Blowback in Lebanon
31 January 2007
Arab regimes and the United States are rushing to shore up Siniora’s government. On January 25, the same day of the bloody protests and curfew in Beirut, Siniora attended a donors conference in Paris, where he received pledges of $7.6 billion in aid and loan guarantees. Some of the funding will go toward reconstruction after last summer’s war, but much of it will be used to make interest payments and refinance Lebanon’s crushing $41 billion public debt. The country’s debt-to-GDP ratio is now about 180 percent—the second-highest in the world (after Malawi). A large proportion of the pledges received at the Paris III conference are tied to unpopular economic reforms that Siniora has vowed to undertake, including raising taxes and privatizing state assets. Most of these measures—such as raising gasoline surcharges and the value-added tax—will most heavily affect Lebanon’s poor and working classes, who are disproportionately Shiite. Read more about Blowback in Lebanon