Lebanon’s Crisis: Economic Despair Amidst Political Corruption and International Aid
“About 80 percent of the population is below the poverty line and 36 percent is below the ‘extreme poverty line’, living on less than $2.15 a day.”
The Economic Crisis in Lebanon: The Effects of Political Corruption and EU Assistance
The country's prolonged economic crisis, which has been plaguing Lebanon since 2019, has had a terrible impact on people's day-to-day life. Savings have been completely destroyed, and poverty has spread widely as a result of the Lebanese pound falling to less than 10% of its pre-crisis value. In this regard, there has been mixed reaction to a recent 1 billion euro ($1.06 billion) agreement with the European Union, which was intended to ease some of Lebanon's economic difficulties. This analysis explores the political and legal ramifications of the agreement, looking at how it might affect the rights of the people and the stability of Lebanon.
Political Setting and Incentives
Tensions inside Lebanon have increased as a result of the economic crisis, especially in relation to the country's Syrian refugee population. EU President Ursula von der Leyen has emphasised that the financial aid package is allegedly intended to enhance the well-being of both host communities and migrants. But a large amount of the money is used to keep immigrants from applying for asylum in Europe, indicating that this is more of a politically driven tactic than a humanitarian one.
Politically speaking, the EU's aid package can be viewed as a way to alleviate Europe's concerns about migration while simultaneously bringing Lebanon under temporary stability. This tactic fits well with larger European plans that aim to externalise control over immigration to surrounding areas. This strategy, nevertheless, has drawn criticism for possibly allowing Lebanon's political class to hold onto power without addressing the root causes of mismanagement and corruption.
Human rights and legal issues
Human rights organisations have strongly criticised the EU's aid agreement, claiming that it essentially rewards the Lebanese government in spite of its disregard for the rights of Syrian refugees. Serious ethical and legal concerns have been brought up by reports of coerced and summary deportations of Syrians, including opposition activists and army defectors. Human Rights Watch's Ramzi Kaiss emphasised these worries and denounced the EU for giving money that might be interpreted as supporting these kinds of actions.
More than 13,000 Syrian refugees were deported via the "voluntary return" program in 2023 alone. This scheme has drawn strong criticism. These returns are anything but voluntary due to the ongoing fighting in Syria and the unfriendly atmosphere in Lebanon, which puts refugees in even greater danger. Supporting such actions has legal ramifications that put the EU's commitment to defending international law and human rights at jeopardy.
Social and Economic Consequences
Despite being significant, the EU's economic assistance might not deal with the underlying reasons of Lebanon's financial catastrophe. Even the Finance Minister of Lebanon has acknowledged the possibility of financial embezzlement, demonstrating how widespread corruption still is. The financial system in Lebanon lacks accountability and transparency, which means that help meant to promote economic recovery and reduce poverty may wind up lining the coffers of dishonest authorities and businesspeople.
The poorest and most vulnerable people in Lebanon are disproportionately impacted by the current budget that the parliament passed, which includes lower progressive taxes and higher value-added taxes. It has been said that this budgetary strategy exacerbates inequality and falls short of providing sufficient social safety nets. According to Farah Al Shami of the Arab Reform Initiative, these policies make it more difficult for people to achieve their fundamental necessities, which perpetuates poverty.
International Reform and Pressure
International financial organisations, such as the International Monetary Fund (IMF) and the World Bank, have stressed the necessity of changes to raise accountability, transparency, and inclusion in Lebanon. The Lebanese political establishment, however, has opposed these changes out of concern that more transparency would reveal their unethical behaviour. The much-needed $3 billion IMF plan that may help stabilise Lebanon's economy has been delayed by this resistance.
Even while the EU's aid package offers instant relief, the status quo might unintentionally be maintained. The EU runs the risk of encouraging more mismanagement and falling short of its goal of achieving long-term stability and growth for Lebanon by keeping up its engagement with a corrupt political elite. Opponents contend that such financing will not result in significant reform in the absence of strict requirements and control.
A Difficult Balance
The intricate interplay among political objectives, legal requirements, and humanitarian necessities is best shown by the situation in Lebanon. Even though the EU's aid package provides some relief, it also highlights how difficult it is to handle economic problems in environments where corruption and violations of human rights are pervasive. Going forward, to make sure that aid actually helps the Lebanese people and tackles the crisis's underlying causes, a more balanced strategy that combines urgent relief with strict conditions for reform and accountability may be required.
Final Thoughts
A complex problem is presented by Lebanon's economic crisis, which is exacerbated by governmental corruption and the influx of Syrian refugees. While offering vital help, the EU's aid package emphasises the need for a balanced strategy that strikes a balance between short-term relief and long-term reforms. Strong oversight, a dedication to preserving human rights, and openness are necessary to guarantee that aid reaches people in need and fosters sustainable development. Lebanon can only expect to escape its current situation and create a more secure and just future for all of its people by taking such steps.