Lebanon’s economy faces stark choice: Reform or collapse

Prime minister-designate Saad Hariri still has not formed a government to undertake the reforms necessary to unlock the donors’ funds. (AFP)
Updated 23 November 2018
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Lebanon’s economy faces stark choice: Reform or collapse

  • It has been more than six months since Lebanon held its first national elections in nine years
  • Lebanon still has a primitive infrastructure, widespread electricity and water cuts and a longstanding waste

BEIRUT: Lebanon is marking 75 years of independence with a military parade Thursday in Beirut, but many anxious Lebanese feel they have little to celebrate: the country’s corruption-plagued economy is dangerously close to collapse and political bickering over shares in a new Cabinet is threatening to scuttle pledges worth $11 billion by international donors.
The World Bank issued a stark warning last week, with one official saying that unless a government is formed soon to carry out badly needed reforms, “the Lebanon we know will fizzle away.”
It’s been more than six months since Lebanon held its first national elections in nine years but the prime minister-designate, Saad Hariri, still hasn’t formed a government to undertake the reforms necessary to unlock the donors’ funds.
The vote, in which the Shiite militant Hezbollah group and its allies made significant gains, did little to pull Lebanon out of a political impasse. Anger against politicians’ apparent indifference, worsening public services and distress over down-spiraling finances and gloomy predictions are building up.
Last Friday, heavy rains caused Beirut’s sewage system to burst, turning the city’s famous Mediterranean coastal avenue into a river of filthy, foul-smelling black water that engulfed motorists along the otherwise scenic route. On the same day, the military had closed a main artery for drills ahead of the Independence Day parade, paralyzing traffic for hours. Flights from Beirut’s international airport were missed and a woman reportedly went into labor on the road. The army later apologized.
Despite a population of over 4.5 million that is among the most educated in the region, Lebanon still has a primitive infrastructure, widespread electricity and water cuts and a longstanding waste crisis that over the past few years saw trash piling in the streets for weeks at a time.
“There is no independence (to celebrate) because corruption is eating us up,” said Mohammed Al-Rayyes, a shop owner in Beirut’s Hamra district. “The coming days are going to be very difficult.”
The tiny Arab country has coped with multiple political and security crises over the past decades and also suffered from the seven-year civil war in neighboring Syria, a conflict that has occasionally spilled over the border and brought more than 1 million refugees into Lebanon, putting even more pressure on its dysfunctional infrastructure.

 

A soaring debt of $84 billion and unemployment believed to be around 36 percent are compounding concerns that the country will finally cave in.
“It is a shame because so much time is being wasted,” Ferid BelHajj, the World Bank’s vice president for the Middle East and North Africa, said during a meeting with a group of journalists last week.
For years, he said, Lebanese officials have been promising to work on solving the electricity crisis, which costs the country about $2 billion a year and has been the main factor in accumulating Lebanon’s debt.
Of immediate concern is the future of $11 billion in loans and grants pledged by international donors at a meeting in Paris in April, which Lebanon risks losing if no Cabinet is in place soon to unlock the funds and approve reforms that were set as conditions by the donors and which have been delayed for years. In April, Hariri pledged to reduce the budget deficit by 5 percent over the next five years.
The crisis has prompted some Lebanese to change their deposits from the local currency, which has been pegged to the US dollars since 1997, to US dollars for fear the Lebanese pound might collapse. Riad Salameh, the Central Bank governor, has been repeatedly reassuring the markets, saying the local currency is stable.
Mohamad Shukeir, head of the Chambers of Commerce, Industry and Agriculture, told the local MTV station that 2,200 businesses closed doors so far this year.
Aftershocks of rising tension between the United States and Iran are also felt in Beirut, with Tehran ally Hezbollah being blamed by opponents for preventing Western-backed Hariri from forming a national unity government.
Hezbollah has demanded that six Sunni lawmakers allied with the Shiite group and opposed to Hariri be included in his Cabinet — something that Hariri, the country’s top Sunni Muslim leader, categorically rejects.
Despite the dangers, political bickering is not likely to end soon and the debt is mounting.
“The level of debt that we have in Lebanon requires us to act very quickly,” said economist Kamel Wazne. “Any delay will expose us to financial collapse.”
BelHajj of the World Bank said that reforms would act as a buffer to the crisis. But in their absence, “the crisis can be very nasty.”
“If we don’t go about these reforms fast, the Lebanon that we know will fizzle away,” he said.

FASTFACTS

Despite a population of more than 4.5 million that is among the most educated in the region, Lebanon still has a primitive infrastructure, widespread electricity and water cuts and a longstanding waste crisis that over the past few years saw rubbish piling in the streets for weeks at a time.


Pope Francis again condemns ‘cruelty’ of Israeli strikes on Gaza

Updated 3 sec ago
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Pope Francis again condemns ‘cruelty’ of Israeli strikes on Gaza

  • Comes a day after the pontiff lamented an Israeli airstrike that killed seven children from one family on Friday
  • ‘And with pain I think of Gaza, of so much cruelty, of the children being machine-gunned, of the bombings of schools and hospitals. What cruelty’
VATICAN CITY: Pope Francis doubled down Sunday on his condemnation of Israel’s strikes on the Gaza Strip, denouncing their “cruelty” for the second time in as many days despite Israel accusing him of “double standards.”
“And with pain I think of Gaza, of so much cruelty, of the children being machine-gunned, of the bombings of schools and hospitals. What cruelty,” the pope said after his weekly Angelus prayer.
It comes a day after the 88-year-old Argentine lamented an Israeli airstrike that killed seven children from one family on Friday, according to Gaza’s rescue agency.
“Yesterday children were bombed. This is cruelty, this is not war,” the pope told members of the government of the Holy See.
His remarks on Saturday prompted a sharp response from Israel.
An Israeli foreign ministry spokesman described Francis’s intervention as “particularly disappointing as they are disconnected from the true and factual context of Israel’s fight against jihadist terrorism — a multi-front war that was forced upon it starting on October 7.”
“Enough with the double standards and the singling out of the Jewish state and its people,” he added.
“Cruelty is terrorists hiding behind children while trying to murder Israeli children; cruelty is holding 100 hostages for 442 days, including a baby and children, by terrorists and abusing them,” the Israeli statement said.
This was a reference to the Hamas Palestinian militants who attacked Israel, killed many civilians and took hostages on October 7, 2023, triggering the Gaza war.
The unprecedented attack resulted in the deaths of 1,208 people on the Israeli side, the majority of them civilians, according to an AFP count based on official Israeli figures.
That toll includes hostages who died or were killed in captivity in the Gaza Strip.
At least 45,259 Palestinians have been killed in Israel’s retaliatory military campaign in the Palestinian territory, the majority of them civilians, according to data from the health ministry in Hamas-run Gaza.
Those figures are taken as reliable by the United Nations.

Iran’s supreme leader says Syrian youth will resist incoming government

Updated 9 min 22 sec ago
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Iran’s supreme leader says Syrian youth will resist incoming government

  • Iran had provided crucial support to Assad throughout Syria’s nearly 14-year civil war
  • Iran’s supreme leader accused the United States and Israel of plotting against Assad’s government

TEHRAN: Iran’s supreme leader on Sunday said that young Syrians will resist the new government emerging after the overthrow of President Bashar Assad as he again accused the United States and Israel of sowing chaos in the country.
Iran had provided crucial support to Assad throughout Syria’s nearly 14-year civil war, which erupted after he launched a violent crackdown on a popular uprising against his family’s decades-long rule. Syria had long served as a key conduit for Iranian aid to Lebanon’s militant Hezbollah.
Iranian Supreme Leader Ayatollah Ali Khamenei said in an address on Sunday that the “young Syrian has nothing to lose” and suffers from insecurity following Assad’s fall.
“What can he do? He should stand with strong will against those who designed and those who implemented the insecurity,” Khamenei said. “God willing, he will overcome them.”
He accused the United States and Israel of plotting against Assad’s government in order to seize resources, saying: “Now they feel victory, the Americans, the Zionist regime and those who accompanied them.”
Iran and its militant allies in the region have suffered a series of major setbacks over the past year, with Israel battering Hamas in Gaza and landing heavy blows on Hezbollah before they agreed to a ceasefire in Lebanon last month.
Khamenei denied that such groups were proxies of Iran, saying they fought because of their own beliefs and that the Islamic Republic did not depend on them. “If one day we plan to take action, we do not need proxy force,” he said.


Four killed in helicopter crash at Turkish hospital

Updated 5 min 1 sec ago
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Four killed in helicopter crash at Turkish hospital

  • Footage from the site showed debris from the crash scattered around the area outside the hospital building

ANKARA: Four people were killed in southwest Turkiye on Sunday when an ambulance helicopter collided with a hospital building and crashed into the ground.
The helicopter was taking off from the Mugla Training and Research Hospital, carrying two pilots, a doctor and another medical worker, the health ministry said in a statement.
Mugla’s regional governor, Idris Akbiyik, told reporters the helicopter first hit the fourth floor of the hospital building before crashing into the ground. No one inside the building or on the ground was hurt. The cause of the accident, which took place during heavy fog, was being investigated.
Footage from the site showed debris from the crash scattered around the area outside the hospital building, with several ambulances and emergency teams at the scene.


Israeli strikes kill 17 Palestinians in Gaza, orders hospital to evacuate

Updated 22 December 2024
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Israeli strikes kill 17 Palestinians in Gaza, orders hospital to evacuate

  • Eight people, including children, were killed in the Musa Bin Nusayr School that sheltered displaced families in Gaza City
  • Palestinians have accused Israel of carrying out acts of ‘ethnic cleansing’ to create a buffer zone

CAIRO: Israeli military strikes across the Gaza Strip killed at least 17 Palestinians, eight of them at a school sheltering displaced families in Gaza City, medics said, as the Israeli military ordered the evacuation of a hospital in the north.

Palestinian medics said eight people, including children, were killed in the Musa Bin Nusayr School that sheltered displaced families in Gaza City.

The Israeli military said in a statement the strike targeted Hamas militants operating from a command center embedded inside the school. It said Hamas militants used the place to plan and execute attacks against Israeli forces.

Also in Gaza City, medics said four Palestinians were killed when an airstrike hit a car.

At least five other Palestinians were killed in two separate airstrikes in Rafah and Khan Younis south of the enclave.

In the northern Gaza town of Beit Lahiya, where the army has operated since October, Hussam Abu Safiya, the director of Kamal Adwan Hospital, said the army ordered staff to evacuate the hospital and move patients and injured people toward another hospital in the area.

Abu Safiya said the mission was “next to impossible” because staff did not have ambulances to move the patients.

The Israeli army has operated in the two towns of north Gaza, Beit Lahiya and Beit Hanoun, as well as the nearby Jabalia camp for nearly three months.

Palestinians have accused Israel of carrying out acts of “ethnic cleansing” to depopulate those areas to create a buffer zone.

Israel denies this and says the campaign in the area aimed to fight Hamas militants and prevent them from regrouping. It said its forces have killed hundreds of militants and dismantled military infrastructure since that operation began.

Armed wings of Hamas and the Islamic Jihad said they killed many Israeli soldiers in ambushes during the same period.

Mediators have yet to secure a ceasefire between Israel and the Islamist group Hamas.

Sources close to the discussions said on Thursday that Qatar and Egypt had been able to resolve some differences between the warring parties but sticking points remained.

Israel began its assault on Gaza after Hamas-led fighters attacked Israeli communities on Oct. 7, 2023, killing 1,200 people and taking over 250 hostages, according to Israeli tallies. Israel says about 100 hostages are still being held, but it is unclear how many are alive.

Authorities in Gaza say Israel’s campaign has killed more than 45,000 Palestinians and displaced most of the population of 2.3 million. Much of the coastal enclave is in ruins.


As flooding becomes a yearly disaster in South Sudan, thousands survive on the edge of a canal

Updated 22 December 2024
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As flooding becomes a yearly disaster in South Sudan, thousands survive on the edge of a canal

  • More than 379,000 people have been displaced by flooding this year, according to the UN humanitarian agency
  • Latest overflowing of the Nile has been blamed on factors including the opening of dams upstream in Uganda

AYOD, South Sudan: Long-horned cattle wade through flooded lands and climb a slope along a canal that has become a refuge for displaced families in South Sudan. Smoke from burning dung rises near homes of mud and grass where thousands of people now live after floods swept away their village.
“Too much suffering,” said Bichiok Hoth Chuiny, a woman in her 70s. She supported herself with a stick as she walked in the newly established community of Pajiek in Jonglei state north of the capital, Juba.
For the first time in decades, the flooding had forced her to flee. Her efforts to protect her home by building dykes failed. Her former village of Gorwai is now a swamp.
“I had to be dragged in a canoe up to here,” Chuiny said. An AP journalist was the first to visit the community.
Such flooding is becoming a yearly disaster in South Sudan, which the World Bank has described as “the world’s most vulnerable country to climate change and also the one most lacking in coping capacity.”
More than 379,000 people have been displaced by flooding this year, according to the UN humanitarian agency.
Seasonal flooding has long been part of the lifestyle of pastoral communities around the Sudd, the largest wetlands in Africa, in the Nile River floodplain. But since the 1960s the swamp has kept growing, submerging villages, ruining farmland and killing livestock.
“The Dinka, Nuer and Murle communities of Jonglei are losing the ability to keep cattle and do farming in that region the way they used to,” said Daniel Akech Thiong, a senior analyst with the International Crisis Group.
South Sudan is poorly equipped to adjust. Independent since 2011, the country plunged into civil war in 2013. Despite a peace deal in 2018, the government has failed to address numerous crises. Some 2.4 million people remain internally displaced by conflict and flooding.
The latest overflowing of the Nile has been blamed on factors including the opening of dams upstream in Uganda after Lake Victoria rose to its highest levels in five years.
The century-old Jonglei Canal, which was never completed, has become a refuge for many.
“We don’t know up to where this flooding would have pushed us if the canal was not there,” said Peter Kuach Gatchang, the paramount chief of Pajiek. He was already raising a small garden of pumpkins and eggplants in his new home.
The 340-kilometer (211-mile) Jonglei Canal was first imagined in the early 1900s by Anglo-Egyptian colonial authorities to increase the Nile’s outflow toward Egypt in the north. But its development was interrupted by the long fight of southern Sudanese against the Sudanese regime in Khartoum that eventually led to the creation of a separate country.
Gatchang said the new community in Pajiek is neglected: “We have no school and no clinic here, and if you stay for a few days, you will see us carrying our patients on stretchers up to Ayod town.”
Ayod, the county headquarters, is reached by a six-hour walk through the waist-high water.
Pajiek also has no mobile network and no government presence. The area is under the control of the Sudan People’s Liberation Movement-in-Opposition, founded by President Salva Kiir’s rival turned Vice President Riek Machar.
Villagers rely on aid. On a recent day, hundreds of women lined up in a nearby field to receive some from the World Food Program.
Nyabuot Reat Kuor walked home with a 50-kilogram (110-pound) bag of sorghum balanced on her head.
“This flooding has destroyed our farm, killed our livestock and displaced us for good,” the mother of eight said. “Our old village of Gorwai has become a river.”
When food assistance runs out, she said, they will survive on wild leaves and water lilies from the swamp. Already in recent years, food aid rations have been cut in half as international funding for such crises drops.
More than 69,000 people who have migrated to the Jonglei Canal in Ayod county are registered for food assistance, according to WFP.
“There are no passable roads at this time of the year, and the canal is too low to support boats carrying a lot of food,” said John Kimemia, a WFP airdrop coordinator.
In the neighboring Paguong village that is surrounded by flooded lands, the health center has few supplies. Medics haven’t been paid since June due to an economic crisis that has seen civil servants nationwide go unpaid for more than a year.
South Sudan’s economic woes have deepened with the disruption of oil exports after a major pipeline was damaged in Sudan during that country’s ongoing civil war.
“The last time we got drugs was in September. We mobilized the women to carry them on foot from Ayod town,” said Juong Dok Tut, a clinical officer.
Patients, mostly women and children, sat on the ground as they waited to see the doctor. Panic rippled through the group when a thin green snake passed among them. It wasn’t poisonous, but many others in the area are. People who venture into the water to fish or collect water lilies are at risk.
Four life-threatening snake bites cases occurred in October, Tut said. “We managed these cases with the antivenom treatments we had, but now they’re over, so we don’t know what to do if it happens again.”