Gaza needs $71 billion for recovery, EU and UN report finds

A recent report by the European Union and United Nations estimates that Gaza will require more than $71 billion over the next decade for recovery and reconstruction following extensive damage from the ongoing conflict. The report, titled Gaza Rapid Damage and Needs Assessment (RDNA), indicates that the war has had a "catastrophic impact on human development" in the region.

In the first 18 months, $26.3 billion is needed to restore essential services, rebuild critical infrastructure, and support economic recovery. The assessment notes that physical infrastructure damages are estimated at $35.2 billion, while economic and social losses total approximately $22.7 billion. Gaza remains under a fragile ceasefire, which has been repeatedly violated, exacerbating the humanitarian crisis.

The report highlights that over 371,888 housing units have been destroyed or damaged, more than half of the hospitals are nonfunctional, and nearly all schools have suffered damage. Gaza's economy has contracted by 84 percent, with 1.9 million people displaced. The UN and EU have emphasized that reconstruction efforts should be "Palestinian-led" and support the transition of governance to the Palestinian Authority, contrasting with previous suggestions for a resort-style redevelopment.

Power Read: The report underscores the dire humanitarian situation in Gaza, positioning the EU and UN as key players advocating for a Palestinian-led recovery. This stance potentially shifts leverage away from external actors who may have previously sought to influence Gaza's governance. The emphasis on Palestinian leadership in reconstruction efforts may also serve to strengthen the Palestinian Authority's position in the broader geopolitical landscape, especially in light of ongoing tensions with Israel.

What to watch: The upcoming international discussions on Gaza's reconstruction funding and governance structure will be critical in determining the future political dynamics in the region.