Beirut, Nov 13 : A senior UN official has warned that Lebanon may be turned into a “failing state” if the government does not succeed in implementing quick and serious reform measures amid the current unprecedented financial crisis.Beirut, November 13, 2013 : .A senior UN official warned that Lebanon could be a failing state if it fails to implement serious reforms quickly and effectively in the midst of the unprecedented financial crisis. “The Prime Minister should exercise his authority and move the country forward.”The Prime Minister must exercise his authority to move the country forward.There is no time to waste,” Olivier De Schutter, UN Special Rapporteur on extreme poverty and human rights, said during a press conference held at the end of his mission in the capital Beirut.”There is no time to waste,” Olivier De Schutter (UN Special Rapporteur on extreme poverty, human rights and human rights), said at a press conference that was held after his mission ended in Beirut.
He also noted that with a highly regressive tax system, Lebanon is “among the most unequal countries on the planet whereby 10 percent of the wealthiest people earn 70 percent of the total wealth”.
He also pointed out that Lebanon has a highly regressive fiscal system.This means that 10 percent of the richest people in the country earn 70% of the total wealth.
De Schutter pointed out that Lebanon is facing four main crises, including the presence of a big number of Syrian refugees; the devaluation of the Lebanese pound amid the rising inflation; the Covid-19 outbreak which increased school drop-out among students; and the impact of the 2020 Beirut port blasts which left thousands of people homeless and hundreds of thousands others jobless.De Schutter noted that Lebanon faces four major crises: the presence of large numbers of Syrian refugees, the devaluation in the Lebanese Pound amid rising inflation, the Covid-19 epidemic which increased student drop-out; and the effects of the 2020 Beirut Port Bombs which left thousands homeless and hundreds of thousand others without jobs.
“Behind all of these crises, there is a crisis of trust,” he added.He added, “Behind all these crises there is a crisis trust.”
The official emphasised the need for the political system to recover its integrity, especially when it comes to the banking sector responsible for the downfall of the Lebanese pound and the impoverishment of people.Official stressed the importance of the political system regaining its integrity, particularly when it comes down to the banking sector that was responsible for the collapse of the Lebanese Pound and the people’s impoverishment.
He noted that one of the inconveniences facing the banking sector is the fact that 18 out of 20 banks have major shareholders linked to the political elites.He pointed out that the banking sector faces many problems due to the fact that 18 of 20 banks have major shareholders who are connected to the political elites.
“We need to prevent the conflict of interests between the business sector and politicians, otherwise Lebanon will become a state that is captured by economic interests,” he said.He stated that it was important to avoid conflicts of interest between politicians and business people, as otherwise Lebanon would be ruled by economic interests.
Lebanon has been going through an unprecedented financial crisis with the local currency depreciating by over 90 per cent, limiting people’s ability to afford their basic needs.The unprecedented financial crisis in Lebanon is causing the local currency to plummet by more than 90%, which has made it difficult for people to pay their basic necessities.
The country’s social stability started deteriorating since the October 2019 uprising, adding to it is the economic impact of Covid-19 and the deadly Port of Beirut explosions in August 2020.Since the October 2019 uprising, the country’s social stability has been declining.
This is in addition to the negative economic effects of Covid-19 as well as the devastating Port of Beirut explosions of August 2020.
Moreover, the failure to form an effective government to implement much-needed financial reforms accelerated the deterioration of the socioeconomic situation by resulting in the collapse of the Lebanese pound and an increase in annual inflation by 158 per cent with food inflation going up by 550 per cent.
The failure to form a government that could implement the necessary financial reforms has accelerated the socioeconomic decline.This led to the collapse of Lebanese Pound and an increase of annual inflation of 158 percent, with an increase of food inflation of 550%.
The country’s poverty rate is currently hovering over 78 per cent.The poverty rate in the country hovers at 78 percent #official #crisis #Lebanon
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