Argentina passes law to reclaim default debt from New York
RT | September 5, 2014
Argentina’s Senate has passed a law that will let the country continue paying off its default debt by transferring international bond payments from New York to local banks, which would let other investors buy Argentine debt.
The scheme, to get around a US judge’s order to immediately pay back $1.6 billion to “vulture” hedge funds in Manhattan, is the initiative of President Cristina Fernandez de Kirchner. The bill passed by a vote 39 to 27.
The initiative proposes to begin challenging payments through third parties, and allowing them to trade their bonds for new debt issued under Argentine law. Argentina’s state Banco de la Nacion could become the trustee for payments, replacing the Bank of New York Mellon. Another proposal is to make Paris a main destination for debt payments.
The US district court that ruled on Argentina’s debt maintains this is illegal.
Next week the law will be discussed in Argentina’s lower house Chamber of Deputies.
It is a brazen move against the ‘vulture’ funds that sent the country into default in July after demanding the immediate payment of $1.6 billion ($1.3 billion plus interest) in restructured debt, instead of the planned $539 million to bondholders. The ruling banned Argentina from making interest payment on restructured debt before settling with the New York hedge funds. The hedge funds had rejected Argentina’s requests to restructure the debt in 2005 and 2010.
“Sometimes there are court decisions that cannot be followed,” Miguel Angel Pichetto, head of the government’s Victory Front coalition in the Senate, said on Thursday.
Argentina has said it will take the US to the International Court of Justice for judicial malpractice.
“To pay the vulture funds would be very dangerous,” Pichetto said.
European businesses call for no more sanctions
RT | September 4, 2014
The Association of European Businesses has urged the governments of the European Union and Russia to protect foreign investors from any “further retaliatory measures.”
The Moscow-based lobby group represents the interests of more than 600 European businesses in Russia, and has written a letter to all 28 heads of state and governments of the EU, as well to the Russian and Ukrainian leadership stressing that among its members “are global companies with businesses in sectors which would be directly affected by these measures.”
The group has requested a meeting with European Commission President Jose Manuel Barroso in Kiev next week.
“The introduction of such measures could lead to a serious decline in production and jobs, affecting not only manufacturers, but also suppliers and retailers working in these sectors,” the letter, published Thursday, reads.
The lobby group says it’s politically neutral, but is interested in keeping business between the two functional.
“All this would harm not only the business of the companies concerned, but also fiscal revenues through the loss of tax and duty payments,” the letter said.
Sanctions are putting a brake on business activity in Europe which is plugged into the Russian economy. Trade between Russia and the EU is $440 billion and thousands of companies do regular day-to-day business in Russia.
The EU has imposed three rounds of sanctions against Russian individuals and business, most recently expanding the blacklist to include sanctions against key industries- energy, banking, and weapons.
Russia retaliated with an embargo on agriculture products from the EU, which could cost $6.6 billion per year in lost exports.
EU ministers will meet on Friday to discuss new sanctions against Russia for its perceived role in the Ukraine conflict.
Gaza reconstruction to cost $7.8 billion
Al-Akhbar | September 4, 2014
Rebuilding Gaza will cost $7.8 billion, the Palestinian Authority said on Thursday, in the most comprehensive assessment yet of damage from the seven-week Israeli assault during which whole neighborhoods and vital infrastructure were flattened.
The cost of rebuilding 17,000 Gazan homes razed by Israeli bombings would be $2.5 billion, the Authority said, and the energy sector needed $250 million after the Strip’s only power plant was destroyed by two Israeli missiles.
“The attack on Gaza this time had no precedent, Gaza has been hit with a catastrophe and it needs immediate help because many things can’t wait long,” Mohammed Shtayyeh, a Palestinian economist and a senior member of the West Bank’s dominant Fatah party, told reporters in Ramallah.
Rebuilding Gaza would depend heavily on foreign aid and requires an end to Palestinian rivalry and Israel opening its border crossings, said Shtayyeh, who heads the Palestinian Economic Council for Research and Development (PECDAR) which ran the survey.
But none of the factors mentioned by Shtayyeh appeared forthcoming. A donor conference in Cairo has yet to be formally scheduled, Palestinian institutions remain divided between Gaza and the West Bank and Israel has yet to fundamentally ease the movement of people and goods at its Gaza border.
The PA’s assessment also found that the Strip’s education sector would need around $143 million to get back on its feet. About half a million children have been unable to return to their schools due to damage or because the buildings are being used to house refugees.
Over 106,000 of Gaza’s 1.8 million residents have been displaced to UN shelters and host families, the UN says.
The remaining billions of dollars in the PECDAR assessment, which was compiled by 13 experts resident in Gaza and their research teams, were allocated to the financial, health, agriculture, and transportation sectors, all of which suffered widespread damage during the war.
The assessment also earmarked $670 million for an airport and sea port, which Shtayyeh said was a Palestinian right, but Israel has so far rejected.
The Israeli assault on Gaza killed over 2,100 Palestinians, most of them civilians, along with 64 Israeli soldiers and five civilians.
In the week since an Egyptian-mediated ceasefire took hold on August 26, little progress has been made in getting the rebuilding underway or settling the bitter political rifts around Gaza.
An international donor conference jointly chaired by Egypt and Norway has yet to be formally scheduled, and Israel has not fundamentally changed its curbs on the movement of people and goods, especially crucial building materials, on Gaza’s border.
The cash-strapped Palestinian Authority barely has enough money to pay its own employees in the West Bank and has no immediate plans to pay employees in the Hamas-run Gaza Strip, despite a unity pact signed between Fatah and Hamas in April.
“The Authority needs to be able to work as an authority to become completely responsible for all aspects of life in Gaza,” Shtayyeh told reporters.
(Reuters, Al-Akhbar)
Guatemala defies ‘Monsanto Law’ pushed by US as part of trade agreement
RT | September 3, 2014
The highest court in Guatemala has suspended the controversial ‘Monsanto Law,’ a provision of a US-Central American trade agreement, that would insulate transnational seed corporations considered to have “discovered” new plant varieties.
The Constitutional Court suspended on Friday the law – passed in June and due to go into effect on Sept. 26 – after a writ of amparo was filed by the Guatemalan Union, Indigenous and Peasant Movement, which argued the law would harm the nation, LaVoz reported.
The Court’s decision came after several Guatemalan parliamentarians from both the governing Patriotic Party and the opposition party Renewed Democratic Freedom said they would consider repealing the law after outcry from a diverse cross-section of Guatemalans.
The decision also offers interested parties 15 days to present their arguments pertaining to the law in front of the Constitutional Court. Members of both political parties said they would present motions to resist the law.
The ‘Law for the Protection of New Plant Varieties,’ dubbed the ‘Monsanto Law’ by critics for its formidable seed-privatization provisions, is an obligation for all nations that signed the 2005 CAFTA-DR free trade agreement between Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, the Dominican Republic, and the United States. The agreement requires signatories to adhere to the International Convention for the Protection of New Plant Varieties.
The law offers producers of transgenic seeds, often corporate behemoths like Monsanto, strict property rights in the event of possession or exchange of original or harvested seeds of protected varieties without the breeder’s authorization. A breeder’s right extends to “varieties essentially derived from the protected variety,” thus, a hybrid of a protected and unprotected seed belongs to the protected seed’s producer.
The Rural Studies Collective (Cer-Ixim) warned that the law would monopolize agriculture processes, severely threaten food sovereignty – especially those of indigenous peoples – and would sacrifice national biodiversity “under the control of domestic and foreign companies.”
The National Alliance for Biodiversity Protection said in July that the law is unconstitutional “because it violates the rights of peoples. It will benefit transnational seed companies such as Monsanto, Duwest, Dupont, Syngenta, etc.”
“According to this law, the rights of plant breeders are superior to the rights of peoples to freely use seeds,” the Alliance said in a statement.
“It’s a direct attack on the traditional knowledge, biodiversity, life, culture, rural economy and worldview of Peoples, and food sovereignty,” the Alliance added.
Anyone who violates the law, wittingly or not, could face a prison term of one to four years, and fines of US$130 to $1,300.
It is unclear what options the Guatemalan government has given the obligations under CAFTA-DR. The US would likely put pressure on the nation to pass the law, part of a global effort using trade agreements to push further corporate control over trade sectors like agriculture in the name of modernization. Upon further refusal, the US could drop Guatemala from the trade agreement.
Russian Experts Push Medvedev to Include GMOs in Sanctions
Sustainable Pulse | September 4, 2014
In an official letter Wednesday to Russian Prime Minister Dimitry Medvedev, a group of top Russian experts including scientists, farmers and eco groups urged him to add all foods containing GMOs to the existing food sanctions that have been placed by Russia on the EU, U.S. and Australia amongst others.
The suggested ban includes all 18 varieties of genetically modified crops, registered and approved in Russia for use in the production of food for consumers and feed for farm animals.
The experts stated that the main manufacturers and suppliers of GM seed are located in countries that support sanctions against Russia. The biotech giants who fully control the market of GM seeds include: Monsanto (USA), Dow (USA), DuPont Pioneer (USA), Bayer (Germany), BASF (Germany). Therefore, products containing GM ingredients should be one of the sanctions applied by Russia in relation to these countries.
The experts suggested that Russia should also only buy conventional non-GMO food and feed products from countries that do not support the sanctions and yet currently supply products containing GMOs (e.g. Brazil, China, India and South Africa – BRICS countries).
“Now is a good time to stop the spread of food and feed products in Russia that contain GMOs, so we are then able to obtain objective scientific data on the impact of GMOs on the health of mammals. Independent research from domestic and foreign scientists suggests that GMOs may have an adverse effect on the health of mammals and lead to the development of diseases such as cancer, allergies, obesity, infertility, and others. To clarify the mechanisms of the impact of GMOs on living organisms, we need to continue to develop independent research in this area,” stated Elena Sharoykina, who is the Director of the Russian National Association for Genetic Safety.
Earlier this year in March, Russian President Vladimir Putin stated that Russia must protect its citizens from the use of foods derived from genetically modified organisms (GMOs), and that this could be done in compliance with the country’s obligations under the World Trade Organization (WTO).
In June, Russia also delayed the registration of GM varieties for the planting of GM crops, which had been planned to start in July. The current situation is that no GM crops have been grown in Russia and this will now be the case for at least the next 3 years.
Scottish independence to spark nuke debate
Press TV – September 4, 2014
A yes vote in the upcoming referendum on Scottish independence is expected to pose challenges over the future of the UK’s strategic nuclear Trident program.
Keeping the nuclear base in Scotland for a least a number of years would be part of the independence negotiations, says Professor Malcolm Chalmers, a research director at the Royal United Services Institute (Rusi) and co-author of a recent report on relocating the Trident base.
According to the report, cited Thursday in The Guardian newspaper, while any relocation could not be completed by the 2020 target date currently proposed by the Scottish government, it could be put off – under a specific UK-Scotland basing agreement – perhaps until 2028, the date a new fleet of Trident submarines is due to start entering service.
The relocation would add up to £3.5bn to the cost of retaining Britain’s nuclear forces, a program estimated to cost £80bn over 25 years.
Yet, as the Rusi report concedes, negotiations following a yes vote in the Scottish referendum this month would trigger a wider debate in the rest of the UK about whether or not the strategic benefits of retaining nuclear weapons exceed the costs involved.
Chalmers adds that the debate over British nuclear weapons has always been politically driven and the military is divided over the issue.
The US, in particular, which wants its major British NATO ally to retain nuclear weapons, has made it clear that it would not welcome such a debate.
However, Colin Fleming, a Scottish defense and security academic, put it this way in a recent edition of the Chatham House think tank Journal of International Affairs : “There is no reason why Scotland would not provide a modern, flexible, defence force capable of securing Scottish territory and playing its part in the broader security of the British Isles as a whole.”
New EU economic sanctions to hit Russian oil, defense investments – report
RT | September 4, 2014
The European Union is looking at introducing more economic sanctions against Russia over its alleged role in Ukrainian conflict, targeting the country’s oil and defense industries with investment bans, according to a new report.
EU diplomats have started drawing up new economic sanctions in Brussels, indicating that they could be passed as soon as Friday, The Telegraph reported, citing a three-page document.
The confidential document was reportedly handed over to ambassadors from several European countries this week.
It calls to “prohibit debt financing (through bonds, equities and syndicated loans) to defense companies and to all companies whose main activity is the exploration, production and transportation of oil and oil products and in which the Russian state is the majority shareholder.”
The new wave of sanctions could potentially ban state-controlled Russian oil and defense companies from raising funds in European capital markets, cutting off foreign investment.
“This extension would significantly increase the burden placed on the Russian state to finance its companies,” the document suggests.
The sanctions would affect Rosneft – Russia’s largest oil producer – in turn impacting British energy company BP, which has a 20 percent stake in the company.
Moreover, Russia’s oil prospectors could be blocked off from accessing exploration, production and refinery services.
“Measures could be extended… to provision of future associated services (such as seismic campaign-related services, drilling, well testing, logging and completion services, supply of floating vessels etc) for deep water, oil exploration and production, Arctic oil exploration and production or shale oil projects in Russia,” said the paper.
That may even include “prohibiting the provision of new additional technologies, for instance refining technologies needed to upgrade crude oil to EURO 4 standards.”
The banking sector will also be targeted further, making borrowing money from the EU even more difficult for Russian state-owned companies.
“Possible measures [include] prohibiting EU persons from participating in syndicated loans to major Russian State owned banks and other entities with a view to further restraining access to capital and closing a possible gap in the current regulation,” said the EU document. “[Also] lowering the maturity beyond which certain debt instruments are restricted bringing it form the current 90 days to 30 days.”
READ MORE: France says it cannot deliver Mistral warship to Russia over Ukraine
Some of the measures not being considered at this time, but reportedly being held in reserve, include bans on the purchase of newly issued Russian government bonds and a boycott of non-industrial diamonds.
Aside from the economic measures, other forms of sanctions are also being considered.
“Beside economic measures, thought could be given to taking coordinated action within the G7 and beyond to recommend suspension of Russian participation in high profile international cultural, economic or sports events (Formula One races, UEFA football competitions, 2018 World Cup etc),” according to the document.
AFP reported, citing a source, that the World Cup boycott idea is being considered as a “possibility for later on, not now.”
On Wednesday the president of FIFA, Sepp Blatter, said there was no chance of the 2018 World Cup being taken away from Russia.
“We are not placing any questions over the World Cup in Russia,” the head of world football’s governing body said at an event near Kitzbuehel, Austria, according to the DPA news agency. “We are in a situation in which we have expressed our trust to the organizers of the 2018 and 2022 World Cups.”
“[A boycott] has never achieved anything,” Blatter stressed.
Meanwhile, President Putin has outlined a seven-point plan to stabilize the situation in the crisis-torn region of eastern Ukraine.
Putin also expressed hope that final agreements between Kiev and the militia in southeastern Ukraine could be reached and secured at the coming meeting of the so-called contact group on September 5.
The military conflict has killed 2,593 people since mid-April and displaced over a million Ukrainians, most of whom sought refuge in Russia.
So far, attempts at temporary ceasefires between Kiev and self-defense forces in the past months have failed to improve the situation in southeastern Ukraine. The fighting has continued, with both sides blaming each other for breaking the truce.
France says it cannot deliver Mistral warship to Russia over Ukraine
RT | September 3, 2014
France has suspended delivery of the first of two Mistral helicopter carrier ships to Russia, due to events in eastern Ukraine.
“The situation is serious. Russia’s recent actions in the east of Ukraine contravene the fundamental principles of European security,” said a statement from the office of President Francois Hollande.
“The president of the Republic has concluded that despite the prospect of ceasefire, which has yet to be confirmed and put in place, the conditions under which France could authorise the delivery of the first helicopter carrier are not in place.”
The office informed AFP that the suspension would be next reviewed before November.
“Legally, nothing has changed and the contract is still in force, and the first vessel is still due for delivery on November 1. But a political decision has been taken. The President is saying that if nothing changes, he cannot allow the delivery to go through,” one of Hollande’s representatives told Russia’s RIA news agency.
As the rift over Ukraine has widened, Russian officials have repeatedly said that they would accept the French government’s failure to deliver the ships, as long as it paid the penalty for breaking the contract, which, could potentially exceed the cost of the ships themselves.
“This is not a tragedy, though of course the news is unpleasant. It will not affect our armament plans. We will act in accordance with international laws and the statutes of the contract,” said Russian Deputy Defense Minister Yuri Borisov, in a statement.
The two ships were commissioned by Russia in 2011 at a cost of $1.6 billion. The first of these, the Vladivostok, was due to come into service at the end of this year, with the second, the Sevastopol, due to be completed in 2015.
France’s suspension does not fall under the sectoral sanctions the EU and the US imposed upon Russia for purported meddling in the armed conflict in eastern Ukraine, introduced last month. That raft of sanctions did not cover deals signed before their imposition.
But it could be covered under new sanctions sanctions the EU is expected to introduce this week, which may earn France a temporary reprieve from compensation under the terms of the contract.
While Moscow officials earlier admitted that in terms of efficiency and versatility the cutting-edge Mistral has no equivalent in the Russian Navy, the deal was always considered controversial, as France was a Cold War adversary, and is a founding member of NATO.
Indeed, there had been speculation of NATO taking over the Mistral order from Russia, following a proposal from a group of US congressmen back in May. Earlier this week, the Alliance chief Anders Fogh Rasmussen did not rule out the possibility, but said that it “remains a national decision, not for NATO to interfere.” In the aftermath of the announcement from Hollande, NATO maintained that it wasn’t forcing France to suspend the sale.
Previously US President Barack Obama said France should “press the pause button” on the deal, while fighting in Ukraine is in progress.
Previously, French officials resisted, citing concerns over reputational damage, and saying that the financial penalties might hurt Paris more than Moscow. Even if France does now decide to sell the ships to someone else, it will have to refit them, as every aspect, from the helicopter pads to hull alloys is custom-made to Russian specifications.
UNRWA calls for end of Gaza siege
IMEMC News | September 3, 2014
UNRWA Commissioner-General, Pierre Krähenbühl, says that the reconstruction process of Gaza may take over a decade, if the current blockade on the Gaza Strip is not lifted.
According to Al Ray Palestinian Media Agency, Kraehenbuel declared, during a two-day official visit to Switzerland, that the blockade on Gaza “must be lifted”.
“I would like to thank the government and people of Switzerland for their generous and unwavering support to UNRWA and the refugees we serve. The recent fighting in Gaza and the UNRWA response demonstrated once more how vital our services have become,” he said.
“As the discussions intensify about the reconstruction of Gaza, it is becoming clear that UNRWA will be central to that effort. But we have to remember that Swiss funds are supporting our services beyond Gaza, across the Middle East in war-torn Syria, Lebanon, Jordan and the West Bank.”
Mr. Krähenbühl announced that at least 20,000 homes were destroyed during the recent Israeli assault on the Gaza Strip, and that there had been widespread destruction of public infrastructure.
He states that it was “an imperative for the international community and for the people of Gaza to reconstruct after the devastation”, which was unprecedented in recent history:
“I visited Gaza three times during the recent conflict and the impact of the fighting on individual human lives, particularly the young, is palpable and profound. Hundreds of thousands of children are deep in trauma. We estimate that of one thousand injured children out of three thousands will suffer permanent disabilities.”
Krähenbühl noted that several hundred UNRWA counselors are working to restore a sense of normality to the region. “UNRWA will do all it can to restore human dignity to a community that has suffered enough,” he said.
He also expressed his concern for “more than 50,000 people” who are still living in Gaza’s UNRWA schools due to the fact that their homes had been destroyed:
“We need to do all we can to find alternative accommodation for these people, as we are determined to begin our delayed school year on 14 September… It will be a challenge.”
Russian sale of S-300 system to Egypt a threat to Israel
MEMO | September 3, 2014
Israeli military magazine Israel Defence has reported that Israel is concerned over the possibility of Russia supplying Egypt with the developed anti-aircraft system S-300.
According to foreign media reports, Israel does not possess the proper technology to undermine the work of such an advanced system.
Sources told the magazine that Israel may not allow for Egypt to deploy such anti-aircraft missiles, if they are in fact being obtained, in the Sinai Peninsula.
A source in the Russian military industrial complex told Russia News Agency last month that the anti-aircraft system Egypt is currently negotiating with Russia over was initially produced for Syria. However, Egyptian partners have now “expressed interest in S-300 purchases”.
“The system may be re-equipped for Egypt in a short period of time,” the source added.
Israel Defence noted that if the anti-aircraft system were to be placed in Suez, its radar would cover half of Israel, and if placed in Port Said, it would cover almost the entire area of Israel.
This means that any Israeli plane flying towards Egypt or any Israeli rocket launched at Egypt would be monitored while still inside Israel.
EU source: Gaza reconstruction aid is ‘made in Israel’
A Palestinian school damaged during Operation Protective Edge. 7 August, Gaza City. [Jordi Bernabeu Farrús/Flickr]
EurActiv | September 3, 2014
A row is brewing over claims that Israel is earning millions of euros from a de facto policy of preventing non-Israeli reconstruction aid from entering the Gaza Strip.
At least 65,000 people in the Gaza Strip are homeless after the recent seven-week conflict. Infrastructure ranging from water desalination centres to power plants lies in ruins.
No formal Israeli ban prevents the import of reconstruction materials that were not made in Israel, but EU sources speaking on condition of anonymity say that in practice, Israeli security demands present them with a fait accompli.
“If you want aid materials to be permitted to enter, they will almost inevitably come from Israeli sources,” an EU official said. “I don’t think you’ll find it written down anywhere in official policy, but when you get to negotiate with the Israelis, this is what happens. It increases construction and transaction costs, and is a political problem that has to be dealt with.”
As well as Israel’s security restrictions on aid, “it can be very difficult to export materials to Gaza,” the official said. “A lot of goods for a Gaza private sector reconstruction project we had, ended up being held in Ashdod port for very lengthy periods of time – months if not years – so there was de facto no alternative but to use Israeli sources.”
The source added that the policy had benefited Israel’s economy to the tune of millions of euros and was, in his view, deliberate.
The European Commission donates some €300 million in development aid to Gaza and the West Bank every year, and around €200 million in humanitarian aid.
The EU official’s allegation received backing from international agencies canvassed by EurActiv and is broadly in line with findings in a UN report due to be published later today (3 September).
The United Nations Conference on Trade and Development (UNCTAD) study will say that half of all donor assistance to Palestinians in the West Bank and Gaza – who the UN body say constitute a captive market – is spent on servicing a trade deficit to Israel.
‘Dual use items’
Tel Aviv imposed a full blockade on the Gaza Strip in 2007 after the ascent to power of the Islamist Hamas movement, which has used suicide bombing and rocket attack tactics against Israel’s occupation, that have claimed hundreds of civilian lives.
But the UN and international NGOs have protested the blockade’s prevention of free movement and trade for the vast majority of Gazans as a collective punishment.
Building materials such as steel and cement, necessary for the reconstruction of Gaza, have been designated by Israel as ‘dual use’ items – adaptable for munitions – that may only be imported to Gaza by the UN and aid agencies under Israeli supervision.
Mark Regev, a spokesman for the Israeli prime ministers’ office, denied claims that Israel’s entry policy to Gaza prevented non-Israeli-made reconstruction materials from entering the Strip.
“I know that policy, and it is not true,” he told EurActiv over the phone from Jerusalem. He was unable though to give examples of non-Israeli reconstruction materials allowed into Gaza, referring inquiries on to Cogat.
The Israeli body, Cogat, which coordinates the entry of aid into Gaza, did not respond to requests for comment.
But “there are not many choices,” Amir Rotem, the public affairs director for Gisha, an Israeli NGO, told EurActiv. “The Israeli market has a monopoly of cement in just one company, and I don’t know of any Palestinian-made cement in the West Bank, so there’s not much to choose from.”
‘Chutzpah writ large’
International reactions to the EU official’s claims were strong.
“It is outrageous that a country which has just demolished 25,000 houses is demanding that their construction industry benefit from rebuilding them at the expense of the international community,” one Western diplomat told EurActiv.
“Talk about chutzpah writ large!” he said.
Mahmoud el-Khafif, UNCTAD’s special coordinator for assistance to the Palestinian people, told EurActiv that he believed the EU official’s claims were correct.
“If you look at steel or cement, I think the only source for it would be Israel,” he said. “It is a serious problem in my opinion as an economist. What happened in Gaza and what is happening in the West Bank in terms of controlling Area C is an ongoing process to reduce the ability of the Palestinian economy to produce, and the only alternative is to import from Israel.”
Later today, a new UNCTAD report will say that economic growth (measured by GDP) in the economy of the occupied Palestinian Territories declined from 11% in 2011 to just 1.5% last year, far below the rate of population growth.
‘An unliveable place before 2020’
Even before the recent fighting, unemployment in Gaza was running at 36% and people were poorer than in the 1990s, when the Oslo peace process began.
Rebuilding the battered Strip now will take 20 years under the current regime of restrictions, according to a report published earlier this week by Shelter Cluster, an NGO chaired by the Norwegian Refugee Council, with the participation of the UNHCR and the International Red Cross.
That could be too late for many Gazans. The UN’s relief and works agency (UNRWA) has previously estimated that Gaza will not be “a liveable place” by 2020 because of population increase and a depletion of fresh water sources by 2016.
“lf Gaza was going to be an unlivable place by 2020 – before the latest fighting – it will now be an unlivable place considerably before then,” Christopher Gunness, a spokesman for UNRWA told EurActiv, from the Gaza Strip.
“With at least 20,000 homes damaged or destroyed, with miles of water infrastructure devastated, with millions of gallons of raw sewage flowing into the sea every day, and the corrosive impacts of blockade, the sustainability of Gaza will be even more short lived,” he said.
More than 2,100 Palestinians – mostly civilians – were killed in Israel’s recent Operation Protective Edge, as were 73 Israelis – mostly soldiers.
The international reconstruction effort in Gaza could cost more than $6 billion, according to the Palestinian deputy prime minister.

