Despite the economic growth in Gaza, many destroyed homes still haven't been rebuilt. Photo: RafahKid (flickr)

Despite the continued blockade on goods in Gaza, the area is experiencing its first period of economic growth since 2007, largely due to Egyptian policy changes.

New luxury hotels, a shopping mall, and dozens of schools are all signs of increased economic development and decreased dependence on Israeli goods since the blockade began four years ago, the New York Times reported in June. Jobs have been increasing and over 1,000 factories are up and running, according to Hamas. While the growth has put unemployment back below 25 percent and allowed the rebuilding of hundreds of homes, Gaza still struggles.

Electricity is inconsistent, leaving hospitals and schools vulnerable. In the last four years, the number of people living on less than $1.60 a day has tripled. Reliance on food aid remains extremely high and thousands of homes are not yet rebuilt. “For the vast majority in Gaza, things are not improving,” a Gazan medical student told the New York Times. “Most people in Gaza remain forgotten.”

Increased trade from Egypt has led to real improvements, but the blockade still inhibits development of meaningful infrastructure that improves lives long term.

Tunnel workers prepare to lower someone into the tunnels. Photo: Zoriah (flickr)

The tunnels in Gaza were an invention of necessity. They flourished during a three-year blockade of goods from Israel into Palestine. Trade had to come from somewhere. And it did — these underground tunnels were used to import everything from food to building supplies to weaponry from Egypt into Palestine. At its height, the several hundred tunnels provided jobs to thousands of Palestinians. According to the Christian Science Monitor and the Associated Press however, roughly a few dozen tunnels are up and running after Israel eased the blockade in June, and smugglers are taking home only a fraction of what they used to — if they managed to hold onto their jobs at all.

While the ease of the blockade is seen globally as an improvement for the conditions of the Palestinian people, Gazan smugglers find themselves lamenting the days when trade was booming and people had work. "This is my first work day in the past two weeks," Khalil Saleh, 19, told the Associated Press.

In effort to keep business alive in Gaza, some smugglers are working on exporting food and goods now allowed from Israel into Egypt, according to the Christian Science Monitor. The most commonly smuggled exports are scrap metal, as well as Israeli food, which costs more in Egypt where inflation and rising food costs continue to be a problem. But smugglers are still not making what they used to, and the job remains a risky one.

Saber Salem told the Associated Press about the challenges he faces as a tunnel operator:

Life is very difficult and our work faces many risks and obstacles.... Hamas inspects our shipments and tunnels because they fear drug trafficking. The Egyptian security has set up many roadblocks on side roads.

Salem has seen his own business decline drastically. During the blockade, he ran three tunnels and had upwards of 40 employees working for him. Now he runs only one tunnel, and has just 15 employees.

The ease of the blockade, while quieting some of the recent criticism facing Israel, provides little long-term economic relief in Gaza and the West Bank. As long as Israel holds tight to bans on industry-creating goods like building, textile, and agricultural supplies, Gaza and the West Bank will remain economically dependent on the failing tunnels and Palestinians won't see any real relief.

Life in Gaza Under Blockade Photo: Rafah, Gaza (flickr)

Fuel shortages, power cuts, aid shipments blocked by Israel — the UN now describes conditions faced by Gaza's 1.5 million people as "the worst ever." A recent BBC report tells how four Gazans are coping.

Musba Al-Shantri, a bakery owner, says the inconsistent electricity, water problems, gas shortages, and lack of available ingredients forced him to layoff five of his 12 employees and almost forced him to close. Musba admits to depending on material that comes from the smugglers' tunnels under Gaza's border with Egypt.

Fady Al-Burbar, who runs a shop selling meat and fish with his father, says, "A lot of our meat and fish has been spoiled because of the power cuts. Within two weeks I will have to close if the electricity problem continues like this — from now I will not bring more goods for my shop because I am not willing to buy things that will just perish."

Bakar Abu Al-Kas, a taxi driver in the Shujaiyeh neighborhood of Gaza City, also relies on the smugglers' tunnels for needed fuel. Afraid of running out of fuel from border closures, he is storing as much as he can afford before his access runs out.

"The closure of the borders affects economic life here," Bakar explained. "Daily life becomes really tough. The borders are the soul for the Gaza Strip."