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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. 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

4. Hiding in Plain Sight: Hezbollah's Campaign Against UNIFIL

Author:
Assaf Orion
Publication Date:
11-2019
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
The Second Lebanon War, between Israel and Lebanese Hezbollah, ended August 14, 2006. Since that summer, populations on both sides of the Israel-Lebanon border have enjoyed the longest calm in their troubled history, thirteen years and counting. Mandated by United Nations Security Council Resolution 1701, the UN Interim Force in Lebanon (UNIFIL), an entity first established in the late 1970s, was expanded, and its 10,500 peacekeepers are busy and visible. UN reports over the past thirteen years emphasize the general calm. But calm does not mean safe and secure. During the war, Hezbollah launched approximately four thousand rockets out of its arsenal of twelve thousand toward Israel. Since the war, Iran has invested billions of dollars in building its Lebanese proxy military force throughout Lebanon, including in the south.
Topic:
United Nations, Peacekeeping, Conflict, and Hezbollah
Political Geography:
Middle East, Israel, and Lebanon

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. Hezbollah's Limited Options After Israeli Strike

Author:
David Schenker
Publication Date:
01-2015
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
On January 18, six senior members of the Lebanese terrorist organization Hezbollah and a commander of Iran's Islamic Revolutionary Guard Corps were killed while visiting Quneitra in the Syrian Golan Heights, reportedly by an Israeli missile. The attack came just days after Hezbollah secretary-general Hassan Nasrallah threatened to deploy troops across the border into the Galilee in retaliation for repeated Israeli strikes against militia targets in Syria. In the past, the audacious timing and resultant high-profile casualties would have prompted significant and unambiguous Hezbollah military retribution. While the group may eventually retaliate -- anonymous Hezbollah officials in Lebanon say it is "inevitable" -- its ongoing military operations in Syria and the evolving sectarian dynamic in Lebanon may constrain its actions. The pressure to respond is great, but the last thing Hezbollah needs right now is an escalation with Israel that devolves to war.
Political Geography:
Israel, Lebanon, and Syria

7. Salafism in Lebanon

Author:
Robert Rabil
Publication Date:
02-2015
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
On February 13, Robert Rabil addressed a Policy Forum at The Washington Institute. Dr. Rabil is a professor of Middle East studies in Florida Atlantic University's Department of Political Science and the Lifelong Learning Society (LLS) Distinguished Professor of Current Events. He is the author of Salafism in Lebanon (Georgetown University Press, October 2014). The following is a rapporteur's summary of his remarks.
Political Geography:
Washington, Middle East, Lebanon, and Florida

8. Trials and Tribulations in Lebanon

Author:
David Schenker
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
The Washington Institute for Near East Policy
Abstract:
The controversial Hariri trial will unfold amid growing sectarian violence in Lebanon, the seemingly interminable war in Syria, and a longstanding political stalemate regarding Hezbollah's role in government.
Topic:
Islam, Religion, Terrorism, and Sectarianism
Political Geography:
Iran, Middle East, Lebanon, and Syria

9. Lebanon's Presidential Race

Author:
David Schenker
Publication Date:
05-2014
Content Type:
Working Paper
Institution:
The Washington Institute for Near East Policy
Abstract:
The thorny parliamentary process of selecting a new president could rekindle violence if it results in substantial delays or further sectarian friction. Last week, Lebanon's parliament convened for the first round of balloting to elect a new president. While Samir Geagea -- who leads the Christian "Lebanese Forces" party, which is aligned with the pro-Western March 14 coalition -- received the most votes, he failed to secure the requisite two-thirds parliamentary support. In the coming weeks, legislators are slated to continue meeting until a president is selected. Unlike last week's session, in which the Hezbollah-led March 8 bloc did not challenge Geagea's candidacy, the voting promises to become increasingly contentious in subsequent rounds. Perennial sectarian tensions exacerbated by the war next door in Syria have complicated the historically wrought and arcane election process. Should a compromise candidate not emerge by May 25, the term of current president Michel Suleiman will expire, leaving the post vacant. In the past, the presidency -- which by law must be held by a Christian -- was the dominant office in Lebanon's government. But the 1989 Taif Accord effectively stripped the position of its powers, delegating them to the prime minister, who must hail from the Sunni Muslim constituency. Given the post's largely symbolic nature, some might argue that the tense selection process is much ado about nothing. Yet the presidency remains an emotionally evocative issue for Lebanese Christians, and both the March 8 and March 14 blocs see a sympathetic chief executive as an important advantage worth fighting for.
Topic:
Religion, Power Politics, Regime Change, and Public Opinion
Political Geography:
Middle East and Lebanon

10. Lebanon Unstable and Insecure

Author:
David Schenker
Publication Date:
06-2014
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Military coordination with Hezbollah may be providing a quick fix, but the country's long-term strength can only be achieved with a reconstituted March 14 coalition.
Topic:
Terrorism, Military Strategy, Armed Struggle, and Governance
Political Geography:
Middle East and Lebanon