Writing Sample

Elliott T. Parrish
AU 2021

Inhumane Instability: What to Know about

Lebanon’s Economic Crisis

Lebanon’s oil reserves explode on Aug. 15th, 2021. (Image credit: Hassan Ammar,
AP)

Lebanon is facing an economic crisis of biblical proportions. Sparked by

shortages of fuel and water, hyperinflation and corruption, the World Bank
estimates this to be within the top three most devastating financial meltdowns in
any nation since the 19th century.

Fuel shortages
 The single most detrimental contributing factor to the crisis at hand is
Lebanon’s fuel shortage. A fuel tank explosion on Aug. 15th exacerbated long-
entrenched challenges in meeting the national demand. The catastrophe killed 216
people, injured 6,500, and damaged over 85,000 properties.
During the following months, the nation’s public power grid all but
collapsed. Those unable to afford the exorbitant rates of private generation
companies were left in the dark.
In October, public power was generally available only three hours per day,
with over half the population unable to access electricity at all. This has been
devastating to Lebanon’s urban economies, which were already reeling in the wake
of the pandemic.

Hyperinflation

Without a reliable source of power in Lebanon, price levels across the board
have risen exponentially. Skyrocketing fuel rates make transporting food and
medicine more expensive, causing those goods to cost more for consumers as well.
Since 2019, the general price level has increased over 630% and the number of
citizens unable to afford essentials like food and education has doubled.
The effects of hyperinflation on Lebanon’s healthcare system have been
similarly severe. In a nation where most citizens are uninsured, roughly half are
deprived of medicine while 33% lack any healthcare service. Without access to
even the most basic medication, untold numbers of patients die from preventable
illness.

Water Shortages

Present day Lebanon is ground zero for Western Asia’s water shortage.
About 70% of the population faces an “economic” shortage, meaning citizens are
simply unable to afford clean water.
As private vendors step in, its price has gone up eightfold since 2019—
reaching a monthly rate of over twice the average income level. Farmers are unable
to water their crops, and families are unable to bathe at night, or even hydrate
themselves.
As a result, desperate citizens often turn to unsafe means of attaining water
instead. Reports of diarrhea and parasitic infection arising from contaminated
water sources continue to increase as the crisis progresses.

Looking Towards the Future

 As Lebanon’s young government develops, implementing financial
oversight will be paramount to its future success.
The nation’s banks face accusations of running a Ponzi scheme. Political
actors worsen shortages by pirating the nation’s subsidized goods for themselves.
In short, the powerful face no accountability. Western countries therefore remain
reluctant to deliver aid until Lebanon’s leaders take action to stop such corruption.
It is estimated that the country’s richest percentile could eradicate poverty
with under 2% of their own net worth. Realizing this, Lebanon has the opportunity
avoid burdening its most impoverished citizens with increased taxation and may
instead work towards a new era of accountable leadership and economic stability.

Works Cited:

Abouzeid, Rania. “How Corruption Ruined Lebanon.” The New York Times, The
New York Times, 28 Oct. 2021,
https://www.nytimes.com/2021/10/28/magazine/corruption-lebanon.html. 

Baz, Blanche, and Joe English. “Water Supply Systems on the Verge of Collapse
in Lebanon.” UNICEF, 23 July 2021, https://www.unicef.org/press-
releases/water-supply-systems-verge-collapse-lebanon-over-71-cent-people-
risk-losing-access. 

Blair, Edmund. “Explainer-Lebanon's Financial Meltdown and How It

Happened.” Reuters, Thomson Reuters, 17 June 2021,
https://www.reuters.com/article/us-lebanon-crisis-financial-explainer-
idCAKCN2DT0OY. 

Chehayeb, Kareem. “'Unprecedented' Hunger in Lebanon as Fuel Crisis Hikes

Food Costs.” Hunger News | Al Jazeera, Al Jazeera, 12 Oct. 2021,
https://www.aljazeera.com/news/2021/10/11/lebanon-fuel-crisis-hunger-food-
prices. 

Chehayeb, Kareem. “Water Crisis Plagues Tens of Thousands in Northeast

Syria.” Water News | Al Jazeera, Al Jazeera, 19 Oct. 2021,
 https://www.aljazeera.com/news/2021/10/19/water-crisis-plagues-tens-of-
thousands-in-northeast-syria-ngos. 

Haddad, Mohammed. “Infographic: Lebanon Is about to Run out of

Water.” Infographic News | Al Jazeera, Al Jazeera, 26 Aug. 2021,
http://www.aljazeera.com/news/2021/8/25/lebanons-critical-water-crisis-
interactive. 

Ioanes, Ellen. “Lebanon's Electricity Was down for a Day, but the Crisis Was
Years in the Making.” Vox, Vox, 10 Oct. 2021,
https://www.vox.com/2021/10/10/22719115/lebanon-power-grid-collapse-
beirut-crisis. 

Layton, Josh. “People 'Dying Outside Hospitals' in Lebanon as Inflation Makes

Medical Costs Soar.” Metro, Metro.co.uk, 22 Oct. 2021,
https://metro.co.uk/2021/10/22/people-dying-outside-hospitals-in-lebanon-as-
medical-costs-soar-15465771/. 

“Lebanon: Almost Three-Quarters of the Population Living in Poverty.” United

Nations, UN News, 3 Sept. 2021,
https://news.un.org/en/story/2021/09/1099102. 

“Multidimensional Poverty in Lebanon (2019-2021).” ESCWA, United Nations,

https://lebanon.un.org/sites/default/files/2021-09/21-00634-
_multidimentional_poverty_in_lebanon_-policy_brief_-_en_0.pdf. 

Qiblawi, Tamara. “How Greed Fueled Lebanon's Deadly Milk and Medicine
Shortage.” CNN, Cable News Network, 21 Oct. 2021,
https://www.cnn.com/interactive/2021/10/world/lebanon-shortages-intl-
cnnphotos/. 

“The World Bank In Lebanon.” World Bank,

https://www.worldbank.org/en/country/lebanon/overview#1.