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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Israeli army strikes 40 Hezbollah targets in south Lebanon

Updated 4 sec ago
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Israeli army strikes 40 Hezbollah targets in south Lebanon

  • Hezbollah has exchanged near-daily fire with the Israeli army
  • Israel says 11 soldiers and eight civilians have been killed on its side of the border

Beirut: The Israeli army said Wednesday it struck 40 Hezbollah targets in southern Lebanon as near-daily exchanges of fire rage on the border between the two countries.
“A short while ago, IDF (army) fighter jets and artillery struck approximately 40 Hezbollah terror targets” around Aita Al-Shaab in southern Lebanon, including storage facilities and weaponry, the army said in a statement.

Lebanon’s Iran-backed Hezbollah movement said it fired a fresh barrage of rockets across the border earlier in the day after a strike blamed on Israel killed two civilians.
The group had already fired rockets at northern Israel late on Tuesday “in response” to the civilian deaths.
Hezbollah has exchanged near-daily fire with the Israeli army since its ally Hamas carried out an unprecedented attack on Israel on October 7, triggering war in Gaza.
It has stepped up its rocket fire on Israeli military bases in recent days.
Hezbollah fighters fired “dozens of Katyusha rockets” at a border village in northern Israel “as part of the response to the Israeli enemy’s attacks on... civilian homes,” the group said in a statement.
On Tuesday, rescue teams said an Israeli strike on a house in the southern village of Hanin killed a woman in her fifties and a girl from the same family.
Since October 7, at least 380 people have been killed in Lebanon, mostly Hezbollah fighters but also 72 civilians, according to an AFP tally.
Israel says 11 soldiers and eight civilians have been killed on its side of the border.


Turkish minister warns pro-Kurdish party it could face moves to ban it

Updated 22 min 39 sec ago
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Turkish minister warns pro-Kurdish party it could face moves to ban it

  • “In the past, closure cases were opened against parties for supporting terrorism,” Justice Minister Yilmaz Tunc told reporters in Ankara
  • “Therefore, we say that if the DEM Party follows the same path, then it will face the same treatment”

ISTANBUL: Turkiye’s justice minister warned the country’s main pro-Kurdish DEM party on Wednesday that it would face the risk of legal action, and even a closure case like its predecessor, if it did not distance itself from Kurdish militants.
DEM, parliament’s third largest party, was established last year as a successor to the Peoples’ Democratic Party (HDP), which is facing the prospect of closure over alleged militant links in a court case following a years-long crackdown.
“In the past, closure cases were opened against parties for supporting terrorism,” Justice Minister Yilmaz Tunc told reporters in Ankara, noting that some parties had been banned and that other cases were ongoing.
“Therefore, we say that if the DEM Party follows the same path, then it will face the same treatment,” he said. “We say keep your distance from terrorism if you do not want to face such a legal process.”
Another court had been expected to announce a verdict this month in a case trying jailed former HDP leaders and officials over 2014 protests triggered by a Daesh attack on the Syrian Kurdish town of Kobani. That verdict was postponed.
“They should not wag their fingers at us. I repeat, the policy of closure, blackmail and threats is over,” DEM Party co-chair Tuncer Bakirhan said on Wednesday in the wake of a call from a government ally to ban the DEM Party.
Critics say Turkish courts are under the influence of the government and President Tayyip Erdogan, which he and his AK Party (AKP) deny.
Both prosecutors and the government accuse the HDP of ties to the militant Kurdistan Workers Party (PKK), which is deemed a terrorist group by Turkiye, the United States and European Union. The HDP denies having any connections with terrorism.
The PKK launched an insurgency against the Turkish state in 1984 and more than 40,000 people have been killed in the conflict. A peace process between Ankara and the PKK fell apart in 2015 and in a subsequent crackdown on the HDP thousands of its officials and members have been arrested and jailed.


UAE, Bahrain call for joint work to contain tensions threatening regional stability

Updated 33 min 31 sec ago
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UAE, Bahrain call for joint work to contain tensions threatening regional stability

  • During a meeting in Abu Dhabi, the ministers discussed the fraternal relations between UAE and Bahrain

DUBAI: UAE Minister of Foreign Affairs Sheikh Abdullah bin Zayed Al Nahyan received his Bahraini counterpart Dr. Abdul Latif bin Rashid Al Zayani in Abu Dhabi on Wednesday.

Sheikh Abdullah bin Zayed welcomed the Bahraini Foreign Minister, and during the meeting held at the ministry’s headquarters in Abu Dhabi, they discussed the fraternal relations between the two countries, and ways to enhance Emirati-Bahraini cooperation at various levels, WAM reported. 

Sheikh Abdullah stressed during the meeting that the UAE and Bahrain are linked by historical relations that are becoming more established, developed and growing, and that they also constitute an important tributary to joint Gulf and Arab work.

He also stressed that the current challenges facing the region require intensifying cooperation, coordination and joint work to contain all tensions that threaten its stability, security and safety of its people. 


A blast near a ship off Yemen may mark a new attack by Houthis after a recent lull

Updated 32 min 52 sec ago
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A blast near a ship off Yemen may mark a new attack by Houthis after a recent lull

  • Houthis have launched more than 50 attacks on shipping, seized one vessel and sank another since November
  • The explosion happened some 130 kilometers southeast of Djibouti in the Gulf of Aden

JERUSALEM: A ship near the strategic Bab El-Mandeb Strait saw an explosion in the distance Wednesday, marking what may be a new attack by Yemen’s Houthis through the crucial waterway for international trade.
The explosion, reported by the British military’s United Kingdom Maritime Trade Operations center, comes after a relative lull from the Houthis after they launched dozens of attacks on shipping in the region over Israel’s ongoing war on Hamas in the Gaza Strip.
The Houthis did not immediately claim responsibility for the blast, but suspicion fell on the group as they’ve repeatedly targeted ships in the same area. It typically takes the Houthis several hours before acknowledging their assaults.
The explosion happened some 130 kilometers southeast of Djibouti in the Gulf of Aden.
“The master of a merchant vessel reports an explosion in the water a distance form the vessel,” the UKMTO said. “Veseel and crew reported safe. Authorities are investigating.”
The private maritime security firm Ambrey separately reported the apparent attack.
The Houthis have launched more than 50 attacks on shipping, seized one vessel and sank another since November, according to the US Maritime Administration.
Houthi attacks have dropped in recent weeks as the militia has been targeted by a US-led airstrike campaign in Yemen and shipping through the Red Sea and Gulf of Aden has declined because of the threat. American officials have speculated that they may be running out of weapons as a result of the US-led campaign against them and firing off drones and missiles steadily in the last months.
The Houthis have said they would continue their attacks until Israel ends its war in Gaza, which has killed more than 34,000 Palestinians there. The war began after Hamas-led militants attacked Israel on Oct. 7, killing 1,200 people and taking some 250 others hostage.
The ships targeted by the Houthis largely have had little or no direct connection to Israel, the US or other nations involved in the war. The Houthis have also fired missiles toward Israel, though they have largely fallen short or been intercepted.


Gaza could surpass famine thresholds in six weeks, WFP official says

Updated 24 April 2024
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Gaza could surpass famine thresholds in six weeks, WFP official says

  • A UN-backed report published in March said famine was imminent and likely to occur by May in northern Gaza

GENEVA: The Gaza Strip could surpass famine thresholds of food insecurity, malnutrition and mortality in six weeks, an official from the World Food Programme said on Wednesday.
“We are getting closer by the day to a famine situation,” said Gian Caro Cirri, Geneva director of the World Food Programme (WFP).
“There is reasonable evidence that all three famine thresholds — food insecurity, malnutrition and mortality — will be passed in the next six weeks.”
A UN-backed report published in March said that famine was imminent and likely to occur by May in northern Gaza and could spread across the enclave by July. On Tuesday, a US official said the risk of famine in Gaza, especially in the north, was very high.
Cirri was speaking at the launch of a report by the Global Network Against Food Crises, an alliance of humanitarian and development actors including United Nations agencies, the World Bank, the European Union and the United States.
In its report, the network described the 2024 outlook for the Middle East and Africa as extremely concerning due to the Gaza war and restricted humanitarian access, as well as the risk of the conflict spreading elsewhere in the region.
“As for Gaza, the conflict makes it difficult and sometimes impossible to reach affected people,” Cirri said.
“We need to scale up massively our assistance... But under the current conditions, I’m afraid the situation will further deteriorate.”
The United Nations has long complained of obstacles to getting aid in and distributing it throughout Gaza in the six months since Israel began an aerial and ground offensive against Gaza’s ruling Islamist militant group Hamas.
Israel has denied hindering supplies of humanitarian aid and blames aid agencies for inefficiencies in distribution.
Israel’s military campaign has reduced much of the territory of 2.3 million people to a wasteland with a humanitarian disaster unfolding since Oct. 7, when Hamas ignited war by storming into southern Israel.
Cirri said that the only way to steer clear of famine in Gaza was to ensure immediate and daily deliveries of food supplies.
“They’ve been selling off their belongings to buy food. They are most of the time destitute,” he said.
“And clearly some of them are dying of hunger.”