On 19 December 2019, Professor Hassan Diab was appointed prime minister after gaining the support of 69 out of 128 members of parliament (MPs). He succeeded Saad Hariri who resigned on 29 October following the nationwide protests that swept the country. On 21 January 2020, Professor Diab completed the formation of his cabinet of 20 ministers. On 11 February, his government gained the Lebanese parliament’s vote of confidence, receiving the votes of 63 out of 84 MPs that had completed the quorum. In a speech preceding the vote, Professor Diab described his cabinet members as a team of experts that want to work in the service of the Lebanese people. He also framed his government as one eager to take on the national duty of rescuing the country from its plight. However, the government took on its role during one of the most difficult times of Lebanon’s history in addition to the acute political divisions, later exacerbated by the COVID-19 pandemic. Finally, in the wake of the Beirut port explosion, Professor Diab announced the resignation of his cabinet on 10 August 2020. He and his ministers are currently functioning in the capacity of a caretaker government.
The technocratic government headed by Dr. Hassan Diab assumed power in extremely challenging times in modern Lebanese history. Nonetheless, and despite the unprecedented economic crisis facing the country and the further challenges caused by the COVID-19 pandemic, the government was able to fulfill most of the goals it promised to achieve in its Ministerial Declaration during the 1st 100 days in office, as well as some of those promised beyond this timeframe.
This was made possible by the relentless energy and workaholic nature of the Prime Minster and cabinet ministers, and their high productivity resulting in 48 Cabinet Meetings held during the cabinet 6-month-term (i.e. 8 Meetings per month), and 540 Official Decisions taken (an average of 3 Decisions per Day).
REFORMS
Dr. Diab’s government introduced a number of reforms that include:
- Setting in place a forensic audit at the state level, starting with the central bank’s budget.
- Approving the national anti-corruption strategy: Enhancing transparency | Promoting accountability | Preventing impunity
- Issuance of the implementation decree of the Right to Access to Information Law
- Drafting a bill aimed at lifting bank secrecy.
- Approval of the Law on Illicit Enrichment
- Approval of immediate and urgent measures to combat corruption and restore looted funds: Promoting tax audit and data collection | Accounting audit | Ex post control of the Court of Audit | Enforcing Article 4 of the Law on Illicit Enrichment | Collecting information towards the enforcement of Article 12 of the Law on Illicit Enrichment | Promoting administrative self-control and accountability
- Reclaiming the telecom industry and preparing for global tender.
- Finalizing laws related to the independence and organization of the judiciary.
- Commencing with the stages of gas exploration in Lebanese waters.
- Preparing a draft law to open an additional 1.2 trillion LBP credit line allocated to addressing the pandemic, which was approved by parliament but was not implemented by the Central Bank.
- Implementation of the electricity plan and launch of negotiations to build power stations (from state to state)
- Appointing a new board of directors for the Electricity of Lebanon (EDL) after a fair selection and recruitment process.
- Assignment of a project to bring natural gas through public platforms for natural gas storage and regasification purposes
- Appointing the vice governors of the central bank, the Banking Control Commission of Lebanon (BCCL), and the government commissioner at the central bank.
- Making critical administrative appointments.
- Fighting smuggling across illegal border crossings.
- Installation of scanners at the border crossings
- Approving and overseeing a plan for the safe return of Syrian refugees to their home country.
- Cancelling some of the state’s unnecessary building lease agreements.
- Transferal of the management of "Zain" and "Orascom" companies to the state
- Activation of the role of the Judicial Inspection Authority
- Key administrative appointments (Head of the Civil Service Council, Governor of Beirut, Director General of the Ministry of Economy and Trade, Director General of Investment in the Ministry of Energy and Water)
DEBT DEFAULT
On 9 March 2020, the government defaulted on the payment of a $31 billion debt in the form of Eurobonds. Reasons for this include foreign currency reserves reaching an alarmingly low level in a country heavily dependent on foreign currency to conduct business and acquire basic necessities. PM Diab gave a speech on March 7 in anticipation of the default. He is often credited for acknowledging the gravity of the situation and for being direct in his assessment of it. In his address, he mentions, among other things, the need to restructure the debt and the banking sector, negotiate with creditors, and refigure the economic model that is based on borrowing and rentierism.
The PM’s speech about the decision to default on the payment of Eurobonds (March 7):
ECONOMIC-FINANCIAL RESCUE PLAN - Adoption of the Financial Recovery Plan
On 6 April 2020, an economic-financial rescue plan was presented before the Council of Ministers, which was approved that same month on April 30. The plan detailed enlisting the help of the International Monetary Fund (IMF), entering formal negotiations with creditors, and implementing overdue reforms. Set over a period of five years, the plan aimed to acquire over $10 billion in external financial support as well as CEDRE Conference funds. It also aimed to support the underprivileged sections of society and implement social programs. Other goals included restructuring Lebanon’s sovereign debt, distributing losses fairly, cutting public spending, and reducing the public debt to GDP ratio to under 100%.
PM Hassan Diab’s Address from the Grand Serail following the announcement of the economic-financial rescue plan (30 April 2020):
IMF
On 1 May 2020, PM Hassan Diab and Finance Minister Ghazi Wazni sent a signed request to the IMF asking for assistance. The government had approved an economic rescue plan the day before and wanted to refer to it during negotiations. The PM was hopeful going into talks with the IMF, however, negotiations were hindered by internal parties that took issue with the government plan. The plan was met with pushback from the central bank, the banking association, and MPs who disagreed with the government’s allocation of losses on the finance sector. On July 1, a parliamentary committee found the losses to be at around half the amount allocated by the government. The IMF, meanwhile, found the government’s figure of LL241 trillion to be the more accurate. Negotiations were further hindered when political parties resisted any meaningful reform suggested by the government to meet IMF standards and help lift the country out of crisis.
The PM's address on requesting IMF assistance for Lebanon (1 May 2020):
ON THE SOCIAL LEVEL
- Launch of the Social Solidarity Program (a law aimed at opening an additional credit in the 2020 budget with a value of 1.2 trillion Lebanese pounds, for the purpose of distributing financial aid to the poorest families and to the industrial, agricultural and crafts sectors)
- Enhancement of the role of municipalities in local development and launch of the joint platform for the Ministry of Interior and Municipalities and the Ministry of Social Affairs
- Launch of the food basket by the Ministry of Economy and Trade
- Approval of the Ministry of Social Affairs plan for incentivizing craftsmen
- Approval of the Ministry of Social Affairs plan for the return of the displaced Syrians
- Conclusion of a loan agreement with the Arab Fund for Economic and Social Development to contribute to the financing of the housing project
ON THE HEALTH LEVEL
COVID-19
The virus that was first detected in Lebanon on 21 February 2020 was initially contained after the successful implementation of a nationwide lockdown on March 15. Meanwhile, the government worked on strengthening its ability to respond to the pandemic, mainly hospital readiness to accept new patients and the capacity to conduct more tests. In April, the government started repatriating Lebanese expats and distributed cash assistance to the poorest families via the Lebanese army. In May, the government began the gradual reopening of the country. On July 1, the country’s airport was reopened for commercial flights with measures like polymerase chain reaction (PCR) testing and quarantine put in place to contain the spread of the virus. Adherence to regulations during this time was lax and government resources limited, which led to spikes in case numbers.
- The formation of a health emergency committee to confront the COVID-19 outbreak
- Adoption of all precautionary measures and issuance of regulatory decisions to confront the COVID-19 pandemic
- Purchasing the services of specialists and supervisors to monitor the health situation
The real turning point, however, was the Beirut port explosion on August 4. The government had been walking a thin line between economic crisis and public health crisis, but the explosion threw things off balance. The healthcare system took a serious hit and civilians disregarded regulations like social distancing to take to the streets, either in protest or to help with the cleanup and rebuilding of Beirut. Hundreds of thousands were left homeless, worsening the situation. The result was that the number of cases reached new high levels in August that continued to climb moving into September. Dr. Diab’s cabinet resigned in the aftermath of the explosion but continued to manage the pandemic in the capacity of a caretaker government.
In October, the caretaker government opted to target red zones, or specific areas, streets, and neighborhoods where positive cases were high. However, adherence was once again a problem and logistical issues arose. On November 14, Lebanon went into a nationwide lockdown. On 8 January 2021, Lebanon entered another phase of full lockdown after registering record-breaking cases of infection. In the meantime, the caretaker government procured vaccines for the population and has planned a vaccination strategy, also creating a digital pre-registration form for the vaccine.
Open playlist with more information about the government's COVID-19 procedures and decisions:
ON THE EDUCATIONAL LEVEL
- Approval of distance learning in coordination between the Ministry of Education and Higher Education and the Ministry of Telecommunications
- Launching educational television programs in coordination between the Ministry of Education and Higher Education and the Ministry of Information