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1. 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

2. Syria’s Economic Crisis Sparks Rare Protests in Regime Territory

Author:
Oula A. Alrifai
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Besides highlighting Assad’s financial mismanagement, the recent unrest gives the international community a genuine opportunity to push for transition while bolstering the more prosperous local administration in the northeast. Since mid-January, shop owners, government employees, students, and even children have been gathering in the streets of various Syrian communities to express their frustration with the Assad regime’s economic policies and untruths. Although the protests remain small for now, the fact that they have persistently carried on in the middle of regime-controlled territory highlights Bashar al-Assad’s potential vulnerability on these issues. In Suwayda, a Druze-majority province in the south, residents have protested the sharp drop in the value of the Syrian pound/lira and the deteriorating economic situation in general. In the central-western town of Salamiya, protestors were seen chanting “we want to live.” And in the Suwayda town of Shahba, demonstrators raised loaves of bread in the air while openly criticizing Bouthaina Shaaban, Assad’s political and media advisor. The latter protest was partly spurred by a recent interview on the pro-Assad television network al-Mayadeen, where Shaaban not only claimed that the country’s current economy is “fifty times better than what it was in 2011,” but also declared that “Syrians are self-sufficient in everything.” In response, protestors sarcastically noted that her comments referred to her own household’s economy, not Syria’s. Elsewhere, former agriculture minister Nour al-Din Manna described Shaaban’s remarks about the war-torn country as “hard to believe,” and a closer look at the country’s finances supports this disbelief.
Topic:
Foreign Policy, Economics, Syrian War, and Currency
Political Geography:
Middle East, Lebanon, Syria, and United States of America

3. Implications of the Coronavirus Pandemic on the Stability of Iran and the Regional Situation

Author:
Marcin Andrzej Piotrowski
Publication Date:
04-2020
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
Iran’s official figures on cases and deaths from COVID-19 (the disease resulting from coronavirus, SARS-CoV-2) do not reflect the real scale of the pandemic in that country, which might be among the hardest hit in the world. The pandemic will deepen the economic crisis and disfunction of the state, becoming a challenge to Iran’s ruling elite. The regime might survive thanks to the security apparatus and, in parallel, continue its support of Shia militias in Lebanon, Iraq, and Yemen, and the Syrian government. Only the succession of power after Ali Khamenei will be the real test of the coherence of the Iranian elite, and in case of disruption, it might result in the collapse of Iran’s theocracy.
Topic:
Security, Foreign Policy, Economics, Government, Health, Coronavirus, Pandemic, and Elites
Political Geography:
Iraq, Iran, Middle East, Yemen, Lebanon, and Syrian Arab Republic

4. Time to Change Course on the UN’s Lebanon Policy

Author:
Assaf Orion
Publication Date:
08-2019
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Serious change is required to avoid decisions that accommodate Hezbollah’s ends, ways, and means, and a vital first step is to look at current policy mechanics with a clear eye. With this month marking the thirteenth anniversary of UN Security Council Resolution 1701 and the end of the 2006 Lebanon war, the council will soon hold its yearly debates about renewing the mandate of the UN Interim Force in Lebanon. Contrasting the Secretary General’s latest report on 1701 with thirteen years of lessons learned reveals a clear pattern: the victory of consciously false hopes over hard experience, particularly when viewed from Israel’s perspective. Breaking this pattern will require substantial changes to the force’s size, mission, and conduct.
Topic:
Conflict Prevention, Foreign Policy, United Nations, Governance, and Hezbollah
Political Geography:
Middle East, Lebanon, and United States of America

5. Hezbollah Prioritizes Its Own Interests, Putting Lebanon at Risk

Author:
Matthew Levitt
Publication Date:
10-2019
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
As demonstrators rail against economic problems, corruption, and sectarianism, the group’s role in undermining the public’s financial and physical security is coming under greater scrutiny. Lebanese citizens took to the streets this weekend to protest the country’s acute financial crisis, which has been marked by one of the highest debt ratios in the world, a new currency crisis, and fears that a strike will close gas stations indefinitely. Many believe that deep-rooted corruption and sectarianism got them into this mess, and may now complicate efforts to get them out. Against this backdrop, more criticism is being directed at Hezbollah, the widely designated terrorist organization that is simultaneously the most powerful party in Lebanon’s government and an aggressively sectarian movement that keeps its activities and weapons outside the government’s control. As the Treasury Department recently noted, developments over the past few weeks have underscored the extent to which the group’s actions “prioritize its interests, and those of its chief sponsor, Iran, over the welfare of Lebanese citizens and Lebanon’s economy.”
Topic:
Foreign Policy, Corruption, Financial Crisis, Protests, and Hezbollah
Political Geography:
Middle East and Lebanon

6. Guiding Principles for Israel’s Foreign Policy toward the Eastern Mediterranean

Author:
Mitvim
Publication Date:
04-2019
Content Type:
Working Paper
Institution:
Mitvim: The Israeli Institute for Regional Foreign Policies
Abstract:
In recent years, the Eastern Mediterranean has become a central focus of world powers, of states in the Middle East, Europe, and beyond, and of international corporations. Regional geopolitical developments, as well as economic opportunities generated by natural gas discoveries in the Mediterranean, have contributed to this trend and turned the Eastern Mediterranean into a distinct sub-region perceived as having unique features. Israel plays a central role in this development. Israeli diplomacy identified these trends correctly, successfully becoming an active and dominant player in the region. The natural gas findings in Israel’s exclusive economic zone (EEZ) provide it with a wider range of diplomatic options, helping it promote relationships with various states in the region; including some engaged in conflict with each other. Israelis regard the Mediterranean as an important component of their identity, as reflected in the 2018 Israeli Foreign Policy Index of the Mitvim Institute, in which 22 percent of those surveyed claimed Israel belongs predominantly to this region (compared with 28 percent who said it belongs to the Middle East and 23 percent to Europe).
Topic:
Foreign Policy, Diplomacy, Conflict, and Peace
Political Geography:
Turkey, Middle East, Israel, Greece, Palestine, Lebanon, Cyprus, and Mediterranean

7. Mobilizing Memories

Author:
Carol Graham
Publication Date:
04-2019
Content Type:
Special Report
Institution:
Center for Contemporary Arab Studies
Abstract:
Carol Madison Graham (MAAS ’81) was the first MAAS graduate to enter the United States Foreign Service. She reflects on how the 1984 embassy bombing in Beirut inspired her current work to strengthen the Foreign Service for future generations.
Topic:
Foreign Policy, Diplomacy, Violence, and Memoir
Political Geography:
Middle East, Lebanon, North America, and United States of America

8. Serving Citizens Abroad in Times of War

Author:
Julie A. Eadeh
Publication Date:
05-2019
Content Type:
Special Report
Institution:
Center for Contemporary Arab Studies
Abstract:
For MAAS alum Julie Eadeh, diplomacy is all about human relationships, whether building connections with local communities or helping Americans abroad in times of crisis.
Topic:
Foreign Policy, Diplomacy, War, and Hezbollah
Political Geography:
Middle East, Lebanon, North America, and United States of America

9. Sectarian Actors in Foreign Policy Making: 2006 Lebanese War Revisited

Author:
Murat Tinas and Özlem Tür
Publication Date:
01-2019
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
This paper analyses the role of sub-state sectarian actors in foreign policy making in weakly established states by re-visiting the July War of 2006 in Lebanon. It mainly asks how sub-state sectarian actors behave as foreign policy actors in countries where society is divided along sectarian identities and how sectarian identities matter in terms of the definition of the self and the other and the ally and the enemy in weak states. By doing so, the paper analyses the emergence and the consolidation of foreign policy orientations, preferences and behaviour of the Maronite, Sunni, Shi’a and Druze communities in Lebanon, with a specific emphasis on the role of Hezbollah during the war. Building its main findings on various fieldworks in Lebanon, interviewing leaders of major sects; this study concludes that in the absence of a cohesive foreign policy stance in a weak state, the role of sectarian identity in defining self and other becomes central for understanding the foreign policy choices of sectarian actors.
Topic:
Foreign Policy, History, Sectarianism, Identities, and Hezbollah
Political Geography:
Middle East and Lebanon

10. Addressing Lebanon's Refugee Crisis and Development Challenges

Author:
Randa Slim and Philippe Lazzarini
Publication Date:
05-2017
Content Type:
Video
Institution:
Middle East Institute (MEI)
Abstract:
Lebanon is facing overwhelming socioeconomic, security, and demographic challenges as the civil war in neighboring Syria enters its seventh year. Since the start of the crisis, Lebanon has received $4.9 billion in assistance, but demands on the country's resources, services, and civil order remain heavy. Without a political solution to the Syrian conflict, humanitarian and development aid cannot deliver and sustain sufficient results for the refugees or for the Lebanese people. How will Lebanon continue to deal with these conditions? The Middle East Institute (MEI) and the Johns Hopkins School of Advanced International Studies, Foreign Policy Institute (SAIS-FPI) were pleased to host Philippe Lazzarini, the United Nations deputy special coordinator in Lebanon. He discussed opportunities and challenges for shifting the international response to Lebanon's Syrian refugee crisis beyond short-term humanitarian and stabilization efforts to a more sustainable economic growth strategy.
Topic:
Security, Foreign Policy, United Nations, Foreign Aid, Refugees, Economic growth, Syrian War, and Development Aid
Political Geography:
Middle East, Lebanon, and Syria