Nobel-winning economists urge Netanyahu to halt Gaza takeover

A group of 23 leading economists, including ten Nobel Prize winners, has called on 'Israeli' Prime Minister Benjamin Netanyahu to abandon plans for a military occupation of Gaza City and to permit unrestricted humanitarian aid into the enclave.

The letter, shared publicly on X by MIT economist and Why Nations Fail co-author Daron Acemoglu, begins with an urgent warning, “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.’ As human beings and as economists and scientists, we call for an immediate halt to any policy that intensifies widespread starvation.”

While condemning the October 7, 2023, Hamas-led operation in southern 'Israel', the economists emphasize that “this does not absolve the Israeli government, which controls the flow and distribution of aid, of responsibility.”

Citing data from the UN World Food Programme, the letter notes that nearly one-third of Gaza’s 2.1 million residents have gone multiple days without food, and local market prices have surged tenfold in just three months. The economists also criticized the Gaza Humanitarian Foundation (GHF), calling it “deadly” and noting that more than 1,700 people have died seeking aid at its sites since May. Palestinians have described GHF facilities as a “death trap.”

The economists strongly denounce the proposed “humanitarian city” in Rafah, suggested by 'Israeli' Defense Minister Israel Katz. “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 states. Former 'Israeli' Prime Minister Ehud Olmert has described the plan as a “concentration camp.”

The Israeli Occupation Forces (IOF) already control at least 75 percent of Gaza, and Netanyahu recently announced his intention to occupy Gaza City fully. The plan has drawn condemnation from governments worldwide, including the UK, France, Canada, and Germany, while the Trump administration has left the decision to 'Israel'.

The economists warn of potential international consequences if 'Israel' proceeds. “European governments may well impose targeted sanctions, inflicting severe damage on science, trade and employment. There are already early signs of that,” the letter says.

They also predict that credit-rating agencies may continue to downgrade 'Israel’s' sovereign debt, increasing borrowing costs amid mounting reconstruction and defense expenses, and that skilled workers, particularly in the tech sector, could leave the country.

The letter urges 'Israel' to walk back the Gaza takeover plan, open borders to aid trucks, and formally reaffirm its commitment to human rights and international law. It also calls for pursuing a ceasefire agreement “in good faith.” The economists stress that Western leaders should actively support the implementation of these measures to help Israel “preserve its democratic character.”

Among the 23 signatories are Nobel laureates 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, whose work has influenced global economic policy and institutions such as the International Monetary Fund (IMF).