A centrepiece of continuing western efforts to stave off a full-blown war between Israel and Lebanon has been to push for the Lebanese Armed Forces (LAF) to replace Hezbollah along the country’s southern border.
After Hezbollah’s patron, Iran, carried out direct drone and missile attacks against Israel this month, the onus to pacify Lebanon’s southern border and prevent a regional conflict has only become more acute.
However, the western peace approach, led by Washington, is very much tongue-in-cheek. Washington and the West know all too well that without a regional political solution the last thing Hezbollah will do is cede even an inch of its southern stronghold. What is less appreciated, though, is that bankrolling the LAF without truly reforming it risks forever perpetuating Lebanon’s military dualism, whereby Hezbollah’s military wing operates autonomously from the national army.
Bankrolling the LAF without reforming it risks perpetuating Lebanon’s military dualism
Institutional bloat, accusations of graft and political infighting have rendered the LAF highly dysfunctional, with little capacity to secure the country at large, let alone one of the world’s most volatile borders.
Western countries should be pushing for reforms necessary to make the LAF a viable national security institution instead of pushing the army to take up tasks it has little capacity to fulfil. And they have the leverage.
As the LAF’s largest international donor, the US has provided more than $3 billion in financial assistance since 2006, as well as most of the army’s aircraft, vehicles and military equipment.
Last year, an LAF salary support project funded by the US and administered by the UN Development Programme, kept the army corps from completely collapsing. And in March, the US congress approved another $150 million in assistance to the LAF, which will constitute almost a quarter of the Lebanese defence budget for 2024.
This aid is part of a long history of Washington, among other western allies, throwing money and other aid at the LAF with little concern or accountability over where it is spent. To continue providing this support, without conditioning it on a reform programme, would mean allowing a crippled institution to keep stumbling, leaving both Lebanon and regional stability at risk. What’s worse, allowing the LAF to lumber on without deep institutional reform provides ammunition to those who would like to defund the LAF, not least of all, some Republicans in the US.
The LAF regularly receives plaudits for being the only multi-sectarian institution respected by all sides in Lebanon’s otherwise deeply fractious and, at times, violent political landscape. The army is often seen as the last buttress between social stability and renewed civil war. Indeed, the LAF regularly conducts the business of a police force, fighting drug smuggling, human trafficking and engaging in border security. The LAF is also the country’s largest employer and social safety net, with 80,000 active service members and 400,000 beneficiaries.
Yet, at the behest of Lebanon’s venal political class, the LAF is also instrumentalised to – often with violence – break protest movements the establishment has not condoned or views as a threat to its hegemony. Last year, the LAF started forcibly evicting Syrian refugees, something that stopped the moment Washington got involved. Moreover, based on some of Lebanon’s draconian defamation laws, military courts can intimidate and try civilian journalists and comedians.
The underlying irony of all this is that while singing its plaudits and empowering the army, Lebanon’s political class (including Hezbollah) proclaim the need for the army to play a central role in defending the nation against external threats (read: Israel). What these accolades overlook, however, is that the army is never permitted to reform, lest it actually evolve into an institution that isn’t used by both the West and Lebanon’s political class for their own purposes.
Core to the army’s challenges is the scant transparency and oversight mechanism for its finances. In recent years, several corruption scandals have implicated senior army personnel. Transparency International has deemed Lebanon’s defence institutions at “very high” corruption risk.
The military bodies that try corruption cases – such as the Defence Committee to Combat Corruption and Military Capacity Development Office – suffer from the same opaqueness they were created to address.
The 2017 Public Annual Finance Review – the last published – provides no breakdown of the defence budget, while off-budget military spending is rampant. Meanwhile, no long-term parliamentary oversight exists for LAF spending, policies, or decisions. In total, some 70 per cent of defence spending goes to salaries and benefits, though skewed to favour the top. In 2021, there were as many as 400 general-grade officers serving, where official command structure mandates call for only 160.
These positions include large salaries and many perks, including private vehicles and attendants. And Lebanon’s politicians have an interest in keeping it this way. Sectarian patronage networks facilitate similar bloat throughout the LAF officer corps and general cadres. Appointments and promotions are highly politicised, with sectarian affiliations often coming before merit, entrenching external political loyalties in the top-heavy command structure. Decision-making responsiveness and effectiveness consequently suffer.
These dynamics have been laid bare since the 2019 economic collapse when the average value of a soldier’s take-home earnings fell from $800 pre-crisis to some $50 by 2023, forcing many to seek secondary employment and even consider desertion. In February, Lebanon’s Minister of Defence, Maurice Sleem, blamed LAF troops’ lack of combat readiness on the demoralising effect of low salaries.
It is this context in which western funding, and unused leverage needs to be understood, especially in light of plans to see the LAF assume greater control over the south of Lebanon. Western aid started to flow to the LAF in earnest following the 2006 Lebanon War. Subsequent aid to the LAF was part of a US strategy to incrementally offset Hezbollah’s military power and, by proxy, mitigate Iran’s regional influence.
Along with that of other western donors, this financial aid, supplied with few conditions or oversight, has led the LAF to continue dysfunctionally, while parts of its budget dissolve into patronage appointments and officer perks, perpetuating its incapacity.
For the army to truly be able to fulfil its national security responsibilities, multifaceted financial accountability measures are needed. These involve comprehensive audits, increased oversight, and legal and institutional reforms. A review and reform of the sectarian-based recruitment and promotion process, from entry-level soldiers to the officer corps, is key to gradually mitigating its abuse.
Parliamentary scrutiny of LAF processes must be normalised, military courts should try members of the military, not the public. Hiring freezes and early retirement programmes should be implemented to gradually reduce payroll bloat.
Without such reforms, there will come a day when the voices looking to defund the LAF will become louder and more salient. Without the LAF, Lebanon would truly lose its last nationally respected institution, not to mention all the security apparatus that provides internal security to the Lebanese.
Instead of letting this happen, Washington and its western allies should first be advocating for the reforms necessary to make the army a nimble and able national security institution. It’s time for Washington, and those who want an LAF that is fit for duty, to put their mouth where their money already is.
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
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Transmission: 10-speed automatic
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Children who witnessed blood bath want to help others
Aged just 11, Khulood Al Najjar’s daughter, Nora, bravely attempted to fight off Philip Spence. Her finger was injured when she put her hand in between the claw hammer and her mother’s head.
As a vital witness, she was forced to relive the ordeal by police who needed to identify the attacker and ensure he was found guilty.
Now aged 16, Nora has decided she wants to dedicate her career to helping other victims of crime.
“It was very horrible for her. She saw her mum, dying, just next to her eyes. But now she just wants to go forward,” said Khulood, speaking about how her eldest daughter was dealing with the trauma of the incident five years ago. “She is saying, 'mama, I want to be a lawyer, I want to help people achieve justice'.”
Khulood’s youngest daughter, Fatima, was seven at the time of the attack and attempted to help paramedics responding to the incident.
“Now she wants to be a maxillofacial doctor,” Khulood said. “She said to me ‘it is because a maxillofacial doctor returned your face, mama’. Now she wants to help people see themselves in the mirror again.”
Khulood’s son, Saeed, was nine in 2014 and slept through the attack. While he did not witness the trauma, this made it more difficult for him to understand what had happened. He has ambitions to become an engineer.
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LIVING IN...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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.”
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The Outsider
Stephen King, Penguin
COMPANY%20PROFILE
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The specs
Engine: four-litre V6 and 3.5-litre V6 twin-turbo
Transmission: six-speed and 10-speed
Power: 271 and 409 horsepower
Torque: 385 and 650Nm
Price: from Dh229,900 to Dh355,000
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Citizenship-by-investment programmes
United Kingdom
The UK offers three programmes for residency. The UK Overseas Business Representative Visa lets you open an overseas branch office of your existing company in the country at no extra investment. For the UK Tier 1 Innovator Visa, you are required to invest £50,000 (Dh238,000) into a business. You can also get a UK Tier 1 Investor Visa if you invest £2 million, £5m or £10m (the higher the investment, the sooner you obtain your permanent residency).
All UK residency visas get approved in 90 to 120 days and are valid for 3 years. After 3 years, the applicant can apply for extension of another 2 years. Once they have lived in the UK for a minimum of 6 months every year, they are eligible to apply for permanent residency (called Indefinite Leave to Remain). After one year of ILR, the applicant can apply for UK passport.
The Caribbean
Depending on the country, the investment amount starts from $100,000 (Dh367,250) and can go up to $400,000 in real estate. From the date of purchase, it will take between four to five months to receive a passport.
Portugal
The investment amount ranges from €350,000 to €500,000 (Dh1.5m to Dh2.16m) in real estate. From the date of purchase, it will take a maximum of six months to receive a Golden Visa. Applicants can apply for permanent residency after five years and Portuguese citizenship after six years.
“Among European countries with residency programmes, Portugal has been the most popular because it offers the most cost-effective programme to eventually acquire citizenship of the European Union without ever residing in Portugal,” states Veronica Cotdemiey of Citizenship Invest.
Greece
The real estate investment threshold to acquire residency for Greece is €250,000, making it the cheapest real estate residency visa scheme in Europe. You can apply for residency in four months and citizenship after seven years.
Spain
The real estate investment threshold to acquire residency for Spain is €500,000. You can apply for permanent residency after five years and citizenship after 10 years. It is not necessary to live in Spain to retain and renew the residency visa permit.
Cyprus
Cyprus offers the quickest route to citizenship of a European country in only six months. An investment of €2m in real estate is required, making it the highest priced programme in Europe.
Malta
The Malta citizenship by investment programme is lengthy and investors are required to contribute sums as donations to the Maltese government. The applicant must either contribute at least €650,000 to the National Development & Social Fund. Spouses and children are required to contribute €25,000; unmarried children between 18 and 25 and dependent parents must contribute €50,000 each.
The second step is to make an investment in property of at least €350,000 or enter a property rental contract for at least €16,000 per annum for five years. The third step is to invest at least €150,000 in bonds or shares approved by the Maltese government to be kept for at least five years.
Candidates must commit to a minimum physical presence in Malta before citizenship is granted. While you get residency in two months, you can apply for citizenship after a year.
Egypt
A one-year residency permit can be bought if you purchase property in Egypt worth $100,000. A three-year residency is available for those who invest $200,000 in property, and five years for those who purchase property worth $400,000.
Source: Citizenship Invest and Aqua Properties
Company%20Profile
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