Jakarta –
The economic crisis in Lebanon make the condition of the country like hell. Prior to the Corona virus (COVID-19) pandemic in early 2020, Lebanon was already showing signs of collapse.
In early October 2019, the country was short of foreign currency, causing the Lebanese pound to weaken against the United States (US) dollar. So quoted BBC, Friday (9/7/2021).
Late in 2019 it was also revealed that the country was practicing what analysts call pyramid schemes or Ponzi schemes, in which the central bank owes commercial banks at interest rates above the market average. The debt is to pay off other debts and defend Lebanon.
At the same time, people are increasingly angry and frustrated at the government’s failure to provide basic services. They have to deal with daily power cuts, lack of safe drinking water, limited public health services, and the world’s worst internet connection.
The ruling elite has become the target of public anger for having dominated politics for years, and amassing their own wealth while failing to carry out the sweeping reforms needed to solve the country’s problems.
Then, the unprecedented forest fires in the country’s western mountains revealed how much Lebanon lack of funds and fire fighting equipment.
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The situation of the economic crisis in Lebanon is getting worse and has made this country called ‘hell’ by its own citizens. Hyperinflation and scarcity of basic necessities have made the situation in Lebanon even more unbearable for its citizens. Photo: Pool– |
In mid-October, the government proposed new taxes on tobacco, gasoline and voice calls via messaging services like WhatsApp to boost revenue, but backlash forced it to scrap those plans.
What has happened has sparked a wave of discontent that has been raging in Lebanon for years. Tens of thousands of Lebanese took to the streets, prompting the resignation of Western -backed Prime Minister Saad Hariri and his coalition government.
The protests have become a rare phenomenon since the 1975-1989 civil war that devastated the country ended, and brought the country to a close.
Newly appointed Prime Minister Hassan Diab later announced that Lebanon would default on its foreign debt for the first time in its history, saying its foreign currency reserves had reached a critical and dangerous level, and that the remainder was needed to pay for urgent imports.
Then the COVID-19 pandemic made things worse. After the first deaths from the Corona virus and a spike in infections, a lockdown was imposed in mid-March 2020 to curb the spread of the virus.
On the one hand, it forced anti-government protesters off the streets. But on the other hand it made the economic crisis much worse and exposed the dilapidated social welfare system in Lebanon.
Crisis Lebanon laid off many employees. Check the next page.
Watch Video: The Severe Economic Crisis in Lebanon, Residents Fight for Gasoline at Gas Stations
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