The shift to barter in Gaza highlights the severe economic impact of the ongoing conflict, illustrating how traditional monetary systems can collapse under extreme conditions.
The humanitarian crisis in Gaza is not only a result of immediate conflict but also reflects long-standing issues related to the blockade and economic isolation.
The high unemployment rate and job losses indicate a broader economic collapse that could have long-term implications for the region's recovery post-conflict.
If the blockade continues and humanitarian aid remains restricted, the barter system may become more entrenched in Gaza, potentially leading to a complete breakdown of the formal economy.
The worsening humanitarian situation could prompt increased international pressure for a ceasefire and more substantial aid efforts, though political complexities may hinder immediate solutions.
As conditions deteriorate, the risk of famine could escalate, leading to a potential humanitarian disaster that may attract global attention and intervention.
The ongoing cash shortage crisis in Gaza, exacerbated by the Israeli blockade and war since October 7, 2023, has forced residents to revert to barter systems for trade, reminiscent of ancient times. Activists and residents report that the lack of liquidity and goods has made traditional monetary transactions nearly impossible, with only one ATM operating irregularly in the region. The Palestinian Monetary Authority has been unable to function effectively due to ongoing conflict and infrastructure damage, leading to a dire economic situation where many are trading essential items directly, such as food and household goods.
Activists like Abdullah Sharshara and Maha Awni have highlighted the struggles of everyday Gazans, who are now exchanging goods like flour for oil or sugar for coffee. This barter system is seen as a necessary adaptation to escape the high prices and scarcity of cash, with reports of merchants exploiting the situation by charging exorbitant fees for cash withdrawals. The unemployment rate in Gaza has soared to about 80%, and the economic sector has contracted significantly, resulting in over 201,000 job losses since the conflict began.
Despite international warnings about a looming famine, especially in northern Gaza, humanitarian aid has been severely restricted due to the blockade. Relief organizations have criticized Israel for not allowing sufficient aid to enter the region, leading to worsening conditions for the population. The ongoing conflict has resulted in significant casualties, with estimates of around 147,000 Palestinians killed or injured, including many children and women, marking one of the most severe humanitarian crises globally.
