The World Bank announced its approval of a new financing package for Lebanon totaling $350 million, a move aimed at mitigating the unprecedented economic crisis gripping the country. The funding is divided into two main tranches: $200 million earmarked for strengthening social safety nets and supporting the poorest families, and $150 million to accelerate the country's digital transformation project.

Context of the stifling economic crisis

This funding comes at a time when Lebanon is experiencing one of the most severe economic and financial crises in modern history, which began to unfold in late 2019. The World Bank itself has ranked this crisis among the three most severe global crises since the mid-19th century. The financial collapse has led to a devaluation of the Lebanese pound by more than 98%, wiping out citizens' savings and pushing more than 80% of the population below the poverty line. The situation was tragically exacerbated by the Beirut port explosion in August 2020, which devastated large parts of the capital and placed an enormous burden on the already strained infrastructure and healthcare sector.

Details of the support package and its objectives

The first tranche of funding, amounting to $200 million, aims to provide direct cash transfers to poor and vulnerable Lebanese families. This support is a lifeline for hundreds of thousands of families struggling to secure their basic needs for food, medicine, and education. The project focuses particularly on empowering women and youth by increasing their economic opportunities and improving their access to essential social services.

The second tranche, valued at $150 million, targets the digital transformation project. This project is of strategic importance given the inefficiencies of public administration and the low quality of government services. Accelerating digitalization is expected to improve the transparency of government transactions, reduce corruption, and facilitate access to public services for citizens and businesses, potentially creating a more favorable environment for economic opportunities and the growth of the technology sector in the country.

Importance and expected impact

At the local level, this funding represents vital, albeit temporary, support that helps prevent the complete collapse of the state and avert a wider humanitarian catastrophe. However, experts agree that it is not a fundamental solution to the crisis. A genuine and sustainable recovery for Lebanon hinges on implementing deep structural reforms, including restructuring the banking sector, implementing a financial recovery plan agreed upon with the International Monetary Fund, and combating the rampant corruption within state institutions.

Regionally and internationally, this move reflects the international community's continued concern about the repercussions of Lebanon's collapse on regional stability, particularly regarding sensitive security issues and the refugee crisis. This support is seen as part of a broader strategy aimed at providing direct humanitarian assistance to the Lebanese people while maintaining pressure on the political class to implement necessary reforms as a prerequisite for future financial support.

US President Donald Trump issued a strong warning to Iraq, threatening to halt vital US aid if former Prime Minister Nouri al-Maliki returns to power. This firm stance came just days after a prominent Shiite political alliance nominated Maliki for the premiership again, reigniting a heated debate about his political legacy and its impact on the country's future.

In his remarks, Trump indicated that Iraq might be making a “grave mistake” by reinstating Maliki, arguing that his previous term in office between 2006 and 2014 plunged the country into a spiral of “poverty and utter chaos.” This statement was not merely a passing opinion, but rather reflected a deep American concern about a repeat of past scenarios that contributed to the destabilization of Iraq and the entire region.

Historical background: Maliki's controversial rule

Nouri al-Maliki is one of the most prominent political figures in post-2003 Iraq. He served two consecutive terms as prime minister, during which the country witnessed pivotal events. While he is credited with overseeing the withdrawal of US forces in 2011, his second term was marked by a sharp rise in sectarian tensions. He faced widespread accusations of pursuing exclusionary policies and marginalizing the Sunni population, which created a fertile ground for the growth of extremist organizations. This culminated in the rapid collapse of sections of the Iraqi army and the fall of Mosul to the ISIS terrorist organization in 2014, an event that ultimately forced Maliki to resign under domestic and international pressure.

The importance of the American warning and its expected impact

Trump's threat carries strategic dimensions that extend beyond mere political rhetoric. American aid to Iraq is not simply financial support; it encompasses vital aspects of Iraqi national security, including military assistance, training for the armed forces, and the provision of crucial intelligence to combat remnants of terrorist organizations. Therefore, cutting off this aid could create a dangerous security vacuum and weaken the Iraqi state's ability to address existing security challenges.

Regionally, Maliki is seen as a close ally of Iran. His return to power would therefore be interpreted as a major victory for Iranian influence in Baghdad, a prospect that worries the United States and its regional allies, particularly Saudi Arabia and the Gulf states. Trump's statement can also be viewed within the broader context of the power struggle between Washington and Tehran, with Iraq serving as a key arena for this competition. Internationally, this stance underscores the continued role of the United States as an influential player in Iraqi politics and the willingness of the US administration to employ strong pressure tactics to prevent figures it considers hostile to its interests from assuming power.