The Gaza Siege is Good… for Business in Egypt
As The president of Egypt tours the States talking about many issues including the Palestinian question. And I’m getting into my second month of my visit to Gaza and cannot deny the sad effects of the siege on Gaza. Most aspects of life in Gaza have been negatively affected by this unfair siege. The price of food especially, vegetables and fruits have now surpassed prices in the United States, same thing for clothing, shoes and electronics. While the cost of living in Gaza soared due to the sanction and limitations on the movement of goods, wages and salaries are nowhere near the States. Yes, there are tunnels in Gaza, and they smuggle all sort of things through these tunnels. Items as large as fridges and as small as birthday candles flow through the tunnels to Gaza. But those tunnels only can bring so much and smuggling isn’t the cheapest way to supply a market. Thirty to Forty dollars is the charge to smuggle a bag of goods. While the people of Gaza struggle, the two Palestinian governments watch from the sidelines but claim to be there for the people. The guys in Ramallah help their people in Gaza and the guys in Gaza take care of their own, while the common man is left with nothing. In the meantime the Arab and Muslim nations stand by the people of Gaza but have done little to break the siege. This post does not come easy, in fact this subject I hope to be wrong on. Egyptians have led the fight to break the siege on Gaza but from where I stand the blockade is helping the Egyptian government on so many levels, here is how:
Economically: Goods in Gaza mainly come from Egypt and since Palestinians do not have many choices because the Israelis allow only humanitarian goods into the Strip (flour, sugar, milk, rice…etc.). That leaves plenty of needed material that has a market in Gaza. Items like fans, shirts, razors, shampoo, appliances, certain medications, cookies, potato chips, pencils and school bags, chairs, kitchen ware…etc. In the past these goods used to be imported from various countries such as China and India. Thanks to the embargo, Egypt now is the main supplier of these goods; Egyptian factories are now earning plenty of cash as they provide the needed goods. Egyptian businesses are also making a profit by playing the broker role between the Palestinian buyers and the international vendors. There are those who move the goods to Rafah and those who push it through the tunnels to the Palestinian on the other end. Did I also mention that all those transactions are paid in cash?
It’s Good for Business: If a Palestinian wants to leave Gaza the can be smuggles through a tunnel for the bargain price of two to three hundred dollars. But there is another way. A two thousand dollar pay off to an Egyptian General through his Palestinian front man and you’re on VIP list to get through the gate at the Rafah crossing; even if the crossing point is closed, one will be allowed into the land of milk and honey. This travel clearance even overrides a Hamas veto because they cannot risk angering the Egyptians. I guess this is sort of like the American service offered in select airport for busy travelers where they can skip long security lines by using the express lane for a fee. This is funny because when a Palestinians pointed out this corruption to an Egyptian official, the official suggested he too take advantage of it. Politically, the mess in Gaze serves as a model for not choosing the Islamist oriented policies. For sometime Egypt has tried to convince its people that Islamists are bad for business and bad for regional stability. But most of those arguments fell flat until the Hamas takeover in Gaza in June 2007. Obviously many parties have an interest in seeing Hamas fail to make the point “We might be bad, but they are worse”. Also by playing the broker between the Palestinaina Authority on the West Bank, Hamas in Gaza and Israel, Egypt gains regional credit for their active role in promoting “peace” and Arab unity.
Regional Influence: Hamas wants one thing from Egypt and one thing only—keep the Rafah crossing open as long as possible. Hamas needs it open to keep people in Gaza from protesting the blockade brought upon them by Hamas’ belligerence. Since Hamas needs Egypt, Egypt can afford to ask Hamas favors and get what they want. For example, even though Syria has greater influence on the Hamas leadership, Egypt can meet with the top Hamas officials anytime they want to. Egypt can also get Hamas to change course on issues related to Fatah and issues of national Palestinian unity. In other word, the carrot is the open the Rafah crossing and allowing free movement for the Hamas leadership, the stick is the threatening to close of the border.
I know matters are more complicated than they might sound in this post. For example, due to the spike in demand for Egyptian goods, certain parts of Egypt now have to deal with inflation as a result of the increase in tunnel smugglers. Egyptian fuel is now also smuggled and sold in the Gaza Strip for a price much lower than the Israeli fuel. It’s understandable that in the Egyptian towns adjacent to the Gaza Strip, consumers complain about prices while the smugglers are thriving. Politically, Hamas can compromise on many things. For example, Egypt hasn’t pressed Hamas enough on the kidnapped Israeli soldier. And they also failed to get the Fatah leadership to release Hamas political prisoners in the West Bank. While many people in Palestine see the shortcomings of Egypt and blame that country for the worsening conditions in Gaza; the majority of the Palestinians are smarter than that. The majority of people in Palestine see inter Palestinian strife as the cause of the siege on Gaza and not the Egyptians. They see the Palestinian failure to establish a unity government as the sole cause if the harsh reality of life in Gaza. In the meantime, Israel has it easy. No one is pushing them to negotiate with the Palestinians and no Palestinian is resisting their occupation. No negotiations and no resistance, Israel couldn’t ask for more.
[Tarboush Tip: Eric]
