Although it is not widely conveyed in the news, Lebanon has been experiencing the worst economic crisis in its history. According to World Bank, Lebanon’s economic and financial crisis has been almost consistently ranked in the top three most severe crises episodes globally since the mid-nineteenth century. Inflation rates have now entered the triple digits and the Lebanese lira’s value is continuing to plummet.
The lira has even lost 90 percent of its value. This crisis began in August of 2019 and has since declined due to unpredictable and catastrophic factors, such as COVID-19 and the 2020 Beirut explosion. Lockdowns and other health measures due to the pandemic continue to test the fragility of the economy. In addition to COVID-19, the explosion at the Port of Beirut demanded finds that were difficult to provide amidst the current financial disaster. Money and resources were needed for medical expenses and infrastructure, which threatened the weak economic state even more.
So what are the consequences of this catastrophe? The World Bank records that more than half the country’s population is likely below the poverty line. Unemployment levels are also on the rise, which means citizens are struggling to support themselves and their families. Furthermore, shortages of fuel have led to massive electricity blackouts across the country.
This has taken a toll on every citizen in some way or another, as they are being deprived of and struggling to acquire the essentials. As if it couldn’t get worse, medication is also limited. The financial crisis has directly impacted the healthcare system because, without the vital tools and equipment, citizens are not able to access crucial medication. Electricity in hospitals is also insufficient, putting the lives of Lebanese citizens seeking medical care in grave danger.
The Washington Post reports that citizens have lost hope, revealing that they do not believe the politicians’ promises to reform the system will come true. Although it is agonizing, there is virtually nothing the people of Lebanon can do except wait. There have been many anti-government protests orchestrated by the citizens, but their attempts do not seem to have much influence over the declining financial situation.
Today, there have been efforts made to help the economic state, as some politicians are continuing to collaborate and create a beneficial plan. There was international funding in 2021 to try and boost the economy, but a useful reform was never implemented. But recently on Jan. 24, Lebanon’s government met for the first time in three months. Another Washington Post article announced this summit, detailing their resumed meeting with the International Monetary Fund and the country’s weak economic state. This round of conversation is predicted to last two weeks and will focus on budget, exchange rates, banking sector, balance of payments and ways to help poor families. While no exponential physical action has been done yet, there may be a plan of action resulting from these discussions.
For now, citizens are still protesting and fighting for change; however, they are also still struggling to survive and support themselves. These two-week discussions are vital for the people of Lebanon, as this new reform could build a better economy for them.
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