Lebanon ‘is a hostage to the veto power’ of Hezbollah, says Lebanese economist Nadim Shehadi

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Updated 20 February 2023
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Lebanon ‘is a hostage to the veto power’ of Hezbollah, says Lebanese economist Nadim Shehadi

  • Regards Lebanese crisis as part of a ‘broader regional problem, which needs to be treated as such’
  • Says shortcomings of the political class does not justify calls for the abolition of the entire system

DUBAI: Eighteen years ago this month, Rafik Hariri, a prominent politician and former prime minister of Lebanon, was assassinated by a suicide truck bomb in Beirut. Originally a philanthropist before his engagement in politics, Hariri, who had made his fortune in construction, donated millions of dollars to victims of war and conflict in Lebanon, and later played a major role in ending the civil war and rebuilding the capital city.

Hariri’s assassination marked the beginning of dramatic political change and movements calling for democracy in Lebanon. For years after his assassination, politicians and important figures opposed to the influence of both Syria and Hezbollah in the country were targeted.

Despite an international tribunal finding members of Hezbollah guilty of Hariri’s assassination after passionate calls for an investigation into his death, the Iran-backed militia group has only tightened its grip on Lebanon, keeping the country in a dire state.

“Hariri was killed 18 years ago and it took about 15 years to destroy the whole country after everything he tried to build,” Lebanese economist Nadim Shehadi said on “Frankly Speaking,” the Arab News current affairs talk show which engages with leading policymakers and business leaders.

“The Special Tribunal for Lebanon and the independent international investigation commission came to Lebanon, and it took them about 15 years to produce their result. And for the first time in the history of Lebanon, where we have had several assassinations, for the first time, we had a conviction,” Shehadi said.

But according to him, despite a conviction in Hariri’s case, Hezbollah’s influence over Lebanon means that the real perpetrators of the assassination will go unpunished, and the group will continue to hold the country hostage.

Lebanon’s various political and economic crises have only intensified in recent years, with inflation in the country rising to the highest in the world in 2021 and the value of the Lebanese lira plummeting drastically.

Last year witnessed a series of bank holdups by armed customers seeking to withdraw their frozen deposits. In a country whose capital was formerly referred to as the “Paris of the East,” two-thirds of the population now suffers from poverty, with regular electricity blackouts and shortages of basic necessities such as medicine and water increasingly commonplace.




A protester throws a brick at a bank after setting fire to tires during a demonstration in Beirut on February 16, 2023. (AFP)

The country’s chronic instability has deepened in recent years in the wake of the COVID-19 pandemic, as well as the 2020 Beirut port explosion which killed hundreds, left hundreds of thousands homeless, and damaged over half of the city while inflicting massive economic losses.

Human Rights Watch and Amnesty International, the two international organizations which campaign against injustice and inequality, have called the investigation into the blast a “farce.”

Shehadi asserts that despite Lebanon’s historically “very healthy and functioning judiciary,” Hezbollah has interfered with the investigation.

This series of disasters have pushed many Lebanese to call for the removal of the entire political class, something that Shehadi views as a “ridiculous demand.”




Lebanese wait to fill their gas cylinders in the southern city of Sidon amidst a deepening economic crisis, on August 10, 2021. (AFP)

In his opinion, Lebanon’s political system is not “sectarianism,” as some observers term it, but rather “a political system based on a social contract between communities and which has maintained the country … even before the state was created.”

“We have a banking system which was the banking center of the region. We have political parties. These are pillars that distinguish Lebanon … and the revolution is asking almost for the dismantlement of all these pillars,” he told Katie Jensen, the host of “Frankly Speaking.”

While Shehadi acknowledges there are definitely issues with Lebanon’s political class, which he says was compromised by 15 years of occupation and political infiltration by the Syrian regime, “this doesn’t justify calling for the abolition of the whole system.”

Eight months after the country’s general elections, Lebanon still has not reached a consensus regarding its president or a functioning parliament.




Lebanese protesters gather to protest against tax increases and official corruption outside the Sidon branch of Lebanese Central Bank in southern city on November 30, 2019. (AFP)

Urgent political reforms are needed to unlock the $3 billion in emergency funds from the International Monetary Fund, but with Lebanon’s political system in tatters and its parliamentarians regularly staging walkouts, accessing these funds seems unlikely.

Shehadi said that while he is not opposed to a “fragmented” parliament with diverse political opinions, “what we have is not a fragmented parliament. What we have is a paralysis of all institutions that’s been building up for 15 years, 17 years almost.”

He added that Lebanon and its institutions are “a hostage to the veto power” of Hezbollah, which has gained footholds in Lebanon by means of assassinations and building of political alliances.

Shehadi compares Hezbollah’s gradual infiltration of state institutions in Lebanon to the behavior of drug cartels in power in narco-states in Latin America.




Hezbollah supporters attend a televised speech by the group's leader Hassan Nasrallah in Beirut's southern suburbs on January 3, 2023. (AFP)

“They bribe politicians, the judiciary, the police, the army. Those who cannot be co-opted, if you like, are probably dead, and those who can be framed or blackmailed — that’s how criminal organizations gain power in a country,” he said.

The Lebanese parliament has held eleven electoral sessions to elect the president since Sept. 29 last year, with every session failing to elect a candidate.

In recent days, Joseph Aoun, commander of the Lebanese Armed Forces, has emerged as a potential contender. However, this would require a constitutional amendment, and consensus from the parliament, which is currently headed by Speaker Nabih Berri.

Though he calls Berri “a brilliant operator” who is familiar with the ins and outs of Lebanon’s tangled political web, Shehadi says Berri is “also a hostage himself.”

Berri is the leader of the Amal Movement, which engaged in a years-long war with Hezbollah in the 1980s which saw thousands killed.




In this photo taken on June 6, 2020, Lebanese troops block supporters of the Lebanese Shiite movements Hezbollah and Amal trying to crash through a rally in Beirut decrying the collapse of the economy. (AFP)

“It ended with an agreement between them, sponsored by Iran and Syria, whereby they basically formed one block in parliament and one list, which means they have the monopoly of Shiite representation. They do not have a monopoly of Shiite support, but they have the monopoly of Shiite representation because of the way they manipulate lists in their areas,” Shehadi said.

During multiple electoral sessions stretching from September 2022 to January this year, many MPs left their ballot papers blank, with some in early sessions even casting their votes for “For Lebanon,” “Righteous dictator,” and “Nobody.”

Shehadi explained that major decisions and appointments within the Lebanese administration must be made by consensus, and with the signature of the president, speaker of the parliament, and prime minister. In the midst of the current political power vacuum, this means that the government in Lebanon has all but ceased to function.

“We had that for 29 months, without a president, without a parliament, and without a functioning government … we had a caretaker government, until our politicians, if you like, compromised and accepted to elect the favorite candidate of Hezbollah. So, we are in the same position, and it’s a difficult position because the longer we resist, the more damage there is, and I think our economic collapse is mainly caused by paralysis,” Shehadi said.




A January 19, 2023, photo shows Lebanon's Parliament convening to elect a new president. Because of sectarian divisions, the election failed. (AFP file)

“The priority now is to have a president and a functioning parliament and a functioning government so that state institutions do not collapse further.”

Shehadi added that though there is no shortage of credible candidates, the parliament is “held hostage, and the whole system is held hostage because you need a certain majority to start the process of elections. You need a two-thirds plus one majority, which means that one-third of parliament can spoil the process.”

Even if this litany of political challenges were overcome and Lebanon managed to receive assistance from the IMF, Shehadi said that IMF funds would not be a solution to all of Lebanon’s financial problems. However, he stressed that “engagement with the IMF is crucial.”

“Following the IMF recommendations is very important, especially on fiscal and monetary policy. There’s a lot of opposition to some of the IMF reforms, which I understand,” he said, adding that many observers say that $3 billion in funds will do very little to alleviate the country’s $90 billion deficit.

“But I think, in my view, it’s more important to remain engaged. The country is being paralyzed and isolated from the West, from the Arab countries, and now will be isolated from international institutions too, like the IMF and the World Bank and the UN and all that. It’s very damaging to ignore the IMF route.”




Nadim Shehadi speaks to Frankly Speaking host Katie Jensen. (Supplied)

Shehadi concurs with the World Bank’s assessment of the meltdown in Lebanon as one of the worst modern crises in recent history. But asked if he thinks there is a way out of the quagmire, he replied: “Yes, but I don’t see it only for Lebanon. The whole region is suffering from the same problem. The Lebanese case is similar to what is happening in Palestine, in Syria, in Iraq, in Yemen, and this could spread to other countries in the region who could be vulnerable.”

He continued: “It should be treated as a regional phenomenon, which is, basically, the role of Iran’s Islamic Revolutionary Guard Corps. The IRGC, as a paramilitary, non-state actor, has taken over the Iranian state and society in the same way as Hezbollah is acting in Lebanon, in the same way as Iranian-sponsored militias are behaving in Iraq, and definitely in the same way as Hamas has paralyzed the whole of the peace process in Palestine.”




Hezbollah supporters attend a memorial service in Beirut for Qasem Soleimani, the slain top commander of the Iranian Revolutionary Guard Corps. (AFP file)

Under the circumstances, Shehadi said the multidimensional crisis in Lebanon is part of a “broader regional problem, which needs to be treated as such. Lebanon is the fault line or the weakest point. A lot of the region’s ills, or problems, surface in Lebanon first.”

Because of this, Shehadi added, international and regional engagement and cooperation are crucial components to solving Lebanon’s crisis, and that the international community must refrain from seeing Lebanon as a hopeless case.

“We are definitely hostages, but we still have a say in the country and we need international support to get out of the grip of (Hezbollah). And again, the grip is regional. So, our fate is similar to Iraq, similar to Palestine, similar to Syria, and similar to Yemen,” he said.

“I don’t think one can see it in a fragmented way. And it’s wrong to abandon a place just because it’s considered to be lost. Lebanon is not a lost case.”

 

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US, Arab mediators make some progress in Gaza peace talks, no deal yet, sources say

Updated 6 sec ago
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US, Arab mediators make some progress in Gaza peace talks, no deal yet, sources say

  • Israeli strikes continue amid ongoing peace talks
  • Hamas demands end to war for hostage release
CAIRO: US and Arab mediators have made some progress in their efforts to reach a ceasefire accord between Israel and Hamas in Gaza, but not enough to seal a deal, Palestinian sources close to the talks said on Thursday.
As talks continued in Qatar, the Israeli military carried out strikes across the enclave, killing at least 17 people, Palestinian medics said.
Qatar, the US and Egypt are making a major push to reach a deal to halt fighting in the 15-month conflict and free remaining hostages held by Islamist group Hamas before President Joe Biden leaves office.
President-elect Donald Trump has warned there will be “hell to pay,” if the hostages are not released by his inauguration on Jan. 20.
On Thursday, a Palestinian official close to the mediation effort said the absence of a deal so far did not mean the talks were going nowhere and said this was the most serious attempt so far to reach an accord.
“There are extensive negotiations, mediators and negotiators are talking about every word and every detail. There is a breakthrough when it comes narrowing old existing gaps but there is no deal yet,” he told Reuters, without giving further details.
On Tuesday, Israeli Foreign Ministry Director General Eden Bar-Tal said Israel was fully committed to reaching an agreement to return its hostages from Gaza but faces obstruction from Hamas.
The two sides have been an at impasse for a year over two key issues. Hamas has said it will only free its remaining hostages if Israel agrees to end the war and withdraw all its troops from Gaza. Israel says it will not end the war until Hamas is dismantled and all hostages are free.
Severe humanitarian crisis
On Thursday, the death toll from Israel’s military strikes included eight Palestinians killed in a house in Jabalia, the largest of Gaza’s eight historic refugee camps, where Israeli forces have operated for more than three months. Nine others, including a father and his three children, died in two separate airstrikes on two houses in central Gaza Strip, health officials said.
There was no Israeli military comment on the two incidents.
More than 46,000 people have been killed in the Gaza war, according to Palestinian health officials. Much of the enclave has been laid waste and most of the territory’s 2.1 million people have been displaced multiple times and face acute shortages of food and medicine, humanitarian agencies say.
Israel denies hindering humanitarian relief to Gaza and says it has facilitated the distribution of hundreds of truckloads of food, water, medical supplies and shelter equipment to warehouses and shelters over the past week.
Israel launched its assault on Gaza after Hamas fighters stormed southern Israel on Oct. 7, 2023, killing 1,200 people and capturing more than 250 hostages, according to Israeli tallies. On Wednesday, the Israeli military said troops had recovered the body of Israeli Bedouin hostage Youssef Al-Ziyadna, along with evidence that was still being examined suggesting his son Hamza, taken on the same day, may also be dead.
“We will continue to make every effort to return all of our hostages, the living and the deceased,” Prime Minister Benjamin Netanyahu said in a statement.

Lebanon’s parliament fails to elect new president; Aoun falls 15 votes short of required 86 in first round

Updated 36 sec ago
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Lebanon’s parliament fails to elect new president; Aoun falls 15 votes short of required 86 in first round

  • Lebanese army commander Joseph Aoun is the leading candidate
  • He is widely seen as the preferred candidate of the US and Saudi Arabia

BEIRUT: Lebanon’s parliament yet again failed to elect a president on Thursday, after 12 previous attempts to choose a successor to former President Michel Aoun, whose term ended in October 2022.

Lebanese army commander Joseph Aoun, the leading candidate, failed to muster enough support – getting only 71 votes or 15 short of the required 86 in the first round of voting.

He is widely seen as the preferred candidate of the United States and Saudi Arabia, whose assistance Lebanon will need as it seeks to rebuild after a 14-month conflict between Israel and the Lebanese militant group Hezbollah.

Lebanon’s parliament speaker Nabih Berri adjourned the session for two hours of consultations, after a first round of voting failed to produce enough votes for Aoun.

Two political sources said Aoun was likely to cross the 86-vote threshold in a second session later in the day.

Hezbollah previously backed another candidate, Suleiman Frangieh, the leader of a small Christian party in northern Lebanon with close ties to former Syrian President Bashar Assad.

However, on Wednesday, Frangieh announced he had withdrawn from the race and endorsed Aoun, apparently clearing the way for the army chief.

Lebanon’s fractious sectarian power-sharing system is prone to deadlock, both for political and procedural reasons. The small, crisis-battered Mediterranean country has been through several extended presidential vacancies, with the longest lasting nearly 2 1/2 years between May 2014 and October 2016. It ended when former President Michel Aoun was elected.

As a sitting army commander, Joseph Aoun is technically barred from becoming president by Lebanon’s constitution. The ban has been waived before, but it means that Aoun faces additional procedural hurdles.

Under normal circumstances, a presidential candidate in Lebanon can be elected by a two-thirds majority of the 128-member house in the first round of voting, or by a simple majority in a subsequent round.

But because of the constitutional issues surrounding his election, Aoun would need a two-thirds majority even in the second round.

Other contenders include Jihad Azour, a former finance minister who is now the director of the Middle East and Central Asia Department at the International Monetary Fund; and Elias Al-Baysari, the acting head of Lebanon’s General Security agency.

The next head of state will face daunting challenges apart from implementing the ceasefire agreement that ended the Israel-Hezbollah war and seeking funds for reconstruction.

Lebanon is six years into an economic and financial crisis that decimated the country’s currency and wiped out the savings of many Lebanese. The cash-strapped state electricity company provides only a few hours of power a day.

The country’s leaders reached a preliminary agreement with the IMF for a bail-out package in 2022 but have made limited progress on reforms required to clinch the deal.


Turkiye to tell US that Syria needs to be rid of terrorists, Turkish source says

Updated 09 January 2025
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Turkiye to tell US that Syria needs to be rid of terrorists, Turkish source says

  • Ankara has repeatedly demanded that its NATO ally Washington halt its support for the YPG

ANKARA: Turkish officials will tell US Under Secretary of State John Bass during talks in Ankara this week that Syria needs to be rid of terrorist groups to achieve stability and security, a Turkish Foreign Ministry source said on Thursday.
Bass’ visit comes amid repeated warnings from Turkiye that it could mount a cross-border military offensive into northeastern Syria against the Kurdish YPG militia if the group does not meet its demands.
The YPG spearheads the US-allied Syrian Democratic Forces (SDF), which played an important role in defeating Islamic State in Syria. Ankara views the group as terrorists and an extension of the Kurdish militants waging a decades-old insurgency against the Turkish state, and has said it must lay down its weapons and disband.
During his visit to Ankara on Thursday and Friday, Bass will hold talks with Turkiye’s deputy foreign ministers, the source said, adding the talks would focus on Syria.
Talks are expected to “focus on steps to establish stability and security in Syria and to support the establishment of an inclusive government,” the source said.
“Naturally, the Turkish side is expected to strongly repeat that, for this to happen, the country needs to be rid of terrorist elements,” the person said, adding the sides would also discuss expanding the US sanctions exemption to Syria for the country to rebuild.
Ankara has repeatedly demanded that its NATO ally Washington halt its support for the YPG. It has mounted several incursions against the group and controls swathes of territory in northern Syria.
Syria’s Kurdish factions have been on the back foot since the ousting of former President Bashar Assad, with the new administration being friendly to Turkiye.


37 killed in north Syria clashes between pro-Turkiye, Kurdish forces: monitor

Updated 09 January 2025
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37 killed in north Syria clashes between pro-Turkiye, Kurdish forces: monitor

  • Latest reported fighting comes despite the US saying it was working to address Turkiye’s concerns in Syria
  • Syria’s Kurds control much of the oil-rich northeast of the country, where they enjoy de facto autonomy

DAMASCUS: Battles between Turkish-backed groups, supported by air strikes, and Kurdish-led forces killed 37 people on Thursday in Syria’s northern Manbij region, a war monitor said.
The latest reported fighting comes despite the United States saying Wednesday that it was working to address Turkiye’s concerns in Syria to dissuade the NATO ally from escalating an offensive against Kurdish fighters.
The Syrian Observatory for Human Rights war monitor reported “fierce battles in the Manbij countryside... in the past hours between the (Kurdish-led) Syrian Democratic Forces and the (Turkish-backed) National Army factions... with Turkish air cover.”
“The attacks killed 37 people in a preliminary toll,” mostly Turkish-backed combatants, but also six SDF fighters and five civilians, said the British-based Observatory with a network of sources inside Syria.
The monitor said at least 322 people have been killed in fighting in the Manbij countryside since last month.
On Wednesday, Mazloum Abdi, who heads the US-backed SDF, said his group supported “the unity and integrity of Syrian territory.” In a written statement, he called on Syria’s new authorities “to intervene in order for there to be a ceasefire throughout Syria.”
Abdi’s comments followed what he called a “positive” meeting between Kurdish leaders and the Damascus authorities late last month.
Turkish-backed factions in northern Syria resumed their fight with the SDF at the same time as Islamist-led militants were launching an offensive on November 27 that overthrew Syrian president Bashar Assad just 11 days later.
The pro-Ankara groups succeeded in capturing Kurdish-held Manbij and Tal Rifaat in northern Aleppo province, despite US-led efforts to establish a truce in the Manbij area.
The fighting has continued since, with mounting casualties.
On Wednesday Washington’s Secretary of State Antony Blinken said Turkiye had “legitimate concerns” about Kurdistan Workers’ Party (PKK) militants inside Syria and called for a resolution in the country that includes the departure of “foreign terrorist fighters.”
“That’s a process that’s going to take some time, and in the meantime, what is profoundly not in the interest of everything positive we see happening in Syria would be a conflict, and we’ll work very hard to make sure that that doesn’t happen,” Blinken told reporters in Paris.
Turkiye on Tuesday threatened a military operation against Kurdish forces in Syria unless they accepted Ankara’s conditions for a “bloodless” transition after Assad’s fall.
Syria’s Kurds control much of the oil-rich northeast of the country, where they enjoyed de facto autonomy during much of the civil war since 2011.
The US-backed SDF spearheaded the military campaign that ousted Daesh group militants from their last territory in Syria in 2019.
But Turkiye accuses the main component of the SDF, the People’s Protection Units (YPG), of being affiliated with the PKK, which has waged a four-decade insurgency against the Turkish state.
The PKK is considered a terrorist organization by Turkiye, the United States, the European Union and most of Turkiye’s Western allies.
Turkiye has mounted multiple operations against the SDF since 2016.


Gaza rescuers say children among 12 killed in Israeli strikes

Updated 09 January 2025
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Gaza rescuers say children among 12 killed in Israeli strikes

  • Israeli air strikes and shelling continues across Gaza, even as mediators push on with their efforts to halt the fighting

GAZA STRIP, Palestinian Territories: Gaza’s civil defense agency said Israeli forces pounded the Palestinian territory on Thursday, killing at least 12 people including three girls, 15 months into the war.
The latest strikes came as Qatar, Egypt, and the United States mediate negotiations in Doha between Israel and Hamas militants for a deal to end the fighting in Gaza and secure the release of hostages.
Three girls and their father were killed when an air strike hit their house in Nuseirat refugee camp in central Gaza, the civil defense agency reported.
Local paramedic Mahmud Awad said he helped transfer the bodies of two girls and their father, Mahmud Abu Kharuf to a hospital.
“Their bodies were found under the rubble of the house that the occupation bombed in the Nuseirat camp,” Awad said. He added that the body of the third girl had been found earlier by residents.
In a separate strike, eight people were killed when their house was struck in the town of Jabalia in northern Gaza, where the army has focused its offensive since October 6.
Several more were wounded in that strike, the civil defense agency said.
Israeli air strikes and shelling continues across Gaza, even as mediators push on with their efforts to halt the fighting and secure a deal for the release of hostages still held in Gaza.
On Wednesday, US Secretary of State Antony Blinken said in Paris that a ceasefire was “very close.”
“I hope that we can get it over the line in the time that we have,” Blinken said, referring to President-elect Donald Trump’s inauguration on January 20.
But if not, “I believe that when we get that deal – and we’ll get it – it’ll be on the basis of the plan that President (Joe) Biden put before the world back in May.”
In May, Biden unveiled a three-phase plan for the release of the hostages and a ceasefire in Gaza.