day negotiation period to address unresolved issues, particularly Iran’s nuclear program, alongside discussions on sanctions relief and access to frozen Iranian assets during follow-up negotiations.

This agreement follows two significant developments. First, Israel conducted military strikes on Iranian targets in western and central Iran around a week ago, marking the first such actions since April. Explosions were reported in Tehran, Tabriz, Isfahan, and other cities in response to Iranian missile launches that were highly performative. Second, Trump warned that Iran would “pay the price” for what he described as slow progress in negotiations to end the conflict, indicating that the US could resume strikes against Iranian infrastructure.

5 bullet points on the agreement

Although the agreement does not necessarily mean that the root causes that prompted the war have fully disappeared, a few observations are worth mentioning and analyzing.

First, a lot of narrative spinning is occurring publicly at the moment. While the main parties are trying to sell the agreement as a victory, there are factions within the broader regional camps (such as hardliners in both Iran and Israel) that oppose it. Critics in Iran have labeled the agreement a “humiliating capitulation,” arguing that it involves unjustified concessions. Hardline opponents have publicly criticized the negotiating team, with Iranian MP Mahmoud Nabavian stating that the latest draft is “more damaging” than previous versions. Similarly, Israeli officials emphasized that Israel was not directly involved in negotiating the US–Iran deal and does not necessarily consider itself bound by its provisions. Israeli Defense Minister Israel Katz declared that Israel would not withdraw from territory seized in Lebanon and would continue to act against threats from Hezbollah and Iran if necessary.

Second, the timing of the agreement suggests that Iran was running out of options. As the Islamic Revolutionary Guard Corps (IRGC) focused on messaging and performative measures, the gap between their narrative and reality widened, with Iran’s ability to endure further pressure significantly diminishing. Trump’s counter-blockade against Iran’s restriction of the Strait of Hormuz imposed significant economic costs on Iran, leading to the decision to sign the agreement. It is estimated that the blockade could have cost Iran over $24 billion in just two months — almost equal to Iran’s reported total reserves of foreign currency — leaving the regime with little choice but to agree to the terms or face economic collapse.

Third, despite the negative reactions from hardliners in both Iran and Israel, the agreement highlights Trump’s genuine interest in reaching a resolution with Iran, especially following last year’s swift 12-day war between Israel and Iran. However, radical elements in both Iran and Israel seem intent on using procrastination, escalation, or military actions to sabotage meaningful attempts to achieve peace. Given that there is reportedly a 60-day negotiation period following the signing of the agreement, it is likely that these factions will continue to work against a comprehensive resolution.

Fourth, while Pakistan played a significant role in the mediation process, Qatar’s involvement was also crucial, as acknowledged by American, Pakistani, Saudi, and Turkish officials. Notably, neither the Qatari Foreign Ministry spokesman nor the ministry itself reported any independent measures taken by Qatar, apart from endorsing Pakistan’s mediation efforts. In fact, a Qatari spokesman denied any independent role in the mediation at this stage. Qatar’s involvement appears to have been executed at the request of the United States and had several dimensions.

Primarily, Qatar facilitated technical issues between the US and Iran, such as enabling the transfer of Iranian funds without direct US involvement, thereby avoiding the perception of it being a US initiative or taxpayer-funded. Additionally, Qatar played a role in establishing a communication channel between the United Arab Emirates and Iran, which emerged later in the mediation process. Finally, Qatar aligned itself with Saudi Arabia’s position, providing support for the Pakistani initiative.

Changing actors

Fifth, two awkward positions regarding the agreement can be highlighted. Firstly, the Europeans have been largely inactive in resolving the crisis yet somehow managed to host the official signing ceremony between the Americans and Iranians. Instead of crediting Pakistan, Switzerland offered to host the ceremony, which can be seen as an act of opportunism. Secondly, Oman, historically a favored mediator between the US and Iran, has been notably absent from this current arrangement. Oman’s position during this war was not popular in the Gulf Cooperation Council and beyond. According to a senior US administration official, Oman was removed from its mediation role in negotiations with Iran after the US concluded that Muscat had acted “very duplicitously” during the talks.

Finally, we must approach the prospects of the agreement with caution. It is essential to recognize that this is not a comprehensive peace agreement but rather a transitional framework. The future of the agreement will largely depend on the outcomes of negotiations in the next 60 days. Given that several factions within Iran and Israel are opposed to the agreement, we should not dismiss the possibility of sabotage, particularly from Israel.

Ali Bakir is an assistant professor of international affairs, security, and defense at Qatar University and senior nonresident fellow at the Middle East Council on Global Affairs. Anadolu

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