How much will it cost to rebuild Gaza after 15 months of war?
Jan 15, 2025
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Achim Steiner, the Head of the United Nations Development Programme, discusses the daunting task of rebuilding Gaza following 15 months of conflict. He highlights the emotional complexities faced by returning residents as hope intertwines with grief. Steiner delves into the urgent financial needs and the importance of international cooperation for sustainable reconstruction. He addresses critical questions about funding sources, necessary political resolutions, and the challenges posed by historical issues that may hinder effective rebuilding efforts.
The reconstruction of Gaza is estimated to require at least $80 billion, emphasizing the vast extent of infrastructure damage and humanitarian needs.
Effective rebuilding efforts hinge on political stability and the proper management of international aid to prevent misallocation and corruption.
Deep dives
The Aftermath of the Ceasefire Agreement
A ceasefire has been reached between Israel and Hamas, leading to celebrations in the Gaza Strip after 15 months of ongoing conflict. The emotional responses from residents reflect a mixture of joy and sorrow as they celebrate the end of violence while mourning substantial losses, including over 70,000 fatalities and the destruction of numerous homes. While this ceasefire allows for the potential rebuilding of Gaza, it also raises questions about the next steps and the feasibility of reconstruction efforts under the current socio-political conditions. Key leaders, including U.S. President Joe Biden and Israeli President Isaac Herzog, acknowledge the complexity of the situation and stress the importance of humanitarian assistance and rebuilding efforts to support the affected populations.
Challenges and Costs of Reconstruction
The reconstruction of Gaza poses immense challenges, with estimates suggesting a financial requirement of at least $80 billion, and potentially more, to rebuild the infrastructure destroyed. The scale of destruction includes damage to homes, schools, hospitals, and agricultural land, necessitating a comprehensive plan to address various sectors. Historical difficulties in previous reconstruction efforts, such as the misallocation of funds and failure to meet poverty alleviation promises, cast doubt on whether this effort will succeed despite international pledges for aid. Additionally, ongoing Israeli restrictions on imports further complicate the delivery of needed supplies and equipment essential for the rebuilding process.
The Role of International Aid and Local Governance
The effectiveness of international aid in the reconstruction of Gaza heavily depends on political stability and governance within the region. Past experiences highlight that while funds may be pledged by various nations and organizations, the actual delivery and utilization of these resources often falter due to bureaucratic hurdles and corruption. The involvement of local entities and political leadership is critical to ensure that reconstruction efforts are managed appropriately and reach the communities in need. Consequently, there is a pressing challenge in coordinating between international players and local factions to create a viable plan that addresses both immediate humanitarian needs and long-term economic sustainability.
A deal has been reached between Israel and Hamas to end the fighting in Gaza and secure the release of Israeli hostages.
So, if the ceasefire holds, how long will it take to rebuild from the rubble? What would be the priorities? How much will it cost? And who will pay? We will look at all these with different guests, including the head of the United Nations Development Programme, Achim Steiner.
Also in the program, you will hear that some US banks have had a good quarter—the earnings of Goldman Sachs, Wells Fargo, Citibank, and JP Morgan Chase all came in above expectations, and their shares rose on the news.
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