[Lebanon] (2): Political Turmoil, and a Collapsing Economy
Lebanon has been suffering from a severe humanitarian crisis, burdened by years of political instability, corruption, and ongoing tensions with the Islamist group Hezbollah. In this second report, Peace Winds photographer Simon Kondo sheds light on the struggles of Lebanon’s people amid the ongoing conflict and hardship.
Once Known as the “Paris of the Middle East,” the City Is Now Crumbling
The Republic of Lebanon, located along the Mediterranean, is a small nation with a land area roughly the size of Gifu Prefecture. However, its capital, Beirut, once thrived as a commercial, financial, and cultural center, earning the nickname “Paris of the Middle East.”
However, by the 1970s, this prosperity began to fade. With its complex religious and political background, where Islam and Christianity coexisted, the country fell into a state of civil war, and the city of Beirut deteriorated. In the years that followed, repeated military interventions by Israel further destabilized the nation, and the country remains in an extremely precarious situation today.
Lebanon’s economy had long been weakened by years of political turmoil and corruption, the massive influx of refugees due to the Syrian Civil War, and ongoing tensions with the Shiite Islamist group Hezbollah. Then, in March 2020, the government declared default (sovereign debt default) due to its debt crisis. Shortly after, the Beirut Port explosion in August 2020 delivered another devastating blow, causing the economic situation to deteriorate rapidly. At the same time, the Lebanese government fell into dysfunction, unable even to form a cabinet.
The Lebanese currency has plummeted in value, dropping from 1 USD = 1,500 Lebanese pounds in 2019 to approximately one-sixtieth of that value today (currently 1 USD ≈ 90,000 LBP).
The prices of food and daily necessities have surged dramatically, with food prices skyrocketing by 122% between March and June 2022—the highest food inflation rate in the world (*3). To put this into perspective, even Zimbabwe, which recorded the second-highest food inflation rate, saw an increase of only 23%, highlighting the extreme nature of Lebanon’s price surge.
Lebanon has long been the country with the highest number of refugees per capita, and international aid efforts have primarily focused on supporting refugee populations. However, the ongoing economic crisis has now forced Lebanese citizens themselves into increasingly dire living conditions (*4).
*3）The World Bank｜Food Security Update (July29 2022)
*4）UNHCR｜Lebanon Fact Sheet Q2 2024
Lebanon’s Economy: From 10 Loaves for 1,500 Pounds to 6 Loaves for 75,000 Pounds
I visited a supermarket with Rosie, a local partner from the organization.
Pointing at the vegetables on display, Rosie said, “Five years ago, tomatoes could be bought for 1,500 pounds per kilogram. Now, sometimes they cost 150,000 pounds, which is 100 times more. This is a cheaper store, so you can get them for about 75,000 pounds, but look, the quality is poor, and some of these are almost rotten…”
She explained that the prices of eggs, cheese, and meat have been rising daily, and there was even a time when stores stopped putting price tags on items.
“Without price tags, you only find out the price when you take it to the register. It’s a nerve-wracking moment, isn’t it? (laughs) The prices have gone up so much that I’ve often decided not to buy things.”
Even bread, a daily staple, used to cost 1,500 pounds for 10 loaves, but now, you need to pay 75,000 pounds to get a pack of 6 loaves.
“What’s most frightening is that no one knows how long this will continue. After two years, they finally elected a new president, so we hope the economy will stabilize a bit, but it’s still too early to feel reassured…”
Receiving Aid Feels Embarrassing”: Struggling Between Pride and Harsh Reality
Rosie says, “Many people feel ashamed to receive aid. It’s an act of acknowledging that they lack the power to stand on their own, and the reluctance to accept help due to concern about what others might think is something that can be understood, not just in Lebanon, but universally.”
However, the economic situation in Lebanon had deteriorated to a point where such concerns were no longer relevant. In the heart of Beirut, where food aid is provided to those in need, it was not only refugees who came, but many Lebanese citizens as well. Elderly people, whose savings for retirement were locked away in banks due to the financial collapse, mothers in single-parent households who could no longer afford to send their children to school, and families struggling to pay skyrocketing medical costs—leaving them unable to even afford a meal for the day—were among the many facing dire circumstances.
“Lebanon was already in a state of crisis before the Israeli airstrikes caused further chaos,” says Eliana, the head of the center managing material aid. “The current crisis has just worsened. If we don’t provide aid, this country, including not only the refugees but also the Lebanese citizens, will truly collapse. I believe the Lebanese people are a positive-minded nation, but the reality is harsh.”
Eliana spoke with a serious expression as she discussed the dire situation.
(Read more in Lebanon’s Current Situation (1) | Lebanon’s Current Situation (3))
To carry out aid activities within Lebanon, we report to Japan’s Ministry of Foreign Affairs and embassies, closely gather information on local security conditions, collaborate with partner organizations, ensure staff safety during travel, and secure evacuation routes in case of emergency.
▶ Donation: Emergency Aid for the Humanitarian Crisis in Lebanon (Peace Winds Japan)