he's really been bothering the role, so calling attention to what they say of the very claims against the palestinian people. they say what they want to see is a genuine political piece person that hoping that the support of china and others on this tool increased pressure on western nations, particularly those who support israel and to pull the 1st the slide. katrina you all to 0. thank you. to displace palestinians living in tents and solving gauze, bracing themselves, so when to barbara and go for reports. these flimsy sheets on looking at the wind or the rain at this 10 city in con eunice children a cold and hungry, but displeased families say it's safe for living here off to is really funds for going from the homes and the warm and our home became your in the when and the rain . we can't even fund covers for our children. they shiver at night with the sunset, the wind,

and then it starts getting cold for children. how long will this go on for? we were living in dignity in our homes, but we became to space, but for us, not willingly enough. god will take my vengeance traumatized families move the door to door to find safety. i think that's the con you want to apply and that's in my house. was bombed in hun units, and i have sought shelter at several houses until i stayed outside of 10, which is a little bit safer than the house. but there is no place completely safe. and these are our children and this is our home. now look at our condition, i swear to god, i don't know how to make the children sleep their clothes or wet. how are we going to dress them clumsy? 2 sets of goss this population would displace to 1000 garza of to is really bombardment level ways of renewals, but the places they fled to we'll also talk a type, so displaced polish to names could be forced to move again. he but is a cancer patient and is losing hope. there's no medicine,

no clean water. i'm fed up with life. why is this happening to us? why is this our situation? my medication is almost finished. how am i going to buy more without a salary? even those why beg for money, they themselves needs money, cold weather, and unrelenting plumbing campaign. and a severe shortage of basic necessities is making an already, dar humanitarian situation. was barbara and grandpa, alta 0, a colorado web coming towards the end of the show. but we're gonna leave you here with some picks from the northern part of gauze, or this is on the border with israel. where you can see there's clouds of something smoke or dust usually indicates of, of some kind of much remove when to bring you more on this that's hopefully out the

i'm, it's the world slow down. we stand for as homes with tits of global nichols reserves . indonesia is points to leave the global, the battery industries. we definitely manage our abundant resources in solar energy, harnessing offerings, 75 percent of global carbon credits. essential. committed to being fine mental protection and has the investment climate, digital licensing, your better tomorrow? the 0 venue, this is counting the cost on algebra 0, your weekly look at the world of business economics. this week and economy in ruins

. the united nations warns the wall and does a good set back development to the palestinian territories by more than a decade. also this week spending billions of dollars to finance for israel's central bank says the conflict has a major shock to the country's economy. plus on the edge of the of this is phil over of the war and the 11 on could shatter what's left of lebanon's. french i haven't posted into x rays are dependent on israel for their labor and goods markets. and for basic services like water and electricity, they are locked in a cycle of under development caused by decades of is really restrictions and occupation. palestinian g. d. p stood a just over 20000000000 dollars last year. by comparison, israel's economy is worth nearly $500000000000.00 where you and says the we're on gaza could set back development by as much as 16 years. and the longer the conflict

goes on, the worst things will get. in a recent report, the u. n says g d p in the palestinian territories as full and by more than 4 percent. this is after one month of war. that's a bigger impact than any previous israel, palestine war. 2 full months of conflict would cut g, d p by an estimated 8.4 percent, or 1700000000 dollars and 3 months of war. now you're looking at 2 and a half $1000000000.00 in g d p. los, the wars also devastating the labor market, 61 percent, that's the majority of all jobs and gaza. 61 percent of jobs and gaza has been raised and then the occupied westbank. 24 percent of jobs are gone. one quarter the poverty figures are alarming. the number of palestinians living in poverty has risen by 20 percent, and that could soon be 34 percent. if the war continues for a 2nd month, that means nearly half a 1000000 more people living in poverty. so now the war has had

a devastating impact on gases economy, and that's no surprise when you see flattened buildings in an entire population under fire. we covered that in previous shows, but the u. n. has also drawn attention to the massive economic disruption in the occupied westbank. and today we're focusing on that. the territory has effectively been sealed off from israel since october the 7th, in what has been described as another form of collective punishment. palestinians and their goods cannot get into his real farmers have seen prizes collapse as their produce ends up dumped in local markets. bernard smith reports from bait of the crops are ready for harvesting. but palestinian, the farmers have lost access to the main customers in his raft. since october, the 7th, as well as military has effectively sealed on the occupied west bank. well, sell it the jordan valleys, palestine, food basket. well,

we produced most of the west banks, proud of its peppers corvette's opening and everything comes from this range. and when the crossing squeeze rail are closed, the door of these goods go to the local market, which causes the process to drop. on some days we don't sell anything. i need to check is just getting to mock it is a challenge. palestinians are forced to take so cute his roots through the occupied westbank to avoid is rarely supplements the quickest route for us today is 40 kilometers. it should take 30 minutes, but it's only open to his railings. palestinians will have to take a major de tool and let them know, and i don't have it on the, at the 110 kilometers to on june. in the past 5 weeks, more check points and road closures have a p. it doesn't cause it as a witness of a heads up. some check points are only open from 9 am to 6 pm. we're just causes problems. and it also causes harm to the small villages we have to data or through

90 minutes later we get to the market. it's almost deserted before october, the 7th. this was a pact, wholesale market with route from israel and vegetables from the west bank. now israel is put in a check point just outside there and that's choked all access to the market because it's stopping palestinians using a main road that passes through a nearby village. and these ratings have done that to protect the setlist who live all around prices of vegetables have more than 100 ships, have been cut some business days of close down heidi equity, constantly afraid so much so that when we come to work, for example, like i'm from novelist and i have to leave home at 1 in the morning when the check point isn't busy. because if i get a late to i could be still more than 2 hours, which impacts my work here. i supplements expand a new ones appear. those weights at check points get longer and longer

significantly disrupting businesses as well as the lives of the palestinians. forced to enjoy them. bernard smith, i'm just sara beta and the occupied west back from ramallah any palestinian occupied territories. i'm joined now by roger holiday, the director general of the palestine economic policy research institute. thank you for being with us. we saw in that report by bernard smith, some of the ways in which an occupying power in this case is real, can squeeze the economy of an occupied territory. we saw a know that there is no freedom of movement or there's limited freedom of movement . limited access to other markets, in this case, access of policy and goods to these really markets. what are the other factors that our viewers should keep in mind? or yeah, i think is a report actually focused on something which is critical and which is yet to be as, as one of the many shocks that we're, we're experiencing economically is yet to be so fully. we've already in the west

bank that is experienced the 1st very important shock of the war, which is the return around 200000 up 220-0000. but the simmons we used to work in is early and we used to bring around $3000000.00 in to the published in an economy, approximately 15 percent of its natural income. so those people are not, not only no longer being in that that income for 2 months, probably 3, possibly for the rest of the year of next year. but uh, they are now an additional uh, 1570 percent of labor force which is sitting in the west bank unemployed. so that's of an example of the, of the 1st shop. we've had others, palestinian arabs in israel, who used to bring in around $1510000000.00 a year to the economy and purchases and services. they stop coming. these are some of the immediate shops, the clearance revenue cut off by a israel, which anyhow is going to go down because of the repressed demand. so and less and $0.40 less straight tax. uh, but the actual total we were can we fully focused?

can we focus on that? the moment is real with holding palestinian tax that it should normally and wouldn't normally transfer it to the palestinian authority. and now that transfer of money, palestinian money into the palestinian authority has been disrupted. what is the impact of that as well? you see, i find your, your report was very useful in that it talked about something very specific that they had an extreme local market problem as an experienced situation today. but this is something that is structural in our economy and it's worse and better from day to day from year to year. so really the, the clearance tax issue, israel has been withholding, deducting unilaterally around 15 percent of what is due to the p a for the last 3 years and, and, and transferring what remains, what it, besides it, it is willing to part ways of posting revenues. now in october it went further. so

previous deductions included it's calculation of palestinian prisoners and martyrs payments that night were made by the p a in the most in october. the episode, as we were called at the end of the months, the minister of finance, the extreme is a minister of finance mortgage didn't want of course him and his allies didn't want to transfer anything because basically, you know, as they are punishing the whole house didn't people in gaza, they are punishing the rest of the post and the people, and this is the best way to punish the. so there was a huge argument, obviously amazing american pressure and whatever. and so they said, i mean is typical of israel and said, okay, we'll, we'll transfer everything but the power shift portion of the pay i used to pay 2 guys forward the employees in gauze and pensions in god, i around a 100000000. so what was huge, monthly, a $300000000.00, let's say clearance tax transfer the be a was anyhow,

a down to around $250000000.00 because of repressed amount and was going to be another 100000000. was going to be taken off the p. a said we're not going to take it, you know, which was a correct position, i believe in the circumstances. one more thing before i let you go the impact over time of this war. but how do you assess that, even if this war worth it, and now look, you the numbers quoted by the you and the b, u. n. s. the report are good 1st, you know, back of the envelope calculations, we're all doing our calculations. different and institutions are looking at different issues. we've looked at things that we have a paper which will come up very soon on the impact of the labor force cut off. and so, i mean, there are so many different waves coming at us to begin with. and i think this is something we're gonna have a chance to talk about. but you know, gaza is, is, is we can no longer talking about the west bank and both in, in the palestinian economy is one if they're not talking about westbank because economy. uh, east jerusalem economy, which is another story. and of course, does,

i mean, how does is 0 that does the, the commission, the idea that there are even 20 percent of its labor force working in the, at the currently is, is almost, you know, fantastic. and the also the idea that somehow this economy is just going to pick itself out if tomorrow the, the fighting were to and, but we're already talking about, put aside the tentative buildings that we regard for relief and reconstruction. we're already talking about a manual blow to g, d p and the gross national income of up to 20 to 30 percent. i think this year in the coming in. so it's 4 percent a month is perhaps accurate. but this is a cumulative in a cumulative a wave after wave effect that will be st. paul you're in all next year, regardless. roger holidays, thank you so much for all that context or director general of the palestine economic policy research institute. thanks for your time today. thank you very much . i the considered the economy of israel now

from restaurants to high tech companies and a major gas field. thousands of is really businesses ground to a halt after the country launch this war on garza, the government is now spending more on everything from weapons to wages for the hundreds of thousands of reservists that had called up the military duty. the finance ministry estimates the war is costing the economy around $260000000.00 every day. now that's more than a quarter of a $1000000000.00 every day. meanwhile, israel's revenue from tories and household spending has dropped so public finances of course, are strained. a couple of more numbers for you to bear in mind is real says that it raised more than $8000000000.00 in debt since the war started. the budget deficit is increasing. it's expected to reach 4 percent of economic output this year, 5 percent in 2024, and the cost to insure itself in bonds against the default is more than double what it was before the war began. the calculus, business newspaper estimates the war could cost as much as $51000000000.00. that's

nearly 10 percent of israel's g d p. and that is, if the conflict goes on for up to a year at the bank of israel is calling on the government, the balance to things, support economy on the one hand, but also maintain a sound fiscal position. a prime minister benjamin netanyahu has vowed to quote, open the taps and to roll out the stimulus package bigger than during the cobra. 19 pandemic. that includes the cash handouts, the army reservists and businesses affected by the war. but critics say the measures did not go far enough and the eligibility criteria specifically to get that government money work to strict. i want to discuss all of this. i'm joined now by professor michael ben. god michael is professor of economics at city university of london. michael, this floor we just said that number is costing is really a quarter of a $1000000000.00 a day, slightly in excess of that. why does this war come with

a higher price tag for his real than previous wars? it has wage. we're thinking, for instance, of the 2611 on war. oh, hello. so 1st of all, the number of from countries i think is probably the worst case scenario. yes, the direct costs are likely to be about $20000000000.00 over the course of this year. and next of which about the 1000000000 is direct defense expenditure, which is more than covered by the us in the package that we've received, the $14000000000.00, much of the risk will be used to support the 200000 us of williams currently displaced. once the government gets actually gather and um and then rebuilding the 22000 villages destroyed to the initial attack. of course none of that can actually happen. so that's probably sometime late next year because know, is going to increase the lives alongside the strip as long as it's controlled by from us. so the direct effect a is probably in terms of a loss of,

of our, which is probably means a reduction in growth from about 3 percent to 1.5 percent. that means a loss of about $7700000000.00. again, how much next year depends on how long the world allows. i think a full year is probably of the extreme and keep in mind, israel has about $200000000.00 in reserves. so is certainly possible to pay for everything is a rich country. what we need mostly from the united states was right guys with the united states and so supported. but we really need is the ability to buy the weapons because it's, it's really not possible for us to produce, given the economies of scale everything that we, we require. of course it would be a lot better if we didn't have to spend the money on. all these kinds of things, if it were my horse, and since you bring up the sensor, bring up the role of the us. that's a question i wanted to ask you later,

but ask you now, what happens if the us were to downsize down scale is financial support is real, could, is, will continue to prosecute the war the way it's been doing. oh, absolutely. i, as i said, we have about $200000000000.00 on the service. i mean, yeah, my students back in his, oh, has asked me why it is that a country with a funny exchange rate has such an enormous work? trustworthy sensors. war? yeah, uh, you know, we need this kind of, uh, back stop precisely for these kinds of emergencies. so the, the money is that the united states is giving us is, is, you know, we are normally grateful for, it is not necessary for us to defend ourselves. what we do need is access to the web so we can look forward to bias and market prices. we wouldn't be able to use the parcels that's. that's the difference. the prime minister has approved plans to amend the state budget in order to increase the deficit and cut spending on coalition agreements. now this is important just been

a political route over these coalition funds, as there are no money earmarked for benjamin netanyahu, has backers like payouts for the ultimate orthodox schools and for the various parties comprising of the government in a letter sent to netanyahu. a group of $300.00 leading is really economists of which michael is one said quote, the grave below that israel was dealt requires a fundamental change in national priorities and a massive diversion of funds to deal with war damage, a to victims and the rehabilitation of the economy that they went on a basic and necessary step would be to hold the financing of anything on essential to war. first and foremost, the coalition funds. why have these coalition funds, michael? so contentious? there are a lot of the government institutions because of the, of the political calculus about maintaining the coalition. um, you know, these are largely extraneous, the registry areas before the, before the war,

they are even more strenuous now. um, so it's not, it's not, it's not even the amounts that we're talking about because again, you know, $3500000000.00 is less than one percent of g p. but they're all sorts of stuff at the time that people are being asked to make sacrifices. the politicians don't seem to be able to uh, to come from some sort of a consensus without getting rid of a lot of these things. you know, there was a, a big effort to apply the governments to do what we would call a traditional overall, a change in the way the, the government operates to centralize more power. and it says and was just part of what this was, what the attack and so demonstrated is that actually is the civil society that they were trying to weaken. that is actually as little spread stress. and we have a civil society 2nd to none of unfortunately attached to a government that is kind of incompetent at the moment. but you know, there's an optimistic scenario to all of that. and that is, that is easy to replace a feel, the government is much more difficult to change the population. michael, ben gab,

professor of economics economics at city university of london. thank you so much, michael. have a sporadic exchanges of fire along the lab and on israel border continue for a 2nd month, has belies the packing, is really military position, saying that it wants to release pressure on its ally, how mos in gaza. many lebanese fear that their country could be drawn into the war and they worry about further damage to an economy that is already on his needs. say no holder reports from the town. so long lebanon's border with israel are empty homes abandoned and damaged schools, closed livelihoods, frozen a sporadic, and the times intense cross border exchanges of fire is and it's the 2nd month. hezbollah says it is relieving pressure on its ally. hum us, which is fighting is where the soldiers in gaza. a few dozen kilometers deeper into 11 on there is no war, but it's on certain times for

a population struggling with an economic crisis. the hospitality sector has been hit hard. the restaurant association reports an 80 percent drop in business. they say people are scared and anxious about the situation. there are days when the streets are empty. several western arab governments have called on their citizens to leave or not to visit 11 on. many airlines have scale back or canceled flights to and from baby boot, whatever is going to happen 11 on water, potentially water between us and his van. so it's really just putting this economy into a depression. we're already into something called the speculation. but the right now it's, it's becoming a. ringback depression and the economy has people leaving, we have no doesn't, no, not that it's coming. many lebanese were already struggling to put food on the

table 11 on the economy collapse years ago. instead of carrying out much needed reforms. politicians use the dwindling foreign currency reserves at the central bank. now the state is nearly bankrupt and it's institutions are dysfunctional tourism and remittances from lebanese abroad have been the backbone of the economy . and while people here sympathized with the palestinians and their struggle, men, if you're a repeat of the 2006 war between has the law and as well to say for a minute. i know it says you're the a lot of people are worried. we're hoping nothing will happen. so people are afraid that these relays will hit the roots as well. what is happening in the south is very bad. tens of thousands of lebanese have already left their homes, a full blown war, or even a protracted war of attrition. confined to the border region would be costly for a country already in ruins. center who they are anxious. eda, date of joining us from a route to discuss. this is somebody atalla,

the director of the independent think tank the policy initiative. sammy, thank you for being with us. so it's been 5 weeks more than 5 weeks now. of the permanent attention between israel and lab and on and cross border firing of various kinds. what's been the impact so far of of this what the quote of this quantity war between 11 on an israel, on level known as economy a fight. so thank you so much for having me and did the, the last few weeks work seemed tens and remains so. and as you know, there's been a lot of several innocent lines and do more of a closer border, including a in the civilians, obviously. and journalists, i do use a hot response by israel has destroyed a lot of, you know, wine trees and all the trees and why life um, and as you know,

this is right in boxes and uh, as an a to you would spend as far as major long term effects, which, where you have to and find, assess more than 10000 people probably have left the south or the villages auto share. that this would spread. and as it is all on the um, shopping uh, buying history on the border as your and you know, it has been said under the poor. in fact, the tourism has actually declined the number of flights coming to 11. and that's also been reduced. people are already fine, is that by the way, the, the, the, the draw up the impact on the tours and sector and let him know it's very important because of the tourism sector is a huge 2nd in the economy. 11 is rely on tourist, on the heart, courtesy that come with the tourist. so in fact, or consumption, particularly,

and disagree, restaurants and others, touristic side. so the government says it has an emergency plan. how strong it is, the plan of the lebanese government, because unlike israel that we just talked about, it's not like this country has a lot of cash reserves that it can draw upon briefly. an opportunity. i mean, uh, 11 and then the other one is government that produce a ton of franky. um, the plan is just a, you know, income paper um deliver in the state is bank crossed as a result of the financial crisis that has been and paid for, or for the last 4 years. the can see is much weaker. now people are going to do their job, so because of the low wages, as it is all over the evaluation, we don't get to see the state being really serious about actually conducting or even implementing, if not in any case or now, as you mentioned, the deserves of 11 and hugs went up to 8000000. but i would say that the professor

from uh, is the $200000000.00 reserve and his man. and it's important to sort of confection license because in fact in nowhere where i heard of that actually is an occupying palestine and has that deserved with love to defend itself, especially to my tend occupation. right. so, but that's what it deserves. but 1011. then the solution is much more dire as it is all of these very about policies that have actually been uh, the main in place, and then a few years. so while we hope that this actually doesn't escalate because the professions are going to be in all of the country assigned me to tell the director of the independent, the think tank, the policy initiative. thank you very much. time you for your time today. yes. and that's our show for this week. get in touch with us on x at the venue 0 is my handle. do use the hash tag ages to, to see when you do or drop as an e mail on counting the cost at alpha 0,

dot net. and there's more as all online that is alice's 0 dot com slash ctc. you'll find our reports links, entire episode. so you to catch up on that's it for this edition of counting the cost. i'm several venue from the whole team here in the house. thank you. for joining us, the news on alpha 0 is next. the this is most is like the palestinians and his radio occupied territories every day . as the year of the tree security checks the day, the old deal, especially for young palestinian men you ask me how did you say then not going out unless they have to to avoid arrest check points and harassment from angry is really odd. non side tells us he feels the situation has less than to compile this thing into. on sunday he was chased by launch group. this is ray, the settlers want on his way to what?

i think his rating steep the market. the security guard came over shouting by pointing a gun at my face and forced me to the ground. it was discrimination only because on palestinians, with formright groups quoting on his release to its hind palestinians, they come across regardless of age. how this thing is a water is that they'll be collectively punished more than they already have been the, [000:00:00;00] the hello, i'm sammy's i then this is the news out live from dell coming off in the next 60 minutes. was the youngest victims. we follow the planks of children and gaza as

monday marks will children's day. 5500 have been killed by is ready as strikes. so