Lebanon ‘is a hostage to the veto power’ of Hezbollah, says Lebanese economist Nadim Shehadi

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Updated 20 February 2023
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Lebanon ‘is a hostage to the veto power’ of Hezbollah, says Lebanese economist Nadim Shehadi

  • Regards Lebanese crisis as part of a ‘broader regional problem, which needs to be treated as such’
  • Says shortcomings of the political class does not justify calls for the abolition of the entire system

DUBAI: Eighteen years ago this month, Rafik Hariri, a prominent politician and former prime minister of Lebanon, was assassinated by a suicide truck bomb in Beirut. Originally a philanthropist before his engagement in politics, Hariri, who had made his fortune in construction, donated millions of dollars to victims of war and conflict in Lebanon, and later played a major role in ending the civil war and rebuilding the capital city.

Hariri’s assassination marked the beginning of dramatic political change and movements calling for democracy in Lebanon. For years after his assassination, politicians and important figures opposed to the influence of both Syria and Hezbollah in the country were targeted.

Despite an international tribunal finding members of Hezbollah guilty of Hariri’s assassination after passionate calls for an investigation into his death, the Iran-backed militia group has only tightened its grip on Lebanon, keeping the country in a dire state.

“Hariri was killed 18 years ago and it took about 15 years to destroy the whole country after everything he tried to build,” Lebanese economist Nadim Shehadi said on “Frankly Speaking,” the Arab News current affairs talk show which engages with leading policymakers and business leaders.

“The Special Tribunal for Lebanon and the independent international investigation commission came to Lebanon, and it took them about 15 years to produce their result. And for the first time in the history of Lebanon, where we have had several assassinations, for the first time, we had a conviction,” Shehadi said.

But according to him, despite a conviction in Hariri’s case, Hezbollah’s influence over Lebanon means that the real perpetrators of the assassination will go unpunished, and the group will continue to hold the country hostage.

Lebanon’s various political and economic crises have only intensified in recent years, with inflation in the country rising to the highest in the world in 2021 and the value of the Lebanese lira plummeting drastically.

Last year witnessed a series of bank holdups by armed customers seeking to withdraw their frozen deposits. In a country whose capital was formerly referred to as the “Paris of the East,” two-thirds of the population now suffers from poverty, with regular electricity blackouts and shortages of basic necessities such as medicine and water increasingly commonplace.




A protester throws a brick at a bank after setting fire to tires during a demonstration in Beirut on February 16, 2023. (AFP)

The country’s chronic instability has deepened in recent years in the wake of the COVID-19 pandemic, as well as the 2020 Beirut port explosion which killed hundreds, left hundreds of thousands homeless, and damaged over half of the city while inflicting massive economic losses.

Human Rights Watch and Amnesty International, the two international organizations which campaign against injustice and inequality, have called the investigation into the blast a “farce.”

Shehadi asserts that despite Lebanon’s historically “very healthy and functioning judiciary,” Hezbollah has interfered with the investigation.

This series of disasters have pushed many Lebanese to call for the removal of the entire political class, something that Shehadi views as a “ridiculous demand.”




Lebanese wait to fill their gas cylinders in the southern city of Sidon amidst a deepening economic crisis, on August 10, 2021. (AFP)

In his opinion, Lebanon’s political system is not “sectarianism,” as some observers term it, but rather “a political system based on a social contract between communities and which has maintained the country … even before the state was created.”

“We have a banking system which was the banking center of the region. We have political parties. These are pillars that distinguish Lebanon … and the revolution is asking almost for the dismantlement of all these pillars,” he told Katie Jensen, the host of “Frankly Speaking.”

While Shehadi acknowledges there are definitely issues with Lebanon’s political class, which he says was compromised by 15 years of occupation and political infiltration by the Syrian regime, “this doesn’t justify calling for the abolition of the whole system.”

Eight months after the country’s general elections, Lebanon still has not reached a consensus regarding its president or a functioning parliament.




Lebanese protesters gather to protest against tax increases and official corruption outside the Sidon branch of Lebanese Central Bank in southern city on November 30, 2019. (AFP)

Urgent political reforms are needed to unlock the $3 billion in emergency funds from the International Monetary Fund, but with Lebanon’s political system in tatters and its parliamentarians regularly staging walkouts, accessing these funds seems unlikely.

Shehadi said that while he is not opposed to a “fragmented” parliament with diverse political opinions, “what we have is not a fragmented parliament. What we have is a paralysis of all institutions that’s been building up for 15 years, 17 years almost.”

He added that Lebanon and its institutions are “a hostage to the veto power” of Hezbollah, which has gained footholds in Lebanon by means of assassinations and building of political alliances.

Shehadi compares Hezbollah’s gradual infiltration of state institutions in Lebanon to the behavior of drug cartels in power in narco-states in Latin America.




Hezbollah supporters attend a televised speech by the group's leader Hassan Nasrallah in Beirut's southern suburbs on January 3, 2023. (AFP)

“They bribe politicians, the judiciary, the police, the army. Those who cannot be co-opted, if you like, are probably dead, and those who can be framed or blackmailed — that’s how criminal organizations gain power in a country,” he said.

The Lebanese parliament has held eleven electoral sessions to elect the president since Sept. 29 last year, with every session failing to elect a candidate.

In recent days, Joseph Aoun, commander of the Lebanese Armed Forces, has emerged as a potential contender. However, this would require a constitutional amendment, and consensus from the parliament, which is currently headed by Speaker Nabih Berri.

Though he calls Berri “a brilliant operator” who is familiar with the ins and outs of Lebanon’s tangled political web, Shehadi says Berri is “also a hostage himself.”

Berri is the leader of the Amal Movement, which engaged in a years-long war with Hezbollah in the 1980s which saw thousands killed.




In this photo taken on June 6, 2020, Lebanese troops block supporters of the Lebanese Shiite movements Hezbollah and Amal trying to crash through a rally in Beirut decrying the collapse of the economy. (AFP)

“It ended with an agreement between them, sponsored by Iran and Syria, whereby they basically formed one block in parliament and one list, which means they have the monopoly of Shiite representation. They do not have a monopoly of Shiite support, but they have the monopoly of Shiite representation because of the way they manipulate lists in their areas,” Shehadi said.

During multiple electoral sessions stretching from September 2022 to January this year, many MPs left their ballot papers blank, with some in early sessions even casting their votes for “For Lebanon,” “Righteous dictator,” and “Nobody.”

Shehadi explained that major decisions and appointments within the Lebanese administration must be made by consensus, and with the signature of the president, speaker of the parliament, and prime minister. In the midst of the current political power vacuum, this means that the government in Lebanon has all but ceased to function.

“We had that for 29 months, without a president, without a parliament, and without a functioning government … we had a caretaker government, until our politicians, if you like, compromised and accepted to elect the favorite candidate of Hezbollah. So, we are in the same position, and it’s a difficult position because the longer we resist, the more damage there is, and I think our economic collapse is mainly caused by paralysis,” Shehadi said.




A January 19, 2023, photo shows Lebanon's Parliament convening to elect a new president. Because of sectarian divisions, the election failed. (AFP file)

“The priority now is to have a president and a functioning parliament and a functioning government so that state institutions do not collapse further.”

Shehadi added that though there is no shortage of credible candidates, the parliament is “held hostage, and the whole system is held hostage because you need a certain majority to start the process of elections. You need a two-thirds plus one majority, which means that one-third of parliament can spoil the process.”

Even if this litany of political challenges were overcome and Lebanon managed to receive assistance from the IMF, Shehadi said that IMF funds would not be a solution to all of Lebanon’s financial problems. However, he stressed that “engagement with the IMF is crucial.”

“Following the IMF recommendations is very important, especially on fiscal and monetary policy. There’s a lot of opposition to some of the IMF reforms, which I understand,” he said, adding that many observers say that $3 billion in funds will do very little to alleviate the country’s $90 billion deficit.

“But I think, in my view, it’s more important to remain engaged. The country is being paralyzed and isolated from the West, from the Arab countries, and now will be isolated from international institutions too, like the IMF and the World Bank and the UN and all that. It’s very damaging to ignore the IMF route.”




Nadim Shehadi speaks to Frankly Speaking host Katie Jensen. (Supplied)

Shehadi concurs with the World Bank’s assessment of the meltdown in Lebanon as one of the worst modern crises in recent history. But asked if he thinks there is a way out of the quagmire, he replied: “Yes, but I don’t see it only for Lebanon. The whole region is suffering from the same problem. The Lebanese case is similar to what is happening in Palestine, in Syria, in Iraq, in Yemen, and this could spread to other countries in the region who could be vulnerable.”

He continued: “It should be treated as a regional phenomenon, which is, basically, the role of Iran’s Islamic Revolutionary Guard Corps. The IRGC, as a paramilitary, non-state actor, has taken over the Iranian state and society in the same way as Hezbollah is acting in Lebanon, in the same way as Iranian-sponsored militias are behaving in Iraq, and definitely in the same way as Hamas has paralyzed the whole of the peace process in Palestine.”




Hezbollah supporters attend a memorial service in Beirut for Qasem Soleimani, the slain top commander of the Iranian Revolutionary Guard Corps. (AFP file)

Under the circumstances, Shehadi said the multidimensional crisis in Lebanon is part of a “broader regional problem, which needs to be treated as such. Lebanon is the fault line or the weakest point. A lot of the region’s ills, or problems, surface in Lebanon first.”

Because of this, Shehadi added, international and regional engagement and cooperation are crucial components to solving Lebanon’s crisis, and that the international community must refrain from seeing Lebanon as a hopeless case.

“We are definitely hostages, but we still have a say in the country and we need international support to get out of the grip of (Hezbollah). And again, the grip is regional. So, our fate is similar to Iraq, similar to Palestine, similar to Syria, and similar to Yemen,” he said.

“I don’t think one can see it in a fragmented way. And it’s wrong to abandon a place just because it’s considered to be lost. Lebanon is not a lost case.”

 

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Israeli army kills 5 Palestinians in West Bank shootout as Smotrich calls for razing of towns

Updated 16 sec ago
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Israeli army kills 5 Palestinians in West Bank shootout as Smotrich calls for razing of towns

  • The 'terrorists' were killed in a shootout near the settlement where a pregnant woman was killed earlier
  • Shootout came as Israel's hardline minister called for razing of Palestinian towns

JERUSALEM/RAMALLAH: Israel’s military killed five Palestinian militants in the occupied West Bank on Thursday, hours after a pregnant settler was killed in a shooting, as hard-line pro-settler leaders including a government minister called for Palestinian towns to be razed.
The military said in a statement it had killed five “terrorists” and arrested a sixth who had barricaded themselves in a building in Tamoun, following an exchange of gunfire and the use of shoulder-fired missiles by Israeli soldiers.
The military wing of Palestinian militant group Islamic Jihad later issued a statement saying five of its members were killed while clashing with Israeli forces that surrounded their house in the town of Tamoun, north of the West Bank.
Tamoun is a Palestinian town about 35 km (22 miles) from the Israeli settlement of Brukhin, near which the heavily pregnant woman, Tzeela Gez, was killed on Wednesday night in a shooting that drew strong condemnation from Israeli leaders.
The military said it was searching for those responsible for Wednesday’s shooting — whom it did not identify — though it was not immediately clear whether the Tamoun operation was linked.
There was no immediate claim of responsibility for the shooting, which occurred amid one of the largest Israeli military operations in the West Bank in two decades and while the Israeli military bombards Gaza.
Gunfire could be heard in Tamoun on Thursday, while Reuters footage showed flames and black smoke on the top floor of a house as Israeli soldiers stood on the street outside. The Palestinian WAFA news agency said the Israeli military was demolishing the house where the Palestinian men had been killed.
The Israeli military said soldiers had identified the “terrorists” in a building during an overnight operation in Tamoun and the nearby city of Tubas. It recovered rifles used by the militants in the building in Tamoun, it said.
The military also said that three armed individuals had been arrested in Tubas.
The Palestinian Health Ministry said the military had taken the bodies of four of the deceased. The local Red Crescent said it had recovered a fifth body from a burning building.

Demand for retribution
Gez, the pregnant woman, was shot near the Brukhin settlement while traveling to hospital with her husband to give birth. She was pronounced dead at the hospital where her baby was delivered by caesarean section, Israeli media reported.
The baby was reportedly in serious but stable condition, while Gez’s husband Hananel was lightly injured.
As retribution, Israel’s far-right Finance Minister, Bezalel Smotrich, said the nearby Palestinian towns of Bruqin and az-Zawiya should be destroyed, just as cities in Gaza have been.
“Just as we are flattening Rafah, Khan Younis and Gaza (in the Gaza Strip), we must also flatten the terror nests in Judea and Samaria,” Smotrich said on social media, employing the term often used in Israel for the West Bank.
Israeli Prime Minister Benjamin Netanyahu said he hoped security forces would quickly find those responsible for Gez’s death, while President Isaac Herzog expressed his condolences to her family.
The chief of Israel’s general staff, Lt. Gen. Eyal Zamir, visited the troops searching for Gez’s killer on Thursday near Brukhin.
The Israeli military has killed dozens of Palestinians and destroyed many homes since it launched an operation in January in the West Bank city of Jenin to root out militants.
Those killed have included members of Hamas and other militant groups but also some civilians, including women and children.


Turkiye FM meets Russia delegation in Istanbul

Updated 16 May 2025
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Turkiye FM meets Russia delegation in Istanbul

ISTANBUL: Turkiye’s foreign minister was on Thursday meeting with the Russian delegation that is in Istanbul for their first direct peace talks with Ukraine in three years, a ministry source said.
“The meeting between Foreign Minister Hakan Fidan and the Russian side, headed by Vladimir Medinsky has started,” the source said of talks taking place at Istanbul’s Dolmabahce Palace.
The talks had been announced earlier in the evening by a foreign ministry spokesman.
Russia and Ukraine had been expected to meet on Thursday in Istanbul for their first direct peace talks in more than three years at the Dolmabahce Palace on the banks of the Bosphorus.
But as the day wore on without any concrete indications of timings, it remained unclear whether the delegations would meet later in the evening or leave it until Friday.
US Secretary of State Marco Rubio, who was in southern Turkish city of Antalya for a NATO summit Thursday, was due in Istanbul on Friday.
He told reporters he would meet Ukraine’s top diplomat, Andriy Sybiga there, while a lower-level US official would meet with the Russian delegation.
The minister was not thought to be part of the Ukrainian delegation to the talks.
Rubio also expressed hope that Turkiye would work to bring the two delegations together.
Earlier on Thursday, Fidan and Rubio held talks on the sidelines of the NATO meeting, with the pair agreeing that “efforts would continue to be made to ensure direct negotiations between the parties,” a source at the Turkish foreign ministry said.
Ukrainian President Volodymyr Zelensky, who was in Ankara earlier on Thursday, has sent a pared-down team to the Istanbul talks after Russia showed up with a relatively low-level delegation.
The Ukrainian delegation is headed by Defense Minister Rustem Umerov, while the Russian side is being led by Medinsky, a hawkish adviser to Russia’s Vladimir Putin who has questioned Ukraine’s right to exist and led failed talks in 2022 at the start of the war.


ICC says Libya recognizes authority of war crimes, repression probe

Updated 16 May 2025
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ICC says Libya recognizes authority of war crimes, repression probe

UNITED NATIONS: Libya has accepted the authority of the International Criminal Court (ICC) to investigate alleged war crimes in the country despite not being party to the Rome Statute, the court’s founding treaty, ICC chief prosecutor Karim Khan said Thursday.
“I strongly welcome the courage, the leadership and the decision by the Libyan authorities” to recognize the ICC’s jurisdiction over possible war crimes and repression committed since 2011 until the end of 2027, Khan added.


Hamas ‘willing to cooperate’ with Trump if US puts pressure on Israel to end war

Updated 16 May 2025
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Hamas ‘willing to cooperate’ with Trump if US puts pressure on Israel to end war

  • Senior Hamas figure Basem Naim says his group has told Washington directly it is willing to give up governance of Gaza
  • The organization released an American Israeli hostage this week during Trump’s visit to the region

LONDON: President Donald Trump can help bring peace to Gaza, a senior Hamas official said as he confirmed that the Palestinian group has told the US it is willing to hand over governance of the territory.

In an interview with Sky News on Thursday, Basem Naim said his organization has shared a ceasefire plan directly with officials in Washington and offered to hand over administration of Gaza “immediately if we reach an end of this war.”

The proposal called for “a prisoner exchange, total withdrawal of Israeli forces, allowing all the aid to get into Gaza, and rebuilding of the Gaza Strip without forceful immigration,” he added.

Naim said he believes Trump “has the capability and the will to reach this peaceful situation.”

He continued: “President Trump can do it if he exercises enough pressure on the Israelis to end this war immediately. We are ready to cooperate with him to achieve this goal of a more peaceful region.”

Hamas released American Israeli hostage Edan Alexander on Monday as Trump was beginning a tour of the Middle East, which included visits to Saudi Arabia, Qatar and the UAE. The group said the same day that it was in direct negotiations with Washington.

“We urge the Trump administration to continue its efforts to end this brutal war waged by the war criminal (Israeli Prime Minister Benjamin) Netanyahu against children, women and defenseless civilians in the Gaza Strip,” the group said.

Alexander was serving as an Israeli soldier when he was captured during the Hamas-led October 2023 attacks, in which 1,200 people were killed and more than 250 were taken hostage.

Israeli authorities responded with a brutal military offensive that has killed more than 50,000 Palestinians and reduced Gaza to rubble. A blockade on humanitarian aid since early March has prompted warnings that the territory could soon be gripped by famine.

Naim’s comments suggest Hamas, which is designated as a terrorist group by the US, believes Trump can play a key role in helping to secure an end to Israel’s ongoing offensive, which claimed the lives of scores more people on Thursday.

He said Hamas has accepted an Egyptian peace proposal under which a politically independent body would be formed to run Gaza.

“Before that, as long as we are still occupied people, we have all the right to continue defending our people and resisting the occupation,” Naim said.

Earlier reports that the US and Hamas were engaged in direct talks reportedly angered Israeli authorities. And despite the comments from Hamas officials this week, US officials maintain that the group is still not doing enough to end the war.

“Hamas has not demonstrated they are serious about peace,” a White House National Security Council spokesperson told Sky News, adding that Trump has demanded that the group lays down its weapons.

“Hamas continues to wrongfully hold hostages, including American bodies, in the dungeons of Gaza who could easily be freed, and have shown no changes in behavior to indicate they will cease to attack civilians,” he added.

The ranks of Hamas has been heavily depleted during the war against Israel, with thousands of its members killed, including a number of senior leaders. However, it continues to maintain a strong presence in Gaza and remains key to any ceasefire agreement.

Israel has ramped up its military operations in recent weeks as it moves to gain control of large sections of Gaza and take over aid distribution throughout the territory.


Trump outlines potential fighter jet plans in Gulf tour

Updated 15 May 2025
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Trump outlines potential fighter jet plans in Gulf tour

  • President says US studying a twin-engined F-55 and upgraded ‘F-22 Super’

DOHA: The US is examining the development of a twin-engined warplane known as the F-55 and an upgrade to its Lockheed Martin F-22 Raptor called the F-22 Super, US President Donald Trump said on Thursday.

Trump was speaking at a meeting of business leaders, including the heads of Boeing and GE Aerospace in Doha, a day after announcing a string of business deals, including an order from Qatar for 160 Boeing commercial jets.

Trump referred to the F-55 both as an upgrade to the Lockheed F-35 and a new development in comments that appeared to echo talk by the US arms giant of a “best value” alternative, after losing out to Boeing to replace the F-22 superfighter.

He also highlighted the role of the new air dominance platform called the F-47, recently awarded to Boeing, and said the US was simultaneously looking at upgrading the stealth fighter that it is designed to replace, the F-22.

“We’re going to do an F-55 and — I think, if we get the right price, we have to get the right price — that’ll be two engines and a super upgrade on the F-35, and then we’re going to do the F-22,” Trump said.

“I think the most beautiful fighter jet in the world is the F-22, but we’re going to do an F-22 Super, and it’ll be a very modern version of the F-22 fighter jet,” he said.

“We’re going to be going with it pretty quickly,” he added.

Trump last month awarded Boeing the contract for the F-47 — a replacement for the Lockheed F-22 stealth fighter featuring a crewed aircraft flanked by a cohort of drones and seen as America’s most advanced or sixth-generation fighter.

Lockheed Martin, which lost out to Boeing in that Next Generation Air Dominance, or NGAD, competition and was dropped from a separate contest for a new US Navy stealth jet, has said it is now looking at plans for a “fifth-generation-plus” fighter.

CEO James Taiclet told analysts last month that Lockheed was looking at ways of applying technology developed for its losing bid for the F-47 contract to the F-35, delivering 80 percent of the capability for half the cost.

“We’re basically going to take the chassis and turn it into a Ferrari,” he told analysts.

Lockheed did not immediately respond to a request for comment on whether Trump had revealed the name of this project.

Lockheed is separately in the midst of a delayed technology and software upgrade for the existing generation of F-35 strike fighter to boost cockpit displays and processing power.

Analysts said it was not immediately clear how Trump’s list of potential developments fitted into known programs and spending plans, or the timing of existing programs.

Agency Partners aerospace analyst Nick Cunningham said the F-55 may alternatively refer to the F/A-XX program, intended to replace the US Navy’s aging Boeing F/A-18 Super Hornet fleet with the service’s sixth-generation stealth fighter.

The Navy and Congress are battling with the administration to keep the plans moving forward, Reuters reported on Wednesday.