After year of political deadlock, financial woes, what next for Lebanon?

Updated 30 December 2018
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After year of political deadlock, financial woes, what next for Lebanon?

  • Months-long political paralysis has impacted the already-fragile economy

BEIRUT: Over the course of 2018, Saudi Arabia opened cinemas for the first time in 35 years, Apple Inc. reached $1 trillion on the stock market, and the US withdrew from the Iran nuclear deal. 

Lebanon, on the other hand, continues to stumble around after a year that started out hopeful, only to end in frustration, exhaustion and confusion for its citizens.

The biggest event of the year was the parliamentary election, the first in nine years, which saw many familiar faces and names line up their candidacy, but also a rise in civil society movements that have challenged the status quo.

Voter turnout was just under 50 percent, with little change apart from a single parliamentary seat for civil society groups.

Hezbollah and its allies won more than half the seats, a result that the Iran-backed militant group’s leader Hassan Nasrallah called a “political and moral victory.” 

The Future Movement of Prime Minister Saad Hariri lost a third of its seats, the outcome of years of erosion to his March 14 coalition.

Now we reach the seventh month since he was handed the duty to form a government after the election, with the promise of a “holiday gift to the Lebanese people” in its formation.

Efforts to form the government have been obstructed by conflicting demands for Cabinet seats that must be handed out in line with a sectarian power-sharing system.

Political chess

Two main issues sit at the core of government-formation efforts: Syria and the case of six Sunni MPs. 

As the Syrian conflict heads to its endgame, some Lebanese politicians are keen to normalize relations with Syrian President Bashar Assad, a move Hariri is not exactly fond of.

“It is impossible that I visit Syria, not now and not in the future… and if Lebanon’s interest requires so, then you could find someone else” he said in August.

As for the second issue, six pro-Hezbollah Sunni MPs were elected this year at the expense of Hariri’s tight grasp on the sect’s seats. 

The six demand representation in the Cabinet due to the electoral gains of Hezbollah and its allies. This would mean Hariri ceding his power as the Sunnis’ main leader. 

After deliberation and mediation by Lebanese President Michel Aoun, the six have agreed to give the name of a single MP to represent all their interests. 

A name was given and things appeared to be on the right track, with Hariri saying the government-formation announcement would come “within a few hours.” 

Citizens eased up ahead of the Christmas holidays, before the “few hours” turned into days after the six decided to reject the name that was nominated for their representation.

Lebanese rushed to Beirut’s Martyrs’ Square on Dec. 23, donning yellow vests with a cedar tree emblem, in protest at the continued delay.

“I came because I’m fed up,” protester Youssef Al-Amine told Arab News, “I’m below the legal voting age, but I came because I didn’t want to just sit at home doing nothing.”

As the days go by, Lebanon is looking increasingly likely to enter 2019 without a formed government, as Hariri and Hezbollah continue to squabble over seats and Sunni representation in the Cabinet. 

Economic woes

Early in the third quarter of 2018, there were reports that Lebanon was teetering on the brink of economic collapse, with the lack of government formation accelerating its imminence. 

Earlier this year, at a Paris conference dubbed CEDRE, Lebanon was granted up to $11 billion in aid from Western countries to slow down or halt the impending economic crisis. 

But the lack of government means the funds are inaccessible, leading France and other Western countries to issue statements of caution.

“The lack of a government in Lebanon means running the risk that this dynamic in the international community is lost,” said France’s ambassador to Lebanon, Brouno Foucher.

This summer, the global ratings agency Moody’s gave Lebanon’s economy a “low (+)” grading due to “the deterioration in the regional economic and political environment.” This, and the fear of a real estate collapse, have placed citizens on edge. 

“Since 2011, the lack of investment in infrastructure and the absence of economic reforms have weakened the country’s competitiveness, and would likely prevent Lebanon from returning to previously high real GDP (gross domestic product) growth, even if political risks were to subside,” the Moody’s report said.

Economic growth plummeted from a solid 9 percent since the start of the Syrian revolution in 2011, and has hovered around 1.1 percent for the past three years. Public debt stands at $82 billion, equivalent to 150 percent of GDP.

“We’re passing through challenging times,” former Lebanese Finance Minister Raya Al-Hassan told Arab News. 

“We’re in a huge slump. All the economic indicators point to a downturn in economic activity. All the real economy sectors are suffering and witnessing a downturn.”

Running in parallel with the economic slump is the country’s weak demand for real estate, with megaprojects being halted.

A slump in oil prices from 2014 compounded this slowdown, leaving thousands of apartments unsold across Beirut, and forcing some developers to freeze construction sites.

“Some 3,600 unsold apartments exist today in Beirut alone,” said Guillaume Boudisseau, an expert at the Ramco real estate consultancy firm.

Rays of light

While Lebanon’s economic and political woes have placed considerable strain on its citizens, the cultural sector thrived this year.

Lebanon was represented at the Academy Awards for the first time with Ziad Doueiri’s “The Insult,” which highlighted the sectarian strife still embedded in the country since its 14-year civil war ended in 1990.

Nadine Labaki’s “Capernaum” is also in the running to represent the country at the 91st Academy Awards, after receiving the Jury Prize at the Cannes Film Festival, and being the first Lebanese film nominated for an Emmy Award for Best Foreign Film.

The country announced that it will reopen its national library to the public 40 years since it shut its doors during the civil war. The Beirut Museum of Art will open in 2023.

As 2018 comes to a close, Lebanon’s future — as always — is part of a circus act, with the main show being Hariri juggling the country’s economy, politics and citizens. It is only a matter of time before one — or all — of them come falling down.


Strike hits south Beirut after Israeli evacuation call

Updated 3 sec ago
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Strike hits south Beirut after Israeli evacuation call

BEIRUT: A strike hit the southern suburbs of the Lebanese capital Beirut on Saturday, AFPTV footage showed, shortly after the Israeli army issued a new call to evacuate the area.
Since Tuesday, Israel has carried out several strikes on the city’s southern suburbs, a stronghold of Hezbollah.
AFPTV video showed three plumes of smoke rising over the buildings in the area on Saturday morning.
Shortly before the attack, Israeli military spokesman Avichay Adraee posted on X a call for residents of the Haret Hreik suburb to evacuate.
“You are close to facilities and interests belonging to Hezbollah, against which the Israeli military will be acting with force in the near future,” the post said in Arabic, identifying specific buildings and telling residents to move at least 500 meters away.
Lebanon’s state-run National News Agency (NNA) said “the enemy” carried out three air raids, including one near Haret Hreik.
“The first strike near Haret Hreik destroyed buildings and caused damage in the area,” it said.
Repeated Israeli air strikes on south Beirut have led to a mass exodus of civilians from the area, although some return during the day to check on their homes and businesses.
In southern Lebanon, Israel carried out several strikes on Friday night and early Saturday, according to NNA.
Overnight, Hezbollah also claimed two rocket attacks targeting the headquarters of an infantry battalion in northern Israel.
Since September 23, Israel has ramped up its air campaign in Lebanon, later sending in ground troops following almost a year of limited, cross-border exchanges begun by Hezbollah over the Gaza war.
Lebanese authorities say that more than 3,440 people have been killed since October last year, when Hezbollah and Israel began trading fire.
The conflict has cost Lebanon more than $5 billion in economic losses, with actual structural damage amounting to billions more, the World Bank said on Thursday.


Hamas ready for ceasefire ‘immediately’ but Israel yet to offer ‘serious’ proposal

Updated 16 November 2024
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Hamas ready for ceasefire ‘immediately’ but Israel yet to offer ‘serious’ proposal

  • Hamas official Basem Naim says Oct. 7 attack ‘an act of self defense’
  • ‘I have the right to live a free and dignified life,’ he tells Sky News

LONDON: A Hamas official has claimed that Israel has not put forward any “serious proposals” for a ceasefire since the assassination of its leader Ismail Haniyeh, despite the group being ready for one “immediately.”

Dr. Basem Naim told the Sky News show “The World With Yalda Hakim” that the last “well-defined, brokered deal” was put on the table between the two warring sides on July 2.

“It was discussed in all details and I think we were near to a ceasefire ... which can end this war, offer a permanent ceasefire and total withdrawal and prisoner exchange,” he said. “Unfortunately (Israeli Prime Minister Benjamin) Netanyahu preferred to go the other way.”

Naim urged the incoming Trump administration to do whatever necessary to help end the war.

He said Hamas does not regret its attack against Israel on Oct. 7, 2023, which left 1,200 people dead and prompted Israel’s invasion of Gaza that has killed in excess of 43,000 people and left hundreds of thousands injured.

Naim said Israel is guilty of “big massacres” in the Palestinian enclave, and when asked if Hamas bore responsibility as a result of the Oct. 7 attack, he called it “an act of self defense,” adding: “It’s exactly as if you’re accusing the victims for the crimes of the aggressor.”

He continued: “I’m a member of Hamas, but at the same time I’m an innocent Palestinian civilian because I have the right to live a free and dignified life and I have the right to defend myself, to defend my family.”

When asked if he regrets the Oct. 7 attack, Naim replied: “Do you believe that a prisoner who is knocking (on) the door or who is trying to get out of the prison, he has to regret his will to be? This is part of our dignity ... to defend ourselves, to defend our children.”


Italy protests to Israel over unexploded shell hitting Italian base in Lebanon

Updated 15 November 2024
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Italy protests to Israel over unexploded shell hitting Italian base in Lebanon

  • Tajani said the safety of the soldiers in UNIFIL had to be ensured and stressed “the unacceptability” of the attacks
  • The Italian statement said Saar had “guaranteed an immediate investigation” into the shell incident

ROME: Italy on Friday said an unexploded artillery shell hit the base of the Italian contingent in the UN peacekeeping mission in Lebanon and Israel promised to investigate.
Italian Foreign Minister Antonio Tajani spoke with Israeli counterpart Gideon Saar and protested Israeli attacks against its personnel and infrastructure in the United Nations Interim Force in Lebanon, an Italian statement said.
Tajani said the safety of the soldiers in UNIFIL had to be ensured and stressed “the unacceptability” of the attacks.
The Italian statement said Saar had “guaranteed an immediate investigation” into the shell incident.
Established by a UN Security Council resolution in 2006, the 10,000-strong UN mission is stationed in southern Lebanon to monitor hostilities along the “blue line” separating Lebanon from Israel.
Since Israel launched a ground campaign in Lebanon against Hezbollah fighters at the end of September, UNIFIL has accused the Israel Defense Forces of deliberately attacking its bases, including by shooting at peacekeepers and destroying watch towers.


Lebanon rescuer picks up ‘pieces’ of father after Israel strike

Updated 15 November 2024
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Lebanon rescuer picks up ‘pieces’ of father after Israel strike

  • Karkaba then rushed back to the bombed civil defense center to search for her fellow first responders under the rubble
  • Israel struck the center, the main civil defense facility in the eastern Baalbek area, while nearly 20 rescuers were still inside

DOURIS, Lebanon: Suzanne Karkaba and her father Ali were both civil defense rescuers whose job was to save the injured and recover the dead in Lebanon’s war.
When an Israeli strike killed him on Thursday and it was his turn to be rescued, there wasn’t much left. She had to identify him by his fingers.
Karkaba then rushed back to the bombed civil defense center to search for her fellow first responders under the rubble.
Israel struck the center, the main civil defense facility in the eastern Baalbek area, while nearly 20 rescuers were still inside, said Samir Chakia, a local official with the agency.
At least 14 civil defense workers were killed, he said.
“My dad was sleeping here with them. He helped people and recovered bodies to return them to their families... But now it’s my turn to pick up the pieces of my dad,” Karkaba told AFP with tears in her eyes.
Unlike many first-responder facilities previously targeted during the war, this facility in Douris, on the edge of Baalbek city, was state-run and had no political affiliation.
Israel’s military did not immediately respond to a request for comment.
Friday morning, dozens of rescuers and residents were still rummaging through the wreckage of the center. Two excavators pulled broken slabs of concrete, twisted metal bars and red tiles.
Wearing her civil defense uniform at the scene, Karkaba said she had been working around-the-clock since Israel ramped up its air raids on Lebanon’s east in late September.
“I don’t know who to grieve anymore, the (center’s) chief, my father, or my friends of 10 years,” Karkaba said, her braided hair flowing in the wind.
“I don’t have the heart to leave the center, to leave the smell of my father... I’ve lost a part of my soul.”
Beginning on September 23, Israel escalated its air raids mainly on Hezbollah strongholds in east and south Lebanon, as well as south Beirut after nearly a year of cross-border exchanges of fire.
A week later Israel sent in ground troops to southern Lebanon.
More than 150 rescuers, most of them affiliated with Hezbollah and its allies, have been killed in more than a year of clashes, according to health ministry figures from late October.
Friday morning, rescuers in Douris were still pulling body parts from the rubble, strewn with dozens of paper documents, while Lebanese army troops stood guard near the site.
Civil defense worker Mahmoud Issa was among those searching for friends in the rubble.
“Does it get worse than this kind of strike against rescue teams and medics? We are among the first to... save people. But now, we are targets,” he said.
On Thursday, Lebanon’s health ministry said more than 40 people had been killed in Israeli strikes on the country’s south and east.
The ministry reported two deadly Israeli raids on emergency facilities in less than two hours that day: the one near Baalbek, and another on the south that killed four Hezbollah-affiliated paramedics.
The ministry urged the international community to “put an end to these dangerous violations.”
More than 3,400 people have been killed in Lebanon since the clashes began last year, according to the ministry, the majority of them since late September.


Iran backs Lebanon in ceasefire talks, seeks end to ‘problems’

Updated 15 November 2024
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Iran backs Lebanon in ceasefire talks, seeks end to ‘problems’

  • World powers say Lebanon ceasefire must be based on UN Security Council Resolution 1701
  • Israel demands the freedom to act should Hezbollah violate any agreement, which Lebanon has rejected

BEIRUT: Iran backs any decision taken by Lebanon in talks to secure a ceasefire with Israel, a senior Iranian official said on Friday, signalling Tehran wants to see an end to a conflict that has dealt heavy blows to its Lebanese ally Hezbollah.
Israel launched airstrikes in the Hezbollah-controlled southern suburbs of Beirut, flattening buildings for a fourth consecutive day. Israel has stepped up its bombardment of the area this week, an escalation that has coincided with signs of movement in US-led diplomacy toward a ceasefire.
Two senior Lebanese political sources told Reuters that the US ambassador to Lebanon had presented a draft ceasefire proposal to Lebanon’s parliament speaker Nabih Berri the previous day. Berri is endorsed by Hezbollah to negotiate and met the senior Iranian official Ali Larijani on Friday.
Asked at a news conference whether he had come to Beirut to undermine the US truce plan, Larijani said: “We are not looking to sabotage anything. We are after a solution to the problems.”
“We support in all circumstances the Lebanese government. Those who are disrupting are Netanyahu and his people,” Larijani added, referring to Israeli Prime Minister Benjamin Netanyahu.
Hezbollah was founded by Iran’s Revolutionary Guards in 1982, and has been armed and financed by Tehran.
A senior diplomat, speaking on condition of anonymity, assessed that more time was needed to get a ceasefire done but was hopeful it could be achieved.
The outgoing US administration appears keen to secure a ceasefire in Lebanon, even as efforts to end Israel’s related war in the Gaza Strip appear totally adrift.
World powers say a Lebanon ceasefire must be based on UN Security Council Resolution 1701 which ended a previous 2006 war between Hezbollah and Israel. Its terms require Hezbollah to move weapons and fighters north of the Litani river, which runs some 20 km (30 miles) north of the border.
Israel demands the freedom to act should Hezbollah violate any agreement, which Lebanon has rejected.
In a meeting with Larijani, Lebanon’s caretaker Prime Minister Najib Mikati urged support for Lebanon’s position on implementing 1701 and called this a priority, along with halting the “Israeli aggression,” a statement from his office said.
Larijani stressed “that Iran supports any decision taken by the government, especially resolution 1701,” the statement said.
Israel launched its ground and air offensive against Hezbollah in late September after almost a year of cross-border hostilities in parallel with the Gaza war. It says it aims to secure the return home of tens of thousands of Israelis, forced to evacuate from northern Israel under Hezbollah fire.
Israel’s campaign has forced more than 1 million Lebanese to flee their homes, igniting a humanitarian crisis.

FLATTENED BUILDINGS
It has dealt Hezbollah serious blows, killing its leader Sayyed Hassan Nasrallah and other commanders. Hezbollah has kept up rocket attacks into Israel and its fighters have been battling Israeli troops in the south.
On Friday, Israeli airstrikes flattened five more buildings in Beirut’s southern suburbs known as Dahiyeh. One of them was located near one of Beirut’s busiest traffic junctions, Tayouneh, in an area where Dahiyeh meets other parts of Beirut.
The sound of an incoming missile could be heard in footage showing the airstrike near Tayouneh. The targeted building turned into a cloud of rubble and debris which billowed into the adjacent Horsh Beirut, the city’s main park.
The Israeli military said its fighter jets attacked munitions warehouses, a headquarters and other Hezbollah infrastructure. Ahead of the latest airstrikes, the Israeli military issued a warning on social media identifying buildings.
The European Union strongly condemned the killing of 12 paramedics in an Israeli strike near Baalbek in the Bekaa Valley on Thursday, EU foreign policy chief Josep Borrell said.
“Attacks on health care workers and facilities are a grave violation of international humanitarian law,” he wrote on X.
On Thursday, Eli Cohen, Israel’s energy minister and a member of its security cabinet, told Reuters prospects for a ceasefire were the most promising since the conflict began.
The Washington Post reported that Netanyahu was rushing to advance a Lebanon ceasefire with the aim of delivering an early foreign policy win to his ally US President-elect Donald Trump.
According to Lebanon’s health ministry, Israeli attacks have killed at least 3,386 people through Wednesday since Oct. 7, 2023, the vast majority of them since late September. It does not distinguish between civilian casualties and fighters.
Hezbollah attacks have killed about 100 civilians and soldiers in northern Israel, the Israeli-occupied Golan Heights and southern Lebanon over the last year, according to Israel.