Israel Matzav

New problem in the World's largest concentration camp: Unemployment

Darn it - Obama screwed up again. He got Prime Minister Netanyahu to ease up the blockade on Gaza, and now on top of all its other problems, the World's largest concentration camp has unemployment.

But at the Egyptian border, in the heart of Gaza's tunnel industry, there's little if any rejoicing at the blockade's dismantlement. As Israeli consumer goods saturate Gaza's markets, the tunnels have lost their clientele. Smugglers understand that their days are numbered, but there's nothing to replace the jobs the industry provided.

"Work has run dry. Every day is getting worse and worse. It's the end of the tunnel period," says Abu Mohammad, a tunnel owner who has made millions from the industry. "It's not just me suffering. It's everyone in this business. ... No one knows what will happen to us."

Once the lifeline of the coastal enclave's economy, tunnels were set up as a workaround to the embargo Israel imposed after the Islamist group Hamas seized control of Gaza in 2007. At the industry's zenith in 2008 and 2009, approximately a thousand subterranean passageways snaked beneath the border to Egypt, transporting everything from potato chips to cars to weapons.

The resilient industry survived Israeli bombings, Egyptian gassing, and flooding. Days after the end of Israel's 22-day offensive in January 2009, activity in the tunnel zone was frenzied--generators hummed, pulleys screeched and loading trucks banged. Most recently, smugglers drilled through the steel subterranean wall Egypt began to construct last December.

Today, though, the tunnel district is eerily silent. Market traders have either bought Israeli or stalled orders in anticipation of new goods from the Jewish state. An estimated 10 percent of the tunnels are still operating, but even those work sporadically.

...

Before the blockade was eased, Saber's tunnel, like many others, operated 24 hours a day, seven days a week and employed 10-12 people for each 12-hour shift, carting everything from chocolate to refrigerators. Now, Saber says, he's barely making enough hauling iron, steel, and ceramics--products that remain embargoed. And even profits on those have dropped dramatically.

"Before one ton of iron sold for $400 [U.S.], now it goes for between $150 and $200. These prices are not good enough for labor and expenses," Abu Saber laments.

Tunnel proprietorship costs. Owners say they spent between $150,000 and $500,000 to construct a tunnel and then another $2,600 to the local municipality for a license. Each month, $300 goes to electricity and water. They pay labor about $25 per shift. Maintenance adds up to between $2,000 and $3,000 a month. There are tunnel courts where laborers can take their employers if they don't pay salaries.

I know. Why don't they try developing a real economy? Heh.

posted by Carl in Jerusalem @ 10:31 PM