Suggested Finance Framework for the “Day After” in Gaza: Using Fintech to Forge a Terrorism-Free Future

Abstract

After the war against Hamas in Gaza ends, billions in funds for Gaza's reconstruction and humanitarian aid will be allocated by the international community, as has been the case following past conflicts. Historically, a significant portion of this international aid has been diverted to finance terrorism, undermining its intended purpose. In total, the financial aid provided to Gaza in past years is four times the Marshall Plan’s assistance to Europe post-World War II. If those funds had been invested in civil prosperity, Gaza could have looked like Singapore.

This proposal advocates for the creation of a comprehensive financial framework that leverages Financial Technology (Fintech) innovations to ensure aid is transparently and effectively used for rebuilding Gaza's civil infrastructure. By integrating digital wallets, blockchain technology, oversight mechanisms, and reputable global financial institutions into the reconstruction efforts, and by eliminating the use of cash, money exchangers, and unsupervised domestic banks, the aim is to minimize fund misuse, increase transparency and traceability, and foster an environment of prosperity and peace. This could even transform Gaza into a Fintech hub.

It is recommended that this framework be incorporated into any international agreements aimed at concluding the war, irrespective of the identity of the governing stakeholder in Gaza. This framework could also establish the foundation for a resilient and thriving economy, serving as the cornerstone for what could become a prosperous future. Moreover, this approach could serve as a blueprint for addressing similar challenges in other disaster-stricken areas, demonstrating the power of innovative financial solutions in building resilience against future crises.