Melhem Khalaf (L) and Najat Saliba refuse to leave Parliament until Lebanese lawmakers elect a president. AFP
Melhem Khalaf (L) and Najat Saliba refuse to leave Parliament until Lebanese lawmakers elect a president. AFP
Melhem Khalaf (L) and Najat Saliba refuse to leave Parliament until Lebanese lawmakers elect a president. AFP
Melhem Khalaf (L) and Najat Saliba refuse to leave Parliament until Lebanese lawmakers elect a president. AFP


Two Lebanese MPs are protesting the mess created by their government, and deserve support


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February 15, 2023

Several weeks ago, I wrote an article outlining a radical proposal Ralph Nader and I put forward for discussion. The proposal called on Lebanon’s civil society to petition the UN to declare Lebanon a “failed state” requiring international intervention. Many readers commented favourably on the idea, also registering their frustration with Lebanon’s corruption and dysfunction. Others noted that, although the idea was worth considering, they believed that it would never pass the Security Council. The point of the proposal, however, was not to present a fait accompli. Rather, it was to spur exactly the type of discussion that ensued.

What’s clear is that Lebanon is broken, and its people are suffering. Its governing institutions aren’t functioning, and its traditional leadership appears incapable of meeting the challenges confronting the country. Evidence of this dysfunction is the fact that for the past four months Lebanon’s Parliament has been unable to elect a president.

In the face of this paralysis, we have witnessed a courageous and important step being taken by a group of newly elected members of the Lebanese Parliament, who have been conducting a protest sit-in, now in its fourth week, at Beirut’s Parliament building. Led by two of the independent “Forces of Change” group of newly electeds, Najat Saliba and Melhem Khalaf, the protesters are calling on their colleagues to convene and fulfil their responsibility to elect a president so that at least a semblance of a functioning government can be formed.

It is important to acknowledge that seating a president and a cabinet is at best a short-term fix that will not solve Lebanon’s multi-layered crises. At the same time, it’s important to support the MPs’ decision to sit-in precisely because their action shines a light on the dysfunctional mess created by the sectarian cliques controlling the Parliament. By focusing on their petty agendas instead of the national interests, the sectarian elites in power have led the country to ruin.

In a letter appealing for support, MPs Saliba and Khalaf listed some of the unaddressed hardships confronting the Lebanese people, noting, in particular, those brought on by the country’s economic collapse. Given the steady erosion of the value of Lebanese currency, Lebanon’s average monthly income has plummeted from $450 to $10. As a result, almost 75 per cent of the population lives in poverty. Three hundred thousand children are left without schools. Patients with serious illnesses are left without medical care or essential medications. And most damning, they write, “Cholera is spreading, 90 per cent of the water supply is polluted and over one million families cannot afford fuel”. This nightmare is the reality in the country whose capital was once heralded as the “Paris of the Middle East”.

Lebanon's economic crisis has caused a crash in the value of the pound. Reuters
Lebanon's economic crisis has caused a crash in the value of the pound. Reuters
Their action shines a light on the dysfunctional mess created by the sectarian cliques controlling the Parliament

In the face of this catastrophic situation and governing vacuum, the Lebanese Parliament has met 11 times since October and each time failed to fulfil its basic constitutional duty to elect a president. Each of these sessions, as MPs Saliba and Khalaf have noted, has turned “the presidential election into a theatrical comedy”. There has been no serious voting, followed by adjournment. During each of the 11 meetings, some Members of Parliament have approached their responsibility seriously and have simply disagreed on the right candidate to support. Others have been purely obstructionist, seeing paralysis as better than electing a president who will not protect their partisan group’s corrupt control over ministries and budgets.

As a result of this inaction and/or obstruction, Lebanon has not had a functioning government for almost four months. Without a president, there is no cabinet; ministries of government aren’t able to implement policies; and the Parliament can’t pass laws or enact reforms. There is no authority that can negotiate with international institutions for loans or grants with which to provide needed revenues and services. And Members of Parliament cannot enact reforms to protect basic rights, address income inequality, ensure accountability for crimes committed against the Lebanese people or challenge and expose endemic corruption that is at the heart of the Lebanese dilemma.

That is why, beginning on January 19, Ms Saliba and Mr Khalaf, supported by a number of their reform-minded colleagues, decided to begin their sit-in to force compliance with the Constitution, which calls for the Parliament to remain in open session until a president is chosen. They deserve support for their courageous challenge, not because a new president will solve Lebanon’s crisis – that is a far deeper problem than can be remedied by simply putting a new face at the helm. Rather, their action, if it can build popular momentum, may press the Parliament to elect a president, leading to the formation of a government that can take steps to alleviate the hardships facing the long-suffering Lebanese people.

At the same time, this protest action helps to expose the dysfunctional state of the political system and empowers the newly elected independent reformists whose numbers must grow if Lebanon is to change. In the end, more fundamental transformations will be needed to end the corrosive impact of sectarianism and corruption, but this direct action by a handful of reformists is a first step on the long road forward.

Brief scores

Toss India, chose to bat

India 281-7 in 50 ov (Pandya 83, Dhoni 79; Coulter-Nile 3-44)

Australia 137-9 in 21 ov (Maxwell 39, Warner 25; Chahal 3-30)

India won by 26 runs on Duckworth-Lewis Method

Brief scoreline:

Liverpool 2

Keita 5', Firmino 26'

Porto 0

Match info

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: February 15, 2023, 2:21 PM