Lebanon depression has put the country on the verge of a societal eruption. The officials called for International intervention.
Lebanon depression is one of the worst ones of its kind in modern history. Statistics say only 10% of the Lebanese population have been able to survive the poverty.
Lack of sufficient fuel supplies has infuriated the people and led to eruption of confrontations at gas stations. The caretaker prime minister issued a warning about the possibility of further violence.
“Lebanon is a few days away from the social explosion. The Lebanese are facing this dark fate alone. This government does not have the right to resume negotiations with the International Monetary Fund to implement the recovery plan set by the cabinet, for this entails obligations on the next government that it may not endorse,” Hassan Diab said.
The EU officials blasted Lebanon‘s leaders for impeding efforts to establish a new administration and execute reform. Failing to provide the assistance needed to overcome Lebanon depression, EU only found the local leaders responsible for the country’s economic crises.
Diab stressed the recurrent addresses for aids to be contingent on reforms. This is while the blockade placed on the country has had little effect on the corruptions devouring its entire political and administrative system.
Diab took the office as caretaker Prime minister in Lebanon following the developments after Beirut explosion. The structural challenges and political disputes, since then, hindered the formation of a new government to focus on economic resolutions.
The prime minister’s efforts to evade the economic precipice the country had already been leading only backfired. The fractious political activism among the Lebanese powerbrokers lent hand to the deterioration of Lebanon depression.
The economic downfall, today, is leading to a full-scale societal and security crisis for the Lebanese people.
Lebanon depression is the tale of how the reconstruction a country as the Middle East bride backfired with corruption and incompetence.
Devastated during the civil war, Beirut was rebuilt with buildings and luxury malls by foreign architects. Middle East’s expected Switzerland, nevertheless, mistook improving local currency with accepting foreign currency in local shops.
With a debt spike surpassing 150 percent of GDP, Lebanon’s reconstruction plan proved fruitful only for a small elite. Lebanon’s power facilities are unable to hinder blackouts. The country’s sole stable export is its human resources promising a dire condition for the future.
Tourism income, international aid, benefits from industries, and the occasional generosity of Arab powers gave been the main resources for Lebanon since the civil war. Tourism, as the most trustworthy resource, lost significance in the economy following the security and economic insecurity in Lebanon.
Inflows from the Lebanese who moved overseas for work were still one of the country’s most stable sources of income. Late 2000s global depression did not impede this process of remittance flow.
However, remittances began to decline in early 2010s as Lebanon’s civil tensions led to further political paralysis. Anarchy in much of the region, particularly in neighboring Syria, further deteriorated the condition.
Lebanon lost other sources like Arab aids due to political rifts. The fragile industries also collapsed one after another.
Imbalance between the imports and exports and loss of all resources led to intense growth of budget deficit. structured corruption in the administrative system accelerated the process.
Offering extra-ordinary interests for dollar/pound deposits by Lebanese banks were signals of an economic condition that represented itself as the current Lebanon depression.
Lebanon is on the precipice of a new age of which one thing we only know; the opening is signed with tumult, uprising, and potentially violence.