Hezbollah: The Political Economy of Lebanon's Party of God by Joseph Daher

By Joseph Daher

Few political events were as misunderstood—or as roundly condemned—as Lebanon’s Hezbollah. With this publication, Joseph Daher offers a brand new approach of Hezbollah: during the lens of political economy.
            via discarding extra universal ways to the get together that concentrate on non secular discourse or army questions, Daher is freed as much as research what the social gathering truly is: a company that's working inside a selected political and socio-economic context, person who at the same time deals it a wealthy floor of help and boundaries its variety of motion. Daher essentially and punctiliously positions Hezbollah inside of that context, concentrating on its historical ties with its major sponsor, Iran, its media and cultural wings, its courting with Western fiscal rules, and the influence of the Shi’a inhabitants at the sectarian politics of Lebanon. delivering extra recognition to the party’s positions on worker’s rights and women’s matters, this clean tackle Hezbollah may be enormously precious for knowing the world’s such a lot tumultuous region.
 

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As the purchasing power of Lebanese citizens decreased due to rising inflation, the importance of rent derived from interest was accentuated through policies that encouraged banks and high-income earners to purchase Lebanese treasury bills with high interest rates. In 2002, when the general debt reached $30 billion, $22 billion went to the banks in the form of interest on Treasury bonds (Traboulsi 2014: 25). 6 billion in 1992 to $58 billion in 2005 (Traboulsi 2014: 25). 46 billion, representing 140 percent of the GDP while the payment of the interests of the debt represented 40 percent of the total revenues and 28 percent of the total expenditures.

22 Another key element in the emergence of Hezbollah was Israel’s invasion of Lebanon in 1982, which saw support for Amal plummet as the organization was widely perceived as having offered tacit endorsement of the June invasion (Norton 2000: 9). In July 1982, the Amal Deputy head and official spokesman of the party, Hussein Mussawi (who later co-founded the Hezbollah and who was attracted to the model of the IRI), accused Amal’s leadership of blatant collaboration with Israeli occupying forces (Norton 1987: 88).

Privatization was accelerated in the early 2000s with a new law, which established a Higher Privatization Council that aimed at the further sell-off of public sector enterprises (Makdissi 2004: 121; Nasnas 2007: 90). During this period, the reorganization of the state television station and Middle East Airlines (MEA) was carried out, leading to the lay-off of 2,000 employees (Makdissi 2004: 121; Nasnas 2007: 87). In addition, a new VAT rate of 10 percent was introduced on goods and services. 7 As part of the Hariri government’s attempt to encourage Foreign Direct Investment (FDI), a new law on investments was adopted in 2001 that established a “One stop shop” for private investors (Nasnas 2007: 87).

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