“Lebanon is on the verge of a social explosion,” stated Hassan Diab, the temporary Prime Minister of Lebanon. “They are on their own in this critical situation.” They are confronted with a deluge of financial, economic, and political issues, all of which have worsened living conditions.
Last October, a major explosion rocked Beirut, the country’s capital, largest city, and most important port, killing approximately 200 people and destroying the port. The explosion exacerbated an already difficult situation.
Lebanon’s crisis is the result of the government’s deficit spending, unsustainable monetary policies, and ensuing political and social ramifications, as reported by the media.
What is the nature of Lebanon’s financial and economic crisis?
According to a media report, the World Bank believes Lebanon’s financial and economic status to be among the worst in contemporary history. According to news outlets, the country’s currency has lost about 90% of its value since fall 2019.
As stated by the media, Lebanon’s GDP has decreased by 40% since fall 019. The news channels also reported that imported items have become increasingly rare or even impossible to find.
Over the last few months, unemployment has soared, and food costs have tripled, leaving 77 per cent of household’s unable to purchase food.
What is the political and socioeconomic crisis in Lebanon?
There is currently no government in Lebanon. Following the Beirut port explosion last fall, the cabinet resigned. The administration has remained in place in a caretaker capacity, but it no longer has the power to make major policy choices.
- Since the resignation of the cabinet, political parties have continued to feud over the makeup of the next administration and have yet to reach an agreement, according to The News networks.
- The current caretaker administration lacks the authority to negotiate a rescue agreement with the IMF or to enact a recovery plan.
Civil unrest has erupted across Lebanon as a result of deteriorating living circumstances. Although the government has dispatched troops to the demonstrators, caretaker Prime Minister Diab has warned that more unrest is on the way.
What is the extent of the deterioration in living conditions?
Fuel lines have begun to wrap around the block, with wait times of up to an hour, while prices have risen by 50%. According to reports in the media, medical importers have run out of hundreds of important pharmaceuticals and have warned of impending shortages.
- Power outages can continue up to 22 hours a day, posing a serious threat to those with medical issues who require regular treatment. According to The News networks, there is a widespread belief that Lebabon is “coming undone.”
Is there any way to stop the ‘social explosion’?
The Lebanese Parliament passed a law authorising the expenditure of $556 million on a ration card scheme, but no plan or explanation for how the programme will be implemented or paid for has been presented.
- On Tuesday, Caretaker Prime Minister requested foreign assistance.
- In response, the Qatari government has pledged to offer food assistance to Lebanese troops.
- Previously, international authorities — such as the World Bank and European Union — have maintained that Lebanon must establish a new government before receiving assistance
The crisis is anticipated to continue, according to the World Bank’s June report.