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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Family confirms death of Israeli-American hostage Hersh Goldberg-Polin

Updated 3 sec ago
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Family confirms death of Israeli-American hostage Hersh Goldberg-Polin

JERUSALEM: The family of Israeli-American hostage Hersh Goldberg-Polin says he has been killed in the Gaza Strip.
The family issued a statement early Sunday, hours after the Israeli army said it had located bodies in Gaza.
“With broken hearts, the Goldberg-Polin family is devastated to announce the death of their beloved son and brother, Hersh,” it said. “The family thanks you all for your love and support and asks for privacy at this time.”
There was no immediate comment from the army, or details about the other bodies found.
The 23-year-old Goldberg-Polin was among the hostages seized by militants at a music festival in southern Israel on Oct. 7. He lost part of an arm in the attack.
Goldberg-Polin’s parents became perhaps the most high-profile relatives of hostages on the international stage. They met with President Joe Biden, Pope Francis and others and addressed the United Nations. On Aug. 21, they addressed a hushed hall at the Democratic National Convention, where the crowd chanted: “Bring them home.”
A Hamas-issued video in April showing Goldberg-Polin clearly speaking under duress sparked new protests in Israel urging the government to do more to secure his and others’ freedom.
The announcement is certain to put pressure on Prime Minister Benjamin Netanyahu to reach a deal to bring home remaining hostages. The Israeli leader has said military pressure is needed to win their release as ceasefire efforts falter.
Before Israel’s announcement, Israel said it believed 108 hostages were still held in Gaza and about one-third of them were dead.

Iraq seeks US investment in gas as new projects target energy independence

Iraqi Oil Minister Hayan Abdel-Ghani arrives at the 8th OPEC International Seminar in Vienna, Austria, on July 5, 2023. (AFP)
Updated 01 September 2024
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Iraq seeks US investment in gas as new projects target energy independence

  • Abdel-Ghani also said Iraq will launch a new gas investment project by the end of the year at the Al-Faihaa oil field in southern Iraq

BAGHDAD: Iraq plans to offer 10 gas exploration blocks to US companies during an upcoming visit by Oil Minister Hayan Abdel-Ghani to the United States, he announced on Saturday.
The move is part of Baghdad’s efforts to attract US investment into its energy sector, following previous licensing rounds where Chinese firms secured the majority of available fields.
The 10 gas blocks, left unclaimed following six licensing, rounds, will be presented in a new bidding process, Iraqi state media said, and comes as Iraq seeks to bolster its domestic gas production.
Abdel-Ghani also said Iraq will launch a new gas investment project by the end of the year at the Al-Faihaa oil field in southern Iraq. The project, with a capacity of 125 million standard cubic feet (mscf), is a key component of Iraq’s strategy to enhance its energy infrastructure.
The latest initiative follows recent agreements to develop 13 oil and gas blocks, aimed at increasing Iraq’s crude and gas output to supply power plants, which currently rely heavily on Iranian gas imports.

 


Israeli army announces death of soldier during West Bank operation

Updated 01 September 2024
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Israeli army announces death of soldier during West Bank operation

  • The United Nations said on Wednesday that at least 637 Palestinians had been killed in the territory by Israeli troops or settlers since the Gaza war began

JENIN, Palestinian Territories: Israel’s army on Saturday announced the first death of a soldier during its ongoing raid in the occupied West Bank that began four days ago.
An army statement said 20-year-old Elkana Navon “fell during operational activity” on Saturday and that another soldier was “severely injured” in the same incident, without providing details.
Since Wednesday at least 22 Palestinians have been killed by the Israeli army, most of them militants, in simultaneous raids in several cities in the northern West Bank.

Palestinians are stopped by Israeli security forces, during an Israeli raid in Jenin, in the Israeli-occupied West Bank, August 31, 2024. (REUTERS)

Since Friday, soldiers have concentrated their operations on the city of Jenin and its refugee camp, long a bastion of Palestinian armed groups fighting against Israel.
Violence has surged in the West Bank since Hamas’s unprecedented October 7 attack on southern Israel triggered the war in the Gaza Strip.
The United Nations said on Wednesday that at least 637 Palestinians had been killed in the territory by Israeli troops or settlers since the Gaza war began.
Twenty Israelis, including soldiers, have been killed in Palestinian attacks or during army operations over the same period, according to Israeli official figures.
During a visit to Jenin on Saturday, Israeli army chief of staff Herzi Halevi said Israeli forces “have no intention of letting terrorism (in the West Bank) raise its head” to threaten Israel.
“Therefore the initiative is to go from city to city, refugee camp to refugee camp, with excellent intelligence, with very good operational capabilities, with a very strong air intelligence envelope... We will protect the citizens of Israel just like that.”
Of the 22 Palestinians reported dead since Wednesday, Hamas and its ally Islamic Jihad have said at least 14 were members of their armed wings.
Earlier on Saturday, Hamas issued a statement saying one of its fighters carried out an “ambush” using “a highly explosive device” in the Jenin refugee camp “which led to the deaths and injuries of members of the advancing (Israeli) force.”
 

 


Iran’s president says his country needs more than $100 billion in foreign investment

Updated 01 September 2024
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Iran’s president says his country needs more than $100 billion in foreign investment

  • Pezeshkian said Iran needs up to $250 billion to reach its goal but more than half is available from domestic resources

TEHRAN, Iran: Iran’s president said Saturday his country needs some $100 billion in foreign investment to achieve an annual target of 8 percent economic growth up from the current rate of 4 percent.
The remarks by Masoud Pezeshkian, who was elected in July, came in his first live televised interview by state TV.
Pezeshkian said Iran needs up to $250 billion to reach its goal but more than half is available from domestic resources. Experts say growth in GDP of 8 percent would reduce double-digit inflation and unemployment rates.
Hundreds of entities and people in Iran — from the central bank and government officials to drone producers and money exchangers — are already under international sanctions, many of them accused of materially supporting Iran’s Revolutionary Guard and foreign militant groups such as Hamas, Hezbollah and the Houthis.
Pezeshkian in his interview complained about the sanctions and said his administration plans to reduce inflation, which is running at more than 40 percent annually, “if we solve our problems with neighbors and the world.” He did not elaborate.
Pezeshkian confirmed that his first visit abroad will be to neighboring Iraq and he would then fly to New York to attend the United Nations General Assembly meeting on Sept. 22-23. He said while he was in New York he would meet with Iranian expatriates to invite them to invest in Iran. Out of more than 8 million Iranian expatriates, some 1.5 million Iranian live in the United States.
Pezeshkian, who is viewed as a reformist, was sworn in last month and parliament approved his cabinet earlier in August, promising a softer tone both inside and outside the country. His predecessor, Ebrahim Raisi, a hard-line protege of Iran’s supreme leader who led the country as it enriched uranium near weapons-grade levels, died in a helicopter crash in May, along with seven other people.
Iran’s economy has struggled since 2018 after then-President Donald Trump pulled the US out of the deal to constrain Tehran’s nuclear program and imposed more sanctions. Pezeshkian said during his presidential campaign that he would try to revive the nuclear deal.


Decades after independence, France-Algeria ties still tense

Updated 01 September 2024
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Decades after independence, France-Algeria ties still tense

  • Several historians believe that recognizing French colonization as a “crime against humanity” would be more appropriate
  • During the historians’ debate, Algeria asked France to return the skulls of resistance fighters and historical and symbolic artifacts from 19th-century Algeria, including items that belonged to Algerian anti-colonial figure Emir Abdelkader

ALGIERS: The fraught relations between France and its former colony Algeria had eased a little in recent years, but a new rift over Paris backing Morocco’s autonomy plan for disputed Western Sahara has sent rapprochement efforts into a tailspin.
Algerian President Abdelmadjid Tebboune, who is seeking a second term in presidential elections on September 7, was set to travel to France for a state visit, but this has been rescheduled twice and it is now doubtful in will happen at all.
Last month, Algiers withdrew its ambassador to Paris after French President Emmanuel Macron said Morocco’s autonomy plan was the only solution for the territory.
Algeria, which backs the territory’s pro-independence Polisario Front, denounced this as a “step that no other French government had taken before.”
France colonized Algeria in 1830 and the North African country only gained independence in 1962, after a war that authorities say killed more than 1.5 million Algerians.
French historians say half a million civilians and combatants died during the war for independence, 400,000 of them Algerian.
While France has made several attempts over the years to heal the wounds, it refuses to “apologize or repent” for the 132 years of often brutal rule that ended in the devastating eight-year war.
Experts now accuse both countries of exploiting the war for present-day political ends.
“The national narrative about the Algerian war is still dominant and during a campaign like the presidential election, Algerians are sensitive to these issues in their internal policy choices,” Hasni Abidi of the Geneva-based CERMAM Study Center told AFP.
Abidi said Tebboune now needed to “readjust his electoral speeches to protect himself from criticism on foreign policy” after the “complete fiasco” of failed attempts to restore relations with Macron.

Last week, Algeria marked its Moudjahid National Day commemorating war combattants with a speech by Tebboune, in which he said France wrongly “believed it could stifle the people’s revolution with iron and fire.”
In 2022, the two countries set up a joint commission of historians in an attempt to mend historical differences and appease tensions.
But, according to Abidi, the commission didn’t work fast enough and “did not succeed in freeing itself from political supervision.”
The expert said France’s latest move backing Morocco’s plan in Western Sahara “will deal another blow to the issue of memory” at the risk of “reopening old wounds and stigma from the colonial past.”
What followed France’s conquest of then Ottoman ruled Algiers was the destruction of its socio-economic structures, mass displacement, and the bloody repression of numerous revolts before the war erupted in 1954.
This chapter in the two countries’ history has been “exploited according to their issues and interests of the moment,” historian Hosni Kitouni told AFP.
During the historians’ debate, Algeria asked France to return the skulls of resistance fighters and historical and symbolic artifacts from 19th-century Algeria, including items that belonged to Algerian anti-colonial figure Emir Abdelkader.
“These items are in museums in France, where, from a legal standpoint, their presence is illegal,” Amira Zatir, an adviser at the Emir Abdelkader Foundation, told AFP.
She said many of these items were stolen when French forces looted the emir’s library during the Battle of Smala in 1843.
Algeria has also demanded the return of original archives from the Ottoman and colonial eras that were transferred to France before and after Algeria’s independence.
Algeria seeks reparations for actions committed by the former occupying power, such as the 17 nuclear tests conducted in its Sahara desert between 1960 and 1966.
Mustapha Boudina, a 92-year-old former war combattant who now heads the National Association of Former Death Row Inmates, said Algeria should require even more reparations.
“We need to put pressure on our enemies of the time so that they repent and apologize” for their “numerous crimes,” he said.
Several historians believe that recognizing French colonization as a “crime against humanity” would be more appropriate.
That was exactly how Macron described it during a visit to Algiers amid his presidential campaign in 2017, sparking an outcry from the French right.