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‘Resilience’ – Lebanon’s 19th religion, alongside the 18 other religious communities. This one is ecumenical, unifying all the chaos, and it can be viewed positively or negatively.
To avoid getting tangled in these futile ideas, let’s explain things clearly, starting with the dictionary definition of the term: “The capacity to survive and develop by overcoming traumatic shocks and adversity.” It’s quite fitting because we’ve had nothing but that for the past four years, starting with October 2019. And that was just the latest batch of traumas after so many others throughout history.
The funny thing is that the term originally belongs to the field of physical sciences and is used to specifically calculate the resistance of metals to shocks and their breaking point (expressed in joules per cm2). We couldn’t have a better analogy. Here are five million toughened individuals who, through enduring so many shocks, unconsciously calculate their resistance to daily troubles squared.
Now, let’s look at some applications of this resilience and how it has taken root over the past four years of traumatic shocks:
- The industry has managed its resilience by producing a targeted range of products that were predominantly imported. This is especially true for food, alcohol, hygiene products, and medicines. Its market share has nearly doubled in these sectors. We’ve seen Lebanese toothpaste, Camembert, and various whiskey brands for the first time.
- The commercial sector has also shown great adaptability by diversifying products, offering entry-level options, and increasing the sources of imports. Competition, even if not perfectly regulated, has had its effects. However, smuggling remains a gaping wound, especially when protected by high-ranking officials.
- The tourism sector had a tough time for years, going through a rollercoaster ride of challenges including COVID-19, the Beirut explosion, and the financial crisis. This led to downsizing, followed by hundreds of closures, then new, more suitable concepts, and a return to pre-crisis formulas. Those in the industry deserve an award for their audacity in a business already fraught with risk.
- In terms of finances, it has been flatlining for the banking sector. This is normal because the primary banking activity is one-dimensional: accepting deposits and offering loans. Banks cannot switch from salmon to falafel like a restaurant or change their services to aquaculture consulting. They depend on higher authorities for their operations, first the BDL, then Parliament for laws. Labeling them as zombies, even if tempting, is misguided and somewhat absurd.
- However, there has been an explosion of initiatives in the financial and parabanking services sector. They offer transfers, payment cards, e-wallets, cash management services, and more. From Whish, to Purpl, to OMT, to BOB, to PayPal’s rivals… around ten entities have developed and even expanded to other markets.
- The real estate sector, on the other hand, slowed down after a brief euphoria at the beginning of the crisis to get rid of bank-held dollars. Resilience was limited among the sector professionals. Nonetheless, opportunities are available, such as renovations, space transformation, lease with the option to buy. Some found success elsewhere, in Cyprus, Greece, Spain, or Dubai.
- For all these sectors, there are also common factors. The first is that existing bank loans were settled at a low cost, which is good for borrowers and bad for banks and depositors. But this comes at a price: there are no new loans currently, which hampers real estate, big purchases, and investments. Instead, we have an abundance of money laundering; with a cash economy, it’s inevitable.
- Finally, the state was so far from resilience that there are barely any remnants left, just advanced decomposition. But, careful, not the state’s officials. They quickly adapted to the situation to continue their pillaging. It’s essential to understand that this wasn’t easy because, with a lack of financial resources, funds had to be scraped from the bottom of the pot. Another impediment is that most departments now operate thanks to foreign aid, complicating matters as these foreign organizations conduct rigorous audits of the projects they finance.
To perpetuate their extravagance, each department had to show inventiveness through a practice that worked well in the past: multiplying regulations, formalities, permissions, for imports, exports, solar energy, the internet, renovations, and inflating electricity and telecom bills for increasingly poor service.
All these means of resilience had to be invented by officials to avoid interrupting their trafficking, their very raison d’Ăªtre. There was a sense of urgency because they were seriously at risk of losing their status, reputation, and world ranking to protect.
