Lebanese Dread End to Subsidies

Maya Ibrahimshah, the founder of Lebanese NGO Beit al-Braka (house of blessings) organizes food to be distributed to the needy. AFP
Maya Ibrahimshah, the founder of Lebanese NGO Beit al-Braka (house of blessings) organizes food to be distributed to the needy. AFP
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Lebanese Dread End to Subsidies

Maya Ibrahimshah, the founder of Lebanese NGO Beit al-Braka (house of blessings) organizes food to be distributed to the needy. AFP
Maya Ibrahimshah, the founder of Lebanese NGO Beit al-Braka (house of blessings) organizes food to be distributed to the needy. AFP

To feed her family, Lebanese mother Sandra al-Tawil sold her fridge and washing machine. Now she fears the cash-strapped state will scrap food subsidies, plunging them deeper into poverty.

Lebanon is locked in its worst economic crisis since the 1975-1990 civil war, with no end in sight.

The value of the Lebanese pound has plunged, driving up the price of crucial imports like food and fuel and triggering small but angry protests.

More than half of Lebanon's population is poverty stricken and relies on subsidies, but a central bank demand for "an immediate plan to ration subsidies" is looming.

"We're already tightening our belts. What will we eat if we can no longer buy rice or lentils?" 40-year-old Tawil said.

Tawil and her husband lived a comfortable life in Dubai before returning to their homeland to open a high-end hair salon in 2019.

But that dream turned to nightmare after the financial crisis and the Covid-19 pandemic hit.

"I had to sell my washing machine and fridge... just to get the minimum of daily bread and pay rent," said the mother of two young children.

Her husband found a job at the start of the year, and the Beit El Baraka charity is helping them out with food and school fees.

But Tawil is still worried, and furious with the political class she blames for the malaise.

"If I see people heading out to protest, I'll be the first to join them," AFP quoted her as saying.

In a country that imports 80 percent of its food, much of the six million population depends on subsidies to get by.

Even without them being lifted, many are already struggling, said Beit El Baraka founder Maya Ibrahimchah.

"There have been many more demands for help over the past four months," she said.

"Those we are helping today are all from the middle class."

The state has poured up to $437 million into subsidies a month, the World Bank estimates, to keep prices in check for bread, medicine, fuel and electricity, as well as around 300 other items since mid-2020.

To counter the pound's drastic devaluation, importers get access to dollars at a preferential rate to ensure they can afford to continue bringing in supplies.

For flour, fuel and medicine, for example, they offer dollars at the official exchange rate of 1,507 pounds to cover most of their cost.

But traders must resort to the black market to cover the difference, where Tuesday the rate hit a record low of 10,000 pounds to the dollar.

As a result, in less than a year the price of a large bag of subsidized bread has risen from 1,500 to 2,500 pounds.

Authorities have remained vague about how the subsidies will be reduced, though meetings are ongoing.

In early December, central bank governor Riad Salameh said it could only fund subsidies for another two months. Later that month, he said two billion dollars were available for them.

At the end of February, the central bank's website showed it had $17.9 billion in foreign currency reserves, yet $17.5 billion of that is the bank's required reserves.

The bank did not respond to AFP's repeated requests for comment.

The UN food agency has warned any subsidy reduction would have "major inflationary repercussions" and "put an unbearable strain on households".

The price of bread could increase by up to three times and fuel by 4.5 times, the World Food Program said, adding it was critical to immediately scale up assistance to the poorest.

Under the government's latest plan, subsidies could be gradually lifted, with financial aid to soften the blow over several years.

The state would first lift subsidies for bread, fuel and around 300 other items, under the plan seen by AFP, before later on reviewing spending in the electricity sector.

To compensate, up to 80 percent of the population would receive handouts -- 50 dollars a month for adults aged over 23 and half for anybody younger.

Those amounts, and the numbers of beneficiaries, would then progressively diminish.

Until then, the authorities have secured $246 million from the World Bank to help 786,000 Lebanese.

But Nasser Jomaa, 52, said he doubted the government would really provide any financial support.

"It's just empty words. We have zero faith in the state," said the driver, who lives with his unemployed 25-year-old son.

As the Lebanese pound has plunged on the black market, he has seen his monthly income drop in value from $1,000 to just $160.

He added that any lifting of subsidies would be "catastrophic".

Already, he said, "we no longer eat meat."



Many in Gaza are Eating Just Once a Day, as Hunger Spreads amid Aid Issues

An Israeli tank and other military vehicles guard a position as Palestinians flee Khan Yunis, in the southern Gaza Strip, on January 26, 2024, amid ongoing battles between Israel and the Palestinian militant group Hamas.  (Photo by Mahmud Hams / AFP)
An Israeli tank and other military vehicles guard a position as Palestinians flee Khan Yunis, in the southern Gaza Strip, on January 26, 2024, amid ongoing battles between Israel and the Palestinian militant group Hamas.  (Photo by Mahmud Hams / AFP)
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Many in Gaza are Eating Just Once a Day, as Hunger Spreads amid Aid Issues

An Israeli tank and other military vehicles guard a position as Palestinians flee Khan Yunis, in the southern Gaza Strip, on January 26, 2024, amid ongoing battles between Israel and the Palestinian militant group Hamas.  (Photo by Mahmud Hams / AFP)
An Israeli tank and other military vehicles guard a position as Palestinians flee Khan Yunis, in the southern Gaza Strip, on January 26, 2024, amid ongoing battles between Israel and the Palestinian militant group Hamas.  (Photo by Mahmud Hams / AFP)

Yasmin Eid coughs and covers her face, cooking a small pot of lentils over a fire fed with twigs and scrap paper in the tent she shares with her husband and four young daughters in the Gaza Strip.
It was their only meal Wednesday — it was all they could afford.
“My girls suck on their thumbs because of how hungry they are, and I pat their backs until they sleep,” she said.
After being displaced five times, the Eids reside in central Gaza, where aid groups have relatively more access than in the north, which has been largely isolated and heavily destroyed since Israel began waging a renewed offensive against the militant group Hamas in early October. But nearly everyone in Gaza is going hungry these days. In the north experts say a full-blown famine may be underway, The Associated Press said.
On Thursday, the International Criminal Court issued arrest warrants against Israeli Prime Minister Benjamin Netanyahu and his former defense minister, accusing them of using “starvation as a method of warfare” — charges Israel adamantly denies.
In Deir al-Balah, the Eids are among hundreds of thousands sheltering in squalid tent camps. The local bakeries shut down for five days this week. The price of a bag of bread climbed above $13 by Wednesday, as bread and flour vanished from shelves before more supplies arrived.
The United Nations humanitarian office warned of a “stark increase” in the number of households experiencing severe hunger in central and southern Gaza. It appeared to be linked to the robbery at gunpoint of nearly 100 aid trucks last weekend in southern Gaza, close to Israeli military positions. Israel blamed Hamas but appears to have taken no action to stop the looting, while Hamas said it was the work of local bandits.
Aid groups say the looting is one of many obstacles to getting food and other vital aid to the territory's 2.3 million Palestinians. They also have to contend with Israeli movement restrictions, ongoing fighting, and heavy damage wreaked by the Israeli bombardment of roads and critical infrastructure.
For the Eids, hunger is the daily routine For months, Yasmin and her family have gone to bed hungry.
“Everything has increased in price, and we cannot buy anything," she said. “We always go to sleep without having dinner.”
She misses coffee, but a single packet of Nescafe goes for around $1.30. A kilogram (2 pounds) of onions goes for $10, a medium bottle of cooking oil for $15 — if available. Meat and chicken all but vanished from the markets months ago, but there are still some local vegetables. Such sums are astronomical in an impoverished territory where few people earn regular incomes.
Crowds of hundreds wait hours to get food from charities, which are also struggling.
Hani Almadhoun, co-founder of the Gaza Soup Kitchen, said his teams can offer only small bowls of rice or pasta once a day. He said they “can go to the market on one day and buy something for $5, and then go back in the afternoon to find it doubled or tripled in price.”
Its kitchen in the central town of Zuweida operated on a daily budget of around $500 for much of the war. When the amount of aid entering Gaza plummeted in October, its costs climbed to around $1,300 a day. It can feed about half of the 1,000 families who line up each day.
The sharp decline in aid, and a US ultimatum Israel says it places no limits on the amount of aid entering Gaza and has announced a number of measures it says are aimed at increasing the flow in recent weeks, including the opening of a new crossing. It blames UN agencies for not retrieving it, pointing to hundreds of truckloads languishing on the Gaza side of the border.
But the military's own figures show that the amount of aid entering Gaza plunged to around 1,800 trucks in October, down from over 4,200 the previous month. At the current rate of entry, around 2,400 trucks would come into Gaza in November. Around 500 trucks entered each day before the war.
The UN says less than half the truckloads are actually distributed because of ongoing fighting, Israeli denial of movement requests, and the breakdown of law and order. Hamas-run police have vanished from many areas after being targeted by Israeli airstrikes.
The war started Oct. 7, 2023, when Hamas-led fighters stormed into Israel, killing some 1,200 people, mostly civilians, and abducting around 250. Around 100 hostages are still inside Gaza, at least a third of whom are dead, and Hamas militants have repeatedly regrouped after Israeli operations, carrying out hit-and-run attacks from tunnels and bombed-out buildings.
Israel's retaliatory offensive has killed over 44,000 Palestinians, more than half of them women and children, according to local health authorities, who do not say how many of the dead were fighters.
The United States warned Israel in October that it might be forced to curtail some of its crucial military support if Israel did not rapidly ramp up the amount of aid entering Gaza. But after the 30-day ultimatum expired, the Biden administration declined to take any action, saying there had been some progress.
Israel meanwhile passed legislation severing ties with UNRWA. Israel accuses the agency of allowing itself to be infiltrated by Hamas — allegations denied by the UN.
Israeli news outlets have reported that officials are considering plans for the military to take over aid distribution or contract it out to private security companies. Asked about such plans Wednesday, government spokesman David Mercer said “Israel is looking at many creative solutions to ensure a better future for Gaza.”
Yoav Gallant, the former defense minister who was seen as a voice of moderation in the far-right government before being fired this month, warned on X that handing over aid distribution to a private firm was a “euphemism for the beginning of military rule.”
As that debate plays out in Jerusalem, less than 100 kilometers (60 miles) away from central Gaza, most Palestinians in the territory are focused on staying alive in a war with no end in sight.
“I find it difficult to talk about the suffering we are experiencing. I am ashamed to talk about it,” said Yasmin’s husband, Hani. “What can I tell you? I’m a person who has 21 family members and is unable to provide them with a bag of flour.”