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

01 Truth of STL report is “far more significant”
0 seconds of 2 minutes, 30 secondsVolume 90%
Press shift question mark to access a list of keyboard shortcuts
Next Up
02 Whole region is in crisis, not just Lebanon
02:31
00:00
02:30
02:30
 
Short Url
Updated 20 February 2023
Follow

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.”

 

The Kingdom vs Captagon
Inside Saudi Arabia's war against the drug destroying lives across the Arab world

Enter


keywords

 

 


Abbas tells Macron supports demilitarization of Hamas

Updated 6 sec ago
Follow

Abbas tells Macron supports demilitarization of Hamas

PARIS: Palestinian president Mahmud Abbas has said that Hamas “must hand over its weapons” and called for the deployment of international forces to protect “the Palestinian people,” France announced on Tuesday.
In a letter addressed on Monday to French President Emmanuel Macron and Saudi Crown Prince Mohammed bin Salman, who this month will co-chair a conference on a two-state solution for Israel and the Palestinians, Abbas outlined the main steps that he thinks must be taken to end the war in Gaza and achieve peace in the Middle East.
“Hamas will no longer rule Gaza and must hand over its weapons and military capabilities to the Palestinian Security Forces,” wrote Abbas.
He said he was “ready to invite Arab and international forces to be deployed as part of a stabilization/protection mission with a (UN) Security Council mandate.”
The conference at UN headquarters later this month will aim to resurrect the idea of a two-state solution — Israel currently controls large parts of the Palestinian territories.
“We are ready to conclude within a clear and binding timeline, and with international support, supervision and guarantees, a peace agreement that ends the Israeli occupation and resolves all outstanding and final status issues,” Abbas wrote.
“Hamas has to immediately release all hostages and captives,” Abbas added.
In a statement, the Elysee Palace welcomed “concrete and unprecedented commitments, demonstrating a real willingness to move toward the implementation of the two-state solution.”
Macron has said he is “determined” to recognize a Palestinian state, but also set out several conditions, including the “demilitarization” of Hamas.
In his letter, Abbas reaffirmed his commitment to reform the Palestinian Authority and confirmed his intention to hold presidential and general elections “within a year” under international auspices.
“The Palestinian State should be the sole provider of security on its territory, but has no intention to be a militarised State.”
France has long championed a two-state solution, including after the October 7, 2023 attack by Palestinian militants Hamas on Israel.
But formal recognition by Paris of a Palestinian state would mark a major policy shift and risk antagonizing Israel, which insists that such moves by foreign states are premature.


Lebanon says two dead in Israel strike

Updated 5 min 27 sec ago
Follow

Lebanon says two dead in Israel strike

BEIRUT: An Israeli strike killed a Lebanese father and son Tuesday in a southern village, the Lebanese health ministry and state media said, the latest deaths despite a November ceasefire.
A second son was also wounded in the strike in Shebaa, the state-run National News Agency reported. There was no immediate comment from the Israeli military.
“An Israeli enemy drone carried out a strike in the village of Shebaa, killing two people and wounding one,” a health ministry statement said.
Israel had warned on Friday that it would keep up its strikes on Hezbollah targets across Lebanon despite the condemnation expressed by the Lebanese government after a massive strike on south Beirut the previous night on the eve of the Eid Al-Adha holiday.
Iran-backed militant group Hezbollah said the strikes levelled nine residential blocks. The Israeli military said they targeted underground drone factories.
Lebanese President Joseph Aoun condemned the strikes as a “a flagrant violation” of the November 27 ceasefire agreement, which was supposed to end more than a year of hostilities between Israel and Hezbollah that culminated in two months of full-blown war.


Israel commits ‘extermination’ in Gaza by killing in schools, UN experts say

Updated 29 min 28 sec ago
Follow

Israel commits ‘extermination’ in Gaza by killing in schools, UN experts say

  • In its latest report, the commission said Israel had destroyed more than 90 percent of the school and university buildings and more than half of all religious and cultural sites in Gaza

VIENNA: UN experts said in a report on Tuesday that Israel committed the crime against humanity of “extermination” by killing civilians sheltering in schools and religious sites in Gaza, part of a “concerted campaign to obliterate Palestinian life.”

The United Nations Independent International Commission of Inquiry on the Occupied Palestinian Territory, including East Jerusalem, and Israel was due to present the report to Geneva-based UN Human Rights Council on June 17.

“We are seeing more and more indications that Israel is carrying out a concerted campaign to obliterate Palestinian life in Gaza,” former UN High Commissioner for Human Rights Navi Pillay, who chairs the commission, said in a statement.

“Israel’s targeting of the educational, cultural and religious life of the Palestinian people will harm the present generations and generations to come, hindering their right to self-determination,” she added.

The commission examined attacks on educational facilities and religious and cultural sites to assess if international law was breached.

Israel disengaged from the Human Rights Council in February, alleging it was biased.

When the commission’s last report in March found Israel carried out “genocidal acts” against Palestinians by systematically destroying women’s health care facilities during the conflict in Gaza, Israeli Prime Minister Benjamin Netanyahu said the findings were biased and antisemitic.

In its latest report, the commission said Israel had destroyed more than 90 percent of the school and university buildings and more than half of all religious and cultural sites in Gaza.

“Israeli forces committed war crimes, including directing attacks against civilians and wilful killing, in their attacks on educational facilities ... In killing civilians sheltering in schools and religious sites, Israeli security forces committed the crime against humanity of extermination,” it said.

The war was triggered when Hamas-led militants killed 1,200 people in Israel in a surprise attack in October 2023, and took 251 hostages back to the enclave, according to Israeli tallies.

Israel responded with a military campaign that has killed over 54,000 Palestinians, according to Gaza health authorities.

Harm done to the Palestinian education system was not confined to Gaza, the report found, citing increased Israeli military operations in the West Bank and East Jerusalem as well as harassment of students and settler attacks there.

“Israeli authorities have also targeted Israeli and Palestinian educational personnel and students inside Israel who expressed concern or solidarity with the civilian population in Gaza, resulting in their harassment, dismissal or suspension and in some cases humiliating arrests and detention,” it said.

“Israeli authorities have particularly targeted female educators and students, intending to deter women and girls from activism in public places,” the commission added.


Israel says activist Greta Thunberg leaving on flight to France

Updated 14 min 49 sec ago
Follow

Israel says activist Greta Thunberg leaving on flight to France

  • Israel says Greta Thunberg is being deported after Gaza-bound ship she was on was seized

PARIS: Israel on Tuesday said Swedish campaigner Greta Thunberg was leaving the country on a flight to France, after she was detained along with other activists aboard a Gaza-bound aid boat and taken to a Tel Aviv airport for deportation.
“Greta Thunberg is departing Israel on a flight to France,” Israel’s foreign ministry said on its official X account, along with two photos of the activist on board a plane.

Five French activists aboard the boat for Gaza were set to face an Israeli judge, the French foreign minister said on Tuesday.
“Our consul was able to see the six French nationals arrested by the Israeli authorities last night,” Foreign Minister Jean-Noel Barrot said on X. “One of them has agreed to leave voluntarily and should return today. The other five will be subject to forced deportation proceedings.”


Israel strikes Hodeidah port, threatens naval, air blockade

Updated 35 min 22 sec ago
Follow

Israel strikes Hodeidah port, threatens naval, air blockade

DUBAI:  Israel’s navy said it struck Houthi targets in the Yemen Red Sea port of Hodeidah on Tuesday and Israeli Defense Minister Israel Katz threatened the Iran-aligned Houthis with a naval and air blockade if attacks on Israel continue.
Houthi-run Al Masirah TV said Israel targeted the docks of Al Hodeidah port with two strikes. The Israeli army said in a statement that Israel’s navy struck Houthi targets, adding the port is used by the Houthis to transfer weapons.
There were no immediate reports of casualties.
The strikes come after the Israeli military on Monday urged the evacuation of the Houthi-controlled ports of Ras Isa, Hodeidah and Salif.
“We warned the Houthi terror organization that if they continue to fire toward Israel, they will face a powerful response and will be subjected to a naval and aerial blockade,” Katz said in a statement on X.
Since the start of the war in Gaza in October 2023, the Iran-aligned Houthis have fired at Israel and at shipping in the Red Sea, disrupting global trade, in what it says are acts of solidarity with the Palestinians.
Most of the dozens of missiles and drones fired toward Israel have been intercepted or fallen short. Israel has carried out a series of retaliatory strikes.
Israel has severely weakened other allies of Iran in the region — Lebanon’s Hezbollah and the Palestinian militant group Hamas.
The Tehran-backed Houthis and pro-Iranian armed groups in Iraq are still standing.