More than 80 per cent of Lebanese now live in poverty. AFP
More than 80 per cent of Lebanese now live in poverty. AFP
More than 80 per cent of Lebanese now live in poverty. AFP
More than 80 per cent of Lebanese now live in poverty. AFP


The debasement and death of my generation's Lebanon


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  • Arabic

September 28, 2023

When Lebanon turned 100 in September 2020, very few Lebanese celebrated. Many of them realised that, for all intents and purposes, their country had more or less ended as a commonwealth of the country’s sectarian communities. What remains is a dysfunctional place in which any shared sense of national community appears to be dead.

That’s not surprising, and everyday events only reaffirm this. A delegation from the International Monetary Fund visited Beirut two weeks ago, and the general impression after they had left was that the members of Lebanon’s political and financial elite have no intention of implementing IMF reforms to address the financial collapse of 2019.

In pursuit of their personal or sectoral interests, this elite prefers to do nothing rather than adopt reforms that might save at least a portion of the deposits of a large number of Lebanese. An estimated 80 per cent of the population lives below the poverty line.

In other words, the minimal responsibility of the political and financial leadership, which is to work for the benefit of the country’s population, is utterly absent. Instead, leaders help only their communities, and almost always only in ways that enhance their power over them, while doing nothing that can revive Lebanon as a nation.

However, it would be naive to assume that financial and economic reforms are a panacea for Lebanon’s problems. What collapsed in October 2019 was much more than the country’s economy. It was an entire system of governance that had emerged from the civil war of 1975-1990. This system was effectively a transposition of the wartime order to a peacetime order in which former militia leaders captured the state.

Sectarian wartime leaders took over ministries and began profiting from post-war reconstruction. The impresario of this post-war order was Rafiq Hariri, who had the credibility and energy to attract foreign capital. His appointment was the consequence of an understanding between Saudi Arabia and Syria, in which Mr Hariri would manage the economy and reconstruction while Syria would run political affairs.

Syrian dominance led to two main developments: the systematic undermining of constitutional principles, as Lebanon’s basic law was violated time and again, or manipulated in such a way that it created precedents that were entirely at odds with the intentions of the framers of the constitution.

The minimal responsibility of the political and financial leadership is utterly absent

And second, Syria decided that Hezbollah and other pro-Syrian groups would not be disarmed as most militias had been, because they were engaged in “resistance” against Israel. This allowed Hezbollah to build up a weapons arsenal so that in 2005, after the withdrawal of Syrian forces, the party emerged as the dominant force in Lebanon, imposing its will on all and contributing to the demise of the sectarian social contract.

And lest we blame only the Lebanese for what happened, the post-war system was blessed by the international community and the Arab world, who gave Syria free rein to impose its preferences on the country. Lebanon’s abandonment to former gunmen and to a Syrian regime that devastated its national institutions was a collective crime.

The reality today is that the Lebanese system has run its course. The shocking wastefulness of the post-war years, in which the financial order was built around funding the political and financial elite, is dead. Society has lost all confidence in the banking sector, which continues to rob them on a daily basis. The former governor of the central bank, Riad Salameh, for so long praised as the guru of Lebanon’s financial success, was shown to be a grifter who only delayed and compounded the country’s ruin.

Despite all this, the post-war ruling class appears to have no proposal to take Lebanon out of its mess. Now that they cannot unite around collectively plundering the state, the politicians are more divided than ever, agreeing only that IMF reforms could weaken their position by changing their way of doing things and generating popular unrest.

It’s in that context that we must understand Lebanon’s inability to rally around a unifying figure they can elect to the presidency. Constitutionally, the president is the “symbol of the nation’s unity”, except that today the presidency is nothing more than the embodiment of Lebanon’s chronic absence of unity. Therefore, in being incapable of agreeing on a successor to Michel Aoun, the country’s political forces have sounded the death knell of the Second Republic, which followed the Taif Accord of 1989.

Lebanon finds itself in a destructive limbo today – caught between a system that doesn’t work and that is rejected by a majority of the population, but that is also remarkably resilient because most Lebanese remain, paradoxically, loyal to their sectarian leaderships. In light of this stalemate, the country’s dissolution is likely to continue, with no prospect of resurrecting the system on more solid, consensual foundations.

As the system pursues its decline, other dynamics are coming into play to make any revival all but impossible. Hezbollah is profiting from the vacuum at the level of the state to expand its margin of manoeuvre and advance Iranian regional interests, not least on the Palestinian front. Thousands of Syrians are entering Lebanon every day, escaping the dire economic conditions in Syria, further altering Lebanese demographics.

Such developments will only increase sectarian anxieties and tensions, pushing all communities to harden their position. Even the war years were not as bad as things are today. The Lebanon my generation knew is gone. What remains is a crippled country that does not even have the means to acknowledge its own passing.

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Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
PROFILE OF HALAN

Started: November 2017

Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga

Based: Cairo, Egypt

Sector: transport and logistics

Size: 150 employees

Investment: approximately $8 million

Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar

Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.

 

 

Three trading apps to try

Sharad Nair recommends three investment apps for UAE residents:

  • For beginners or people who want to start investing with limited capital, Mr Nair suggests eToro. “The low fees and low minimum balance requirements make the platform more accessible,” he says. “The user interface is straightforward to understand and operate, while its social element may help ease beginners into the idea of investing money by looking to a virtual community.”
  • If you’re an experienced investor, and have $10,000 or more to invest, consider Saxo Bank. “Saxo Bank offers a more comprehensive trading platform with advanced features and insight for more experienced users. It offers a more personalised approach to opening and operating an account on their platform,” he says.
  • Finally, StashAway could work for those who want a hands-off approach to their investing. “It removes one of the biggest challenges for novice traders: picking the securities in their portfolio,” Mr Nair says. “A goal-based approach or view towards investing can help motivate residents who may usually shy away from investment platforms.”
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The specs

Engine: 1.5-litre 4-cylinder petrol

Power: 154bhp

Torque: 250Nm

Transmission: 7-speed automatic with 8-speed sports option 

Price: From Dh79,600

On sale: Now

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

THE TWIN BIO

Their favourite city: Dubai

Their favourite food: Khaleeji

Their favourite past-time : walking on the beach

Their favorite quote: ‘we rise by lifting others’ by Robert Ingersoll

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

The specs

Engine: 2.9-litre, V6 twin-turbo

Transmission: seven-speed PDK dual clutch automatic

Power: 375bhp

Torque: 520Nm

Price: Dh332,800

On sale: now

States of Passion by Nihad Sirees,
Pushkin Press

Updated: September 28, 2023, 1:12 PM`