Beirut:
Hospitals and schools, then shattered and bent water pipes, then the crater that once was Lebanon’s port. The rebuilding needs of Lebanon are immense, but so is the question of how to ensure the millions of dollars promised in international aid is not diverted in a country notorious for missing money, invisible infrastructure projects and its refusal to open the books.
And the port — the epicenter of the explosion that shattered Beirut, the center of Lebanon’s import-based economy, and a source of graft so lucrative that Lebanon’s political factions were willing to divide its control so everyone could get a piece — sits at the heart of the fears. Sunday’s donor teleconference is hosted by French President Emmanuel Macron, who was mobbed last week by tearful victims of the Beirut ammonium nitrate explosion begging him to ensure the corruption they blame for the blast that devastated the capital does not profit from its destruction.
International diplomacy usually calls for careful language. Rigged votes are “irregular.” The response to furious protests should be “measured.” Disappearing funds require “transparency.” But Macron’s response to the crowd, and later in a speech in Beirut, was unusually blunt: The aid “will not fall into corrupt hands” and Lebanon’s discredited government must change. Germany, Lebanon’s second-biggest bilateral donor, made similar demands. “That’s precisely what the Lebanese people have rightly demanded: individual interests and old lines of conflict must be overcome and the welfare of the entire population must be put first,” German Foreign Ministry.
In the short-term, the aid streaming into Lebanon is purely for humanitarian emergencies and relatively easy to monitor. France, Britain, Canada and Australia, among others, have been clear that it is going directly to UN agencies or the Lebanese Red Cross.
But actual rebuilding requires massive imports of supplies and equipment. And the contracts and subcontracts that have given Lebanon’s ruling elite its wealth and power, while leaving the country with crumbling roads, regular electricity cuts, trash that piles on the streets and intermittent water supplies.
“The level of infrastructure in Lebanon is directly linked today to the level of corruption,” said Neemat Frem, a prominent Lebanese businessman and independent member of parliament. “We badly need more dollars but I understand that the Lebanese state and its agencies are not competent.”
Lebanon has an accumulated debt of about USD 100 billion, for a population of just under 7 million people — 5 million Lebanese and 2 million Syrians and Palestinians, most of them refugees. Its electricity company, controlled like the port by multiple factions, posts losses of USD 1.5 billion a year, although Frem said most factories pay for their own generators because power is off more than it’s on.
“There’s grand theft Lebanon and there’s petty theft Lebanon. Petty theft Lebanon exists but that’s not what got the country in the hole we’re in,” said Nadim Houry, executive director of the Arab Reform Initiative. Prior aid, Houry said, ended up as a tool in the hands of the political leaders, who kept their slice and doled out jobs and money to supporters.
