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Lebanese economy hammered by political crisis, debt

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BEIRUT (AP) — Ahmad Harb opened his perfume shop on the main street of Beirut’s commercial Hamra district 35 years ago, and his business has weathered security and political crises in this volatile country, including a civil war. He says this year has been the worst he’s seen: sales dropped by 90 percent and after the landlord raised the rent, he was finally forced to close the shop and move to a smaller, less expensive location nearby. “There is no business. Nothing works in this country, everything is very expensive,” Harb said, standing woefully outside his now shuttered shop. Nearly four months after Lebanon held its first general elections in nine years, politicians are still squabbling over the formation of a new government amid uncertainty over a long stagnating economy, struggling businesses and concerns over the currency. Years of regional turmoil — worsened by an influx of 1.5 million Syrian refugees since 2011 — are catching up with the tiny, corruption-plagued Arab country. Lebanon has the third highest debt rate in the world, currently standing at about $81 billion, or 152 percent of the gross domestic product. In the absence of a new government, Lebanon has been unable to access billions of dollars pledged by foreign donors for foreign investment in infrastructure and other projects. Meanwhile, many businesses are closing, some companies are laying off employees and even Lebanese living in the oil-rich Persian Gulf region have seen a drop in their business and income due to a drop in oil prices, translating into a decrease in remittances.

Amid this tight situation, many Lebanese who have cash are now spending less, fearing for the future. Residents complain they have to pay double for everything including private generators to deal with chronic electricity cuts and water trucks to cope with the dry summer months. Adding to the downward spin, the government earlier this year stopped awarding long-term housing loans with low interest rates because high demand has depleted money available. Hardly a day passes without politicians warning that the worst is yet to come, raising fears among residents that the Lebanese pound, pegged at 1,500 to a dollar for the past two decades, might lose some of its value. Harb wonders where he will get the money next month when his children return to school. “The country is heading toward bankruptcy,” he said, referring to shops that have already closed down in Hamra Street, one of the top shopping districts in Beirut. On a walk through downtown Beirut in August, when restaurants would normally be packed with expatriates and tourists, the depression is easy to spot. Some restaurants have closed while others offer 30 percent discounts. Some shops are offering up to 70 percent off. Maamoun Sharaf, owner of a money exchange shop, said the delays in forming the Cabinet have had bad effects, but the situation had been bad even before that. “This year the economy did not do well. Even our business dropped by 50 percent,” he said. Political disagreements have led to a delay in the implementation of loans and grants pledged at the CEDRE economic conference in Paris held in April. International donors pledged $11 billion for Lebanon but the donors sought to ensure the money is well spent in the corruption-plagued country.

Despite the crisis, the state last year approved a salary scale for civil servants that will cost an extra $800 million annually. The government imposed new taxes to fund the new salary structure, increasing the burden on a population that has already been suffering under high taxes with no return in the form of stable services such as water and electricity. Indeed, daily electric outages are a common occurrence. Central Bank Governor Riad Salameh has repeatedly released statements assuring people that the currency is stable. Some Lebanese banks have been raising interest rates on the local currency for clients who agree to change U.S. dollars to Lebanese pounds and put them in blocked accounts for a specific period of time. The move is backed by the Central Bank, which has been boosting its foreign currency reserves. “There is a government paralysis in Lebanon but right now the Lebanese pound is safe. The Central Bank is trying to have dollars to boost its reserves in case of any economic crisis,” said economist Kamel Wazne. He acknowledges, however, that the economy “is not well” and warns that state institutions and financial policies cannot be activated in the absence of a government. Prime Minister-designate Saad Hariri, who has lobbied Western governments for assistance, is bogged down with the details of forming a government and divisions among politicians over whether Lebanon should resume normal contacts with Syrian President Bashar Assad’s government. Hariri’s pro-Syria opponents have been pressuring him, saying normal contact should be resumed to help boost exports from Lebanon through the Naseeb border crossing with Jordan, which was recaptured by Syrian troops from rebels in July. Hariri is a harsh critic of Assad and is against having normal relations with the Syrian president. “The international community stood by Lebanon and what is needed now is for Lebanon to stand by Lebanon and to form a Cabinet quickly, because this delay negatively affects the economy,” said Wazne, who also referred to the debt that is expected to grow in 2018 by $5 billion due to a huge budget deficit. ___ Associated Press writer Bassem Mroue in Beirut contributed to this report. Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

John McCain, war hero and longtime senator, dead at 81

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by Business Insider -- Republican Sen. John McCain, an internationally renowned Vietnam War hero who served for 30 years in the Senate representing Arizona, died Saturday due to complications stemming from brain cancer. His office said in a statement that his wife Cindy McCain and their family were alongside him when he died. "At his death, he had served the United States of America faithfully for sixty years," his office said. McCain, 81, was a part of many of the past three decades' most significant political moments. He was the 2008 Republican presidential nominee in a contest he lost to President Barack Obama. He also sought the presidency in 2000, mounting a primary campaign against President George W. Bush. A graduate of the Naval Academy, the Arizona Republican followed both his father and grandfather, who were four-star admirals, into the US Navy, where he carried out airstrike missions. During a 1967 bombing run over Hanoi, McCain's plane was shot down, nearly killing him. He was captured by North Vietnamese forces and spent six years as a prisoner of war, suffering brutal beatings at the hands of his captors, which left him with lifelong physical ailments. He quickly lost 50 pounds and saw his hair turn white. His captors did not treat his injuries from the plane crash.

John McCain is pulled out of a Hanoi lake by a mix of North Vietnamese Army (NVA) and Vietnamese citizens in October, 1967. McCain was shot down by a Surface-to-Air Missile and had broken both arms and his right knee upon ejection, losing consciousness until he hit the water. Reuters Because his father was named commander of US forces in Vietnam that same year, the North Vietnamese offered to release McCain early. He refused unless every prisoner of war taken before him was also released. He was soon placed in solitary confinement, where he would remain for the next two years. He was not released until March of 1973. Upon returning to the US, McCain was awarded a number of military medals, including two Purple Hearts. He soon set his sights on politics and ran for an Arizona congressional seat in 1982, winning a tough primary and subsequently the general election.

In 1986, he ran for the Senate seat vacated by longtime Republican Sen. Barry Goldwater, who was the Republican presidential nominee in 1964. He won that election as well, and he has been reelected to the Senate for five additional terms — most recently in 2016. Early in his Senate career, McCain became embroiled in the "Keating Five" scandal. McCain was one of five senators who received campaign contributions from Charles Keating Jr. and was later asked by Keating to prevent the government from seizing his Lincoln Savings and Loan Association. McCain met twice with regulators to discuss the government investigation. He later returned the donations and admitted the appearance of it was wrong. The episode led McCain to become a leader on campaign finance reform, which included the passage of the McCain-Feingold Act. During his 2000 campaign for president, the press became enthralled with the candidate who won over a reputation as a "maverick," rebuffing his party's conservative orthodoxy at the time. He famously traveled on a bus called the "Straight Talk Express" during his 2000 bid.

Report: Aoun-Hariri Ties ‘Intact’, President 'Weighing Options' if Formation Delay Persists

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Source Naharnet -- Relations between President Michel Aoun and Prime Minister-designate Saad Hariri are “not broken” because of conflict over the Cabinet formation, and the two men are holding contacts on a daily basis away from media spotlight, al-Akhbar daily reported on Saturday. “Contacts between the president and premier are not broken. There are daily contacts between the two either by phone or through delegates, but there is no need to announce this each time it happens,” sources close to Aoun told the daily. “The President wants a government to be formed before he takes part in the upcoming foreign conferences and events," they said, referring to Aoun's warnings that he might take action if the delay persists. "The first will be the opening of the European Parliament in Strasbourg on September 12 where Aoun will be the guest of the year and will deliver an important speech,” they. “He will then lead the Lebanese delegation to attend the works of the United Nations General Assembly in New York on September 24, where he will deliver Lebanon's speech on 26 September. “It is important that Aoun goes to these conferences after the government has been formed, because it would have a positive reflection on the unity of the Lebanese position on the issues at hand,” they added.

However, shall the delay in lining up the government persist, “one of Aoun’s options is to explain to the Lebanese the reasons hampering the formation. However, that will only happen after Aoun has a word with Hariri about the decisions the latter plans to take,” they added. Early this week, Aoun has warned that the timeframe for forming the new government is "not open-ended," hinting that he might take action in early September. Hariri was tasked with forming a new government on May 24. His mission is being hampered by political wrangling over shares, especially over Christian and Druze representation. Some parties such as Hizbullah and the Free Patriotic Movement have suggested that foreign countries, especially Saudi Arabia, are behind the ongoing delay.

THE TINY COUNTRY AMERICANS OVERLOOK FOR FOOD & NIGHTLIFE ON THE MEDITERRANEAN

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By PAUL JEBARA -- thrillist.com -- While you spent your childhood summers at sleepaway camp, I went to Lebanon. I suppose two decades of once-a-year grandma smooches and cousin catch-ups made me feel like I couldn’t explore the country outside of a family context; those of you who have a similar “homeland” situation can probably attest to the feeling. But during my last visit, on an exceptionally balmy February day, I was the one in the driver’s seat of my uncle’s ‘96 Camaro, one of his several faded hot rods that hibernate in the driveway, blanketed by dried pine needles and the occasional stray cat. It was time for the torch -- stick shift, rather -- to be passed on so I could finally experience something that all Lebanese love to brag about doing: a morning on the ski slopes with an afternoon dip in the Mediterranean. After shredding near-perfect snowpack at the Mzaar ski resort, just two hours from Beirut, I would cruise the mountain roads back down to the coast for a beer and beach situation in 80-degree sunshine, a hot toddy by the chalet fireplace. Because when you’re in Lebanon, you can do it all.

I challenge you to find a better slice of land in the Middle East. One with a coastline like the Côte d’Azur, Swiss-style ski resorts, and relics from history’s greatest civilizations scattered around and within the oldest continually inhabited cities in the world. It doesn’t even have a desert. Yes, war in neighboring Syria is raging 70 miles away, but the Lebanese have done a solid job protecting against spillover. Because once you experience your own vicious civil war like they have, you’ll do anything for lasting peace, however fragile the goal may seem. Americans are even feeling good about Lebanon’s recent years of sustained stability, with visitors surging to new levels in 2017, all to uncover the diverse culture, incredible food, and natural wonders of a nation smaller than Connecticut. Take it from someone born in Connecticut -- Lebanon’s a hell of a lot better choice for your next big trip.

Lebanon is unique because Lebanese identity is unique This is a country of extremes existing in harmony, and that, bizarrely enough, is what allows its extremely rich culture to flourish. Mountains rising from the Mediterranean, ancient temples at the foundation of glimmering skyscrapers, the synchronous sounds of church bells and Muslim prayer calls. Even the late, great Anthony Bourdain declared it “a place of such unbelievable possibilities” -- and that’s what makes it a rewarding destination for the discerning traveler. Many Lebanese actually deny being Arab, insisting instead that they descend from the Phoenicians (ancient seafarers and inventors of the alphabet), and that sets them apart. Lebanon’s national identity is strong and comprised of 18 recognized religious sects, making it the most religiously diverse society in the Middle East. And since everyone has their own story, they’ll want to hear yours, too. A remarkable hospitality exists here that stems from an earnest desire to get to know you, especially if you’re American. Our political policies chafe with certain pockets of the Lebanese population (you’ll want to avoid south Beirut and other Hezbollah strongholds for this reason) but overall, it’s a safe place for Americans to visit. Maybe just don’t come with stars and stripes tattooed on your forehead.

Marcel Ghanem introduces new debate show

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by annahar.com -- BEIRUT: After much media hype and anticipation, Lebanese political talk show host Marcel Ghanem introduced Friday his latest venture during a news conference broadcast on local TV station MTV. Ghanem, a pillar of Lebanese political debate, will be hosting a new show titled "Sar Al Waqet", or "It's about time." After 27 years hosting "Kalam Ennas" on LBCI, Ghanem elected to seek pastures new to "broaden the horizon." "Thank you to the MTV family for your professionalism and for welcoming me with open arms," he said. Fellow media personality George Ghanem is set to be an integral part of the show he said, including former Interior Minister Ziad Baroud.

Chinese vessel unloads 800 containers in Lebanon's Tripoli port

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BEIRUT,(Xinhua) -- The Vessel Beijing Bridge of Cmacgm arrived to Lebanon's Tripoli port on Thursday from China passing through Suez Canal to unload 800 containers of products, local media reported. "After the opening of the maritime line between Lebanon and China, Tripoli port will become a central port for transit in the Mediterranean sea," Tripoli Port Manager Ahmad Tamer was quoted by National News Agency as saying. Tamer said that Tripoli port will receive every two weeks such a huge vessel carrying products to Lebanese market and other markets which will turn the port into a transit station. Beijing Bridge is a 295 meters vessel with 32 meters of width. On August 17, another vessel coming from China arrived to Tripoli port carrying around 1000 containers. Cmacgm Nerval, which measures 600 meters in length and 40 meters in width, is the biggest vessel arrived to the port since its establishment.

How good is Lebanese cannabis? Scientists seek herbal remedies

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By Ayat Basma BYBLOS, Lebanon (Reuters) - Locked away safely in an academic's study in Lebanon is a plant that researchers hope to transform from one of the country's most notorious exports into a lucrative pharmaceutical. Cannabis is cultivated openly, but illegally, in parts of Lebanon, especially the Bekaa Valley where a Roman temple in the ancient city of Baalbek bears an engraving of a cannabis leaf. Today, Lebanon is third after only Morocco and Afghanistan as global supplier of cannabis resin, U.N. figures show. While Lebanese cannabis might be prized by smokers of the narcotic, little is known of its medicinal value, something that Professor Mohammad Mroueh, who believes the plant's local strain might prove particularly beneficial, hopes to change.

The government has permitted Mroueh's research, but has not yet formally approved the establishment of his Medicinal Cannabis Research Center, which opened in May and aims to join the ranks of 10 institutions worldwide studying the drug. Mroueh is examining the medicinal properties of the local cannabis which is a hybrid between two strains: Indica and Sativa. "My impression is that it will have a different medical value because of the climatic conditions in the Bekaa Valley especially if you're talking about the amount of the rainfall, sunlight and type of soil," said Mroueh at the Byblos campus of the Lebanese American University where the center is based. "It is a beginning of the road for us. We haven't even determined the genotype of the plant. We have to start from zero," he said, adding that he expected to find different percentages of the active chemicals that may help in treatments of cancer, epilepsy, diabetes and other diseases.

MEDICINAL PLANTS

In the laboratory, Dr. Wassim Shebaby, one of Mroueh's research partners, injects pink-stained leukemic cells with different concentrations of cannabis oil as a group of students huddles behind him watching. "We are studying the effect of cannabis oil on (cancer) cell growth ... This is the first time this has been done (in Lebanon)," Shebaby said. The laboratory tests on cancer cells from local patients is the first step before the team is able to expand to clinical trials and economic impact studies. The project began in 2015 when two graduate students approached Mroueh to supervise a thesis about the plant. It took him three years to convince the university's board as well as the ministry of health and the drug enforcement agency. The center still needs final approval from a new government, but the country has been unable to form one since elections in May due to political squabbling over positions. The government has indicated it is considering legalizing cannabis for medicinal use after a consulting firm it hired to advise on how to reform the economy touted it as a money-maker. Mroueh expects hurdles but hopes the government will quickly approve the use of cannabis in palliative care.

The professor often stops by the side of the road to pick up seasonal medicinal plants he believes are unique to Lebanon, and villagers regularly call seeking advice on treatments. When they call to ask about using cannabis to alleviate pain, Mroueh says he does not know what to tell them. "It is still a sensitive subject and you can't talk about it freely. Unfortunately, it makes me feel helpless," he said. "It is a humanitarian and moral issue. Why should a cancer patient die in pain?" (Reporting by Ayat Basma; Editing by Robin Pomeroy)