Democratic Palestine : 27 (ص 39)
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- Democratic Palestine : 27 (ص 39)
- المحتوى
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number of factors converge to the
detriment of the overall economy and
the citizens’ welfare. In mid-
September, Lebanon was running short
of fuel. With the Central Bank’s
foreign currency reserves at only $200
million and the state drowning in a 130
billion pound deficit (for 1986), the
Minister for Economy, Industry,
Commerce and Oil, Victor Kasir, ended
state subsidies on gasoline, saying the
government couldn’t afford them. The
black market had also played a role:
Gasoline was being sold for as much as
four times the official price.
In any case, gasoline prices rose by
133%, putting new burdens on the
consumer, but severe rationing con-
tinued in West Beirut, allegedly due to
distribution problems, etc. It is typical
that after an extended period of
government inaction, when right-wing
ministers finally did something, it was
against the interests of the ordinary
citizens. Acting Finance Minister
Hashem, who authorized the Central
Bank credit to import more gasoline
after the subsidy lift, claimed that this
would save the treasury £45 million
annually, to be used for social benefits.
However, in the light of past experience
of state neglect, few put their hopes on
this, especially since it is a piecemeal
measure, not part of an _ overall
recovery plan. In fact, public services
have been rapidly receding in both
quantitative and qualitative terms.
Shortage of other fuel continued as
Hashem withheld import authoriza-
tion, pushing for a new subsidy
cancellation. In West Beirut, bakeries
were closing due to fuel and flour shor-
tage, and severe electricity rationing.
Lebanon’s largest hospital, the
American University Hospital in
Beirut, threatened closure in late
September, citing lack of fuel to run its
generators to supply electricity, its fuel
consumption having been doubled to
make up for the prolonged power cuts.
Indeed, the complexity of the crisis is
a convenience for Lebanon’s magnates
who would like to hide that it is their
economic orientation, and the dollar
mafia they have spawned, that are
pushing the population to the starva-
tion point. The interests of the big
bourgeoisie lie in the continuation of
Lebanon’s essential economic role as
financial broker between the imperialist
countries and the oil-rich Gulf states.
The corollaries of this role are a weak
industrial sector; historical neglect of
agriculture, especially in the South;
minimal state intervention in the
economy (even when the state is func-
tioning), consecrated in bank secrecy
laws which make it almost impossible
to control the monetary market; and a
host of other factors in which the cur-
rent crisis is rooted.
It is not surprising that the destruc-
tion of over a decade of civil war and
Israeli aggression have brought this
fragile system nearly to a halt. In 1986,
Lebanon’s gross national product had
dropped to almost half what it was in
1974. Today, Lebanon is importing
about 80% of its daily needs, and six
times more than it exports, making it
totally vulnerable to price rises in the
exporting countries. The dependent
nature of the country’s service
-oriented, capitalist system has made it
doubly vulnerable to external factors,
such as the relative recession in the Gulf
countries, which reduced capital inflow
and remittances to Lebanon. There is
now outright capital outflow with
companies pulling out and specialized
manpower emigrating.
Still, for all its faults, the Lebanese
economy initially seemed remarkably
able to survive the first decade of civil
war and even the 1982 Israeli invasion
and occupation. Until 1985, the pound
remained relatively stable. This could
be explained away by saying that it
simply took a certain time for the
multiple factors of the crisis to mature.
However, it is also enlightening to look
at the political realities which are close-
Beirut’s children, accustomed to playing in ruins. now face starvati
39
on.
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- Democratic Palestine : 27
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