Lebanon's new Cabinet holds its first meeting amid protests

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Lebanon's new Cabinet holds its first meeting amid protests

2020-01-22 18:39 Last Updated At：18:50

Lebanon's new government held its first meeting on Wednesday, a day after it was formed following a three-month-long political vacuum. But even as the government convened, protesters briefly closed off major roads in and around Beirut, denouncing it as a rubber stamp for the same political parties they blame for widespread corruption.

The new Cabinet, which has the support of the powerful militant Hezbollah group and its allies, has a monumental task ahead — including getting Lebanon out of its worst economic and financial crisis since the 1975-90 civil war. The crisis worsened since mass protests against the political elite started in mid-October, leading to the resignation of Prime Minister Saad Hariri's government two weeks later.

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President Michel Aoun, second right, arrives to the cabinet meeting at the presidential palace in Baabda, east of Beirut, Lebanon, Wednesday, Jan. 22, 2020. A new Cabinet has been announced last night in crisis-hit Lebanon, breaking a months-long impasse amid mass protests against the country's ruling elite. (AP PhotoHassan Ammar)

Lebanon's new government held its first meeting on Wednesday, a day after it was formed following a three-month-long political vacuum. But even as the government convened, protesters briefly closed off major roads in and around Beirut, denouncing it as a rubber stamp for the same political parties they blame for widespread corruption.

Anti-government protesters wave a Lebanese flag and hide behind a wood barrier from a water cannon as they clash with the riot police during a protest against the new government, near the parliament square, in Beirut, Lebanon, Wednesday, Jan. 22, 2020. A new Cabinet was announced in crisis-hit Lebanon late Tuesday, breaking a months-long impasse amid mass protests against the country's ruling elite and a crippling financial crisis, but demonstrations and violence continued. (AP PhotoHussein Malla)

Analysts say the new government, being politically aligned with the Iranian-backed Hezbollah, would likely have difficulty drumming up international and regional support needed to avoid economic collapse.

Anti-government protesters hide behind a wood barrier from a water cannon as they clash with the riot police during a protest against the new government, near the parliament square, in Beirut, Lebanon, Wednesday, Jan. 22, 2020. A new Cabinet was announced in crisis-hit Lebanon late Tuesday, breaking a months-long impasse amid mass protests against the country's ruling elite and a crippling financial crisis, but demonstrations and violence continued. (AP PhotoHussein Malla)

Also Wednesday, the U.S. dollar was being bought at exchange shops around the country for 2,000 Lebanese pounds, after hitting a record of 2,500 pounds to the dollar last week. The official rate remained at 1,507 pounds to the dollar. Panic and anger have gripped the public as the pound, pegged to the dollar for more than two decades, plummeted in value. It fell more than 60% in recent weeks on the black market.

President Michel Aoun, center, speaks with Prime Minister Hassan Diab, center left, during the cabinet meeting at the presidential palace in Baabda, east of Beirut, Lebanon, Wednesday, Jan. 22, 2020. A new Cabinet has been announced last night in crisis-hit Lebanon, breaking a months-long impasse amid mass protests against the country's ruling elite. (AP PhotoHassan Ammar)

An anti-government protester throws stones at the riot police during a protest against the new government, near the parliament square, in Beirut, Lebanon, Wednesday, Jan. 22, 2020. A new Cabinet was announced in crisis-hit Lebanon late Tuesday, breaking a months-long impasse amid mass protests against the country's ruling elite and a crippling financial crisis, but demonstrations and violence continued. (AP PhotoHussein Malla)

An anti-government protester prepares to throw a molotov cocktail at the riot police during a protest against the new government, near the parliament square, in Beirut, Lebanon, Wednesday, Jan. 22, 2020. A new Cabinet was announced in crisis-hit Lebanon late Tuesday, breaking a months-long impasse amid mass protests against the country's ruling elite and a crippling financial crisis, but demonstrations and violence continued. (AP PhotoHussein Malla)

Anti-government protesters hide behind a wood barrier as they clash with the riot police during a protest against the new government, near the parliament square, in Beirut, Lebanon, Wednesday, Jan. 22, 2020. A new Cabinet was announced in crisis-hit Lebanon late Tuesday, breaking a months-long impasse amid mass protests against the country's ruling elite and a crippling financial crisis, but demonstrations and violence continued. (AP PhotoHussein Malla)

An anti-government protester is sprayed by a water cannon as he films by his mobile phone during a protest against the new government, near the parliament square, in Beirut, Lebanon, Wednesday, Jan. 22, 2020. A new Cabinet was announced in crisis-hit Lebanon late Tuesday, breaking a months-long impasse amid mass protests against the country's ruling elite and a crippling financial crisis, but demonstrations and violence continued. (AP PhotoHussein Malla)

Anti-government protesters are sprayed by a water cannon as they clash with the riot police, during a protest against the new government, near the parliament square, in Beirut, Lebanon, Wednesday, Jan. 22, 2020. A new Cabinet was announced in crisis-hit Lebanon late Tuesday, breaking a months-long impasse amid mass protests against the country's ruling elite and a crippling financial crisis, but demonstrations and violence continued. (AP PhotoHussein Malla)

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Lebanon's new government held its first meeting on Wednesday, a day after it was formed following a three-month-long political vacuum. But even as the government convened, protesters briefly closed off major roads in and around Beirut, denouncing it as a rubber stamp for the same political parties they blame for widespread corruption.

Analysts say the new government, being politically aligned with the Iranian-backed Hezbollah, would likely have difficulty drumming up international and regional support needed to avoid economic collapse.

Also Wednesday, the U.S. dollar was being bought at exchange shops around the country for 2,000 Lebanese pounds, after hitting a record of 2,500 pounds to the dollar last week. The official rate remained at 1,507 pounds to the dollar. Panic and anger have gripped the public as the pound, pegged to the dollar for more than two decades, plummeted in value. It fell more than 60% in recent weeks on the black market.

President Michel Aoun, center, speaks with Prime Minister Hassan Diab, center left, during the cabinet meeting at the presidential palace in Baabda, east of Beirut, Lebanon, Wednesday, Jan. 22, 2020. A new Cabinet has been announced last night in crisis-hit Lebanon, breaking a months-long impasse amid mass protests against the country's ruling elite. (AP PhotoHassan Ammar)

An anti-government protester throws stones at the riot police during a protest against the new government, near the parliament square, in Beirut, Lebanon, Wednesday, Jan. 22, 2020. A new Cabinet was announced in crisis-hit Lebanon late Tuesday, breaking a months-long impasse amid mass protests against the country's ruling elite and a crippling financial crisis, but demonstrations and violence continued. (AP PhotoHussein Malla)

An anti-government protester prepares to throw a molotov cocktail at the riot police during a protest against the new government, near the parliament square, in Beirut, Lebanon, Wednesday, Jan. 22, 2020. A new Cabinet was announced in crisis-hit Lebanon late Tuesday, breaking a months-long impasse amid mass protests against the country's ruling elite and a crippling financial crisis, but demonstrations and violence continued. (AP PhotoHussein Malla)

Anti-government protesters hide behind a wood barrier as they clash with the riot police during a protest against the new government, near the parliament square, in Beirut, Lebanon, Wednesday, Jan. 22, 2020. A new Cabinet was announced in crisis-hit Lebanon late Tuesday, breaking a months-long impasse amid mass protests against the country's ruling elite and a crippling financial crisis, but demonstrations and violence continued. (AP PhotoHussein Malla)

An anti-government protester is sprayed by a water cannon as he films by his mobile phone during a protest against the new government, near the parliament square, in Beirut, Lebanon, Wednesday, Jan. 22, 2020. A new Cabinet was announced in crisis-hit Lebanon late Tuesday, breaking a months-long impasse amid mass protests against the country's ruling elite and a crippling financial crisis, but demonstrations and violence continued. (AP PhotoHussein Malla)

Anti-government protesters are sprayed by a water cannon as they clash with the riot police, during a protest against the new government, near the parliament square, in Beirut, Lebanon, Wednesday, Jan. 22, 2020. A new Cabinet was announced in crisis-hit Lebanon late Tuesday, breaking a months-long impasse amid mass protests against the country's ruling elite and a crippling financial crisis, but demonstrations and violence continued. (AP PhotoHussein Malla)

Prime Minister Hassan Diab and the ministers held the first meeting at the presidential palace in Beirut; President Michel Aoun attended the session. The 20-member Cabinet is made up mostly of specialists and includes six women — a record number for Lebanon — holding key ministries, including those of defense, justice and labor.

Analysts say the new government, being politically aligned with the Iranian-backed Hezbollah, would likely have difficulty drumming up international and regional support needed to avoid economic collapse.

Hezbollah is considered a terrorist organization by the U.S. and oil-rich gulf countries whose support is badly needed for debt-ridden Lebanon. The European Union considers the military wing of Hezbollah a terrorist organization.

U.N. Secretary-General Antonio Guterres welcomed the formation of a new government, saying "he looks forward to working with" Diab and his Cabinet, "including in support of Lebanon's reform agenda and to address the pressing needs of its people."

Also Wednesday, the U.S. dollar was being bought at exchange shops around the country for 2,000 Lebanese pounds, after hitting a record of 2,500 pounds to the dollar last week. The official rate remained at 1,507 pounds to the dollar. Panic and anger have gripped the public as the pound, pegged to the dollar for more than two decades, plummeted in value. It fell more than 60% in recent weeks on the black market.

The economy has seen no growth and flows of foreign currency dried up in the already heavily indebted country that relies on imports for most basic goods.

Poverty in Lebanon tripled over a decade, World Bank says

2024-05-23 19:40 Last Updated At：19:50

BEIRUT (AP) — 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% in 2012 to 44% 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% to 2% of the population during the decade surveyed, while in the largely neglected Akkar region in the north, the rate increased from 22% to 62%.

Among Lebanese surveyed, the poverty rate in 2022 was 33%, while among Syrians it reached 87%. 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% of Lebanese and 100% 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% 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.

Lebanon's new Cabinet holds its first meeting amid protests

News

Lebanon's new Cabinet holds its first meeting amid protests

Analysts say the new government, being politically aligned with the Iranian-backed Hezbollah, would likely have difficulty drumming up international and regional support needed to avoid economic collapse.

Analysts say the new government, being politically aligned with the Iranian-backed Hezbollah, would likely have difficulty drumming up international and regional support needed to avoid economic collapse.

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Lebanon&#039;s new Cabinet holds its first meeting amid protests

Lebanon&#039;s new Cabinet holds its first meeting amid protests

Analysts say the new government, being politically aligned with the Iranian-backed Hezbollah, would likely have difficulty drumming up international and regional support needed to avoid economic collapse.

Analysts say the new government, being politically aligned with the Iranian-backed Hezbollah, would likely have difficulty drumming up international and regional support needed to avoid economic collapse.

Next Article

Poverty in Lebanon tripled over a decade, World Bank says

8 EU members say conditions in Syria should be reassessed to allow voluntary refugee returns

Hezbollah introduces new weapons and tactics against Israel as war in Gaza drags on

Latinos found jobs and cheap housing in a Pennsylvania city but political power has proven elusive

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Lebanon's new Cabinet holds its first meeting amid protests

Lebanon's new Cabinet holds its first meeting amid protests