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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. Implications of the Saudi Corruption Arrests

Author:
Simon Henderson
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
The latest crackdown appears to have targeted senior defense and interior officials, spurring speculation that they are linked to previously detained princes rumored to be plotting a coup. On March 15, Saudi Arabia announced that 298 individuals have been arrested for bribery, embezzlement, wasting public funds, and other corruption offenses. Although none of the detainees has been named, they reportedly include high-ranking officers in the Defense and Interior Ministries, adding to rumors that recent royal crackdowns may be related to a planned coup.
Topic:
Corruption, Reform, Domestic politics, and Monarchy
Political Geography:
Middle East, Saudi Arabia, and Gulf Nations

3. Pulling Lebanon out of the Pit

Author:
International Crisis Group
Publication Date:
06-2020
Content Type:
Special Report
Institution:
International Crisis Group
Abstract:
An uprising of unprecedented scope has rocked Lebanon as the country’s economy tumbles deeper into recession. Poverty and unemployment could lead to violent unrest. Donors should put together an emergency package but condition further aid upon reforms to tackle corruption, a major grievance driving protest. What’s new? The impact of the COVID-19 pandemic on Lebanon’s economy, which was already slowly imploding, has brought it to the brink of total collapse. Since October 2019, popular protests have pushed for greater accountability from an elite that, having engorged itself, seems incapable of instituting critical reforms. Why does it matter? The accumulation of crises is driving ever greater numbers of Lebanese into absolute poverty. While the lockdown is gradually easing, the loss of jobs and purchasing power triggered new protests that are turning violent and may prefigure the disintegration of state capacity and institutions. What should be done? Lebanon will need emergency external assistance to ward off the worst social consequences of the crisis. Beyond that, external actors and donors seeking to help the country exit the crisis should focus on efforts geared at rooting out corruption and clientelism.
Topic:
Corruption, Poverty, Protests, Crisis Management, and Unemployment
Political Geography:
Middle East and Lebanon

4. The New Arab Uprisings: How the 2019 trajectory differs from the 2011 legacy? (Part 1)

Author:
Peter Bartu
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Al Jazeera Center for Studies
Abstract:
In 2019,the Middle East seems beset by conflict, chaotic politics and dysfunctional economies.However, the mood of the people in Algeria,Sudan,Lebanon and Iraq is more defiant.Not since 2011 have we seen such public demonstrations for accountability and an end to corruption,war and foreign meddling.
Topic:
Corruption, Politics, Arab Spring, Conflict, and Protests
Political Geography:
Iraq, Sudan, Middle East, Algeria, Arab Countries, and Lebanon

5. The New Arab Uprisings: How the 2019 trajectory differs from the 2011 legacy? (Part 2)

Author:
Peter Bartu
Publication Date:
01-2020
Content Type:
Special Report
Institution:
Al Jazeera Center for Studies
Abstract:
In 2019, the Middle East seems beset by conflict, chaotic politics and dysfunctional economies. However, the mood of the people in Algeria, Sudan, Lebanon and Iraq is more defiant. Not since 2011 have we seen such public demonstrations for accountability and an end to corruption, war and foreign meddling. This time, they might just get it.
Topic:
Corruption, Democratization, and Protests
Political Geography:
Iraq, Sudan, Middle East, Algeria, Arab Countries, and Lebanon

6. Iran in Lebanon: A Fatal Occupation

Author:
Hassan Mneimneh
Publication Date:
10-2020
Content Type:
Commentary and Analysis
Institution:
Hudson Institute
Abstract:
In 2020, Lebanon should be celebrating its centenary. It is not. Instead, it is close to terminal collapse as a polity, an economy, and even as a society. Lebanon is under Iranian occupation, although ascertaining this condition may demand some attentive consideration from the uninitiated. Iran’s proponents assess it as a confirmation of the “Axis of Resistance” against imperialism and Zionism; its detractors ascribe it to a deliberate plan of Iranian expansion across the region. However, the Iranian occupation of Lebanon may be rooted in Lebanon’s own tumultuous history rather than in Tehran’s designs. Iran in Lebanon may be more an artifact of history than a product of strategy. In fact, the outcome of Lebanon’s present course may not yield Iran any tangible advantage. And it certainly seems to be on the verge of destroying Lebanon.
Topic:
International Relations, Corruption, Terrorism, Non State Actors, Radicalization, and Hezbollah
Political Geography:
Iran, Middle East, and Lebanon

7. The Eye of the Storm

Author:
George G. Namur
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
Harvard Journal of Middle Eastern Politics and Policy
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Lebanon is in the throes of an unprecedented crisis in its modern history. Starting 17 October 2019, the people of Lebanon have been protesting in the streets in a broad-based uprising. This paper highlights key post–civil war realities and practices that led to the country teetering and proposes a solution package to what ails the country and threatens its future.
Topic:
Corruption, Financial Crisis, Governance, Social Movement, Revolution, and Political Crisis
Political Geography:
Middle East and Lebanon

8. 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

9. The Political Situation in Iraq in Light of Mass Protests

Author:
Sara Nowacka
Publication Date:
12-2019
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
In October, mass protests over poor living conditions and Iran’s influence on the country’s internal policy erupted in Iraq. Brutal attempts to quell the demonstrations led to the escalation of violence. On 30 November, Prime Minister Adil Abd al-Mahdi resigned, which was one of the demands of the demonstrators supported by the prominent Shiite spiritual leader in Iraq Ali al-Sistani. The PM’s resignation, the proposal of reforms put forward by the president of Iraq, and the UN plan to stabilise the country backed by Sistani indicate the possibility of abolishing the model of consensual democracy prevailing in Iraq.
Topic:
Corruption, Politics, Elections, and Protests
Political Geography:
Iraq, Iran, and Middle East

10. The View from Aden: A Shadow State between the Coalition and Civil War

Author:
Omar Said
Publication Date:
04-2019
Content Type:
Working Paper
Institution:
Arab Reform Initiative (ARI)
Abstract:
Four years into the war that engulfed Aden since March 2015, the city in the South of Yemen might look tranquil and safe in the eyes of foreign observers as the interim capital of the internationally recognized government of Abd Rabou Mansour Hadi. To its inhabitants, however, it is a satellite out of orbit with no institutions or a state to govern or uphold the rule of law and where civilians face many challenges daily. Civilians were relieved, in July 2015, when Popular Resistance Forces (a mix of different factions from Aden, independent, Salafists, reformers and followers of many factions from the Southern Movement) and forces of the Arab Coalition (led by Saudi Arabia and United Arab Emirate, UAE), defeated the Saleh-Houthi forces, expelling them from the city. They began to dream of a normal life and a fresh start for real institutions that will build a modern civilian state and remedy their decades long suffering, exclusion, marginalization, and inability to run their own city. Simultaneously, fighters raised the flags of Saudi Arabia and UAE along with the flag of the former People’s Democratic Republic of Yemen. Meanwhile, elements loyal to the Southern Movement renewed their demands of secession of Southern Yemen from the North. These hopes died shortly after, however. The mandate of the interim government intertwined with that of the National Council, and so did the interests of the Coalition states that sponsor these two bodies. As a result, Aden slipped into a state of insecurity with a multiplicity of armed militias and widespread corruption. This paper seeks to describe the fragmentation process of the Yemeni State, four years after the Coalition’s offensive to restore legitimate authority. It highlights the practices of Abd Rabou Mansour Hadi and his government in running the country and how rivalry between Saudi Arabia and its ally, the UAE, translated, on the ground, in the form of a contest for authority between the Interim Yemeni Government and the Transition Southern Council. The paper also highlights corruption, insecurity, and the rise of civilian protests against the status quo in Aden.
Topic:
Corruption, United Nations, Fragile States, Protests, and International Community
Political Geography:
Middle East, Yemen, Saudi Arabia, and UAE