Lebanon in economic, political dire straits


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Lebanon, which holds parliamentary elections on May 15, has been mired in a deep financial, economic and social crisis, aggravated by a political deadlock.

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Mass protests follow a government announcement on October 17, 2019 of a planned tax on voice calls made over messaging services such as WhatsApp.

In a graft-plagued country with poor public services, many see the tax as the last straw, with demonstrators demanding “the fall of the regime”.

The government of prime minister Saad Hariri scraps the tax the same day.

But protests continue over the ensuing weeks, culminating in huge demonstrations calling for the overhaul of a ruling class in place for decades and accused of systematic corruption.

Hariri’s government resigns in late October.

Lebanon, with a $92 billion debt burden equivalent to nearly 170 percent of its gross domestic product, announces in March 2020 that it will default on a payment for the first time in its history.

In April, after three nights of violent clashes, then-prime minister Hassan Diab says Lebanon will seek International Monetary Fund help after the government approves an economic rescue plan.

But talks with the IMF quickly go off the rails.

It emerges the huge pile of volatile ammonium nitrate that caused one of the biggest non-nuclear explosions ever recorded had been left unsecured in a warehouse for six years, further enraging the Lebanese public.

Diplomat Mustapha Adib is named new premier but bows out after less than a month, and Hariri, who already served as prime minister three times, is named in October.

In June, the World Bank says Lebanon’s economic collapse is likely to rank among the world’s worst financial crises since the mid-19th century.

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After nine months of political horse-trading, Hariri steps aside on July 15, 2021 saying he is unable to form a government.


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