One month after the explosions that destroyed Beirut, Nadine Nassar (E97), Head of Legal at NCB Capital, gives a chilling overview of the economic consequences of the catastrophe – and urges her fellow alumni to support her country and make a donation to ESSEC Alumni’s Lebanon Chapter’s campaign. 

ESSEC Alumni: What was the economic situation in Lebanon before the explosion?

Nadine Nassar: Lebanon used to be the "Switzerland of the Middle East", but it was already on the verge of bankruptcy: devaluation of the currency by more than 60%, establishment of a capital control system drastically limiting withdrawals or transfers in foreign currencies, failure of the Lebanese State to pay its debt, high cost of living, power outages up to more than twenty hours a day in most cities of the country… The outlook was so bad civil society had been demonstrating peacefully for a year, demanding the resignation of the country’s leaders. 

EA: What were the immediate economic consequences of the explosion?

N. Nassar: This catastrophe goes beyond all the horrors experienced by the Lebanese people during the 15 years of war, both in human and economic terms, with heavy damages to hospitals, schools, historical buildings, homes, offices, stores, industry and road infrastructures… A study has already identified about 7,000 companies affected by the explosion, which will have a direct impact on jobs. NGOs are already starting to worry about the growing number of people who will need their help in more than one way.

EA: How do Lebanon's pre-existing economic difficulties complicate this already very tense situation? 

N. Nassar: People who need to secure their homes are faced with the fact that prices for the required raw materials and import goods skyrocketed way before August 4^th. They have no other choice either to pay in cash and in foreign currencies (to get a fixed price) or to spend tremendous amounts of money that they cannot even withdraw from the banks due to current restrictions. Companies, hospitals and schools have the same problem at a much larger scale.

EA: What are the solutions and prospects for Lebanon's economy under these conditions?

N. Nassar: Many perceive the current crisis is as the result of negligence, incompetence and corruption. One thing is for sure: political changes and reforms will be the key to recovery. There are many ideas on the table: appointing an interim government, organizing early parliamentary elections, negotiating with the IMF to allow the restructuring of the country's debt, auditing the central bank, launching an independent investigation into the causes of the explosions…

EA : In the meantime, NGOs play a key role in managing the emergency… 

N. Nassar: Many volunteers and NGOs are already working on rebuilding Beirut. Humanitarian aid must go on, and maybe be supervised by UN to make sure funds are properly used. In any case ESSEC alumni can safely make a donation through ESSEC Alumni’s Lebanon Chapter’s campaign for NGOs Arc en Ciel, which helps marginalized people, and Offre Joie, which steps in damaged, underprivileged areas. Seeing so many initiatives and solidarity, I remain hopeful that Lebanon can recover from the current crisis. 

Do you want to support ESSEC Alumni’s Lebanon Chapter’s campaign and show your solidarity with Lebanese alumni? Make a donation here!

Interview by Veary Ngy, International Community Manager at ESSEC Alumni, and Louis Armengaud Wurmser (E10), Content Manager at ESSEC Alumni 

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