Nobel laureates, top economists urge Netanyahu to halt Gaza occupation, starvation

Ten Nobel Prize winners are among a slate of 23 of the most highly-regarded economists in the US and Europe who penned a letter to Israeli Prime Minister Benjamin Netanyahu, asking him to rescind his plans to militarily occupy Gaza City, and urging him to allow unrestricted food aid into the enclave.

The first signatory to the letter is Nobel laureate, MIT economist, and co-author of the international bestseller Why Nations Fail, Daron Acemoglu. He shared the letter on X on Friday. 

“We write with urgent concern about the spreading starvation in Gaza and the Israeli government’s plan to concentrate civilians in a so-called ‘humanitarian city,'” the letter says. 

“As human beings and as economists and scientists, we call for an immediate halt to any policy that intensifies widespread starvation”.

The second paragraph denounces the 7 October 2023 Hamas-led attacks on southern Israel, but adds, “that does not absolve the Israeli government, which controls the flow and distribution of aid, of responsibility”. 

The economists cite the United Nations World Food Programme’s data, which shows that nearly one-third of Gaza’s 2.1 million residents have endured multiple days without food, and that market prices in the enclave are now ten times higher compared to prices from just three months ago. 

They also describe the scandal-plagued, US-backed, and “Israeli-coordinated” Gaza Humanitarian Foundation (GHF) as “deadly”.

The United Nations says that since May, more than 1,700 people have died while seeking aid from GHF sites. Palestinians have called it a “death trap”. 

“Under the guise of relief, the proposed ‘humanitarian city’ would relocate hundreds of thousands of Gazans into a confined zone, stripping them of freedom of movement and basic dignity,” the letter says. “It is unconscionable for Israel to treat civilians as liabilities”. 

The letter is referring to a “humanitarian city” that Israeli Defence Minister Israel Katz proposed building in Rafah, which former Israeli Prime Minister Ehud Olmert said would be a “concentration camp“.

Warning to Israel

The Israeli army already controls at least 75 percent of the strip. Last week, Netanyahu announced his intention for a military occupation of Gaza City, which would mean a complete Israeli takeover. 

Governments around the world, including allies like the UK, France, Canada, and Germany, have condemned the move. The Trump administration has said it leaves the decision to Israel.

“In light of mounting evidence of mass starvation and human-rights violations, European governments may well impose targeted sanctions, inflicting severe damage on science, trade and employment. There are already early signs of that,” the economists say.

They warned that ratings agencies are likely to continue to downgrade Israel’s sovereign debt, driving up borrowing costs just as the state faces massive reconstruction and defence bills. Skilled workers, especially in the tech sector, would also likely leave Israel, they added. 

In addition to walking back a Gaza takeover plan and opening the borders to aid trucks, the letter calls on Israel to immediately “issue a formal declaration [which] reaffirms Israel’s commitment to human rights and international law” and “pursue in good faith a ceasefire accord”. 

The economists said they want “Western leaders to actively work to ensure that these policies are implemented”, and that only by doing so can Israel “preserve its democratic character”.

The letter makes no mention of genocide or ethnic cleansing. Over 61,000 people have been killed in Gaza since the war began.

Along with Acemoglu, the Nobel Prize-winning economists of the 23 signatories include Angus Deaton; Peter A Diamond; Esther Duflo; Claudia Goldin; Eric S Maskin; Roger B Myerson; Edmund S Phelps; Christopher A Pissarides; and Joseph E Stiglitz.

Together, their research and consultancy have helped shape the economic trajectory of much of the western world, including institutions like the International Monetary Fund.