On October 26, 2023, the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) announced the suspension of operations at its headquarters in Gaza City, citing damage to the facility and the surrounding area. The suspension effectively halted aid distribution to an estimated 250,000 Palestinians sheltering in UNRWA facilities, a move prompted by intensifying Israeli military operations in the region following the October 7th Hamas attacks on Israel.
The decision to suspend operations wasn’t solely based on physical damage. According to UNRWA Commissioner-General Philippe Lazzarini, the agency faced a breakdown in order and a surge in requests from individuals seeking to exchange cash for essential supplies within the UNRWA compounds. “What we are witnessing is a breakdown in civility,” Lazzarini stated in a press briefing. “People are at a loss, they are desperate, and they are simply trying to survive.” This demand for transactional exchange, he explained, created an untenable security situation and undermined the agency’s ability to deliver aid impartially.
The situation highlights a growing concern within humanitarian organizations operating in conflict zones: the increasing commodification of aid. Traditionally, humanitarian assistance is provided based on need, irrespective of ability to pay. However, in Gaza, and increasingly in other protracted crises, a parallel economy has emerged where access to essential goods – food, water, medicine – is determined by financial means. This dynamic is exacerbated by the collapse of formal economic structures and the limited availability of resources.
The World Food Programme (WFP) has reported similar challenges in Yemen and Syria, where local markets have been disrupted by conflict, leading to price gouging and a reliance on informal exchange networks. “We’ve seen instances where people are forced to sell their possessions, even vital items like cooking utensils, just to afford a loaf of bread,” said WFP spokesperson Abeer Etefa in a recent interview. “This isn’t simply about poverty; it’s about the erosion of social safety nets and the emergence of a transactional relationship with survival.”
The demand for exchange within UNRWA facilities in Gaza wasn’t simply a matter of individuals seeking to purchase goods. Reports indicate a growing number of people attempting to trade cash for a place within the overcrowded shelters, perceived as offering a degree of protection from ongoing airstrikes. This created a perverse incentive, effectively turning humanitarian spaces into marketplaces where vulnerability is monetized. Lazzarini specifically noted instances of individuals offering significant sums of money to UNRWA staff in exchange for preferential treatment or access to limited resources.
The suspension of UNRWA operations has prompted criticism from Palestinian advocacy groups, who argue that the agency should have implemented stricter security measures to prevent the breakdown in order. However, UNRWA officials maintain that the scale of the crisis and the sheer number of displaced people overwhelmed their capacity to maintain control. The agency also points to the broader political context, arguing that the ongoing blockade of Gaza and the restrictions on the movement of goods and people have created the conditions for this transactional dynamic to flourish.
The Israeli government has maintained its position that it allows humanitarian aid into Gaza, but asserts that Hamas diverts resources for military purposes. Israeli Defense Minister Yoav Gallant stated on October 27th that Israel is “working to ensure that humanitarian aid reaches civilians, while preventing it from falling into the hands of terrorists.” This claim has been repeatedly disputed by UNRWA and other humanitarian organizations, who argue that the restrictions imposed by Israel significantly impede their ability to deliver aid effectively.
As of November 1, 2023, UNRWA has not announced a timeline for resuming operations at its Gaza City headquarters. Negotiations are ongoing with the Israeli government to establish a secure corridor for the delivery of aid and to address the concerns raised by Lazzarini regarding the breakdown in order. The agency has indicated that This proves exploring alternative methods of aid distribution, but acknowledges that these options are limited by the ongoing conflict and the lack of access to affected populations. The United Nations Security Council is scheduled to convene on November 3rd to discuss the humanitarian situation in Gaza, but no resolution is currently on the agenda.
