16 Years
of Hamas rule
How Gaza changed after 2007 civil war?
July 8, 2024
This report focuses on the period from 2007, when Hamas came to power in Gaza, to September 2023, before the current war between Israel and Hamas began.
It aims to give the most comprehensive overview of the Hamas governance of the Gaza Strip, from its origins and structure, to challenges and results.
We focus on what has happened to the Gaza Strip before October 7th 2023 and therefore do not address any consequences of the war.
Post factum will return to this topic when the events could be viewed in retrospective.
HOW HAMAS CAME TO POWER?
Hamas is a Sunni Islamist group, considered a terrorist organisation by the US, the EU and the UK, that has de facto governed the Gaza Strip since 2007.
Hamas was established in 1987 as a Palestinian branch of the Egyptian Muslim Brotherhood shortly after the beginning of the First Intifada – a 6-year-long uprising against Israeli occupation.
In 1993 and 1995, the Oslo Accords were signed between Israel and the Palestine Liberation Organisation (PLO), that was established in 1964 to advocate for an Arab state over the entire territory of Palestine.
With the Oslo Accords, the PLO acknowledged the state of Israel’s right to exist and status as a negotiation partner while Israel recognised PLO as a representative of the Palestinian people.
Palestinian Legislative Council and the Palestinian Authority (PA) were created, responsible for self-governance in parts of the West Bank and the Gaza Strip for a five-year period. After, there should have been a permanent agreement on a new Palestinian state.
Hamas strongly rejected the Oslo Accords, seeing them as giving up Palestinian lands by recognising the Israeli state.
After the Oslo Accords, Yasser Arafat, the leader of the PLO, tried to involve Hamas in the Palestinian political process, especially at local and municipal levels.
By 1998, there was little progress in negotiating a permanent peace between Israel and Palestine. In 2000, peace talks between Israel and the PA mediated by the US failed completely.
What followed is a 5-year period of violent protests and civil disobedience, known as the Second Intifada, in which over 3,000 Palestinians and 1,000 Israelis were killed.
In 2002, the Quartet on the Middle East was formed. This group consisted of four international stakeholders: the UN, the EU, Russia, and the United States.
The group hoped to resolve the Israeli-Palestinian conflict by following three principles: recognition of Israel, nonviolence, and acceptance of earlier agreements.
When the Second Intifada ended in 2005, Israel decided to end its military occupation of Gaza.
Following the death of Yasser Arafat, the Presidential elections for the PA were held in 2005. Mahmoud Abbas won 62.5% of the vote and has remained in office since then.
In 2006 Palestinian Legislative Council elections, Hamas won 74 out of 132 seats, running under the name “Change and Reform”.
Fatah, a secular non-Islamist party founded by Arafat, secured 45 seats.
After the failure to reach a power-sharing agreement between Fatah and Hamas, a brief civil war erupted in the Gaza Strip from June 10 to June 15, 2007.
Security forces and militants affiliated with the two sides clashed violently. During the conflict, 161 Palestinian people were killed, including 41 civilians.
Hamas defeated Fatah and secured complete control over the Gaza Strip.
Since then, the state of Palestine was effectively separated into a Fatah-led administration in the West Bank and a Hamas administration in the Gaza Strip. The PA still claims authority over the Gaza Strip.
Between 2007 and 2023, many attempts at reconciliation between Hamas and Fatah took place, including multiple signed agreements, but none of them were realised.
POLITICS IN THE GAZA STRIP
HAMAS' POWER STRUCTURE
Hamas has put in place a complex political structure to govern the Gaza Strip and coordinate Hamas members in the West Bank, the Israeli prisons and internationally.
Hamas’ main decision-making body is the Politburo, consisting of 15 members elected by the Shura Council.
The Politburo is led by Ismail Haniyeh, a former PA Prime Minister who now operates from Qatar.
The Shura Council is elected by Hamas members in Gaza, the West Bank, Israeli prisons and the international diaspora.
The leader of Hamas in Gaza is Yahya Sinwar, who plays a significant role in connecting the Politburo with the al-Qassam Brigades (IQB), Hamas' armed wing.
The Hamas-appointed government in Gaza implements policies and supervises local authorities. It also controls the Gazan security forces, which are separate from the al-Qassam Brigades.
The governance structure created by Hamas is often chaotic with varying levels of coordination between leadership in Gaza and abroad.
Palestinians have not voted for their legislature since 2006 and for their president since 2005.
HAMAS DOCTRINE
Hamas’ 1988 charter called for destroying the state of Israel and killing the Jewish people.
It established the slogan of the Islamic Resistance: “Allah is its target, the Prophet is its model, the Koran its constitution: Jihad is its path and death for the sake of Allah is the loftiest of its wishes”.
Hamas rejected the 1993 Oslo Accords, which involved mutual recognition between the Palestinian Authority and Israel.
Hamas supports the "right of return," asserting that first-generation Palestinian refugees and their descendants (approximately 6 million people in 2024) have a right to return to Palestine, including areas now within the state of Israel.
In 2017, Hamas updated its charter, with a significant shift to more moderate rhetoric.
According to the new document, Hamas “considers” the establishment of a Palestinian state on the 1967 borders with Jerusalem as its capital, but without recognising Israel and only as a temporary measure.
The charter states that “Hamas believes that no part of the land of Palestine shall be compromised or conceded… Hamas rejects any alternative to the full and complete liberation of Palestine, from the river to the sea”.
Hamas removed the reference to being part of the Muslim Brotherhood.
Hamas asserts that “its conflict is with the Zionist project not with the Jews because of their religion” and removed references to the murder of Jewish people.
However, Hamas remained committed to violence as a tool: "Resistance and jihad for the liberation of Palestine will remain a legitimate right, a duty, and an honour."
ECONOMY IN THE GAZA STRIP
HOW HAMAS IS FUNDED
Hamas reportedly has an annual budget of about $1 billion.
Besides collecting taxes from the population and businesses of the Gaza Strip, Hamas has other financing channels.
Qatar is considered Hamas's largest sponsor, providing about $180 million annually. Initially, it allegedly financed the group with cash smuggled through tunnels. In 2018, Qatar and Israeli government led by Benjamin Netanyahu agreed on official monthly payments to the Gaza Strip under the monitoring of Israel's security services, a move strongly criticised by Netanyahu’s opponents.
Iran reportedly funds Hamas and other Palestinian militant groups with about $100 million yearly. According to the US, Hamas uses Nabil Chouman & Co, a Lebanon-based money exchange, to receive money from Iran.
Turkey is allegedly the third largest country to fund Hamas, even if there are no reliable estimates of the exact amount of money. The economic links between Hamas and Turkey include Trend GYO, a Turkish real estate investment fund, believed by the US to be a part of Hamas's investment portfolio.
Hamas-linked charities: Money from abroad flows through a network of charities aligned with Hamas. These organisations often transfer money using Hawala, an informal value transfer system that bypasses Western banks and is difficult to track.
Cryptocurrencies: In recent years, digital currencies emerged as an alternative funding channel for Hamas. The group-linked wallets allegedly received around $41 million between 2020 and 2023, while Gaza-based Palestinian Islamic Jihad received another $93 million. On October 18, the US sanctioned "Buy Cash", a Gaza-based company that provides virtual currency exchange services, for making cryptocurrency transfers to Hamas.
ECONOMIC DECLINE
The Gaza Strip's real GDP slightly increased from $2.69 billion in 2006 to $2.72 billion in 2022. It fell to $2.07 billion in 2023 as the war with Israel reignited.
The real GDP per capita declined sharply as the Gaza Strip population expanded, from $1,994 per person per year in 2006 to $1,257 in 2022, then further to just $929 in 2023.
The unemployment rate increased from 35% in 2006 to 45% in 2022, and the number of people in poverty grew from 39% to 65% in the same period.
PUBLIC AND PRIVATE SECTOR
According to the United Nations, Gaza's labour force amounted to 527,000 people in 2022, of which 239,000 were unemployed.
Of the approximately 288,000 people with payroll jobs, 50,000 were employed by Hamas, making the group the largest employer in the Gaza Strip.
The United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) is the second major employer in the Gaza Strip, with about 13,000 workers as of May 2024. Many states withdrew their support for UNRWA as its employees were accused of taking part in October 7th attack on Israel.
Before October 7th, about 18,500 Gazans held the right to work in Israel, and they were allowed to enter and exit Israeli territory daily.
Private sector wages in the Gaza Strip have stagnated since 2000, while in the West Bank they enjoyed a 3.3% annual growth rate.
By 2021, the average wage in the West Bank was 67.7% higher than in the Gaza Strip. As a consequence, private savings and investments remained very low.
TRADE AND TAXATION
Hamas controls the Gaza Strip trade through an extensive network of tunnels used for smuggling weapons and essential goods. Israel and Egypt frequently carry out operations to destroy them.
Hamas has developed a comprehensive system for collecting taxes similar to those of internationally recognised states.
According to the Hamas finance ministry, the group collects $15 million monthly in taxation. However, independent reports suggest the total is higher, from $30 million to $52 million.
Seeking extra funds, Hamas has raised taxes on certain types of imported goods several times in recent years, including some necessities, causing discontent among local merchants.
HOW HAMAS GOVERNS THE GAZA STRIP
Hamas has direct control over many aspects of life in the Gaza Strip, including through its government, security forces, judicial system and the army.
Hamas tolerates some other political parties, such as the Popular Front for the Liberation of Palestine (PFLP) and the Democratic Front for the Liberation of Palestine (DFLP), as well as a sub-fraction of Fatah opposed to President Abbas.
Political opponents of Hamas affiliated with Mahmoud Abbas and his supporters are persecuted in the Gaza Strip.
Public support for Hamas fluctuates greatly and is hard to measure.
In a June 2021 poll, 53% of Palestinians believed Hamas was their most deserving representative, while 14% preferred Fatah. However, by September 2023, Fatah was projected to beat Hamas in a hypothetical parliamentary election.
According to Arab Barometer, just before the 2023 war broke out, more than 60% of respondents have declared they had no or little trust in the Hamas-led government, which has changed dramatically since.
By September 2023, 53% of Palestinians thought an armed struggle was the best solution to break negotiations deadlock, compared to 41% in September 2022. The rise in support was especially large in the West Bank.
In September 2022, 64% of Palestinians believed that a two-state solution is no longer possible due to the expansion of Israeli settlements.
GOVERNANCE CHALLENGES
Israel and Egypt affect the implementation of Hamas policies.
Since 2007, Israel has imposed a land, sea and air blockade on Gaza. This has led the United Nations to consider the Gaza Strip to still be under occupation despite Israel’s military withdrawal.
Israel justifies the blockade with the need to counter Hamas' violent activities and illegal smuggling.
Israel also has varying degrees of influence over the supply of essential resources in the Gaza Strip, including drinking water, electricity and fuel.
Since 2007, Egypt has constructed a 14 km-long buffer zone along its border with the Gaza Strip. The Rafah Crossing, one of the few official passages for aid and transit of people, has often been closed and reopened by Egypt over the years.
Egypt strictly controls its border with Gaza due to security concerns. President al-Sisi's primary domestic opposition is the Muslim Brotherhood, which has strong historical ties with Hamas.
LEGAL SYSTEM
The legal system in the Gaza Strip is a complex combination of laws and governance structures with remnants of the Ottoman, British and Egyptian legal systems.
The judicial system in Gaza is strongly influenced by Islamic law and operates independently from the West Bank.
Many laws implemented by the PA before the split are still active in Gaza, such as the Basic Law of 2002, which was supposed to serve as a temporary constitution until the formation of a Palestinian state.
After 2007, the implementation of PA laws has been inconsistent in Gaza, with Hamas enacting its own regulations.
Hamas has established its own judicial system, including civil and military courts.
According to Freedom House, arbitrary arrests and detentions are prevalent, and the Hamas judicial system often does not follow the due process.
SECURITY
The security forces report to the Ministry of Interior and National Security. According to the European Council of Foreign Relations, they restrict political activism and oversee the civilian population.
There are currently around 19,000 individuals employed in Gaza's security forces. Their activities are often unregulated or regulated to a small extent by the law.
The Civil Police is the largest security organisation, comprising approximately 8,700 employees. It includes members of Hamas and the Popular Resistance Committees, a coalition of armed Palestinian groups.
The Internal Security Force is an intelligence agency under the control of Hamas, with close ties to the al-Qassam Brigades. It primarily focuses on preventing damaging activities from Israel and carrying out secret operations.
The Civil Defense handles safeguarding the lives and properties of the civilian population.
The National Security Forces and the Military Police are tasked with protecting the Gaza Strip from external threats. Together, these two entities have around 2,500 members.
MILITARY WING
The al-Qassam Brigades is the military wing of Hamas. Estimates of its active members range from 20,000 to 40,000, organised in decentralised underground cells, making Israel's attempts to destroy them difficult.
The IQB’s military capabilities are disputed, but the Brigades are believed to have large inventory of automatic weapons, grenades, drones, rockets, explosives and mortars.
Hamas leader Ismail Haniyeh in 2022 declared that most of the long-range rockets are imported from Iran, Syria and Egypt.
The group developed local factories to build its own weapons, including rockets, mortars, rifles and ammunition. Many of these factories are located underground.
The al-Qassam Brigades have strong ties to Iran's Revolutionary Guard Corps (IRGC), receiving financial support, training, and weapons supply from them. However, IQB is still independent in its decision-making.
In addition to military activities, the al-Qassam Brigades have also constructed aw network of smuggling tunnels into the Gaza Strip.
HUMAN RIGHTS IN GAZA
According to the 2023 Freedom in the World Index, the Gaza Strip lacks political rights and civil liberties.
The human rights concerns in the Gaza Strip have many aspects:
Media censorship: Local media outlets in Gaza lack freedom and are often associated with Palestinian political parties and militant groups. The Hamas government's media office directly accredits journalists permitted to work in the Gaza Strip. There are reports of journalists facing repression, arrests and torture at the hands of Hamas members.
Political repression: According to Human Rights Watch, Hamas regularly tortures and detains its political opponents and activists. Hamas has also suppressed mass protests and demonstrations.
Use of human shields: Since 2007, Hamas has positioned military infrastructure in densely populated areas and next to critical civil sites like hospitals, although it is disputed to what extent some of those acts qualify as use of human shields. (Israel has also been accused of using Palestinians as human shields)
Freedom of belief: Hamas has imposed a conservative interpretation of Sunni Islam and maintained control over mosques in the Gaza Strip. According to the NGO Humanists International, Hamas harassed worshippers at mosques not affiliated with Hamas. In the Gaza Strip, people, particularly women, are compelled to wear conservative clothing, but Hamas has eased the requirement for women to wear the hijab in urban areas.
Education: Schools in the Gaza Strip are owned by Hamas, the UNRWA or private entities. The UNRWA-owned schools have faced criticism for using textbooks with allegedly ambiguous or hostile attitudes towards the Jewish people. Hamas-controlled schools have introduced programs such as military training electives and Islamist propaganda. At the Hamas-run Islamic University, gender segregation is enforced, and women are required to cover their hair.
Author Elia Preto Martini
Editor Anton Kutuzov
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