BEIRUT: Poverty in Lebanon tripled over the course of a decade during which the small Mediterranean country slid into a protracted financial crisis, the World Bank said Thursday.
The percentage of people in Lebanon living below the poverty line rose from 12 percent in 2012 to 44 percent in 2022, the bank said in a report based on surveys conducted in five of the country’s eight governorates.
The data provided the most detailed snapshot to date on the economic circumstances of the country’s population since the crisis that began in late 2019, although World Bank officials acknowledged it was incomplete as surveyors were not given access to three governates in the south and east of the country.
The findings showed stark differences in poverty levels between different areas of the country and between Lebanese citizens and the country’s large population of Syrian refugees.
In the Beirut governate, in contrast to the rest of the country, poverty actually declined from 4 percent to 2 percent of the population during the decade surveyed, while in the largely neglected Akkar region in the north, the rate increased from 22 percent to 62 percent.
Among Lebanese surveyed, the poverty rate in 2022 was 33 percent, while among Syrians it reached 87 percent. While the survey found an increase in the percentage of Lebanese citizens working in unskilled jobs like agriculture and construction, it found that most Lebanese still work in skilled jobs while the majority of Syrians do unskilled labor.
The report also measured “multidimensional poverty,” which takes into account access to services like electricity and education as well as income, finding that some 73 percent of Lebanese and 100 percent of non-Lebanese residents of the country qualify as poor under this metric.
Beginning in late 2019, Lebanon’s currency collapsed, while inflation skyrocketed and the country’s GDP plummeted. Many Lebanese found that the value of their life savings had evaporated.
Initially, many saw an International Monetary Fund bailout as the only path out of the crisis, but since reaching a preliminary agreement with the IMF in 2022, Lebanese officials have made limited progress on reforms required to clinch the deal, including restructuring the ailing banking sector.
An IMF delegation visiting Beirut this week found that “some progress has been made on monetary and fiscal reforms,” the international financial institution said in a statement, including on “lowering inflation and stabilizing the exchange rate,” but it added that the measures “fall short of what is needed to enable a recovery from the crisis.”
It noted that reforms to “governance, transparency and accountability” remain “limited” and that without an overhaul of the banking sector, the “cash and informal economy will continue to grow, raising significant regulatory and supervisory concerns.”
The World Bank has estimated that the cash economy makes up 46 percent of the country’s GDP, as Lebanese distrustful of banks in the wake of the crisis have sought to deal in hard currency.
The flourishing cash economy has created fertile ground for money laundering and led to concerns that Lebanon could be placed on the Paris-based watchdog Financial Action Task Force’s “grey list” of countries with a high risk of money laundering and terrorism financing.
Poverty in Lebanon tripled over a decade, World Bank says
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Poverty in Lebanon tripled over a decade, World Bank says
- The findings showed stark differences in poverty levels between different areas of the country
- Among Lebanese surveyed, the poverty rate in 2022 was 33 percent, while among Syrians it reached 87 percent
Israeli military announces ‘tactical pause’ in attempt to increase flow of aid into hard-hit Gaza
- The pause is aimed at allowing aid trucks to reach the Israel-controlled Kerem Shalom crossing
The army said the pause would begin in the Rafah area at 8 a.m. (0500 GMT, 1 a.m. eastern) and remain in effect until 7 p.m. (1600 GMT, noon eastern). It said the pauses would take place every day until further notice.
The pause is aimed at allowing aid trucks to reach the nearby Israel-controlled Kerem Shalom crossing, the main entry point for incoming aid, and travel safely to the Salah a-Din highway, a main north-south road, to deliver supplies to other parts of Gaza, the military said. It said the pause was being coordinated with the UN and international aid agencies.
The crossing has suffered from a bottleneck since Israeli ground troops moved into Rafah in early May.
Israel’s eight-month military offensive against the Hamas militant group has plunged Gaza into a humanitarian crisis, with the UN reporting widespread hunger and hundreds of thousands of people on the brink of famine. The international community has urged Israel to do more to ease the crunch.
From May 6 until June 6, the UN received an average of 68 trucks of aid a day, according to figures from the UN humanitarian office, known as OCHA. That was down from 168 a day in April and far below the 500 trucks a day that aid groups say are needed.
The flow of aid in southern Gaza declined just as the humanitarian need grew. More than 1 million Palestinians, many of whom had already been displaced, fled Rafah after the invasion, crowding into other parts of southern and central Gaza. Most now languish in ramshackle tent camps, using trenches as latrines, with open sewage in the streets.
COGAT, the Israeli military body that oversees aid distribution in Gaza, says there are no restrictions on the entry of trucks. It says more than 8,600 trucks of all kinds, both aid and commercial, entered Gaza from all crossings from May 2 to June 13, an average of 201 a day. But much of that aid has piled up at the crossings and not reached its final destination.
A spokesman for COGAT, Shimon Freedman, said it was the UN’s fault that its cargos stacked up on the Gaza side of Kerem Shalom. He said the agencies have “fundamental logistical problems that they have not fixed,” especially a lack of trucks.
The UN denies such allegations. It says the fighting between Israel and Hamas often makes it too dangerous for UN trucks inside Gaza to travel to Kerem Shalom, which is right next to Israel’s border.
It also says the pace of deliveries has been slowed because the Israeli military must authorize drivers to travel to the site, a system Israel says was designed for the drivers’ safety. Due to a lack of security, aid trucks in some cases have also been looted by crowds as they moved along Gaza’s roads.
The new arrangement aims to reduce the need for coordinating deliveries by providing an 11-hour uninterrupted window each day for trucks to move in and out of the crossing.
It was not immediately clear whether the army would provide security to protect the aid trucks as they move along the highway.
Israel’s ‘economic war’ chokes occupied West Bank
- Banking in the Palestinian territories is challenging, with the Palestinian Authority under scrutiny for potential terror financing
- Palestinian businesses receive nearly $1.7 billion annually for exports, according to the Palestine Monetary Authority
But the circus students weren’t the only ones bending over backwards in the pavilion: the school’s director faced financial hurdles to buy the tent from Europe and trampolines from Asia.
“We are suffering with international payments,” said Mohamad Rabah, head of the Palestinian Circus School, describing a bureaucratic process that could delay equipment delivery by up to a month.
Banking in the Palestinian territories is challenging, with the Palestinian Authority (PA) under scrutiny for potential terror financing, hindering transactions.
Israel has occupied the West Bank since 1967, with strong economic ties allowing two Israeli lenders to serve as correspondent banks in the Palestinian territory.
But this may change if Israel’s far-right Finance Minister Bezalel Smotrich carries out threats to sever a vital banking route next month.
Since Hamas’s October 7 attack triggered the Gaza war, Israel has imposed economic curbs on the PA, withholding tax revenues it collects on its behalf.
Smotrich said this week he had redirected $35 million in PA tax revenues to families of “terrorism” victims, a move condemned by the United States.
After three European countries recognized Palestinian statehood in May, Smotrich told Prime Minister Benjamin Netanyahu he would not extend indemnity to banks that transfer the funds from the end of June.
Israel’s Bank Hapoalim and Israel Discount Bank need protection, expiring on July 1, to avoid sanctions for dealing with Palestinian lenders.
Israel’s central bank and finance ministry declined to comment when contacted by AFP.
The banking channel used to pay for West Bank imports — including essential goods like water, fuel and food — handles $8 billion yearly.
Palestinian businesses receive nearly $1.7 billion annually for exports, according to the Palestine Monetary Authority.
“For us, because our economy is dependent on the Israeli economy, because Israel is controlling the border, the impact will be high,” said PMA governor Feras Milhem.
The Palestinian economy is largely governed by the 1994 Paris Protocol, which granted sole control over the territories’ borders to Israel, including the right to collect import duties and value-added tax for the PA.
Palestinian livelihoods have also been hurt by bans on laborers crossing into Israel and by a sharp downturn in tourism in the territory, including a quiet Christmas season in Bethlehem.
The United States has urged Israel to improve conditions, warning that severing the banking route would have a dire impact on the West Bank economy.
“I believe it would create a humanitarian crisis in due course if Palestinian banks are cut off from Israeli correspondence,” US Treasury Secretary Janet Yellen said last month.
Western governments fear Israel’s economic policies could destabilize the West Bank.
“The banking system may collapse and therefore the PA may collapse as well,” a European diplomatic source in Jerusalem said on condition of anonymity.
“The PA is in a financial crisis and it could collapse before August.”
Palestinian businessmen say their bottom lines have been hit since October 7.
Imad Rabah, who owns a plastics company, said his net income had fallen 50 percent in one year.
Arak producer Nakhleh Jubran said his liquor business had fallen 30 percent over the same period.
“We have a traditional war in Gaza and we have an economic war in the West Bank,” said Jubran.
Musa Shamieh, who owns a womenswear company said the Israeli policies were designed to push Palestinians to leave the West Bank.
“They want us to leave our land and they know it will be hard for us to stay if we can’t do business,” Shamieh said.
Israel’s harsh economic policies could eventually drive Palestinian policymakers to pursue sweeping changes to the monetary system.
“We need to work on a plan B when it comes to the trade relations,” said Milhem, governor of the PMA, which uses an image of the former Palestinian pound as its logo.
Yousef Daoud, professor at the West Bank’s Birzeit University, said the territory could scrap the shekel as its de facto currency in favor of a digital alternative.
“We can make our e-currency, just collect all the shekels, issue an equivalent amount of Palestinian pounds, one-to-one fixed exchange rate, and have the Palestinians deal with e-currency,” he said.
“Somehow, eventually, we’ll get rid of the shekel.”
Israeli defense minister to visit Pentagon: US
- In a formal response this week the Palestinian militant group Hamas stopped short of accepting the plan, making counter-proposals on several points
WASHINGTON: Israeli Defense Miniter Yoav Gallant will visit Washington soon for talks with his US counterpart, the Pentagon said Saturday as the war in Gaza rages on.
President Joe Biden’s administration is pressing for a ceasefire deal which it says is backed by Prime Minister Benjamin Netanyahu but has drawn fury from some of the Israeli leader’s far-right allies.
In a formal response this week the Palestinian militant group Hamas stopped short of accepting the plan, making counter-proposals on several points.
In a call Tuesday with Defense Secretary Lloyd Austin, Gallant accepted an invitation to visit the Pentagon, press secretary Major General Patrick Ryder said in a statement.
The date of the visit has yet to be determined and the aim of the meeting is to “further discuss ongoing security developments in the Middle East,” Ryder said on the social media platform X, formerly Twitter.
Qatar and Egypt plan talks with Hamas on Gaza ceasefire: White House
- Sullivan said he had spoken briefly to one of the main interlocutors, Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani, and that they would speak again about Gaza on Sunday while both are in Switzerland for the Ukraine conference
BUERGENSTOCK, Switzerland: White House national security adviser Jake Sullivan said on Saturday that mediators for Qatar and Egypt plan to engage Hamas militants soon to see if there is a way to push ahead with a Gaza ceasefire proposal offered by US President Joe Biden.
Sullivan spoke to reporters on the sidelines of a Ukraine peace summit and was asked about diplomatic efforts to get an agreement for Hamas to release some hostages held since Oct. 7 in exchange for a ceasefire lasting at least six weeks.
Sullivan said he had spoken briefly to one of the main interlocutors, Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani, and that they would speak again about Gaza on Sunday while both are in Switzerland for the Ukraine conference.
Hamas has welcomed the ceasefire proposal, but insists any agreement must secure an end to the war, a demand Israel still rejects. Israel described Hamas’s response to the new US peace proposal as total rejection.
Sullivan said that US officials have taken a close look at Hamas’s response.
“We think some of the edits are not unexpected and can be managed. Some of them are inconsistent both with what President Biden laid out and what the UN Security Council endorsed. And we are having to deal with that reality,” he said.
He said US officials believe there remains an avenue to an agreement and that the next step will be for Qatari and Egyptian mediators to talk to Hamas and “go through what can be worked with and what really can’t be worked with.”
“We anticipate a back-and-forth between the mediators and Hamas. We’ll see where we stand at that point. We will keep consulting with the Israelis and then hopefully at some point next week we’ll be able to report to you where we think things stand and what we see as being the next step to try to bring this to closure,” he said.
Beirut airport busy with Eid visitors despite tense security situation
- Motorcyclist killed in Israeli drone strike as Hezbollah keeps up retaliatory attacks
- Festival brings challenges for Lebanese forced to flee their homes
BEIRUT: Beirut’s Rafic Hariri International Airport witnessed an influx of arrivals on Saturday as Lebanese expatriates and tourists ignored the hostilities in the south and traveled to celebrate the Eid Al-Adha holiday.
European embassies had earlier issued warnings against visiting Lebanon because of the tense security situation, but these failed to deter expatriates and visitors, mainly from Iraq and Egypt, arriving for Eid.
On the eve of the holiday, there was a noticeable discrepancy in the prices of sacrificial animals in the Lebanese market, along with an unjustified increase in meat prices.
Majed Eid, secretary of the Syndicate of Butchers, Importers, and Traders of Live Livestock, said that imports of sacrificial animals from abroad had fallen this year compared with previous years.
The security situation in the Tyre area has led to reduced shopping activities as Eid approaches, despite the substantial influx of expatriates who typically boost commercial and economic activity there.
Tyre Traders Association Secretary Ghazwan Halawani said that the preparations for Eid seemed ordinary, with no noticeable improvement in commercial activity, sales, or market visitors.
He attributed the decline to anxiety over military operations on the border and Israeli attacks on civilians.
On the eve of Eid Al-Adha, thousands of families from the southern region headed to their villages near the border despite the hostilities.
Issa, a butcher, planned to spend the holiday with his family, even though his area had been sporadically shelled in the past few months.
“Nothing will happen to us except what God has destined for us,” he said.
The Eid holiday will be challenging for the people of the south, especially those who fled their villages eight months ago.
Eid Al-Adha presents significant challenges for the displaced southerners, with almost 100,000 people forced to leave their villages.
Nabatieh Gov. Hwaida Turk told Arab News that 65 towns in Nabatieh Governorate had been subjected to “systematic shelling and fires due to Israeli attacks.”
Some towns were almost destroyed, she said.
Turk said that residents of the front-line towns, especially in the Marjayoun and Hasbaya areas, did not return for Eid.
However, villages and towns to the rear are crowded with displaced people alongside their original inhabitants.
She said the people in the southern region tried to celebrate Eid with hope despite the difficult economic conditions.
Hezbollah kept up retaliatory attacks on Israel on Saturday, days after an airstrike killed one of its commanders.
Aerial attacks on both sides escalated, with Hezbollah saying that it carried out an attack “with a fleet of suicide drones on the Khirbet Maer base, destroying part of it.”
The attack was in response to the killing of a senior Hezbollah commander, Sami Hassan Taleb, nicknamed Abu Taleb, along with three others, in an Israeli attack on their location in Jouaiyya several days ago.
Israeli Army Radio reported that a fire erupted in the Goren settlement in western Galilee after several Hezbollah drones struck the area.
As part of the escalation, Hezbollah targeted the headquarters of the air surveillance and operations management unit at the Meron base.
Israeli media outlets said that “two anti-armor missiles launched from the Meron base were targeted.”
Hezbollah said that it struck a group of Israeli soldiers at the Hadab Yaron site with a missile, killing or injuring several.
An Israeli military drone strike early on Saturday killed a motorcyclist at the Bint Jbeil–Maroun Ras intersection. Another person was injured in the resulting fire.
The outskirts of Deir Mimas and the Aaziyyeh Hill were subject to phosphorus shelling, causing fires to erupt in forests.
Israeli army spokesperson Avichay Adraee claimed that “an air force plane targeted a Hezbollah vandal in Aitaroun,” adding that “the Israeli army shelled the area with artillery.”
