- Twenty-three top economists, including 10 Nobel Prize winners, sent an open letter to Israeli PM Benjamin Netanyahu urging an immediate end to policies worsening starvation in Gaza.
- The letter criticizes the breakdown of UN aid distribution and its replacement by the Israeli-coordinated Gaza Humanitarian Foundation (GHF), which they say has led to deadly chaos and over 1,000 casualties at aid sites.
- Economists denounce Israel's proposed relocation of displaced Gazans into a "humanitarian city," calling it a violation of dignity and freedom, and warning it could intensify the humanitarian crisis.
- The letter warns of looming European sanctions, credit downgrades and a potential exodus of tech professionals, threatening Israel's economy and democratic stability.
- The economists call on Israel to restore adequate aid, abandon forced relocation plans, reaffirm human rights commitments and pursue a ceasefire, while urging Western governments to ensure these actions are taken.
Twenty-three of the world's most influential economists, including 10 Nobel Prize winners, have sent an open letter to Israeli Prime Minister Benjamin Netanyahu, demanding
an immediate halt to policies that fuel mass starvation in Gaza.
The open letter to the Israeli leader was uploaded by MIT economist and Nobel laureate Daron Acemoglu on Google Drive and X on Aug. 13. It decried the collapse of the United Nations' aid distribution system and its replacement by the Israeli-coordinated Gaza Humanitarian Foundation (GHF), which the authors describe as contributing to deadly chaos.
Since July 26, Israel has allowed more aid into the territory, but the economists say the amount remains woefully insufficient. Over 1,000 people have reportedly been killed or wounded in stampedes at GHF aid sites.
In line with this, the economists warn that Israel's proposed establishment of a so-called "humanitarian city" to house displaced Gazans – along with its
continued restrictions on aid – are not only morally indefensible. but also likely to trigger a cascade of economic and political consequences for Israel itself. "As human beings and as economists and scientists, we call for an immediate halt to any policy that intensifies widespread starvation," the letter states.
While the economists explicitly condemn Hamas for the Oct. 7, 2023 attacks and hostage-taking, they argue that this "does not absolve the Israeli government, which controls the flow and distribution of aid, of responsibility." (Related:
Israel approves Gaza City occupation as Netanyahu defies critics, warns of Hamas "neo-Nazi" tactics.)
Israel facing sanctions, economic collapse if Gaza policies continue
Aside from halting specific policies, the economists also lay out a detailed and dire forecast of the economic fallout should Israel proceed on its current trajectory. The economists warn that European governments may soon impose targeted sanctions in response to alleged human rights violations.
"In light of mounting evidence of mass starvation and human-rights violations, European governments may well impose targeted sanctions, inflicting severe damage on science, trade and employment. There are already early signs of that," they wrote.
"Ratings agencies are likely to continue to downgrade Israel's sovereign debt, driving up borrowing costs just as the state faces enormous reconstruction and defense bills. Skilled professionals would emigrate in growing numbers and the high-tech sector – responsible for close to 20 percent of GDP and one-third of income-tax revenue – would accelerate its exodus, depriving Israel of its chief growth engine."
The economists demand that Israel restore sufficient provision of food and medical aid to Gaza, renounce any plan to establish camps or confine civilians, formally recommit to human rights and international law and pursue a ceasefire agreement that includes humanitarian guarantees and a pathway to ending the conflict. They also urge Western governments to "actively work to ensure that these policies are implemented."
"Only by doing so can Israel avert widespread famine, preserve its democratic character and safeguard its long-term economic prospects. We call on Western leaders to actively work to ensure that these policies are implemented," the economists concluded.
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Sources include:
MiddleEastEye.net
Drive.Google.com
Brighteon.com