Long lines to buy meat illustrate Iran’s economic woes

Inflation in Iran continues to rise as its currency, the rial, depreciates. (File/AFP)
Updated 08 February 2019
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Long lines to buy meat illustrate Iran’s economic woes

  • Iran’s oil industry never fully recovered from a strike that paralyzed it before the shah’s departure
  • Part of the economic challenges stem from the re-imposition of US sanctions that had been lifted under the nuclear deal Iran struck with world powers

TEHRAN, Iran: In the frigid air of a Tehran winter, a mother of two stands in a long line of shoppers waiting for the chance to buy discounted meat at a store supported by Iran’s government.
“Yesterday, after nearly two hours in the line, the shopkeeper said: ‘It is finished, try another day,’” Zahra Akrami said recently. “And now I am here again.”
Her struggle represents the economic paradox that faces Iran as it marks the 40th anniversary of its Islamic Revolution.
Despite holding some of the world’s largest proven deposits of oil and natural gas, Iran has seen a return to long lines for food — a sight once seen during the 1980s, when it was at war with Iraq. Inflation continues to rise as its currency, the rial, depreciates. University graduates are unable to find jobs.
Part of the economic challenges stem from the re-imposition of US sanctions that had been lifted under the nuclear deal Iran struck with world powers. Those sanctions have returned after President Donald Trump decided to pull America out of the accord.
But other problems persist, some dating back to policies instituted after the Islamic Revolution in 1979.
That revolt wouldn’t have been possible without impoverished Iranians rising up against Shah Mohammad Reza Pahlavi. His land reforms saw poorer rural residents move to the cities and become fresh recruits for the revolution. Ayatollah Ruhollah Khomeini’s calls for supporting the poor struck a populist tone among the struggling masses, as well as with the leftists who helped overthrow a regime that spent billions on US weapons.
Immediately after the revolution, Iran nationalized its oil industry, its main source of hard currency. Its new leaders also seized industries tied to the shah or companies of those who fled the country. Shiite charitable trusts, known as bonyads, also amassed vast holdings, as has Iran’s paramilitary Revolutionary Guard.
Today, economists consider Iran’s a “transition” economy, meaning it is shifting from state control to being driven by a free market. However, some firms that moved into private ownership have seen the businesses collapse, leaving workers without pensions and fueling some sporadic protests.
“No week comes to an end without the closure of 10 to 50 companies,” said Masoud Khansari, the head of Tehran’s Chamber of Commerce. “Last year, 800 out of 1,500 contractor companies in the oil sector collapsed.”
Iran’s oil industry never fully recovered from a strike that paralyzed it before the shah’s departure. Prior to the revolution, Iran pumped about 6 million barrels of oil a day. In January, it pumped 2.7 million.
There are bright spots. Iran’s per capita income has more than doubled since the revolution to $4,838 in 2018. Iran has more than 100,000 locally trained doctors and 18,000 medical centers, and it produces 95 percent of its own medicine, according to government statistics. Life expectancy is around 75, as opposed to about 57 before the revolution. Nearly every Iranian can read.
But for the average person, the only numbers they really care about are those at the cash register at neighborhood grocery stores.
“Unfortunately, high prices have become crippling for people,” lawmaker Mohammad Reza Sabaghian said. “Some goods have seen up to a 200 percent increase in prices.”
Staples like meat have grown more expensive. Lamb has reached to nearly $5 a pound, up from $3. Chicken is 70 cents a pound, up from 40 cents.
Analysts suspect part of the problem may be the US sanctions. As the rial falls, livestock breeders likely want the hard currency they can get selling the meat in neighboring countries. Iran produces nearly 90 percent of its domestic demand for meat, but it imports related items like medicine and corn.
The meat crisis has become a cudgel for government hard-liners who are eager to weaken the administration of President Hassan Rouhani, a relatively moderate cleric within the theocracy. State television repeatedly broadcasts stories about long lines at government-subsidized grocery stores, with those waiting criticizing Rouhani’s administration.
“The bones of the people are shattering under pressure of poverty,” said Kazem Sedighi, an adviser to Supreme Leader Ayatollah Ali Khamenei.
In a dig at Rouhani, Sedighi added: “Economic problems exist, but some officials are careless about the problems.”
Part of Rouhani’s problem is Washington and the sanctions it restored in November. Germany, France and Britain, which have worked to preserve the nuclear deal, announced earlier this month that they have established a new system so their companies can continue trading with Iran without incurring US penalties for doing so.
However, that system has yet to come into effect, and the strains on Iran are clear. Efforts to import government-subsidized meat from abroad through the military saw a cargo plane crash in January, killing 15 people.
Yet the lines at stores continue daily.
“Every day, the radio and TV are reporting about the trial of those officials who took public funds for themselves, but there’s no change in our life,” said Assad Azari, a 63-year-old retired teacher and father of three waiting in line. “We poor people shouldn’t have to wait hours for two kilos (4.4 pounds) of budget meat.”


Lebanon resumes ‘voluntary’ repatriations of Syrians

Updated 6 sec ago
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Lebanon resumes ‘voluntary’ repatriations of Syrians

  • Vans and small trucks gathered in the Arsal area near the border early in the morning to ferry home the returnee
  • Human rights group Amnesty International said at the time that Lebanese authorities were putting Syrians at risk of “heinous abuse and persecution upon their return,”
Beirut: Beirut repatriated several hundred Syrians on Tuesday in coordination with Damascus, an AFP photographer reported, as pressure mounts in cash-strapped Lebanon for the hundreds of thousands refugees to go home.
Vans and small trucks gathered in the Arsal area near the border early in the morning to ferry home the returnees, the photographer said.
The vehicles were piled high with mattresses and other belongings and some were even accompanied by livestock.
“I’m going back alone for the moment, in order to prepare for my family’s return,” said a 57-year-old man originally from Syria’s Qalamun area, declining to be identified by name.
“I am happy to go back to my country after 10 years” as a refugee, he told AFP.
Around 330 people had registered to be part of the “voluntary return,” Lebanon’s official National News Agency (NNA) said.
Syrian state news agency SANA reported an unspecified number of people arrived from Lebanon as part of the initiative.
Lebanon, which has been mired in a crushing economic crisis since late 2019, says it hosts around two million Syrians, the world’s highest number of refugees per capita, with almost 785,000 registered with the United Nations.
Earlier this month, the European Union announced $1 billion in aid to Beirut to help stem irregular migration to the bloc, but in Lebanon the package has been criticized for failing to meet growing public demands for Syrians to leave.
Parliament is set to hold a session on Wednesday to discuss the EU assistance.
Lebanon began the “voluntary” return of small numbers of Syrians in 2017 based on lists sent to the government in Damascus, with the last such group crossing the border in 2022.
Human rights group Amnesty International said at the time that Lebanese authorities were putting Syrians at risk of “heinous abuse and persecution upon their return,” adding that the refugees were “not in a position to take a free and informed decision about their return.”
On Monday, Hezbollah chief Hassan Nasrallah urged Lebanese authorities to open the seas for migrant boats to put pressure on the European Union, whose easternmost member, Cyprus, is less than 200 kilometers away.

Red Cross sets up Rafah emergency field hospital

Updated 14 May 2024
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Red Cross sets up Rafah emergency field hospital

  • Staff at the new facility will be able to treat around 200 people a day and can provide emergency surgical care

GENEVA: The International Red Cross and partners are opening a field hospital in southern Gaza on Tuesday to try to meet what it described as “overwhelming” demand for health services since Israel’s military operation on Rafah began last week.
Some health clinics have suspended activities while patients and medics have fled from a major hospital as Israel has stepped up bombardments in the southern sliver of Gaza where hundreds of thousands of uprooted people are crowded together.
“People in Gaza are struggling to access the medical care they urgently need due, in part, to the overwhelming demands for health services and the reduced number of functioning health facilities,” the International Committee of the Red Cross said. “Doctors and nurses have been working around the clock, but their capacity has been stretched beyond its limit.”
Staff at the new facility will be able to treat around 200 people a day and can provide emergency surgical care and manage mass casualties as well as provide pediatric and other services, the ICRC said.
“Medical staff are faced with people arriving with severe injuries, increasing communicable diseases which could lead to potential outbreaks, and complication related to chronic diseases untreated that should have been treated days earlier.”
The ICRC will maintain medical supplies to the facility while the Red Cross societies from 11 countries including Canada, Germany, Norway and Japan are providing staff and equipment.


Israel’s Rafah attack set Hamas talks ‘backward’: Qatar PM tells forum

Updated 14 May 2024
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Israel’s Rafah attack set Hamas talks ‘backward’: Qatar PM tells forum

  • Emir says Israel looks set to stay in Gaza waging war

DOHA, QATAR: Israel’s military operation in Rafah has set truce negotiations with Hamas “backward,” mediator Qatar said on Tuesday, adding that talks have reached “almost a stalemate.”
“Especially in the past few weeks, we have seen some momentum building but unfortunately things didn’t move in the right direction and right now we are on a status of almost a stalemate,” Prime Minister Mohammed bin Abdulrahman Al-Thani told the Qatar Economic Forum.
“Of course, what happened with Rafah has set us backward.”
Qatar, which has hosted Hamas’s political office in Doha since 2012, has been engaged — along with Egypt and the United States — in months of behind-the-scenes mediation between Israel and the Palestinian militant group.
Israel continued to fight Hamas in Rafah on Monday, despite US warnings against a full-scale assault on the south Gaza city that is crowded with displaced Palestinians.
“There is no clarity how to stop the war from the Israeli side. I don’t think that they are considering this as an option... even when we are talking about the deal and leading to a potential ceasefire,” Sheikh Mohammed said.
Israeli politicians were indicating “by their statements that they will remain there, they will continue the war. And there is no clarity on what Gaza will look like after this,” he added.


Nakba: Palestinians mark 76 years of dispossession as a potentially even larger catastrophe unfolds in Gaza

Updated 14 May 2024
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Nakba: Palestinians mark 76 years of dispossession as a potentially even larger catastrophe unfolds in Gaza

  • In Gaza, the refugees and their descendants make up around three-quarters of the population
  • Now, many Palestinians fear a repeat of their painful history on an even more cataclysmic scale

JERUSALEM: Palestinians on Wednesday will mark the 76th year of their mass expulsion from what is now Israel, an event that is at the core of their national struggle. But in many ways, that experience pales in comparison to the calamity now unfolding in Gaza.
Palestinians refer to it as the “Nakba,” Arabic for “catastrophe.” Some 700,000 Palestinians — a majority of the prewar population — fled or were driven from their homes before and during the 1948 Arab-Israeli war that followed Israel’s establishment.
After the war, Israel refused to allow them to return because it would have resulted in a Palestinian majority within its borders. Instead, they became a seemingly permanent refugee community that now numbers some 6 million, with most living in slum-like urban refugee camps in Lebanon, Syria, Jordan and the Israeli-occupied West Bank.
In Gaza, the refugees and their descendants make up around three-quarters of the population.
Israel’s rejection of what Palestinians say is their right of return has been a core grievance in the conflict and was one of the thorniest issues in peace talks that last collapsed 15 years ago. The refugee camps have always been the main bastions of Palestinian militancy.
Now, many Palestinians fear a repeat of their painful history on an even more cataclysmic scale.
All across Gaza, Palestinians in recent days have been loading up cars and donkey carts or setting out on foot to already overcrowded tent camps as Israel expands its offensive. The images from several rounds of mass evacuations throughout the seven-month war are strikingly similar to black-and-white photographs from 1948.
Mustafa Al-Gazzar, now 81, still recalls his family’s monthslong flight from their village in what is now central Israel to the southern city of Rafah, when he was 5. At one point they were bombed from the air, at another, they dug holes under a tree to sleep in for warmth.
Al-Gazzar, now a great-grandfather, was forced to flee again over the weekend, this time to a tent in Muwasi, a barren coastal area where some 450,000 Palestinians live in a squalid camp. He says the conditions are worse than in 1948, when the UN agency for Palestinian refugees was able to regularly provide food and other essentials.
“My hope in 1948 was to return, but my hope today is to survive,” he said. “I live in such fear,” he added, breaking into tears. “I cannot provide for my children and grandchildren.”
The war in Gaza, which was triggered by Hamas’ Oct. 7 attack into Israel, has killed over 35,000 Palestinians, according to local health officials, making it by far the deadliest round of fighting in the history of the conflict. The initial Hamas attack killed some 1,200 Israelis.
The war has forced some 1.7 million Palestinians — around three quarters of the territory’s population — to flee their homes, often multiple times. That is well over twice the number that fled before and during the 1948 war.
Israel has sealed its border. Egypt has only allowed a small number of Palestinians to leave, in part because it fears a mass influx of Palestinians could generate another long-term refugee crisis.
The international community is strongly opposed to any mass expulsion of Palestinians from Gaza — an idea embraced by far-right members of the Israeli government, who refer to it as “voluntary emigration.”
Israel has long called for the refugees of 1948 to be absorbed into host countries, saying that calls for their return are unrealistic and would endanger its existence as a Jewish-majority state. It points to the hundreds of thousands of Jews who came to Israel from Arab countries during the turmoil following its establishment, though few of them want to return.
Even if Palestinians are not expelled from Gaza en masse, many fear that they will never be able to return to their homes or that the destruction wreaked on the territory will make it impossible to live there. A recent UN estimate said it would take until 2040 to rebuild destroyed homes.
The Jewish militias in the 1948 war with the armies of neighboring Arab nations were mainly armed with lighter weapons like rifles, machine guns and mortars. Hundreds of depopulated Palestinian villages were demolished after the war, while Israelis moved into Palestinian homes in Jerusalem, Jaffa and other cities.
In Gaza, Israel has unleashed one of the deadliest and most destructive military campaigns in recent history, at times dropping 2,000-pound (900-kilogram) bombs on dense, residential areas. Entire neighborhoods have been reduced to wastelands of rubble and plowed-up roads, many littered with unexploded bombs.
The World Bank estimates that $18.5 billion in damage has been inflicted on Gaza, roughly equivalent to the gross domestic product of the entire Palestinian territories in 2022. And that was in January, in the early days of Israel’s devastating ground operations in Khan Younis and before it went into Rafah.
Even before the war, many Palestinians spoke of an ongoing Nakba, in which Israel gradually forces them out of Gaza, the West Bank and east Jerusalem, territories it captured during the 1967 war that the Palestinians want for a future state. They point to home demolitions, settlement construction and other discriminatory policies that long predate the war, and which major rights groups say amount to apartheid, allegations Israel denies.


US doesn’t believe ‘genocide’ occurring in Gaza—White House

Updated 14 May 2024
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US doesn’t believe ‘genocide’ occurring in Gaza—White House

  • White House National Security Adviser Jake Sullivan insists responsibility for peace lies with Hamas
  • Comments come as ceasefire talks stall and Israel continues striking the southern city of Rafah

WASHINGTON DC: The United States does not believe that genocide is occurring in Gaza but Israel must do more to protect Palestinian civilians, President Joe Biden’s top national security official said Monday.

As ceasefire talks stall and Israel continued striking the southern city of Rafah, White House National Security Adviser Jake Sullivan insisted that the responsibility for peace lay with militant group Hamas.

“We believe Israel can and must do more to ensure the protection and wellbeing of innocent civilians. We do not believe what is happening in Gaza is a genocide,” Sullivan told a briefing.

The US was “using the internationally accepted term for genocide, which includes a focus on intent” to reach this assessment, Sullivan added.

Biden wanted to see Hamas defeated but realized that Palestinian civilians were in “hell,” Sullivan said.

Sullivan said he was coming to the White House podium to “take a step back” and set out the Biden administration’s position on the conflict, amid criticism from both ends of the US political spectrum.

Biden has come under fire from Republicans for halting some weapons shipments to press his demands that Israel hold off a Rafah offensive, while there have been protests at US universities against his support for Israel.

The US president believed any Rafah operation “has got to be connected to a strategic endgame that also answered the question, ‘what comes next?’” Sullivan added.

This would avoid Israel “getting mired in a counterinsurgency campaign that never ends, and ultimately saps Israel’s strength and vitality.”