Billionaire Becomes Lebanon's New Prime Minister Amid Growing Economic Crisis

(Photo : Photo by PATRICK BAZ / AFP / Photo by PATRICK BAZ/AFP via Getty Images)
The flags of (front to back) France and Lebanon fly near the damaged grain silos at the port of Lebanon's capital Beirut on July 14, 2021, almost a year after the August 4 massive explosion that killed more than 200 people and injured scores of others.

Billionaire telecoms tycoon, Najib Mikati, was appointed to become Lebanon's newest Prime Minister on Monday and will be responsible for forming the country's next government amid the growing economic crisis.

The 65-year-old tycoon has previously served the country twice, in 2005 and in 2011, and is the third politician that the Parliament delegated after the huge explosion in 2019. The incident occurred in the port of Beirut, resulting in more than 200 fatalities and forced the then-members of the cabinet to resign.

Billionaire Prime Minister

Lebanon's economy continued to spiral downward after the blast, with protesters criticizing the political elite, chronic traffic jams, and the country's currency losing 90% of its value in the international market. The issues have caused shortages of fuel, medicine, and electricity throughout the region.

In a public statement, Mikati warned the public that fixing Lebanon's economic crisis would be a struggle and requested unity among the citizens. He said that there was not much he could do by himself and that he needed the help of the public.

The billionaire also compared the country's issues to a blaze that continued to grow and spread day by day while threatening the homes of the citizens. He noted he wished to reduce the spread of the fire that has been haunting his people, the New York Times reported.

Mikati must first come up with a cabinet that can gather enough support from a range of political parties in the country's sect-based political system before unveiling his plans to address Lebanon's economic crisis. Former Prime Minister Saad Hariri, Mikati's predecessor, gave up this month after searching for nine months.

However, there are some Lebanese residents who expressed their dissatisfaction with Mikati's appointment. A group of demonstrators gathered outside of the billionaire's home on Sunday night, after reports of the tycoon being tapped for the position. In 2019, Mikati was accused by a state prosecutor of making unlawful gains from a Lebanese subsidized housing program.

The case came amid mass protests that expressed their criticism of the alleged corruption in the country. However, Mikati denied the allegations and said that he did not commit any wrong or illegal actions, Forbes reported.

Capability for Change

Experts are hesitant about Mikati's capability of bringing the country back from the brink of bankruptcy as he currently faces Christian opposition, including from President Michel Aoun's party.

In the last few months, poverty in Lebanon has skyrocketed with hyperinflation being a result of the currency losing its value. Amid pressure to save the country from its economic woes, the new government will also be tasked with resuming talks with the International Monetary Fund for a rescue package.

The group has previously refused to provide support to Lebanon until wide reforms are executed in the region. The international community expressed its desire to remove corruption and mismanagement in the country.

Investigations looking into the massive blast have worsened tensions amid accusations of political meddling in the judiciary's work. The deadly explosion, while killing hundreds of residents, also damaged a large portion of the country, the Times of Israel reported.