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The Rebuilding of Gaza Amid Dire Conditions: Damage, Losses, and Needs

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A tower block lies in ruins in Gaza city following an Israeli air strike. © UNRWA/Mohamed Hinnawi

The eleven days of hostilities in May 2021 in Gaza resulted in the loss of over 260 people, including 66 children and 41 women, and exacerbated previous traumas in particular among children. The human toll was aggravated by overall damage and losses to the social, infrastructure, and productive and financial sectors. A Rapid Damage and Needs Assessment (RDNA) reveals up to US$380 million in physical damage and US$190 million in economic losses. Recovery needs have been estimated up to US$485 million during the first 24 months.  

The Gaza RDNA was conducted between May 25 to June 25, 2021 in partnership between the World Bank Group, United Nations (UN) and European Union (EU) immediately after the cessation of hostilities and in close cooperation with the Palestinian Authority and in consultation with the civil society and private sector in Gaza. While the RDNA’s estimates are preliminary, they are critical to identify priority interventions.

“This is yet another unfortunate episode in which the Palestinian people in Gaza saw themselves in the midst of conflict and destruction. The humanitarian crisis is worsened in an economy with very limited ties to the outside world. Gaza’s GDP may contract by 0.3% in 2021 compared to an estimated 2.5% annual growth before the conflict. With this assessment, we hope to mobilize donors’ support to help restore dignified living conditions and livelihoods in Gaza, and lead the way to recovery.”  said Kanthan Shankar, World Bank Country Director for West Bank and Gaza.

The recent hostilities have done more damage to already faltering socioeconomic conditions. Palestinians in Gaza have suffered from the cumulative costs, human and economic, of recurrent hostilities over the last three decades, as well as prolonged restrictions on the movement of people and commercial goods at border crossings, limits to fishing off Gaza’s coast, and now the effects of the COVID-19 pandemic. The alarming unemployment rate in Gaza is roughly 50% and more than half of its population lives in poverty. Following May’s hostilities, 62% of Gaza’s population were food insecure.

According to the RDNA, the estimated value of the physical damage caused by the conflict ranged between US$290 to US$380 million. The social sectors were hit the most (US$140 – 180 million), making up more than half of the total damage. Housing alone represents almost 93% of the total damage to the social sectors. The second most-severely-affected sectors are the productive and financial sectors, with agriculture and services, trade and industry at the fore.

The conflict generated economic losses (interrupted economic flows, production and services) that ranged between US$105 to US$190 million. Once again, the social sectors were the most affected with about 87% of losses caused by added health and social protection costs and unemployment. The conflict significantly weakened livelihoods and the safety nets of the most vulnerable. 

The cessation of hostilities reached last month has largely held but remains fragile. The UN is continuing its diplomatic engagements with all concerned parties to solidify the ceasefire. In the meantime, we are also ensuring that we do everything we can to meet the most urgent needs that would allow Palestinians in Gaza begin the process of recovery as quickly as possible. This RDNA is an important step in that process. I appeal to the international community to come together in support of these efforts.” said Tor Wennesland, UN Special Coordinator for the Middle East Peace Process.

The Gaza RDNA promotes the Building-Back-Better approach in Gaza, focusing on rebuilding a more resilient climate-friendly economy and infrastructure and people’s ability to absorb shocks, as well as on improving living standards and lives. Vulnerabilities that may have contributed to the impact of the conflict should, where feasible, be tackled during recovery and rehabilitation, allowing affected communities to manage and mitigate future risks. The recommended actions range from meeting immediate and future needs, such as restoring inclusive, energy efficient and environmentally sustainable infrastructure, to adopting stronger social safeguards measures and implementing targeted policy reforms. 

The immediate and short-term recovery and reconstruction needs (during the first 24 months) are estimated between US$ 345 – 485 million, with needs estimated between US$345 to US$485 million, of which US$125 to 195 million in the immediate term (from now until the end of 2021), and US$ 220 to 290 million in the short term (6 to 24 months). The priorities focus on ensuring a return to some normalcy by rapidly providing relief, repairing priority damages to infrastructure, and reinstating essential services disrupted by the conflict, to be restored at least to pre-conflict levels, if not further. 

Critical recovery needs include cash assistance to around 45,000 individuals for food and non-food assistance, providing an additional 20,000 full-time jobs for 12 months, and prioritizing housing needs for over 4,000 destroyed or partially damaged that had about 7,000 children in the families who lost their homes. Early interventions are needed to improve food production in agri-food and fishery and rehabilitate physical assets. In addition, financial support is needed to reconstruct the badly damaged micro and small enterprises that provide services, goods, and jobs to the communities, with a focus on sustainable energy- and water-efficient techniques.

Civilian causalities and the devastating socio-economic impact of this round of hostilities remind us once again that we must address the root causes of the conflict. The recovery of Gaza must be backed by a meaningful peace process that will bring security and dignity for all. While we acknowledge the importance of the RDNA exercise, the sustainability of Gaza’s recovery will depend much on the progress of the political process and a negotiated solution. Palestinian unity and democratic renewal through free and fair elections are as well of crucial importance,” said Sven Kühn von Burgsdorff, EU Representative.

Beyond the immediate and short-term reconstruction period, systematic policy efforts are required to sustain recovery. This includes the Palestinian Authority’s building a sustainable governance system and creating an enabling environment for private sector-led growth and Israel’s upgrading the services at Karm Abu Salem. Support to job creation programs for men and women is needed to start with 20,000 full-time jobs for 12 months as well as training in digital skills to access the global digital value chain and overcome geographical isolation. Other areas include water reuse for agriculture, renewable energy, the expansion of health facilities and services, and improving the quality of education and bridging learning gaps. Mechanisms to ensure the protection of women, youth, and refugees are especially important.

The World Bank Group, UN and EU are committed to provide critical support to the Palestinian people and ensure swift and reliant recovery, noting that the quick to short-term recovery will depend on financial support, including from donors, as well as Israel’s cooperation to expedite access to materials and equipment intended for civilian purposes.

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Economic Recovery Plans Essential to Delivering Inclusive and Green Growth

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EU member states must ensure careful and efficient implementation of economic recovery plans that support inclusion and growth to bounce back from the worst impacts of the COVID-19 pandemic, says a new World Bank report.  

The World Bank’s latest EU Regular Economic Report – entitledInclusive Growth at a Crossroads – finds that the unprecedented and exceptional policy response of governments and EU institutions has cushioned the worst impacts on employment and income. However, the pandemic has exposed and exacerbated deep-seated inequalities, halting progress in multiple areas including gender equality and income convergence across the EU member states. A further three to five million people in the EU today are estimated to be ‘at risk of poverty,’ based on national thresholds benchmarked before the crisis.

The report highlights that effective recovery programs can reinforce progress on the green and digital transitions underway across the region. With the crisis continuing to unfold, government support schemes and the rollout of vaccines in a timely manner will remain essential to bolstering the resilience of firms, workers, and households. Given the longevity of the crisis and the impact on the most vulnerable, many governments have opted to extend the duration of support throughout 2021.

“A green, digital and inclusive transition is possible if economic policy is increasingly geared towards reforms and investment in education, health and sustainable infrastructure,” said Gallina A. Vincelette, Director for the European Union Countries at the World Bank.

With an output contraction of 6.1 percent in 2020, the COVID-19 pandemic has triggered the sharpest peacetime recession in the EU. Governments will need to ensure targeted and active labor market policies are in place to support an inclusive recovery. The report highlights that special attention should be given to already vulnerable workers such as youth, the self-employed, and those in informal employment. These groups are more likely to face employment adjustments during the crisis and may face longer spells of unemployment or periods outside the labor force.

Women have been disproportionately impacted by work disruptions during the pandemic, particularly in the sectors facing the worst effects of the crisis. This was also highlighted in the 2020 Regular Economic Report produced by the World Bank, which found that at least one in five women will face difficulty returning to work compared to one in ten men. It has been harder for women to resume work due to the sectors and occupations that they are working in and because of the additional care burdens that have fallen disproportionately on their shoulders – a manifestation of increasing inequities in home environments.

“As recovery takes hold, it will be important for carefully targeted and coordinated policy support to continue to mitigate the impact of the crisis, with measures increasingly targeted towards vulnerable households and viable firms. Policy makers will also need to strike a balance between helping those that need it most, while enhancing the productivity of the economy and keeping debt at manageable levels,” added Vincelette.

World Bank’s Regional Action in Europe and Central Asia

To date, the World Bank has committed more than $1.7 billion to help emerging economies in Europe and Central Asia mitigate the impacts of COVID-19. Since April 2020, around $866 million has been approved through new emergency response (MPA/Vaccines) projects. In addition, up to $904 million is being reallocated, used, or made available from existing projects and lending, including additional financing, to help countries with their COVID-19 response.

The World Bank’s Global Economic Prospects suggests that growth will be strong but uneven in 2021. The global economy is set to expand 5.6 percent—its strongest post-recession pace in 80 years. The recovery largely reflects sharp rebounds in some major economies.

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ADB Calls for Just, Equitable Transition Toward Net Zero in Asia and Pacific

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Asian Development Bank (ADB) President Masatsugu Asakawa today called for countries in Asia and the Pacific to take bold action to address climate change while ensuring fair and equitable economic growth amid the coronavirus disease (COVID-19) pandemic.

“The task of addressing climate change is not only urgent, but also inextricably linked to an inclusive and lasting recovery from the pandemic,” said Mr. Asakawa at the Indonesian Ministry of Finance–ADB 2021 International Climate Conference. “With shared commitment and international cooperation, we can make the transition to net zero and achieve climate resilience, so that our region emerges stronger than before.”

The one-day virtual conference attracted about 800 people from the public and private sectors, development partners, think tanks, and academia to discuss international good practices that can help ADB developing member countries transition to low-carbon, resilient economies and pursue a green, resilient, and inclusive recovery from the COVID-19 pandemic.

The event highlighted Indonesia’s commitment to meeting its nationally determined contributions (NDCs) under the Paris Agreement, as well as steps it has taken to support the development of a low-carbon, resilient economy.

“Indonesia has mainstreamed climate change into our National Medium-Term Development Plan 2020–2024 and established a national Action Plan, both on mitigation and adaptation,” said Indonesian Vice Minister of Finance Suahasil Nazara. “In the near future, we will use this recovery phase post-COVID-19 pandemic to pursue our climate and sustainability agenda.” Indonesia will chair the G20 in 2022.

Asia and the Pacific is responsible for more than half of global greenhouse gas emissions. Recent analysis predicts that global energy-related CO2 emissions will grow by nearly 5% in 2021, as demand for coal, oil, and gas rebounds. About 80% of the growth in coal demand is expected to come from Asia.

The Paris Agreement aims to keep the rise in global temperatures to well below 2°C, preferably to 1.5°C, compared to pre-industrial levels. ADB’s sovereign operations will be fully aligned with the goals of the Paris Agreement by 1 July 2023 and its nonsovereign operations by 1 July 2025. ADB will scale up investments in adaptation and resilience to at least $9 billion from 2019 to 2024 to support Asia and the Pacific’s recovery from the COVID-19 pandemic. The measures will contribute to ADB’s commitment to deliver $80 billion in climate finance between 2019 and 2030.

Mr. Asakawa said ADB will support Indonesia’s transition toward a low-carbon, resilient economy and help the country meet its NDC targets. Strengthening resilience is one of the three focus areas in ADB’s country partnership strategy for Indonesia. That includes climate change mitigation and adaptation and green recovery, as well as disaster risk management and finance.

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10 new cities chosen for World Economic Forum circular economy initiative

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The World Economic Forum’s Scale360° initiative announced today the 10 city-based hubs joining its Circular Shapers programme.

Scale360° leverages innovation hubs in cities, countries and regions worldwide, bringing together leaders in science, policy and business to trigger circular change. Circular Shapers engage with local public, private, and civil society stakeholders to design, organise, and deliver circular economy projects tailored to local needs.

Circular Shapers are competitively selected from the Global Shapers Community, a network of committed and energized young volunteers in 448 city-based hubs around the world. These changemakers have the energy, skill, networks and commitment needed to transform their cities into centres of circular economy innovation.

The latest Circular Shaper cohort hails from four continents and includes: Ankara, Asuncion, Auckland, Beijing, Bucharest, Lahore, Manama, Milan, Morelia, and Thimphu.

The cities selected to the latest cohort will apply Scale360°’s tested methodology – the Scale360° Circular Innovation Playbook – to fast-track Fourth Industrial Revolution impact to keep more goods in use. Their initiatives will explore ways to apply circular design principles, improve reuse, and to eliminate waste, all while strengthening economies and boosting job growth.

These join the successful pilot cohort which included four Global Shapers hubs in Mexico City, Brussels, Turin and Bangkok and ran from February to July 2021.

In just a few months, those pilot cities built critical relationships with leaders in government, the private sector, and NGOs, making critical early steps towards driving circular innovation. Specific achievements include:

Bangkok: Mobilized a range of partners from researchers to advertising agencies to popularize solutions to air pollution and plastics. Solutions included: assembling a catalogue to help businesses choose alternatives to single-use plastics in food packaging and a social media campaign to build momentum for clean air regulation.

Brussels: Partnered with local NGOs on its “Eat, Play, Live Circular” initiatives to create bottom-up solutions for more circular lifestyles. Initiatives included an ‘Idea-thon’ for food and packaging waste solutions and a series of experiments with the public to make one Brussels public space more circular.

Mexico City: Trained public, private and government stakeholders in Scale360° methodology to bridge circular economy knowledge gaps and drive the circular transition through focusing early conversations. 

Turin: Built critical relationships with stakeholders from 14 organizations including regional policy makers, members of the private sector, academia, and existing networks to help foster and support much-needed discussions and collaboration on circular needs and priorities.


The Circular Shapers tap into World Economic Forum networks of experts and leaders in civil society, government, industry global organizations, including the Platform for Accelerating Circular Economy (PACE). 

“It’s powerful to see how Scale360° methodology has spread so rapidly and empowered Global Shapers to become leaders driving circular innovation in their cities. Now in 14 hubs around the world, Circular Shapers is one of the largest cross-hub collaborations in the Global Shapers Community,” said Katie Hoeflinger, Specialist, Climate and Environment, Global Shapers Community.

The United Arab Emirates, a key supporter of Scale360°’s approaches, agrees that these new hubs will play an important role in building circular innovation. “The UAE supports Scale360° in driving the transition to circular economy locally and globally,” said his Excellency Dr. Abdullah Belhaif Al Nuaimi, Minister of Climate Change and Environment. “This program will go a long way in fostering innovations that have the potential to fast-track the implementation of the circular economy principles around the world.”

These efforts can also fuel a just transition, noted Head of Global Opportunities for Sustainable Development Goals (GO4SDGs), United Nations Environment Programme (UNEP), Adriana Zacarias Farah. “Jobs and skills are central to getting the political buy-in for the transformation from linear to circular. UNEP through the initiative Global Opportunities for SDGS (GO4SDGS) is happy to collaborate with the Forum and Scale360° on circular cities and the just transition narrative.”

Building circular capabilities can help meet critical climate goals. “Scaling up circular business models and solutions is vital for environmental reasons and needs to happen fast,” said Carsten Gerhardt, Partner at Kearney and Founder at Circular Valley (leading partners of Scale360° Germany).

With new Circular Shaper hubs in place, momentum for circular innovation can build further. Added Scale360°’s Global Lead, Helen Burdett: “This latest cohort is another example of local action for global impact on the circular economy transition.”

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