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Viewing cable 06JERUSALEM2201, LIVING CONDITIONS DECLINE IN GAZA
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Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
06JERUSALEM2201 | 2006-05-31 15:16 | 2011-08-24 01:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Consulate Jerusalem |
VZCZCXYZ0000
OO RUEHWEB
DE RUEHJM #2201/01 1511516
ZNR UUUUU ZZH
O 311516Z MAY 06
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2475
INFO RUEHXK/ARAB ISRAELI COLLECTIVE IMMEDIATE
RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE
RHEHNSC/NSC WASHDC IMMEDIATE
UNCLAS JERUSALEM 002201
SIPDIS
SENSITIVE
SIPDIS
NEA FOR FRONT OFFICE; NEA/IPA FOR WILLIAMS/GREENE/WAECHTER;
NSC FOR ABRAMS/DORAN/LOGERFO; STATE PASS TO USAID/BORODIN;
TREASURY FOR ADKINS
E.O. 12958: N/A
TAGS: PHUM ECON ETRD PREL KWBG
SUBJECT: LIVING CONDITIONS DECLINE IN GAZA
REF: JERUSALEM 2068
¶1. (SBU) Summary: Anecdotal reports collected by ConGen FSN
and USAID staff resident in Gaza indicate that Gazans have
witnessed a decline in their living conditions in recent
months. According to the World Food Programme (WFP), Gazans
have generally pared down consumption of goods to essential
food staples. In response to gas shortages and fuel price
hikes, Gazans take public transportation to work, if they go
to work at all. Although banks still extend credit, it is
mostly limited to PA or UN employees. Private and public
healthcare facilities continue to provide emergency care to
patients, notwithstanding increasing concerns over drug and
staff shortages. End Summary.
Uptick in begging and theft
---------------------------
¶2. (SBU) According to USAID and FSN staff in Gaza, there has
been a noticeable rise in the number of Palestinians begging
in the street, door-to-door, and next to ATMs. Many of those
begging are children, who are also selling goods and offering
window-cleaning at traffic lights. One headmistress at a
school in Khan Younis said that some children had dropped out
of school to beg in the streets in order to help their
families. This included rooting through garbage bins for
food or raw materials. Gazan households are also selling
their jewelry and electrical appliances at pawn shops and
markets. The incidence of car and home theft has reportedly
soared.
Palestinians pare consumption down to essentials
--------------------------------------------- ---
¶3. (SBU) Due to a flooding in the market of unexported
produce, the prices of fruits and vegetables have markedly
decreased. The prices of basic food staples, however, such
as flour, rice, and sugar, have remained high due to previous
closures during which stocks were depleted. According to the
Palestinian Economic Development Company (PED), greenhouses
in former settlement areas produced 12,500 tons of food, of
which only 1,500 tons had been exported with the remainder
entering the Gaza food market. World Food Programme (WFP)
reported that the prices of staple food supplies increased on
average by 32.5 percent since January. (Note: Basic
commodities are available and no shortages of flour have been
reported since April. Since March, no breadlines have been
reported. End Note.) In some cases, fish prices have
doubled due to a higher demand for fish protein in lieu of
poultry culled as a result of Avian Influenza (AI).
Sardines, the cheapest fish available, have doubled in price
(reftel). Besides fish, beans are widely viewed and utilized
as a cheap source of protein.
¶4. (SBU) WFP reported that some Palestinians have reduced
their meal intake from three meals to one or two. USAID
staff noted that many Gazans are buying half the amount of
meat that they used to purchase, are hoarding flour stocks
and have reduced their consumption of dairy products and
sweets. Local grocery stores reported that sales of fresh
meat have declined, and that frozen meat and chicken sales
have risen by 15 percent. In May, WFP noted that frozen fish
sales have jumped 50 percent, despite a doubling in price.
NGOs reported higher numbers of Palestinians signing up to
receive basic food supplements.
Higher fuel costs and shortages translate
into people not showing up for work
-----------------------------------------
¶5. (SBU) USAID and FSN staff met informally with local gas
station owners who said petrol sales at their stations have
fallen 20 to 25 percent because of gas shortages and price
hikes. Some gas stations told the staff that sales were down
by as much as 40 percent. Fewer personally-owned vehicles
are in the street as Gazans turn to public transportation and
walking. Unpaid PA employees, mostly residing in Rafah, Khan
Younis, and Deir el-Balah, reported that they will not pay
for taxi fares or pay for the cost of fueling their cars to
get to work. Taxi companies told USAID staff that their
business had decreased by one-half in the last two months.
WHO staff confirmed that there is less movement of cars in
Gaza and that many people choose to walk to work, rather than
pay the cost of transport. PA employees are reportedly
taking early annual leave or rotating shifts with other
employees in order to avoid commuting costs.
Empty stores and empty pockets
------------------------------
¶6. (SBU) The private sector has experienced a sharp downturn
as a result of reduced incomes. Purchases are limited to
essential commodities, evidenced by a sharp drop in the
purchase of non-essential goods and services. As a result of
the fall in demand and the unavailability of raw materials,
factory owners told USAID staff that they are operating at 25
percent of capacity. Gazans are also switching to the
purchase of locally manufactured consumer goods, which may be
inferior. In an informal survey, USAID staff spoke to
restaurant and cafe owners who said sales are down by 60 to
75 percent, while local gyms and sports facilities reported a
decrease of clientele by 40 percent. According to one
retailer, apparel purchases have decreased by 50 percent.
(Note: Teachers in Gaza reported that students attend
classes in winter clothes and uniforms because they have not
purchased spring/summer uniforms. End Note.) Some stores
have responded to a lack of sales and increased insecurity by
reducing store hours 50 to 70 percent.
¶7. (SBU) Palestinian daily Al-Ayyam reported that over 40
percent of government employees borrowed on credit from
supermarkets. One wholesaler told USAID staff that the PA
owed the store NIS 800,000 (USD 180,000) for its purchases
made since March. Small and medium-sized supermarkets no
longer allow the purchase of food on credit, because of lack
of funds to replenish their stocks.
Banks warn that currency, especially NIS,
will soon dry up; minimal credit available
------------------------------------------
¶8. (SBU) Palestinian private banks are curtailing cash
advances to PA employees, although some continue to provide
advances or provide overdraft facilities on a case-by-case
basis. The Bank of Palestine offers NIS 500 to 1000 (USD 112
to 224) in cash advances to PA employees. Banks, such as the
Arab Bank, continue to lend money, mainly to employees from
UN agencies such as UNDP and UNRWA. Arab Bank and Bank of
Jordan are extending grace periods for existing loans.
¶9. (SBU) Banks no longer allow unlimited withdrawals and
some observers believe that money in circulation will soon
dry up. Bank of Palestine reported that although there are
ample New Israeli Shekels (NIS) in present circulation,
unpaid government salaries and purchases by local traders
from Israel will soon create a shortage of NIS. According to
these banks, USD and Jordanian Dinars are in sufficient
quantity and are increasingly used for transactions. ATMs
are operational, but many ATMs in remote areas have been
closed.
¶10. (SBU) USAID staff, who spoke with officials of the local
telephone company Paltel, estimated that 50 percent of all
telephones in Gaza have been disconnected. Due to delinquent
payments, 15,000 telephone lines, the majority owned by PA
employees, have been temporarily suspended and 572 phone
lines have been permanently cut. Paltel announced in March
that it will not disconnect the landlines of PA employees who
are delinquent until salaries are paid. In May, Paltel said
it was starting to face difficulty since only 30 percent of
its clients pay their telephone bills. Paltel also reported
a 20 percent downturn in visits to its stores.
Emergency care only; Palestinians
refusing to pay for healthcare service
--------------------------------------
¶11. (SBU) According to reports from USAID staff and WFP, a
lack of medical supplies and staff shortages has forced
clinics and hospitals to work only on emergency cases, and to
forego elective non-essential surgeries. (Note: Al Nasser
Hospital in Gaza announced that it will not be able to run
its Intensive Care Unit (ICU) without medical supplies. End
Note.) In some cases, medical disposables are being re-used
due to a supply shortage. When medicines are not available
at clinics or health centers, Palestinians are reportedly
buying herbs and pain killers. In some cases, increased
doses of weaker drugs are being provided in place of
stronger, more expensive medication. Patients with chronic
diseases, the majority of whom are refugees, are able to fill
their prescriptions from UNRWA clinics. Non-refugee patients
have been turning to unlicensed health facilities and even
homeopathic care for treatment.
¶12. (SBU) In order to handle more patients and rising
operational costs, several NGO clinics told USAID staff that
they have resorted to levying higher patient fees, which has
meant that fewer patients are able to afford private care.
In many cases, patients refuse to pay after they receive
healthcare services. One husband refused to pay an OB/GYN
clinic after his wife delivered a baby, reportedly telling
the clinic to take his baby as payment. The clinic
discharged the patient and newborn without further care.
USAID noted NGO reports that the patients who are most in
need of MOH services do not subscribe to the national health
insurance, and are therefore not eligible for subsidized
health care. (Note: PA employees are required to register
with the National Health Insurance. Non-PA employees must
purchase the health insurance separately. End Note.)
Stevens