Since Hamas wrested control of Gaza from Fatah and the Palestinian Authority in June 2007 Israel has reduced the flow of goods into Gaza to a bare minimum and stopped goods from leaving.

Gaza's residents depend entirely on Israel for their exports and imports. Israel controls all the crossing points between Gaza and Israel and has a veto on the operation of the Rafah crossing between Gaza and Egypt.

It is also a fact that Gazan militants are exacerbating the problem by firing rockets at the crossing terminals which halts the little movement of goods that is taking place.

However, a report by report by Gisha, an Israeli human rights organisation, concludes that the increase in poverty and dependency will only inevitably lead to a further radicalisation of Gaza's population

Sari Bashi, director of Gisha, said the impoverishment of Gaza was strengthening extremists at the expense of moderates. "Israel is attempting to achieve political objectives by exerting pressure on 1.4 million women, men and children, whose suffering is supposed to bring about the change it wants - toppling Hamas control in Gaza," she said.

"In reality, a policy of collective punishment is being imposed upon 1.4 million people, in violation of international humanitarian law and contradictory to Israel's interest. Destroying Gaza's economy only exacerbates dependence on extreme elements."

'In a further blow to the Gazan economy Unrwa and the UN Development Programme will announce today the suspension of all construction projects because Israel will not allow the import of cement. The projects are worth about $80m (£40m) and employ hundreds of people. The works include the construction of homes, health centres and sewage works..' The Guardian July 2007