BEIRUT — Lebanon finally got a new government Friday, after 13 months of tortuous negotiations that left the country leaderless and paralyzed during the worst economic and financial collapse in its history.
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The formation of the new cabinet, headed by billionaire tycoon Najib Mikati and seemingly supported by almost all factions, means the country will be able to get down to the business of steering its way out of the crisis, which has wiped billions of dollars from the banking system and impoverished millions.
Mikati, the new prime minister and one of the country’s wealthiest men, seemed to fight back tears as he delivered his inaugural speech, describing the problems of parents who cannot afford to feed their children, send them to school or find medicine to treat them when they are sick.
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“I hope we can fulfill people's aspirations and at least stop the collapse,” he said, promising to take immediate action.
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But given the country’s kleptocratic system of government, there are few reasons to believe that Mikati’s administration will be capable of undertaking the radical reforms that are essential if Lebanon is to climb out of its depression, analysts say.
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There are some new faces, such as Health Minister Firass Abiad , one of the country’s few respected public figures because of his dedicated efforts to save lives during the coronavirus pandemic.
But all of the ministers owe their positions to political affiliations and will be accountable to the politicians who sponsored their inclusion. In accordance with the rules governing the formation of Lebanese cabinets, half of the ministers are Christians, half are Muslims and the allocation of positions has been calibrated to ensure that the different sectarian factions are accommodated.
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Mikati was associated with corruption scandals during his previous terms in office. The new minister of finance, Youssef al-Khalil, is an official with the Central Bank, the institution most widely blamed for causing the crisis and for blocking any solution by refusing to comply with International Monetary Fund requests to open up its books.
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At best, “this government is a morphine shot,” said Maha Yahya, director of the Beirut-based Carnegie Middle East Center.
Some ministers are capable in their fields of expertise, but others “really have no clue,” she said. “And they all came in because of affiliation and support from a political leader.”
Among Lebanon’s most immediate challenges are securing fuel supplies to restore electricity, and the distribution of ration cards to help alleviate conditions for the most deprived Lebanese, three-quarters of whom now live below the poverty line, according to the United Nations.
In the longer term, Lebanon needs to secure billions in international loans to recapitalize its collapsed banks and restore stability to the massively devalued currency. The Lebanese pound jumped in value after the announcement of the new government, but has still lost more than 90 percent of its value over the past two years.
The international community has refused to offer any financial bailout until Lebanon undertakes reforms to ensure that the money won’t disappear into the pockets of political elites, whose corruption is considered the biggest single cause of the financial collapse.
Suzan Haidamous in Washington contributed to this report.