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VIT Today

Lebanon In Crisis

By Joel Konrad Minj

Lebanon was already facing an economic and political crisis. Then came a

deadly blast that hit Beirut on Tuesday 4th August killing at least 150

people and thousands wounded. The blast ranks as the world’s largest

non-nuclear explosion. The explosion took place in Beirut’s port area where

2,700 tons of ammonium nitrate was stored in a warehouse meant for the

use in agricultural fertilizer, bombs, and rockets. It was stored inside the

warehouse since 2014 seized by the customs authorities. A massive plume

of reddish-hued gas was released into the atmosphere visible from miles

away.


“I promise you that this catastrophe will not pass without accountability,”

Hassan Diab said during a televised address. Government officials have

announced that they knew about the stored ammonium nitrate. The

negligence has brought more fury into people, resuming the

anti-government protest started over Lebanon’s failing economy which was

largely stopped due to COVID-19 pandemic.


Anti-government protests broke out on October 17, 2019, when the

government proposed new taxes. People accusing the political leadership

of corruption and demand for social and economic reforms.

It all started after the 15 - year civil war in 1990 when the country pegged

its currency Lebanon’s lira to the US dollar. This was done in order to

attract foreign investors and boost the tourism and service sector.

Hezbollah, a Shia ally and militant group, got involved in the political matter

due to Israel's occupation of southern Lebanon, which abrupted the

country’s growth since then.


Lebanon’s Central Bank exchange rate was 1,507 lira to $1. Since the

country is highly dependent on imports, the fixed-rate kept the prices of the products down. But governmental dysfunction and corruption got Lebanon run

out of their resources and money. Hence, losing about 80% of the currency

value and daily electricity blackouts, unreliable internet access, outrageous

telecommunication costs, an inability to alleviate persistent unemployment.


Lebanon became the fifth-most indebted nation in the world relative to

GDP. Private banks acquiring more loans adding to the debt. The deadly

blast will add up to the nationwide anti-government demonstration “The situation is definitely dire: political crisis, economic crisis, lack of resources,

the pandemic, and now the explosion,” Laura Bell, a Lebanon expert at

West Texas A&M University, told. “Lebanon could easily become a failed

state if leadership and international assistance is not adequate.”

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