Poverty as Politics: Lebanon Runs on Empty

On November 9, ATFL hosted a webinar to release the results of the 2021 Zogby Research Services (ZRS) poll, “Lebanese Reflect on Their Crisis, Their Institutions, and Their Future.” It was sponsored by ATFL in collaboration with the Moise A. Khayrallah Center for Lebanese Diaspora Studies at NC State University, and directed by Zogby Research Services, which has been polling in Lebanon since 2001. ATFL wanted a better understanding of how the Lebanese people felt in the run-up to the Parliamentary elections on March 27, 2022, and the potential implications of those perceptions on US policy in Lebanon and the region.

Coincidentally, the UN’s Special Rapporteur on Extreme Poverty, Oliver de Schutter was concluding a 12-day trip to the country to research the extent of poverty in Lebanon and the government’s response. His report to the UN Human Rights Council will be next June, and, at a press conference on the eve of his departure on November 12, he provided his preliminary assessment.

Olivier “condemned the country’s political establishment and said he did not believe the government was dealing with the issue seriously. “The Government’s inaction in the face of this unprecedented crisis has inflicted great misery on the population, especially on children, women, stateless and undocumented individuals, and people with disabilities who were already marginalized. I was shocked by the disconnect between the political establishment and the reality of those in poverty on the ground.”

His statement echoed the results of the ZRS poll which found that 88% felt they were worse off now that five years ago, which is double the rate (44%) of response in 2019. More specifically, the overwhelming majority of the population reported being severely impacted by shortages in fuel (97%), electricity (89%), and drinking water (74%). More than one-third of respondents reported going without food on some occasions.

A third source affirming the dire situation of the Lebanese was in a Featured Analysis by the Lebanese Center for Policy Studies (LCPS), Raising the Alarm: Pervasive Poverty and Vulnerability in Lebanon,” which was produced to coincide with de Schutter’s visit. It looked at indicators of poverty and the government’s response, and emphasized the linkage between the current crisis and increasing fragility of the Lebanon state, a concern also expressed by de Schutter. It noted, “The very foundations needed to maintain a functioning modern state, all fundamentally dependent on trust and credibility, are deteriorating to near breaking point.”

In making its case, the Analysis pointed out that the ILO has estimated that income vulnerability increased to 75% from 51% since 2019, while extreme income vulnerability more than doubled to 32% during that period. “As a result, the burden of the crisis has been highly imbalanced, falling the hardest on those who were already poor or suffering from previous lifecycle vulnerabilities. With a deeply flawed social protection system, healthcare, education, electricity, clean water, adequate housing, transportation, and decent jobs have become only accessible to the few.”

Similar statistics were noted from a recent assessment by the UN Economic and Social Commission for Western Asia (ESCWA), in that the poverty rate doubled from 42% in 2019 to 82% of the total population in 2021, including refugees, with nearly 4 million people living in poverty in many categories. This number is the equivalent of some 1 million households, including 77%, or approximately 745,000, of Lebanese households.

Several categories of the population were particularly affected, including 55% working in the informal economy who have little to no rights and benefits, and women, the majority of whom are unemployed with 75% economic inactive. Propping up the economic are inbound remittances estimated at close to $7 billion in 2020, with another $1.7 billion from international donors and organizations.

The authors went on to say that “The continued failure by the Government of Lebanon to take corrective measures to stabilize Lebanon’s rapidly deteriorating depression and restore confidence in the state by implementing reforms that safeguard against the underlying drivers of the country’s crisis, such as corruption, mismanagement, and the insolvency of public institutions are undermining public confidence in the core pillars of the state, its economy, and the country’s social contract.”

It continues with this critique by indicating, as both domestic and international analysts have concluded, that “The only way to resuscitate Lebanon’s economy is through the implementation of immediate and credible institutional reform, and embarking on a path towards people-centered recovery. It is only by upending the very deliberate nature of Lebanon’s depression—the persistent failure of the country’s leadership to take decisive action to avoid the worst of the country’s crisis, protect the most vulnerable, and lead the country towards recovery—that Lebanon can be saved from descending further towards a complex emergency.”

Despite the repeated warnings and admonitions to Lebanese leaders, they seem immovable in terms of moving ahead with painful yet necessary reforms. PM Najib Mikati’s agenda for pushing the political process forward to launch even simple reforms is in peril as the opponents of change are deliberately obstructing the few steps he is proposing. The indication from the World Bank is that Lebanon may need 12 to 19 years to recover to its pre-crisis per-capita GDP, and that is only one indicator of quality of life. It is indeed the darkest of times for Lebanon and its people.

The views and opinions expressed here are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon.

Lebanon Daily News Brief 11/15/2021

DAILY NEWS


Luxembourg Opens Criminal Case into Riad Salameh
A spokesperson from Luxembourg said today that the country’s judicial authorities have opened a “criminal case” into Lebanon’s Banque du Liban Governor Riad Salameh. This is at least the third European investigation of Salameh after Swiss and French inquires opened up earlier this year over money laundering issues that Salameh denies. [Reuters] The central bank governor was also criticized by UN Special Rapporteur Olivier De Schutter for the central bank’s practices of offering unsustainable high interest rates to depositors throughout the years. [Al Jazeera]

Saudi Arabia FM Says No Engagement with Lebanon Right Now
Calls for the restoration of diplomatic relations between Lebanon and Gulf countries have gone unanswered following a recall of ambassadors from Beirut. Over the weekend Saudi Arabia’s Foreign Minister Prince Faisal bin Farhan-al Saud said that the kingdom does not plan to engage with the Lebanese government at this point in time. He added, “we think that the political class needs to step up and take the necessary actions to liberate Lebanon from the domination of Hezbollah, and through Hezbollah, Iran.” [Reuters]

Digital Currency on the Rise in Lebanon
Digital currency is gaining traction in Lebanon as Lebanese continue to reel from the country’s economic collapse. Several million dollars are exchanged for bitcoin every day in Lebanon, according to data reported by Reuters. Some view crypto-currencies as a safer investment than the Lebanese pound. One professor of finance said, “Yes, bitcoin can lose 30 percent of its value, but the pound has lost 100 percent.” [Middle East Eye]

OPINION & ANALYSIS


Eurasia Review
Lebanon is Falling Apart
Neville Teller

Teller writes, “The ruling cliques, dominated by Iran-supported Hezbollah and its allies, are mired in venality, corruption and self-interest…If disaster is to be averted, Lebanon has to find a way to throw off the chains that shackle it to the proxy of a foreign power. The vital question is, can it rid itself of the oppressive dominance of Hezbollah and achieve a corruption-free, democratic future without descending into a new civil war?”

Read more here

The Lebanese Center for Policy Studies
Raising the Alarm: Pervasive Poverty and Vulnerability in Lebanon
Fadi Nicholas Nassar, Sarah Hague, and Walid Sayegh

Nassar, Hague, and Sayegh write in support of UN Special Rapporteur Oliver De Schutter’s visit to Lebanon, “Persistent failures by the Government of Lebanon (GoL) to put the country on the path of recovery have been disastrous. The World Bank has described this lack of action as deliberate, given that interventions to halt the economic decline would have entailed major financial losses by influential individuals and institutions. As a result, the burden of the crisis has been highly imbalanced, falling the hardest on those who were already poor or suffering from previous lifecycle vulnerabilities. With a deeply flawed social protection system, healthcare, education, electricity, clean water, adequate housing, transportation, and decent jobs have become only accessible to the few.”

Read more here


Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

This Week In Lebanon: 11/13/2021

November 13, 2021
Arab League Envoy Backs Call for Kordahi’s Resignation
Miqati Pledges to Hold Elections by May 21, 2022
“How Corruption Ruined Lebanon” by Rania Abouzeid

Arab League Envoy Backs Calls for Kordahi’s Resignation
This week Arab League envoy Hossam Zaki met Lebanese political leaders in an effort to explore resolutions to the escalating diplomatic crisis between Lebanon and Saudi Arabia. [AP] Zaki supported calls for Information Minister George Kordahi’s resignation adding that “from the very beginning, the resignation could have defused the crisis.” [Al Arabiya] Without giving any specifics, Kordahi says he will not resign until there are “guarantees” that doing so would resolve the diplomatic crisis between Gulf countries and Lebanon. [AP]

RESPONSE

“It’s apparent that Gulf countries are resisting US and other overtures to urge the restoration of relations with Lebanon until Information Minister George Kordahi resigns or is removed from office, if this is indeed their goal. Although it is in the interests of the Gulf Arab states to counter the Iranian narrative and support independent mechanisms to aid the Lebanese Armed Forces, World Bank food programs, poverty alleviation, and educational needs at all levels, especially AUB and LAU, no help will be forthcoming until the Lebanese government resolves the Kordahi issue as a sign of its commitment to rapprochement.”

-ATFL President Edward M. Gabriel


Miqati Pledges to Hold Elections by May 21, 2022
This week, Prime Minister Najib Miqati pledged to hold Lebanon’s parliamentary elections by May 21 of next year. Currently, parliament has agreed to hold elections on March 27, 2022 but Miqati says the pledge to hold elections by May 21 was made in case the election date changes again. The prime minister made the announcement in a meeting with the Economic and Social Council during which he outline the government’s work based on eight pillars: “the security, the financial and economic file, the social file, services and infrastructure, holding parliamentary elections on time, local and international public policies, fighting corruption, putting the required laws into practice, the judiciary and its reform.” [The 961]

RESPONSE

“Prime Minister Miqati has a full agenda to build even a minimal level of trust with the people. Negotiations with the IMF with short-term results, getting electricity reform going in the right direction, implementing the cash card system without political constraints, and formalizing the process for free and fair elections that don’t have the whiff of manipulation in the results are the minimal steps the people can and should expect. It’s time to break the logjams and seize leadership opportunities, for the peoples’ sake.”

-ATFL Vice President for Policy Jean AbiNader


“How Corruption Ruined Lebanon” by Rania Abouzeid
Rania Abouzeid writes for the New York Times Magazine on the August 4 Beirut Port explosion and government corruption and negligence that allowed it to happen. She writes about Central Inspection Board head Judge Georges Attieh’s experience during the blast when the explosion tore through his mother’s apartment and his work since then. Abouzeid says, “For Attieh, Lebanon faces nothing less than a battle for its destiny.” [NY Times]

RESPONSE

“The Central Inspection Board was created to act as a monitoring and inspection body of the Lebanese government and its various agencies. Abouzeid describes how its head, Judge Georges Attieh, attempts to do his job and is constantly thwarted by the country’s political leadership. Much like his counterpart Judge Tarek Bitar, it is another illustration of how Lebanon’s warlord leaders have no commitment to justice when it threatens their way of doing business. Without an independent judiciary, this sad state of decline will continue and all Lebanese will pay the price. Ask the families of the Beirut Port blast victims.”

-ATFL Vice President for Policy Jean AbiNader


Disclaimer: The views and opinions expressed are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Lebanon Daily News Brief 11/12/2021

DAILY NEWS


UN Special Rapporteur Concludes Lebanon Tour
This week UN Special Rapporteur on poverty and human rights is finishing up a twelve-day tour of Lebanon. During his visit Olivier De Schutter met with Lebanon officials, civil society leaders, and impoverished communities throughout the country. De Schutter concluded that though Lebanon is not a failed state, it is a failing state. He added that the “government’s inaction in the face of this unprecedented crisis has inflicted great misery on the population, especially children, women, stateless and undocumented individuals, and people with disabilities who were already marginalized.” [The National]

Kordahi Says No Resignation without ‘Guarantees’
Amid a diplomatic feud between Lebanon and Gulf countries, officials have called for Information Minister George Kordahi’s resignation. Kordahi said today he will not stop down unless he receives a guarantee that his resignation will resolve the crisis. Without giving any specifics, Kordahi says so far there have been “no guarantees.” Hezbollah said yesterday that Lebanon should not concede to Saudi Arabia and accused KSA of fabricating the crisis to undermine Lebanon. [AP]

Turkish Foreign Minister to Visit Lebanon
Next week Turkey’s foreign minister will visit Lebanon as a show of support for the Lebanese government. Minister Mevlüt Çavuşoğlu will meet with top Lebanese officials and extend an invite to Prime Minister Najib Miqati to meet with Turkish President Recep Tayyip Erdogan. [Naharnet]

Number of Lebanese Expats Registered to Vote Already Exceeds 2018 Numbers
November 20 is the deadline for Lebanese expatriates to register to vote in the 2022 parliamentary elections. Based on data released by the Lebanese Ministry of Foreign Affairs, the number of Lebanese expats who have registered to vote in 2022 already exceeds the number that voted in 2018. Since yesterday, there are 101,088 registrants recorded, compared to 2018’s 82,965 registrants. [The 961]

If you’re a Lebanese expat, register to vote here!

OPINION & ANALYSIS


The Lebanese Center for Policy Studies
Raising the Alarm: Pervasive Poverty and Vulnerability in Lebanon
Fadi Nicholas Nassar, Sarah Hague, and Walid Sayegh

Nassar, Hague, and Sayegh write in support of UN Special Rapporteur Oliver De Schutter’s visit to Lebanon, “Persistent failures by the Government of Lebanon (GoL) to put the country on the path of recovery have been disastrous. The World Bank has described this lack of action as deliberate, given that interventions to halt the economic decline would have entailed major financial losses by influential individuals and institutions. As a result, the burden of the crisis has been highly imbalanced, falling the hardest on those who were already poor or suffering from previous lifecycle vulnerabilities. With a deeply flawed social protection system, healthcare, education, electricity, clean water, adequate housing, transportation, and decent jobs have become only accessible to the few.”

Read more here

Carnegie Middle East Center
The Politics of Perdition
Mohanad Hage Ali

Ali writes, “Miqati and his government, which was formed last September, have been on the defensive in recent weeks as Hezbollah and its allies have created one crisis after the other. The prime minister’s tenure began with Hezbollah’s controversial decision to import Iranian fuel, which could have brought US sanctions. The party’s response to the Bitar investigation and the crisis with the Gulf states have only made matters worse. Hezbollah’s primary focus now is to sideline Bitar and derail his investigation. The question is why has the party taken such an aggressive position, and placed itself at the center of the controversy over the investigation, when it could have hidden behind its allies to undermine Bitar? This is all the more surprising as Bitar has not accused Hezbollah or any of its members of involvement.”

Read more here


Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Lebanon Daily News Brief 11/11/2021

DAILY NEWS


Lebanon’s Ambassadors to the Gulf Express Concern for Lebanese Living in the Region
Lebanon’s ambassadors to Bahrain and Saudi Arabia expressed fear yesterday that the growing diplomatic feud with Gulf countries could be harmful for Lebanese living in the region. The ambassadors were recently asked to leave following the release of Lebanese Information Minister George Kordahi’s comments on Saudi Arabia and the Yemen war. After the ambassadors’ meeting with Prime Minister Najib Miqati on Wednesday, the PM’s office quoted them as saying “every day of delay in solving the crisis will make it more difficult to fix relations and take them back to where they were.” [AP]

Gulf Countries Limit Visas to Lebanese Nationals
Kuwait has decided to limit the number of visas it issues to Lebanese nationals in the midst of an escalating diplomatic spat between Lebanon and the Gulf. A security source from the emirate said that Kuwait will be stricter in granting tourist and business visas to Lebanese. No visas have been suspended for current visitors. [Al Arabiya] Similarly, Saudi Arabia will limit visas to Lebanese nationals to only allow for humanitarian cases. [Naharnet]

Number of Lebanese Expats Registered to Vote Already Exceeds 2018 Numbers
November 20 is the deadline for Lebanese expatriates to register to vote in the 2022 parliamentary elections. Based on data released by the Lebanese Ministry of Foreign Affairs, the number of Lebanese expats who have registered to vote in 2022 already exceeds the number that voted in 2018. Since yesterday, there are 101,088 registrants recorded, compared to 2018’s 82,965 registrants. [The 961]

If you’re a Lebanese expat, register to vote here!

First Trial for Sexual Harassment Case in Lebanon Postponed
Lebanon’s first trial for a sexual harassment case will be postponed due to a public sector strike over poor economic conditions. The trial will be delayed until April of next year, but the plantiff’s lawyer is hoping to have it moved up. [The National] The case is the first sexual harassment case that will be heard since a new law passed in December of last year that criminalized sexual harassment in Lebanon for the first time. [The 961] The lawyer representing five women who had filed the complaint said, “we want to change the mindset so that victims feel empowered to speak up.” [The National]

OPINION & ANALYSIS


Middle East Institute
Policy Brief: Leading a Resilient Lebanese Armed Forces Through Crises and for the Long Run
Joseph Sarkis

Sarkis writes, “Repeated crises in Lebanon, including the COVID-19 pandemic, have highlighted the need for resilience in the Lebanese Armed Forces (LAF). Amid the current acute economic and financial crisis facing the country, there are warning signs about the LAF’s incapacity to continue, as the resources at its disposal and popular confidence in its effectiveness have both been degraded. In light of the current challenges and those that may lie ahead, the LAF needs to become more resilient, able to both adapt and strengthen as an organization, while also ensuring public security, the conditions of its personnel, and its own long-term status.”

Read more here


Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Lebanon Daily News Brief 11/10/2021

DAILY NEWS


Court of Appeal Judge Recused from Bitar Case
A judge on Lebanon’s Court of Appeals was notified yesterday of his recusal on the case against Judge Tarek Bitar and his Beirut Port investigation. Judge Habib Mezher reportedly asked Bitar to hand over confidential details of the Port case, a move that violates the probe’s confidentiality according to Beirut-based Legal Agenda. Concerns over the judge’s ties to Hezbollah and Amal have called into question Mezher’s bias as both parties continue to push for Bitar’s removal. [Naharnet]

First Trial for Sexual Harassment Case in Lebanon Begins Today
A new law passed in December of last year criminalized sexual harassment in Lebanon for the first time. Tomorrow, the first trial under this law will begin in what civil society groups hope will set an example of protection and justice for victims of sexual harassment. Before now, sexual harassment was not considered a crime and victims had to sue harassers for threats or defamation. [The 961] The lawyer representing five women who had filed the complaint said, “we want to change the mindset so that victims feel empowered to speak up.” [The National]

Kuwait Investigates Suspects Tied to Hezbollah
After security authorities arrested a group of Kuwaiti citizens accused of working with Hezbollah, Kuwait’s Public Prosecution office is now in the process of investigating them. The group was arrested and held on charges of recruiting people to work with Hezbollah and Hezbollah’s efforts in Syria and Yemen. Kuwait was among the Gulf countries that recalled ambassadors from Beirut over George Kordahi’s Yemen comments. [Al Arabiya]

OPINION & ANALYSIS


The National
Lebanon’s Daily Star Paper Should Not Have Ended with a Whimper
Michael Young

Young writes, “The closing this month of the Daily Star, Lebanon’s oldest English-language newspaper, founded in 1952, had a bittersweet feel to it. Bitter, because of the way the publication treated its staff in its final years; sweet, because the Star had built up a noteworthy track record since reopening in 1996, in the midst of Lebanon’s post-war reconstruction, and for a time reflected the optimism in the country’s revival…When political money dried up in the last decade, few Lebanese papers tried to develop an alternative model applicable to the internet age. The Star did attempt to rely on online subscriptions for readers overseas, but the somewhat rigid format it adopted was limited in its appeal. That was a shame, because a restructuring of the paper’s ownership, an injection of cash and a savvy internet and social media strategy might have saved it. The Daily Star should not have ended with a whimper. Many journalists who had drifted through the newspaper expressed nostalgia when they heard the news. That was understandable, but what is less so is how a publication that had, since the early ’50s, chronicled Lebanon’s political and social life should have been allowed to go so unceremoniously.”

Read more here

The Lebanese Center for Policy Studies
Transforming Public Procurement: Lebanon’s Path to Efficiency, Social Value, and Transparency
Lamia Moubayed Bissat and Basma Abdul Khalek

Bissat and Khalek write, “July 29, 2021 marked the publication of Public Procurement Law 244/2021 in the Official Gazette. After more than two years of drafting, review, consultation, and parliamentary debate, Lebanon now has a unified public procurement law. With this accomplishment, the country has ticked the first box in a list of structural reforms that are necessary to ensure sound financial governance, foster economic recovery, and improve transparency and accountability. The Constitutional Council’s decision (issued on September 16, 2021) to reject a petition against the law further validated this important reform and the rationale behind it.”

Read more here


Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Lebanon Daily News Brief 11/9/2021

DAILY NEWS


Arab League Envoy Backs Calls for Kordahi’s Resignation
Yesterday Arab League envoy Hossam Zaki met Lebanese political leaders in effort to explore resolutions to the escalating diplomatic crisis between Lebanon and Saudi Arabia. [AP] Zaki supported calls for Information Minister George Kordahi’s resignation adding that “from the very beginning, the resignation could have defused the crisis.” [Al Arabiya] Sources say today that Kordahi will not submit his resignation over “a mistake he did not commit while being information minister.” [Naharnet]

First Trial for Sexual Harassment Case in Lebanon Begins Tomorrow
A new law passed in December of last year criminalized sexual harassment in Lebanon for the first time. Tomorrow, the first trial under this law will begin in what civil society groups hope will set an example of protection and justice for victims of sexual harassment. Before now, sexual harassment was not considered a crime and victims had to sue harassers for threats or defamation. [The 961]

PM Miqati Says IMF Talks Advancing Well
Yesterday Prime Minister Miqati reported that Lebanon’s preliminary talks with the International Monetary Fund were advancing and going well. He said that a revised financial recovery plan will be ready by the end of the month adding that “for the first time we have handed over unified financial figures.” [Reuters]

OPINION & ANALYSIS


Doing Business in Lebanon – On the Ropes
Jean AbiNader

AbiNader writes, “A business asks itself two questions when looking for new markets: what are my risks, and how do I get my money out? There are no easy answers to these questions when it comes to Lebanon. It all begins with the money: the Lebanese pound. What is it worth, can it be used for purchasing overseas supplies, can it be exchanged favorably with other currencies, and is there a banking system that is reliable and ready to help build businesses? While the Commerce Department Report touches on opportunities for US companies in many areas, they are conditioned upon several fundamental ‘ifs’. For example, if they can get the needed licenses, customs clearances, financing, etc., and if the country adopts the reforms needed to perform as a functioning member of the global economy.”

Read more here

Carnegie Middle East Center
Beirut for Ma’rib?
Ahmed Nagi

Nagi writes, “While Qordahi’s remarks were a pretext for the Gulf states’ actions, their moves appeared to be premeditated and reflected growing Saudi displeasure with Hezbollah’s dominant position in Lebanon, as well as the group’s regional role on Iran’s behalf…The key question today, then, is why did Saudi Arabia escalate the crisis with Lebanon, when Hezbollah’s hostility toward the kingdom was known? A principal reason appears to be Hezbollah’s assistance to the Houthis in their ongoing offensive against oil-rich Ma’rib Governorate, the last stronghold of the Saudi-backed government of President Abd Rabbo Mansour Hadi. In recent weeks, the Houthis have taken over districts in the southern part of the governorate and have advanced towards the city of Ma’rib. Saudi media outlets have accused Hezbollah of providing military support to the Houthis. For Riyadh, if Ma’rib were to fall it would pose two major threats. First, it would greatly strengthen the Houthis and, therefore, make them far less likely to accept political compromises that fall short of recognizing their full control of Yemen. And second, the consolidation of Houthi rule on Saudi Arabia’s southern border could potentially allow the Houthis, and beyond that Iran, to use Yemen as a pressure point against the kingdom in the future.”

Read more here

Arab News
Uproar Over ‘Hezbollah Pressure’ on Lebanese Military Judiciary
Najia Houssari

Houssari writes, “The families of those arrested in the Tayouneh violence that occurred on October 14, along with the families of those arrested in the Khalde incident that took place in early August, are up in arms over what they allege are the “biased actions” of the judicial authorities. The families have in recent days been reacting angrily about the lack of arrests of anyone associated with Hezbollah regarding either incident, ‘although the party and its gunmen were clearly involved in both.’ [They] are questioning whether the Lebanese military judiciary is turning a blind eye on those involved in the violence, or if the institution was shaken by the pressure Hezbollah exerts on every aspect of the state.”

Read more here


Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Lebanon Daily News Brief 11/8/2021

DAILY NEWS


Arab League Envoy Travels to Beirut to Discuss Gulf Crisis
Arab League envoy Hossam Zaki met with President Michel Aoun today followed by a meeting with Prime Minister Najib Miqati in effort to explore resolutions to the escalating diplomatic crisis between Lebanon and Saudi Arabia. [AP] Zaki described talks with Lebanese officials as positive and said he will travel to Saudi Arabia if necessary. [Al Jazeera] Today Aoun urged Saudi Arabia to differentiate between stances of the Lebanese state and stances of individuals or other groups. [Naharnet]

PM Miqati Says IMF Talks Advancing Well
Today Prime Minister Miqati reported that Lebanon’s preliminary talks with the International Monetary Fund were advancing and going well. He said that a revised financial recovery plan will be ready by the end of the month adding that “for the first time we have handed over unified financial figures.” [Reuters]

Lebanon Co-Sponsors UN Resolution Draft to Protect Journalists
Last Friday Lebanon co-sponsored a UN Resolution draft meant to protect journalists. It calls for punishing culprits who commit violent crimes against journalists and releasing journalists who are unjustly detained, arrested, or imprisoned. The draft also calls for governments to take legal action to protect journalists and t0 support investigation in to crimes against them. [The 961]

OPINION & ANALYSIS


Doing Business in Lebanon – On the Ropes
Jean AbiNader

AbiNader writes, “A business asks itself two questions when looking for new markets: what are my risks, and how do I get my money out? There are no easy answers to these questions when it comes to Lebanon. It all begins with the money: the Lebanese pound. What is it worth, can it be used for purchasing overseas supplies, can it be exchanged favorably with other currencies, and is there a banking system that is reliable and ready to help build businesses? While the Commerce Department Report touches on opportunities for US companies in many areas, they are conditioned upon several fundamental ‘ifs’. For example, if they can get the needed licenses, customs clearances, financing, etc., and if the country adopts the reforms needed to perform as a functioning member of the global economy.”

Read more here


Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

This Week In Lebanon: 11/6/2021

November 6, 2021
Top US military general meets Lebanese Army commander, Pentagon reaffirms support
Senate committee advances Biden nominee for Middle East policy
France says Lebanon should be ‘shielded’ from Middle East crises

Top US military general meets Lebanese Army commander, Pentagon reaffirms support
The top US military general met with the Lebanese Armed Forces commander on Thursday, with the Pentagon reaffirming its support for the Lebanese army. Chairman of the Joint Chiefs of Staff Gen. Mark A. Milley met with Gen. Joseph Aoun at the Pentagon, Joint Staff Spokesperson Col. Dave Butler said. “Gen. Milley and other DoD [Department of Defense] officials reaffirmed the US Government’s strong support for the Lebanese Armed Forces,” Butler added. Discussions touched on a range of issues, “including shared challenges and ways to increase coordination in areas of mutual interest.” [Al Arabiya]

RESPONSE

“General Youssef Aoun and his team met with senior officials in the Administration and leaders in the Congress who expressed praise for the LAF’s efforts in protecting the territorial integrity of Lebanon and in supporting Lebanon’s response to the COVID-19 pandemic and other humanitarian efforts following the August 4, 2020 explosion. Importantly, US officials were sympathetic to the need for the LAF to meet the social welfare needs of its troops, and, although the US cannot provide direct support for LAF troops, they offered to lead international efforts to help find solutions to address these concerns. They also mentioned the need for the LAF to observe the human rights of peaceful demonstrators.”

-ATFL President Edward M. Gabriel


Senate committee advances Biden nominee for Middle East policy
“The US Senate Committee on Foreign Relations confirmed a Biden administration nominee for a top Middle East policy post on Wednesday.

The nomination of Barbara Leaf to be assistant secretary of state for Near Eastern affairs passed the committee at today’s business meeting. Leaf is a career diplomat who previously served as US ambassador to the United Arab Emirates, and is presently Special Assistant to the President and Senior Director for Middle East and North Africa Affairs on the National Security Council. Leaf will next face a vote before the whole Senate at a yet-to-be-determined date. Several other Biden nominations, including many ambassadorships, were also advanced by the committee.

Some Republicans voted against Leaf’s nomination, including ranking member Sen. Jim Risch of Idaho and Sen. Ted Cruz of Texas.” [Al Monitor]

RESPONSE

“A Senate confirmation hearing for senior level State Department officials Barbara Leaf and Tamara Cofman Wittes exposed disagreements between several senators and the Biden administration. The most dangerous complaint was those who take issue with the recently completed deals to provide energy supplies from Egypt and Jordan through Syria to Lebanon. Lebanon cannot afford to fail, and by having the World Bank provide a loan to Lebanon to purchase the supplies brings a monitoring system that will ensure their transit and not strengthen the Assad regime. Rather than punish Lebanon to make political points, reluctant Senators should support longer-term solutions that enhance regional stability and integration.”

-ATFL Vice President for Policy Jean AbiNader


France says Lebanon should be ‘shielded’ from Middle East crises
France said on Thursday that Lebanon needed to be shielded from regional crises and that it was paramount that core actors across the zone needed to play their part in helping to get Beirut to implement reforms and get it out of its quagmire.

France’s foreign ministry spokeswoman said on Thursday that it was in contact with all parties and urged Lebanese officials and regional powers to calm the situation. [Jerusalem Post]

RESPONSE

“Whether it was channeling the Patriarch or reflecting recent coordinated messages with the US, the French Foreign Ministry is on target with its statement. Lebanon is challenged by the influence of external actors in its domestic affairs, and is unable to take a forward-leaning approach to working with its neighbors to secure its sovereignty. Yes, the Lebanese are ultimately responsible for their independence, but, as the recent conflict over with Gulf countries demonstrates, this continues to be aspirational rather than factual. It is in the best interests of the Arab countries that Lebanon’s sovereignty be secured. This is a reality that needs to be remembered and strengthened.”

-ATFL Vice President for Policy Jean AbiNader


Disclaimer: The views and opinions expressed are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Doing Business in Lebanon – On the Ropes

On November 4, the Center for International Private Enterprise (CIPE) held a webinar “Lebanon: Economic Recovery Prospects.” The Lebanese Minister of Economy and Trade, Amin Salam, alongside private sector representatives including Fady Gemayel, the President of the Association of Lebanese Industrialists (ALI), provided statistics, case studies, and scenarios that would support rebuilding the economy and attracting foreign investment. Yet, the chances of measurable success are nil unless there are drastic reforms made by the government to stabilize the currency, decrease public spending, and restructure the banking industry.

The challenges of Lebanon’s economic collapse are illustrated in the Country Commercial Guide to Lebanon published by the US Department of Commerce in September. It contains seven sections. The first, “Doing Business In,” provides key information for determining if Lebanon is the right business destination for a company. There are four subsections: overview, challenges, opportunities, and entry strategies. There is not a lot of good news but a lot of aspirations.

A business asks itself two questions when looking for new markets: what are my risks, and how do I get my money out? There are no easy answers to these questions when it comes to Lebanon.

It all begins with the money: the Lebanese pound. What is it worth, can it be used for purchasing overseas supplies, can it be exchanged favorably with other currencies, and is there a banking system that is reliable and ready to help build businesses? While the Commerce Department Report touches on opportunities for US companies in many areas, they are conditioned upon several fundamental ifs. For example, if they can get the needed licenses, customs clearances, financing, etc., and if the country adopts the reforms needed to perform as a functioning member of the global economy.

In international business, most exporters do not look at the total population of a country as a potential market, but instead they focus on the middle class who can afford imported products and services. In the days of financial engineering, Lebanese people could aspire to a lifestyle built on the Central Bank’s borrowed funds and time; that scheme collapsed in 2019. Now, the middle class is rapidly declining due to barely accessible bank deposits, hyperinflation, disappearing employment, and inadequate compensation, not to mention higher costs of education, health care, and transportation.

A report published by the Economic & Financial Analysis Department at Byblos Bank noted that “corruption and a lack of transparency continue to cause frustration…other impediments include bureaucratic over-regulation, institutionalized corruption, arbitrary licensing decisions, complex customs procedures, outdated legislation, an ineffectual judicial system, high taxes and fees, elevated telecommunications charges, slow internet speed, poor electricity provision, inconsistent interpretation of laws, and weak enforcement of intellectual property rights… and fragmented and opaque tendering and procurement processes.”

The Report does commend Lebanon for its legal underpinnings of a free market economy, a highly educated work force, and limited restrictions on investors. The bottom line is best reflected in the statement, “The IMF estimated 2020 nominal GDP ($18.73 billion) was the lowest in the Middle East, below Libya and Yemen.” It is incomprehensible that Libya and Yemen, economic basket cases in the throes of armed conflict, rank higher than Lebanon. And yet they do.

Part of any successful program to attract foreign investment is the ability to assure investors that their funds, innovations/intellectual property, and assets are safe, especially from arbitrary actions. The same goes for individuals and organizations – their rights to work freely, without fear or coercion, and to have a forum for exchanging ideas that is shared country-wide are a function of a country’s rule of law regime. In Lebanon’s case, this underscores the importance of an independent judiciary, mentioned frequently as an action that should be taken by the government.

The World Justice Project’s Rule of Law Index for 2021, according to a review by Byblos Bank’s Research & Analysis Department, ranked Lebanon in 104th place among 139 countries, a drop of eight places from 2020. The scores and rankings of each of eight factors and 44 sub-factors are based on opinion polls of the general public and a survey of legal professionals. The survey covered 1,000 respondents in Beirut, Sidon, and Tripoli. “Lebanon’s score came lower that the global average score and the Arab countries [in the survey] average score.” It ranked above Sudan, Mauritania, and Egypt; behind the UAE, Jordan, Tunisia, Algeria, and Morocco, the other Arab countries in the index.

While this is discouraging, there is more positive news in that Lebanon ranked third among Arab countries in terms of Open Government and Fundamental Rights, falling behind in Absence of Corruption and Criminal Justice. Both reports, on Doing Business and Rule of Law, point to flaws in Lebanon’s system of governance that can be remedied with sufficient political will. Lebanon has the capacity and the talent. The country will emerge from its current set of crises when the talent and energy of the people is seen as an asset, rather than a threat or merely a source of remittances. It is up to the Lebanese to right themselves, and the world will cheer their progress.

The views and opinions expressed here are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon.