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The authorities’ lack of concern, for the economy and the welfare of a ruthlessly impoverished population, continues to amaze more international experts. The diplomatic crisis with Gulf countries, Lebanon’s major trading partners, is very likely to worsen the severe crisis that was “manufactured” by the political class. A way out of the inferno is dimly possible with an IMF program, better prospects for investment inflows, and foreign assistance.
Government is in a fantasy land
Government officials are in a fantasy land, said Olivier De Schutter, UN Special Rapporteur on extreme poverty and human rights. He said that officials have no sense of urgency and are not taking responsibility for a “manufactured” crisis that had ruined the lives of the population and “brutally impoverished” them for generations. According to De Schutter, the authorities’ destruction of the national currency, political deadlock, and reinforcement of longstanding inequalities have plunged the country into abject poverty. “The Government’s inaction in the face of this unprecedented crisis has inflicted great misery on the population, especially on children, women, stateless and undocumented individuals, and people with disabilities who were already marginalized,” he said. According to the UN Special Rapporteur, there is a need for immediate implementation of social protection programs held up for months in addition to raising the minimum wage and a wealth tax to combat world-leading inequality rates. “The Government must prioritize developing strong universal social protection floors, including unemployment insurance, child benefits, old-age and disability pensions, and sickness and maternity or paternity benefits, all of which would have protected workers during Covid-19 lockdowns,” he said. De Schutter said: “I’m very struck by the fact that this is a state that, if it is not failed yet, is failing and that the needs of the population are still not addressed,” he said.
Diplomatic crisis with GCC impedes recovery
The emerging diplomatic crisis with Gulf countries will derail the adjustment and recovery efforts of the new Cabinet considering the deep-rooted relations these countries hold with Lebanon, Bank Audi said in ‘Lebanon Economic Report’ for the third quarter of 2021. Annual exports to GCC
