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Begin New Search Topic Politics Author Hanin Ghaddar

1. Cash Cabal: How Hezbollah Profits from Lebanon's Financial Crisis

Author:
Samara Azzi and Hanin Ghaddar
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
In March 2020, Lebanon opted for a “hard default” on $32 billion in sovereign debt, allowing the government to avoid negotiating with its Eurobond holders and investors. Beirut thereafter showed little interest in addressing the consequences of default, and the country’s economic meltdown worsened. As usual, the Lebanese people were the casualties, suffering amid what the World Bank has called a “deliberate depression.” This official negligence has cleared the way for a proliferating cash economy—which in turn has spawned a currency exchange scheme involving the central bank, foreign exchange agents, and Lebanese politicians. Hezbollah specifically has profited in areas ranging from real estate to solar energy, pharmaceuticals, and the illicit Captagon trade. In this Policy Note, authors Samara Azzi and Hanin Ghaddar—a venture capitalist and a former Lebanese journalist—skillfully diagram the corrupt status quo and explain why entrenched actors want to avoid systemic change. But as the study makes clear, the future health of the Lebanese economy requires an overhaul, and the international community must now press for deep reforms and personal accountability.
Topic:
Politics, Non State Actors, Financial Crisis, Economy, Hezbollah, and Shia Islam
Political Geography:
Middle East and Lebanon

2. A Strategy to Contain Hezbollah: Ideas and Recommendations

Author:
Hanin Ghaddar
Publication Date:
08-2021
Content Type:
Special Report
Institution:
The Washington Institute for Near East Policy
Abstract:
Since securing a parliamentary majority, the group has consistently prioritized its own interests over those of the Lebanese people through practices such as illicit drug production, sex trafficking, and the buildup of its military arsenal. When Lebanese took to the streets in October 2019 to rail against government corruption, a lack of accountability, and runaway consumer prices, they coalesced around the chant “All of them!”—meaning that every political actor in the country held some blame for the national meltdown. But the slogan glossed over the important fact that one group in particular, Hezbollah, deserved the most blame. Since notching a parliamentary majority in 2018, the Iran-backed military-political organization has consistently prioritized its own interests over those of the Lebanese people through practices such as illicit drug production, sex trafficking, and—of course—the buildup of its military arsenal. In this Policy Note, Hanin Ghaddar, an expert on Lebanon who worked for years as a journalist in the country, explains why Hezbollah poses such a menace and what the international community can do about it. Foremost, she recommends that the United States and its partners intensify pressure on Hezbollah and its Iranian sponsor while simultaneously engaging with a new generation of Lebanese who want to free themselves from the group’s stranglehold.
Topic:
Foreign Policy, Politics, Democracy, Hezbollah, and Shia
Political Geography:
Iran, Middle East, and Lebanon

3. Hezbollah Has a New Strategy to Survive Lebanon’s Financial Crisis

Author:
Hanin Ghaddar
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Unless Washington and its allies respond to the protestors’ legitimate demands for reform, the group will survive through measures such as expanding its smuggling activity, promoting its financial institutions, and selectively scapegoating corrupt politicians. When IMF officials visited Lebanon late last month amid its accelerating economic freefall, many wondered whether these developments might alter the behavior of Hezbollah, the designated terrorist group that has a deep financial stake in the country’s public and private sectors. During a previous funding crisis—the increase in U.S. sanctions against the group’s chief underwriter, Iran—the “Party of God” and its foreign sponsors formulated a new strategy to evade these measures and create alternative sources of funding. Such sources allowed Hezbollah to make further inroads into government agencies following the 2018 parliamentary elections. For example, the group’s leaders insisted on controlling the Health Ministry, which commands Lebanon’s fourth-largest budget at $338 million per year; they also gained more access to the Ministry of Public Works and Transport, the Agriculture Ministry, and the Ministry of Energy and Water, whose assistance was used to fund their affiliated projects and businesses. That worked until Lebanon’s own economy began its current nosedive. Unemployment has hit a record high of 40 percent, and the lira has slumped by about 60 percent on the parallel market, hiking inflation. Officially pegged to the dollar, the currency has plummeted 40 percent on the black market as local banks ration dollars necessary for imports of food, medicine, and other essential goods. Meanwhile, Lebanon has one of the highest debt-to-GDP ratios in the world (over 150 percent) and may not be able to pay $1.2 billion in Eurobonds this month. As with the Iran sanctions, however, Hezbollah has a strategy to survive this domestic pressure, at least in the near term.
Topic:
Foreign Policy, Corruption, Debt, Politics, Protests, and Hezbollah
Political Geography:
Middle East, Lebanon, and United States of America