Near empty roads in the Jal El Dib area of north Beirut in Lebanon on January 23. The lockdown has been extended till Febraury 8. EPA
Near empty roads in the Jal El Dib area of north Beirut in Lebanon on January 23. The lockdown has been extended till Febraury 8. EPA
Near empty roads in the Jal El Dib area of north Beirut in Lebanon on January 23. The lockdown has been extended till Febraury 8. EPA
Near empty roads in the Jal El Dib area of north Beirut in Lebanon on January 23. The lockdown has been extended till Febraury 8. EPA

Why Lebanon just can't seem to form a government


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Since October, Lebanon has been mired in a government-formation process that is going nowhere. While the country continues to suffer, President Michel Aoun and Prime minister-designate Saad Hariri remain divided over who is the final authority on naming ministers, essentially creating a constitutional crisis.

Several weeks ago Mr Hariri took a draft cabinet proposal to Mr Aoun for his approval. The president rejected the list brought to him. The presidency argued that the Prime minister-designate had failed to respect the “standards of fair representation in accordance with the provisions of the constitution".

It is odd to hear Mr Aoun talk about "fair representation" as he and his son-in-law Gebran Bassil have spent years eliminating all rival Christian representatives from successive governments. In fact, their wanting to do so once again is at the heart of the problem between the president and Mr Hariri.

Mr Aoun wants to appoint all Christian ministers, and has accused Mr Hariri of denying him what he conceded to the two Shiite parties, Hezbollah and Amal. The Prime minister-designate has indeed allowed the two parties to name all Shiite ministers, but insists that because he himself has a cross-sectarian parliamentary bloc, he is entitled to name a certain number of Christians.

Mr Hariri’s position notwithstanding, there are other issues that have also been raised in the government formation process that have reflected badly on the president. The first is that his approach has been driven by a desire to see Mr Bassil succeed him as president. The second is that by blocking a government, he is drifting into questionable constitutional territory.

Mr Aoun’s desire to name all Christian ministers – like his demand that he name ministers to major portfolios such as the interior, justice, and defence ministries – is apparently destined to have a tight hold over the government for when Mr Aoun’s term ends in 2022. Mr Bassil had initially demanded a so-called blocking third in the government. In that way he could bring the government down before Mr Aoun’s departure if all his ministers resign, and use the vacuum to blackmail other politicians into voting for him as president.

It is unclear whether Mr Aoun and Mr Bassil have given up on this condition. A statement last week from the presidential palace stated that the president had not demanded a blocking third. It is entirely unclear, however, if Mr Bassil agrees. Whatever the truth, by demanding ministries involved in domestic security and justice issues, Mr Aoun and Mr Bassil seek to open corruption files against their political rivals and leverage this into support for a Bassil presidency.

A mask-clad woman and boy walk past shuttered shops in Souk Sabra in the southern suburbs of the Lebanon's capital Beirut on January 16. AFP
A mask-clad woman and boy walk past shuttered shops in Souk Sabra in the southern suburbs of the Lebanon's capital Beirut on January 16. AFP

A second problem is that Mr Aoun appears to have overstepped his constitutional role in the government formation process. The constitution is vague, saying only that once a prime minister is designated by parliament, he “shall conduct the parliamentary consultations involved in forming a cabinet.” The decree establishing the cabinet though must be co-signed with the president.

Mr Aoun has interpreted his signatory role as veto power over any government of which he does not approve. Yet such power would effectively mean the president forms the government. The revised constitution of 1990 was notable for curtailing presidential power in the cabinet’s favour, so it would be odd for it to allow the president to establish the government, albeit indirectly.

The French have all but given up on the Lebanese political class

Mr Aoun’s approach, if normalised, implies eroding the powers of the Sunni prime minister. This has generated Sunni unanimity behind Mr Hariri. It is all too apparent that if Mr Hariri does not form a government, no Sunni will be willing to do so in his place. That is what makes Mr Aoun’s position so reckless, at a time when Lebanon is facing economic ruin on top of a serious Covid-19 crisis. Beyond Mr Bassil’s interests, he seems indifferent to the welfare of his people.

Snow-covered fields in the Tannourine area in the Lebanese mountains, on January 22. AFP
Snow-covered fields in the Tannourine area in the Lebanese mountains, on January 22. AFP

What is the way out of this impasse? For the moment there seems to be no solution, nor does it appear yet that Hezbollah, the main power broker in the country, wants to alienate Mr Aoun by pushing him to make concessions. However, it is uncertain how long the party can allow the situation to deteriorate, as the Hezbollah's Shiite base is suffering like everyone else in Lebanon.

If the deadlock reaches the point where Hezbollah’s domestic and regional interests are threatened, the party could try to impose a median solution. Yet the context has changed. Initially, when Mr Hariri agreed to head a government, he said he would create a “working cabinet” to implement reforms asked for by France and the international community, to unlock foreign funding to Lebanon. Today, the French have all but given up on the Lebanese political class.

When Lebanon’s economic crisis occurred a year ago, many Lebanese understood that the corrupt politicians in power would block any true reform in the country to protect their interests. They could not have imagined, however, that the situation would be even worse than that. Five months after the horrific explosion in Beirut port, the sordid politicians are still fiddling while Lebanon burns.

Michael Young is a Lebanon columnist for The National

Tributes from the UAE's personal finance community

• Sebastien Aguilar, who heads SimplyFI.org, a non-profit community where people learn to invest Bogleheads’ style

“It is thanks to Jack Bogle’s work that this community exists and thanks to his work that many investors now get the full benefits of long term, buy and hold stock market investing.

Compared to the industry, investing using the common sense approach of a Boglehead saves a lot in costs and guarantees higher returns than the average actively managed fund over the long term. 

From a personal perspective, learning how to invest using Bogle’s approach was a turning point in my life. I quickly realised there was no point chasing returns and paying expensive advisers or platforms. Once money is taken care off, you can work on what truly matters, such as family, relationships or other projects. I owe Jack Bogle for that.”

• Sam Instone, director of financial advisory firm AES International

"Thought to have saved investors over a trillion dollars, Jack Bogle’s ideas truly changed the way the world invests. Shaped by his own personal experiences, his philosophy and basic rules for investors challenged the status quo of a self-interested global industry and eventually prevailed.  Loathed by many big companies and commission-driven salespeople, he has transformed the way well-informed investors and professional advisers make decisions."

• Demos Kyprianou, a board member of SimplyFI.org

"Jack Bogle for me was a rebel, a revolutionary who changed the industry and gave the little guy like me, a chance. He was also a mentor who inspired me to take the leap and take control of my own finances."

• Steve Cronin, founder of DeadSimpleSaving.com

"Obsessed with reducing fees, Jack Bogle structured Vanguard to be owned by its clients – that way the priority would be fee minimisation for clients rather than profit maximisation for the company.

His real gift to us has been the ability to invest in the stock market (buy and hold for the long term) rather than be forced to speculate (try to make profits in the shorter term) or even worse have others speculate on our behalf.

Bogle has given countless investors the ability to get on with their life while growing their wealth in the background as fast as possible. The Financial Independence movement would barely exist without this."

• Zach Holz, who blogs about financial independence at The Happiest Teacher

"Jack Bogle was one of the greatest forces for wealth democratisation the world has ever seen.  He allowed people a way to be free from the parasitical "financial advisers" whose only real concern are the fat fees they get from selling you over-complicated "products" that have caused millions of people all around the world real harm.”

• Tuan Phan, a board member of SimplyFI.org

"In an industry that’s synonymous with greed, Jack Bogle was a lone wolf, swimming against the tide. When others were incentivised to enrich themselves, he stood by the ‘fiduciary’ standard – something that is badly needed in the financial industry of the UAE."

Sustainable Development Goals

1. End poverty in all its forms everywhere

2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture

3. Ensure healthy lives and promote well-being for all at all ages

4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

5. Achieve gender equality and empower all women and girls

6. Ensure availability and sustainable management of water and sanitation for all

7. Ensure access to affordable, reliable, sustainable and modern energy for all

8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

9. Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation

10. Reduce inequality  within and among countries

11. Make cities and human settlements inclusive, safe, resilient and sustainable

12. Ensure sustainable consumption and production patterns

13. Take urgent action to combat climate change and its effects

14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development

15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

17. Strengthen the means of implementation and revitalise the global partnership for sustainable development

Company Profile
Company name: OneOrder

Started: October 2021

Founders: Tamer Amer and Karim Maurice

Based: Cairo, Egypt

Industry: technology, logistics

Investors: A15 and self-funded 

'How To Build A Boat'
Jonathan Gornall, Simon & Schuster

The%20specs
%3Cp%3E%0D%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E4.0-litre%20twin-turbo%20V8%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E666hp%20at%206%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E850Nm%20at%202%2C300-4%2C500rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E8-speed%20auto%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3EQ1%202023%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Efrom%20Dh1.15%20million%20(estimate)%3C%2Fp%3E%0A
The biog

Siblings: five brothers and one sister

Education: Bachelors in Political Science at the University of Minnesota

Interests: Swimming, tennis and the gym

Favourite place: UAE

Favourite packet food on the trip: pasta primavera

What he did to pass the time during the trip: listen to audio books

FIGHT%20CARD
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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

 

 

The biog

Name: Fareed Lafta

Age: 40

From: Baghdad, Iraq

Mission: Promote world peace

Favourite poet: Al Mutanabbi

Role models: His parents 

Citadel: Honey Bunny first episode

Directors: Raj & DK

Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon

Rating: 4/5

World record transfers

1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

The 12 Syrian entities delisted by UK 

Ministry of Interior
Ministry of Defence
General Intelligence Directorate
Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
Army Supply Bureau
General Organisation of Radio and TV
Al Watan newspaper
Cham Press TV
Sama TV

HWJN
%3Cp%3EDirector%3A%20Yasir%20Alyasiri%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Baraa%20Alem%2C%20Nour%20Alkhadra%2C%20Alanoud%20Saud%3C%2Fp%3E%0A%3Cp%3ERating%3A%203%2F5%3C%2Fp%3E%0A%3Cp%3E%3C%2Fp%3E%0A
FROM%20THE%20ASHES
%3Cp%3EDirector%3A%20Khalid%20Fahad%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Shaima%20Al%20Tayeb%2C%20Wafa%20Muhamad%2C%20Hamss%20Bandar%3C%2Fp%3E%0A%3Cp%3ERating%3A%203%2F5%3C%2Fp%3E%0A
Skoda Superb Specs

Engine: 2-litre TSI petrol

Power: 190hp

Torque: 320Nm

Price: From Dh147,000

Available: Now