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    Home»News»Lebanon News
    TRT | The National News/Reuters
    3 Mins Read

    Lebanon Heading To A Social Catastrophe With The Removal Of Subsidies

    By Rim ZreinDecember 7, 2020Updated:February 8, 2021
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    Another week, another warning of a catastrophe in Lebanon.

    The extraction of subsidies in Lebanon without guaranteeing the protection of the helpless population would result in a social catastrophe, two UN agencies issued on Monday, warning there is “no parachute to soften the blow”.

    “The impact of removing price subsidies on the country’s most vulnerable households will be tremendous, and yet there is almost nothing in place to help soften the fall,” announced the representative of UNICEF Lebanon and the regional director of the International Labor Organization (ILO).

    The removal of subsidies in #Lebanon without guarantees to protect the vulnerable would amount to a "social catastrophe," #UN agencies warn, stating there is no parachute to soften the blow.

    — Tala Ramadan (@TalaRamadan) December 7, 2020

    “It is critical to realize that for Lebanon to fly off another cliff now, without first putting in place an inclusive system of social guarantees, would inflict a social catastrophe on the country’s most vulnerable people, sacrificing their wellbeing, and that of the country as a whole, for many years to come,” they added.

    With Lebanon deep in a financial crisis, the central bank has been subsidizing basic goods by providing hard currency to importers at the old exchange rate of 1,500 LBP to the dollar. This is despite that the currency has lost its value by 80%.

    IMF | Statista

    Central bank governor Riad Salameh said last week that subsidies could be kept for only two more months, urging the state to come up with a plan as soon as possible.

    Lebanon is facing the toughest crisis since the Lebanese civil war, while policymaking has been crippled by endless rivalries between fractious politicians.

    Saad Hariri was nominated to form a new government in October, yet cabinet formation hasn’t seen the light of day since.

    Mohammad Azaki

    Widely criticized by senior politicians from ruling parties, the universal way in which Lebanon has been subsidizing basic goods, including fuel, wheat, and medicine, does not target those in need.

    A rough analysis shows that up to 80% of the subsidies may actually be benefiting the wealthiest in the country by 50%, with only 20% going to the vulnerable half, according to UNICEF Representative Yukie Mokuo and ILO Regional Director Ruba Jaradat.

    As more people have fled the country, elderly people are being left behind and many are forced to beg on the streets.
    This is just too sad. #رفع_الدعم #لبنان_ينتفض pic.twitter.com/1KyJ0Pz6Ie

    — Ma😼ما (@Mahbei) December 7, 2020

    The World Bank has stated that poverty is likely to continue to worsen and engulf more than half the population.

    Lebanon is expected to see a substantial increase in poverty rates, which will affect the population through different channels, such as the loss of productive employment, decline in real purchasing power, and stalled international remittance. 

    بكرا منتعود على #رفع_الدعم هيك قال عمو رياض ، وعمو رياض ما بكذب نحن شعب منتعود . pic.twitter.com/htdUC4lIVS

    — ALI MAHDI حساب جديد (@ALIMAHDI77777) December 7, 2020

    The caretaker government is due to meet Salameh on Monday to discuss the subsidies.

    Economic Crisis Riad Salameh
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