LET’S TALK ABOUT: LEBANON

Written By Jessica Kemp
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Just a little over a year ago, on August 4th, 2020, a large amount of ammonium nitrate stored at the Port of Beirut in the capital city of Lebanon exploded, causing at least 218 deaths, 7,000 injuries, US$15 billion in property damage, and leaving an estimated 300,000 people homeless. Since then, the county has fallen into one of the most severe economic and financial crisis the world has seen in more than 150 years.

WHAT IS GOING ON? HOW DID IT GET HERE?

WHAT DOES THIS MEAN FOR THE PEOPLE LIVING THERE? HOW CAN I HELP?

These are some of the questions we discussed with our two expert speakers Dana Ballout and Nour Malas.

Dana Ballout is a freelance producer and director working in the documentary film space and podcast. She is a former journalist with the Wall Street Journal and Al Jazeera English and worked with the United Nations Development Program (UNDP). Dana is a co-founder of OTI and is currently residing in Los Angeles.

Nour Malas is the deputy editor for Business at the LA Times. She is a former international correspondence for the Wall Street Journal covering the Arab Spring. Nour just returned from a visit with family in Lebanon, where she experienced the situation on the ground.

 

Synopsis

What is the current situation like? 

Lebanon has been known for its active civil society and resilient people, tested over decades of political crises and warBut that resiliency is being tested more now than ever before, many Lebanese say While electricity supply has been rationed for years, the country is now facing such severe fuel shortages that Lebanon has largely gone dark. People wait for hours in line at gas stations which frequently become the scene of violent clashes. Access to healthcare is extremely limited, hospitals are overwhelmed and with insufficient access to fuel and generators, are only able to function at partial capacity. Lebanon is also a country that has the highest per capita of refugees accounting for nearly 1 in every 4 people, adding to the strain on the economy and infrastructure.  The COVID pandemic and the August 4th explosion at the Beirut port has only added to this dire situation. For the past few years, Lebanese nationals like our speakers who are able to go back to visit family and friends stuff their suitcases with gauze, bandaids, dollars and even medicines that relatives are unable to acquire locally.  Meanwhile, with the economy collapsing and inflation rates skyrocketing, savings have been wiped out and large swaths of the middle class are finding themselves living in severe poverty, unable or ashamed to ask for the help they need and with little resources available to them. Young people are choosing to leave the country in droves, accelerating a brain drain that is depriving the country of the educated and civically-involved, while those who remain are generally too traumatized, too tired or too destitute to be able to be involved in political or civic change.  Civil society, and unions in particular, have stepped up in significant ways, attempting to meet the basic needs that the government has failed to provide for. Additionally, social media groups have popped up for citizens to provide direct support to one another. But social media and civil society will not be able to fill the tremendous and growing needs of the Lebanese people. 

So how did we get here? 

There are a lot of factors that account for the current crisis in Lebanon, some of which harken back to the country’s political foundations. A corrupt ruling class has led the country’s political system for decades based on a consociationalist sectarian system that no longer reflects the country’s demographics. While Lebanese have sought political reform for decades, these sects and the parties representing them have a deeply entrenched and pervasive patronage system. As our speakers explained, economic destitution heightens the pull of sectarian affiliation, particularly as sect-based political parties provide social and - crucially - financial support who can provide for you and protect you, so the divisions that bolster the current political system are perpetually reinforced. 

In some ways, the current economic collapse can be traced back to the Arab Spring. In 2010, Lebanese were in the streets protesting the sectarian system and the resulting tumult hastened the pace of the economic downturn.  The protest movement that followed brought together Lebanese nationals of all backgrounds collectively rejecting the political system. But the situation was made even worse in 2020 with the Beirut port explosion of August 4th. Widespread destruction from the explosion, continued fiscal mismanagement, and an eventual run on the banks created a perfect storm. The local currency, the Lebanese lira,  has long been pegged to the US dollar and excessive government borrowing culminated in Lebanon defaulting on its bonds in 2019 for the first time since 1943. As a result, the currency crashed, the living wage lost value, and hyperinflation set in.

The explosion, caused by 2,750 tonnes of ammonium nitrate that had been left abandoned at the port for six years, destroyed over half of the city of Beirut, killed over 200 people, wounded over 7,000 and left over 300,000 internally displaced. 

Meanwhile, western powers that claim Lebanon as a strategic partner, in large part due to its shared border with Israel, have done little to ameliorate the situation.The focus of the U.S. in particular has been cracking down on Hezbollah’s finances and their links abroad which increased the shortage of dollars and contributed to the economic crisis. 

How can you get involved: 

Lebanon’s current state of crisis and the dramatic spiral of its economy is under-covered in the international media. Stay informed, share information and resources with your networks, and please consider one of the following options to get involved and support the Lebanese people.

Where to donate and additional resources: 

Jessica Kemp
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