Egypt’s Gaza Plan Needs LaRouche’s Oasis Plan To Work, Plus a New Global Credit System

March 7—The Trump Administration has formally rejected the redevelopment plan for Gaza proposed by Egypt, and supported by the Arab League, stating that it does not adequately address the realities on the ground where nearly two million people are trying to live in a rubble heap, with tens of thousands of unexploded munitions, and no functioning basic infrastructure. Not stated by Washington but known to them and to the rest of the world, is that these inhuman conditions are the intended result of Israel’s genocidal war, not on Hamas terrorists, but on the Palestinian people.

National Security Council spokesman Brian Hughes said that the U.S. continues to support President Donald Trump’s “vision” for Gaza, that would begin with removing the Palestinians, and under U.S. control, build something that would become a world class resort, “the Riviera of the Mediterranean”—a plan which has been denounced and rejected by everyone except the Butcher of Gaza, Israeli Prime Minister Benjamin “Bibi” Netanyahu.

But informed sources say that Trump and his team are actually happy with what Egypt has proposed in that it shows an intention for Arabs to take responsibility for the reconstruction. Forcing that was the intention of the so-called Trump Plan, these sources say. That said, there are some serious questions and reservations about Egypt's plan and how it would be implemented, as the final Third Stage of the ceasefire/ hostage release deal, that has yet to: reach its second stage:

• Many experts believe that the Egyptian plan seriously underestimates the problems in the removal and disposal of the unexploded ordnance and the more than 50 million tons of rubble. Accomplishing these two preliminary tasks will add time to the project, perhaps several years. It will also drive up the cost.

• The cost estimate for housing construction is too low. A better figure would be perhaps double the plan’s proposed $53 billion or even adding another $50 billion. By the number of units projected (460,000), that would require a density of around 6 people per each unit, which is thought by experts to be much too high, which would mean that too few units are proposed.

• Who is going to do the work? Certainly not the physically depleted Gazans. What are the costs for these additional workers? Where will they come from? How will they be housed, fed, and otherwise taken care of? Those costs are not in the proposal, nor are the pay rates for the construction workers.

• In some initial discussions of the Egyptian plan, there was a concept to build the factories needed to create the construction supplies for the project—the cement, the steel, the pipe, the lumber and drywall, etc. Creating these things on site in Gaza or across the border in Egypt, would create jobs for Palestinians and cheapen the costs, overall. Is this what the plan calls for?

• Massive amounts of fresh water and power will be needed to first build the plan and then to sustain what is built. Where will these resources come from? Here is where the Oasis Plan of Lyndon LaRouche can provide answers. The Oasis Plan is designed specifically to create power and fresh water from nuclear powered desalination plants, built offshore, and was envisioned not merely for a project such as this, but for the whole of Southwest Asia. If your country has a coastline, you should have this technology. Installing the reactors, power and communications distribution systems, rail and canals would bring in global development powers such as the U.S. and China, and also, most importantly, Israel.

Both the Trump Plan and this new Egyptian proposal envision that funding would come from a combination of government (sovereign) funds, development banks and private investment. But as the actual costs are more accurately computed, the existing institutions may not have that kind of capital available.. In proposing his Oasis Plan in the 1970s, the American statesman and physical economist LaRouche had linked it and other great projects elsewhere to the creation of a new global credit system, centered around an International Development Bank (IDB) that could handle such large projects. The time has come for the IDB, which could also be used to fund the redevelopment of Ukraine.

Egyptian Plan Details

The Egyptian-sponsored Gaza reconstruction plan, dubbed “Turning Gaza into a Smart City,” envisions transforming a region of mass destruction into a modern high-tech urban and rural landscape. The design is based on ideas and principles that Egypt has used in its ongoing construction of 12 new “smart cities,” with another 12 more cities in the planning stage. Egypt is building these cities to house up to five million residents each. Some, such as the Egyptian New Administrative Capital, were built in cooperation with China. 

The Gaza plan estimates construction to take five years, concluding by 2030, at a total cost of $53 billion. It targets accommodating a population of 3 million Palestinians, with a density of approximately 35 people per feddan (0.0042 sq km). It will create a total of 500,000 jobs in several sectors, including: housing, 80,000; industry, 70,000; tourism, 60,000; services, 90,000; agriculture, 120,000; and fishing, 80,000.

The plan envisions funding from the United Nations, international financial institutions, donor countries, development banks, as well as foreign direct investment and private sector partnerships. An internationally supervised trust fund is intended to distribute the funds. Egypt intends to host a high-level ministerial conference in Cairo, in collaboration with the Palestinian Authority and the UN, to garner financial support.

The plan divides Gaza into five main functional sectors: Sector 1, Rafah for the Logistics Center; Sector 2, Khan Younis for the Science and Knowledge Center; Sector 3, Deir Al-Balah for the Al-Salam Center; Sector 4, Gaza for its Government Headquarters; Sector 5, North Gaza as a Cultural Center.

The plan envisions a total of six basic zones, including residential zones for high, medium, and low-density housing. There will also be commercial and mixed-use zones, combining residential and commercial spaces. Service and development corridors will be created to include government and administrative headquarters and educational facilities, hospitals, and cultural centers as well as recreational and tourism zones, etc. A central “green” axis will be created that will incorporate gardens, green spaces, and walking and cycling paths, while agricultural and industrial zones on the outskirts of the city will include small villages to support agricultural industries, such as food processing, and light manufacturing.

The plan has a detailed schedule of implementation. The first six months, designated as Early Recovery, will cost $3 billion, for clearing rubble; preparing for the construction of 200,000 temporary housing units for 1.2 million people; restoring 60,000 partially damaged homes for 360,000 people; and implementing a social protection program.

This is followed by two Reconstruction phases: Phase 1 is expected to last 2 years. At a cost of $20 billion, it envisions establishing utilities and networks; building 200,000 housing units to house 1.6 million people; and reclaiming 20,000 feddans of land. Phase 2 will last 2.5 years, at a cost of $30 billion, and will include continuing utility expansion; building 200,000 housing units for 1.2 million people; and bringing total housing to 460,000 units for 2.75 million people. This phase includes creating an industrial zone; fishing and commercial ports; and building roads and a Gaza Airport.

More Concerns—and Hope

Sources close to Trump also worry that plan to turn Gaza over to the Palestinian Authority makes the proposal a “non-starter” for the current Israeli government, who will correctly see this as creating the conditions for a viable Palestinian state. Under the plan, the Palestinian Authority would establish a Gaza Administration Committee, to manage affairs in Gaza, during a six-month transitional period. The Committee will be composed of technocrats and nonpartisan, independent figures, and operate under the aegis of the Palestinian government. Its primary objective is to enable the complete return of the Palestinian Authority to Gaza, and to facilitate governance during the transition.

In aiding this effort, Egypt and Jordan are actively training Palestinian police in preparation for their deployment to secure law and order, and to ensure the security necessary for reconstruction and governance. The plan calls for securing broad political and financial support from international and regional partners, as well as a UN Security Council resolution to establish an international presence in Palestinian territories to enhance security and aid state-building.

The plan raises the need for a regional peace plan that must include peace agreements with Syria and Lebanon, based on the June 1967 borders, and a regional development plan (as defined in the LaRouche Oasis plan) to reconstruct war-torn Syria, Lebanon, and also Iraq. A broader peace, involving Iran, Türkiye and the Gulf States is also required. Southwest Asia must be able to fulfill its destiny as the land-bridge between Eurasia and Africa, as already envisioned in the Belt and Road Initiative.

“The President stirred the pot and shook things up,” said a source close to the White House. “ Now we have a serious Arab plan and there will be modifications and discussions.” The source said that Trump wants to call together a conference of planners and developers, “people with ideas to discuss these things through and come up with something really beautiful. These people [the Palestinians] have suffered long enough. But first we have to stop the present war and prevent a new one.”