Once regarded as the “Switzerland of the Middle East” and the “Paris of the Middle East,” Lebanon has experienced a heartbreaking decline from prosperity to near failure. This country, once marked by wealth, education, and a vibrant pluralistic society, now faces dire circumstances, largely attributed to years of conflict and the increasing power of militant groups.
In the 1960s, Lebanon was a beacon of opportunity in a region often troubled by conflict. It boasted the highest literacy rates in the Arab world and was home to prestigious educational institutions like the American University of Beirut and Université Saint-Joseph. The country thrived economically, attracting investments and deposits due to its robust banking system. Beirut served as a cultural hub, known for its film and publishing industries, as well as a vibrant press that enjoyed freedoms not found in many neighboring countries.
The city’s bustling Port of Beirut stood as a gateway for regional trade, supporting Lebanese merchants who established networks across Africa and the Americas. Tourist attractions, from casinos to beautiful beaches, drew visitors from more conservative regions. Lebanon’s unique pluralism, where Christians and Muslims coexisted and shared political power, painted a picture of hope and unity.
However, this image began to shatter due to significant demographic and political shifts, starting with the influx of Palestinian refugees after the Arab-Israeli conflicts. The establishment of the Palestine Liberation Organization’s military presence in Lebanon introduced tensions, altering the delicate balance of power among the country’s religious groups. Fears grew, particularly within the Christian community, as they worried about losing political influence and facing retaliation from Israel.
By the early 1970s, militant groups struggled for control, further complicating Lebanon’s political landscape. The Lebanese civil war (1975-1990) saw various factions and shifting alliances emerge. The armed presence of Palestinians was just one factor; socioeconomic grievances and sectarian tensions also fueled the conflict. Over time, Hezbollah emerged with significant backing from Iran and Syria, positioning itself as a dominant force that would endlessly complicate Lebanon’s political environment.
Hezbollah’s rise further complicated the relationship between Palestinian and Lebanese factions. While they shared a common opposition to Israel, their interactions were often marked by competition. As Hezbollah established itself as a powerful militia, it overshadowed Palestinian groups, even as it rhetorically supported their cause. This shift signaled a critical milestone in Lebanon’s transformation into a fragmented state.
With Hezbollah’s growing influence came severe consequences. The group became akin to a “state within a state,” undermining government authority and engaging in violent repressions against minority communities, particularly targeting Christians. The repercussions of these actions have been catastrophic, contributing to a demographic shift where Christians have dropped from 50-55% of the population in the 1960s to potentially as low as 30-35% by 2025.
The economic ramifications of this turmoil have been equally severe. Since 2019, Lebanon’s economy has plunged by 38%. Bankruptcy among banks, rampant inflation peaking at over 221% in 2023, and widespread poverty — affecting 44% of the population — tell a grim story of decline. With only a single functioning power plant, power outages of more than 23 hours a day highlight the depth of the crisis. Many Lebanese now live in conditions reminiscent of failed states, struggling to find basic necessities.
This dramatic shift from a prosperous nation to a near-failed state reflects not just the impact of conflict but also the persistent legacy of external influences and extremism. While the Palestinian cause has often occupied a central narrative in Lebanon’s struggles, the broader interplay of local and regional powers has played a critical role in the country’s downfall.
As Lebanon faces unprecedented challenges, the story remains one of tragedy, marked by lost opportunities and unfulfilled potential, where once a flourishing society stood. The path forward appears fraught with difficulties, and the hope of restoring Lebanon’s past glory seems increasingly distant.
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