Israel is still in control of all air, water, and borders of Gaza. And it's policies of De-development are directly responsible for the conditions Gaza is in today.

Specifically, experts from the UN Independent International Commission of Inquiry on the Occupied Palestinian Territory found “noting” positions held by the UN Security Council, UNGA, a 2014 declaration adopted by the Conference of High Contracting Parties to the Fourth Geneva Convention, the ICRC, and “positions of previous commissions of inquiry,” that Israel has “control exercised over, inter alia, [Gaza’s] airspace and territorial waters, land crossings at the borders, supply of civilian infrastructure, including water and electricity, and key governmental functions such as the management of the Palestinian population registry.” They also point to “other forms of force, such as military incursions and firing missiles.”

For the Gaza-Egypt border, they hold that while the Palestinian Authority operates the crossing under the supervision of EU monitors, Israel ultimately has control. Israeli security forces supervise the passenger lists—deciding who can cross—and monitor the operations and can withhold the “consent and cooperation” required to keep the crossing open. In that vein, experts note that Israel’s “coercive measures” have further “impeded efforts to build proper democratic institutions,” and that Israel still has not transferred sovereign powers and instead maintains control over “the [Palestinian Authority]’s ability to function effectively.” Based on the actual exercise of effective control, they, therefore, find that Israel has occupied Gaza since the broader occupation of Palestine began in 1967.

Israel claims it is no longer occupying the Gaza Strip. What does international law say?

Through 1993 Israel imposed a one-way system of tariffs and duties on the importation of goods through its borders; leaving Israel for Gaza, however, no tariffs or other regulations applied. Thus, for Israeli exports to Gaza, the Strip was treated as part of Israel; but for Gazan exports to Israel, the Strip was treated as a foreign entity subject to various “non-tariff barriers.” This placed Israel at a distinct advantage for trading and limited Gaza’s access to Israeli and foreign markets. Gazans had no recourse against such policies, being totally unable to protect themselves with tariffs or exchange rate controls. Thus, they had to pay more for highly protected Israeli products than they would if they had some control over their own economy. Such policies deprived the occupied territories of significant customs revenue, estimated at $118-$176 million in 1986. (Arguably, the economic terms of the Gaza—Jericho Agreement modify the situation only slightly.)

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In a report released in May 2015, the World Bank revealed that as a result of Israel’s blockade and OPE, Gaza’s manufacturing sector shrank by as much as 60 percent over eight years while real per capita income is 31 percent lower than it was 20 years ago. The report also stated that the blockade alone is responsible for a 50 percent decrease in Gaza’s GDP since 2007. Furthermore, OPE (com- bined with the tunnel closure) exacerbated an already grave situation by reducing Gaza’s economy by an additional $460 million.

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The Gaza Strip: The Political Economy of De-Development - Third Edition by Sara M. Roy