Gaza Reconstruction: Risks, Opportunities, and Israel’s Role

שיקום עזה: סיכונים, הזדמנויות, ודרכי התמודדות של ישראל Policy papers and recommendations / Gaza Rehabilitation

As part of the Trump administration’s “20-Point Plan,” the international community is preparing for a large-scale reconstruction of the Gaza Strip. For Israel, this process presents a multidimensional strategic opportunity: pushing Hamas out of power in favor of more moderate forces, promoting processes of moderation within the population, and deepening Israel’s integration into the regional axis (with the backing of the United States and Gulf states). Even if a moderate alternative to Hamas does not emerge, successful reconstruction could serve as a temporary incentive for stability in the Strip. At the same time, the process carries a significant risk: the diversion of reconstruction resources toward Hamas’s renewed military buildup. To realize the opportunity while mitigating the risk, Israel must employ a diverse toolbox that includes monitoring, the threat of halting reconstruction, and partnership. Monitoring prevents rearmament; the threat of halting aid provides internal Gazan legitimacy for excluding Hamas; and partnership serves as a driver of moderation. While each of these tools is critical, their combination creates internal tensions. This paper focuses on the early years and recommends emphasizing different tools across different sectors. In the construction sector, which involves large volumes of resources that may be diverted to Hamas, the paper recommends a strict version of monitoring policy. In sectors traditionally managed by civil society organizations, such as education, it recommends partnership. After several years – particularly if a moderate government gains public legitimacy in Gaza – the focus can shift toward trust-building and partnership within state institutions as part of a broader political process.

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