Lebanon’s protesters further imperil economy

The move by prominent leaders of the protests in Lebanon to rebuff a call by the prime minister-designate to sit for talks is uncalled for and scuppers any chances of a solution. The nation has been on the boil for weeks now, and any move to stymie normalcy can not only inconvenience the man on the street but also further enervate the economy.

Hassan Diab, an engineering professor designated on Thursday to form a desperately-needed government, had asked protesters to give him a “chance” to form a cabinet of independent experts within four to six weeks.

But the self-styled technocrat’s call for consultations with representatives of the popular movement on Sunday failed to cut any ice with major street leaders or groups.

A small crowd of protesters gathered outside Diab’s house and slated visitors who claimed to represent the country’s leaderless movement.

“You don’t represent us,” the demonstrators chanted.

The few who heeded Diab’s calls for talks included largely unknown individuals not recognised as representatives of the protest movement. Doubts have been raised over whether he can form a government of technocrats.

Diab held talks on Saturday with parliamentary blocs on the formation of a government but encountered several hurdles as key groups insisted that the cabinet must include established parties not just independent experts.

The complicated process of forming a government comes as Lebanon faces its worst economic crisis since the 1975-1990 civil war.

The Lebanese pound, officially pegged to the US dollar, has lost around 30 per cent of its value on the black market, while companies have been paying half-salaries for the past two months and downsizing.

The financial crisis is generating concerns for Lebanon’s stability: banks are enforcing capital controls, and dollars are scarce.

The economic crisis has been building for years due to waste and corruption that have landed Lebanon with one of the world’s heaviest debt burdens. Lebanon won pledges of more than $11 billion in financing at a Paris conference last year, subject to conditions on reforms it failed to implement.

In the space of one week alone, more than 60 firms had submitted requests to sack their entire workforce.

Recently, over a thousand Filipinos, a good number of them female domestic workers, lined up outside their embassy to sign up for free mass repatriation from the crisis-hit country.

To add to the economic woes, a hard currency crunch has pushed importers to start increasing prices.  The bleak economy has put a damper on Christmas celebrations. Christmas is a time of joy and festivities, a time for friends and relatives to bond, a time for travel.

However, hotel bookings, flights and events have gone woefully south during what is usually a busy commercial season for Lebanon, which has the Arab world’s biggest number of Christians.  Hotels have closed some parts of their buildings, are giving employees unpaid leave and removing services such as free shuttle transportation to the airport to cut down on losses.

Many from Lebanon’s large diaspora normally return home to streets packed with cars and ornately decorated with lights. But some local councils have opted to either re-use old decorations or do without.

Not all, though, view the scenario as dismal, but rather look for a silver lining, saying charity comes foremost. Charbel Daccache, a priest in Mount Lebanon’s largely Christian town of Adma, said it was better to help feed the poor in tough times “than to decorate and throw glitter”.

“Some days are harsh, others are better but it’s not the end. That’s why I tell people, let it be a joyous time.”