November 13, 2024No Comments

Iran’s Hostility Towards Israel: Three Influential Reasons

by Margherita Ceserani, Shahin Modarres, Shir Mor, William Kingston-Cox - Iran Team

The Islamic Republic’s recent choice to directly confront Israel, avoiding its usual reliance on proxy groups, marks a significant shift in its Middle East strategy. Long dependent on groups like Hezbollah and Hamas for regional influence, the weakening of these proxies—amid Israeli retaliation and Iran’s internal crises—has led Tehran to reconsider its approach. This article explores the internal and external factors driving the Islamic Republic’s move toward a more direct confrontation.

Its proxies weakening 

The Islamic Republic's decision to attack Israel directly, bypassing its traditional reliance on proxy groups - also called the "Axis of Resistance" - marks a significant shift in its strategic approach. This uncharacteristic behaviour is largely driven by the weakening of its proxies, particularly in the aftermath of the events following October 7th.

For decades, the Islamic Republic has built, supported, and relied on external groups like Hezbollah and the Houthis to exert influence, especially in the Middle East, and keep Israel engaged. However, recent Israeli military retaliation has severely weakened these proxies, diminished their operational capabilities, and reduced their effectiveness in countering Israeli threats and holding power positions in the Middle East and the whole world.

The Islamic Republic maintains a network of allied groups across the Middle East, including Hezbollah in Lebanon, Hamas and Islamic Jihad in the Gaza Strip, Shiite militias in Iraq and Syria, and the Houthis in Yemen. The IRGC Quds Force, responsible for operations beyond Iran's borders, coordinates with these groups in line with Iranian directives. This network supports Iran’s strategy to extend its influence throughout the region and beyond. For example, the Houthis have impacted maritime security in the Red Sea, prompting responses from U.S. and U.K. military coalitions in Yemen. Iran also provides funding and weaponry to groups such as Hamas and Islamic Jihad, facilitating their actions against Israel despite Hamas' Sunni background. In Syria, Iran has established a direct influence on the Assad regime and deploys allied militias to strengthen its presence, using the country as a base for potential actions against Israel. By supporting these groups, Iran seeks to counter its adversaries, extend its ideological influence, and maintain leverage in key areas, which affects both regional and global security.

The targeted killing of Hezbollah leader Hassan Nasrallah by Israel, coupled with the assassination of Hamas figure Ismail Haniyeh in Tehran, signifies a pivotal moment in the collapse of the "Axis of Resistance." These significant blows not only weaken Iran's most powerful regional proxies but also destabilise Tehran's long-standing influence in the Middle East. Established in the 1980s, Hezbollah evolved under Iranian support into a formidable political and military force; Nasrallah's death highlights how Israel's recent military operations have fractured Iran's strategic foothold, jeopardising its long-term plans. Similarly, Haniyeh's assassination, attributed to Israel despite no official claim of responsibility, directly challenges Iran's authority, especially given that he was in Tehran to coordinate efforts with Iranian leaders. The operation's occurrence within Iran sends a powerful message about Tehran's vulnerability and reflects a broader Israeli strategy to undermine Iran’s network of proxies which consistently threaten Israel’s security and complicates Iran’s ability to project power.

The Islamic Republic's long-term strategic plans have been significantly disrupted, prompting a notable shift toward a direct approach to its conflict with Israel. Historically reliant on proxy forces to advance its agenda, the recent weakening of these groups has forced Iran to reevaluate its strategy. The decision to directly confront Israel reflects not only an immediate tactical shift but also an acknowledgement that its traditional methods may no longer achieve its regional objectives. This transformation is underscored by the diminishing effectiveness of the "Axis of Resistance" and signifies a recalibration of tactics amid a rapidly evolving geopolitical landscape. These developments carry profound implications for both Iran's future strategies and broader regional stability and global security.

Domestic dissatisfaction 

Tehran’s decision to escalate tensions with Israel can be understood by its multifaceted internal crises, which challenge the regime economically, politically, and socially. The economic decline of the Iranian economy has been worsened for years by international sanctions, global fluctuations and instability in oil prices, and rising inflation, fueling widespread discontent among an already-beleaguered Iranian population. Tehran has been unable to quell the resultant dissatisfaction, particularly following the protests after the death of Mahsa Amini in 2022. Amini’s death fuelled a popular challenge of cleric authority and demands for greater civil liberties. 

The society of the Islamic Republic is becoming increasingly secularised, eroding the clerical influence of the regime. Its reliance upon the continued legitimacy of the 1979 Islamic Revolution, which is increasingly contested as Iranian society, particularly its younger elements, becomes increasingly disillusioned with religious politicisation, and, in turn, becoming increasingly secularised. Many young Iranians are showing disdain for traditional practices, a consequence of exposure to Western media. This particular challenge for the regime is existential - its entire raison d’etre rests upon religious foundations. 

Coupled with the endemic internal challenges and the pressures from its proxies, Tehran’s decision to strike Israel reveals itself as a tool of diversion; an attempt to rally patriotic fervour and unity in return for relative political stability. By framing a new national, external enemy, the Iranian regime can distract and obfuscate from its internal dissent, all whilst performatively asserting itself as a regional power. This approach undertaken by the Iranian government does, of course, risk exacerbating economic downfall as an overreliance on oil revenues could be manipulated to Tehran’s detriment. Whilst the Iranian leadership will no doubt conceive these external manoeuvres to be a part of a ‘survival strategy’, it cannot be overstated how further economic strife will precipitate deepening and widening domestic disillusionment and, ultimately, unrest, prompting new calls for regime change. 

Source: photo-generated with the support of artificial intelligence.

Nuclear Advancements 

Tehran’s approach to foreign policy in the Middle East is influenced by a combination of geopolitical, ideological, and military considerations, with its nuclear program playing a significant role. Since the United States' withdrawal from the nuclear deal in 2018, the Islamic Republic has advanced its nuclear developments, positioning these capabilities as a potential deterrent against perceived external threats, particularly from Israel. A notable development occurred in 2023, when the IAEA reported finding uranium particles enriched to 83.7% in a declared facility — a level approaching weapons-grade material.

These advancements have significantly strengthened the Islamic Republic’s strategic position, as the prospect of developing nuclear weapons reduces the likelihood of direct military intervention by its adversaries. With this deterrent in place, though not the sole factor, the Shiite regime feels emboldened to act more assertively, pushing the limits of its regional influence and responding more aggressively to external provocations. For instance, the Israeli strike on the Islamic Republic’s consulate in Damascus in April 2024 has been met with an increased likelihood of retaliation. Tehran’s nuclear capability serves as a protective shield, allowing it to project power and influence more aggressively, while its ideological goals and regional ambitions drive its assertiveness in confronting rivals like Israel and Saudi Arabia.

Despite arguments by some experts that nuclear weapons would undermine its security and diplomatic relations, Iranian officials view nuclear capabilities as a strategic asset that could grant superiority over regional adversaries. Engaging in a nuclear arms race could be economically unsustainable and diplomatically harmful for Tehran, however, nuclear capability is tied not only to military deterrence but also to a pursuit of prestige, both domestically and internationally. This aligns with its broader goal of establishing regional hegemony, while also reflecting its revolutionary ideology rooted in values like independence, anti-imperialism, and resistance to foreign domination since 1979.

Conclusion

The Islamic Republic’s shift to direct action against Israel reflects a new phase in its foreign policy. Weakened proxies and rising domestic discontent are challenging Tehran’s traditional strategies. As nuclear developments bolster its assertiveness, this new approach risks further regional instability and could have global security implications, underscoring a significant turning point in Middle Eastern dynamics.


  • Board of Governors (2023). NPT Safeguards Agreement with the Islamic Republic of Iran Report by the Director General. Available at: https://www.iaea.org/sites/default/files/documents/gov2023-58.pdf.
  • Mirza, M.N., Abbas, H. and Qaisrani, Irfan Hasnain (2022). The Iranian Nuclear Programme: Dynamics of Joint Comprehensive Plan of Action (JCPOA), American Unisolationism and European Apprehensions. Journal of European Studies, 38(1), pp.14-32. Available at: https://ssrn.com/abstract=4002492.
  • Maleki, A. (2010). Iran’s nuclear file: recommendations for the future. Daedalus, 139(1), pp.105–116. Available at: https://www.jstor.org/stable/40544048 [Accessed 2024].

January 29, 2024No Comments

Lebanon: a story of crisis upon crisis

Authors: Sonia Martínez Girón (ITSS Executive Director) and Anna Lorenzini (Middle East Team)

(Photo by Christelle Hayek on Unsplash)

Introduction

Once known for its cultural richness and economic resilience, Lebanon is located in the Eastern Mediterranean Levant region with over five million inhabitants and no Head of State. The complex interplay of economic and political mismanagement, multiple corruption cases, lack of accountability, instability, unrest and poor freedom of expression do not bolster any sociopolitical or economic positive change to thwart the spiralling crises affecting the Lebanese people. Currently, around 80% of Lebanon’s population lives under the poverty threshold. 

Politics

Lebanon has been in a profound economic and political crisis since the banking system collapsed in 2019, damaging the currency, increasing poverty, and paralysing most of the country. Prime Minister Saad Hariri’s resignation in October 2019 triggered a series of unsuccessful attempts to form a new government. The ensuing political vacuum left Lebanon without a coherent leadership to address pressing economic challenges. External factors, including regional conflicts, have further complicated the political situation, hindering the formation of a government capable of steering the country out of crisis.

Lebanon's political landscape, characterised by a delicate sectarian balance, has been a source of strength and weakness. The confessional system, designed to distribute power among various religious communities, has often resulted in political gridlock, impeding effective governance. The parliament extended army commander Joseph Aoun's tenure last December to prevent a leadership vacuum. The army, which was rebuilt during the civil war, is viewed as essential to keep the country stable in the face of emergencies (e.g. an imminent border clash with Israel). Besides, the parliament prolonged the term of Lebanon's Internal Security Chief, a Sunni Muslim. Hence, the absence of a stable government capable of implementing crucial reforms has exacerbated the economic crisis. 

Uncertainty in its governance structure persists, with rising vacancies in key governance positions. While Lebanon's economic and institutional crisis weakens its international standing, numerous players remain involved in the Lebanese geopolitical scenario. The prolonged delay in electing a new president and increasing polarisation are not easing this knot. Despite reaching an agreement on maritime borders, tensions persist. In addition to the traditional tensions with Israel, the presence of the United Nations Interim Force in Lebanon (UNIFIL) in the south of the country has become contentious.

Tensions arose from a UN Security Council resolution in August 2022, allowing UNIFIL to act independently of local authorities, consequently altering the relations between UNIFIL and the Lebanese army. The Group of Five (formed by Saudi Arabia, Egypt, France, Qatar, and the United States) was created to facilitate the resolution of Lebanon's political crisis. Unluckily, in July 2023, the shortfall of results from their second meeting worsened the state of affairs. 

Economy

Lebanon’s fifteen-year-long civil war (1975–90) severely damaged this country’s economy. Due to its heavy dependence on banking and financial services since the conclusion of the civil war in 1990, along with the neglect of the agricultural and industrial sectors, Lebanon heavily relied on imports to fulfil the needs of its citizens. The Lebanese Central Bank subsidised wheat and fuel to make these commodities affordable, leading to significant challenges in the face of mounting public debt, a lack of economic reforms, and an increasing current account deficit.

In the early 2010s, Lebanon's economic issues worsened, and in 2019, widespread protests erupted against economic inequality, corruption, and poor public services, reaching a breaking point. A series of intertwined crises, starting with an economic downturn, followed by the impact of COVID-19, and culminating in the Beirut Port explosion, have severely impacted Lebanon. Besides, after the 2020 Port explosions, the lack of accountability has bolstered poverty in the country. Among these, the economic crisis has had the most substantial negative effect, with the Lebanese currency, the lira, experiencing a drastic depreciation of over 90% against the US dollar on the parallel market.

This configuration has resulted in hyperinflation, soaring prices of essential goods, and a sharp decline in the purchasing power of citizens, contributing to widespread business struggles, surging unemployment, and increased poverty rates. Indeed, the Lebanese currency's value has plummeted by over 95%. With the Central Bank depleting foreign reserves, discontinuing subsidies on crucial imports, and simultaneously witnessing a surge in electricity, water, and gas prices, essential utilities have become a luxury for many. A Human Rights Watch survey from November 2021 to January 2022 revealed that the median household income was only US$122, with 70% of households struggling to meet basic expenses. While the crisis affects the entire population, vulnerable groups such as women, children, migrant workers, refugees, and individuals with disabilities bear a disproportionate burden. 

The population sector that appears to be most vulnerable to unemployment includes the migrants from Syria and Palestine, the inhabitants of North Lebanon, the youth and the women.  Unemployment numbers have more than doubled since 2019. The unemployment level reached 29.6% in 2022. The Italian government estimated that 27.5% of people would be unemployed in 2023. 

The younger generation in Lebanon faces a dilemma, resulting in many choosing to either leave the nation or feel closed in. High rates of youth unemployment and the burden of debts incurred for university education in a system controlled by the corporate sector further discourage young people from envisioning a future within Lebanon. The youth is also experiencing significant challenges in pursuing their education degrees, as the country's universities have raised tuition costs to an unprecedented rate, prompting many students to abandon their studies. Youth unemployment rocketed to 47.8% in 2022. Current data on out-migration could look better for the economy. In a recent survey, 77% of Lebanese youth between 18 and 24 years indicated their wish to leave the country to find better opportunities elsewhere. Even those youngsters with jobs who are paid in dollars report feeling insecure

Source: D.Khamissy / UNHCR, 2012 (https://www.flickr.com/photos/eu_echo/7942068204)

Food Insecurity

Around 2 million people face food insecurity in Lebanon. Alas, the situation is expected to get worse in the upcoming months. According to the IPC predictions, it is expected to reach 2.26 million people by April. Specifically, the refugees are the most affected. Vis-à-vis the nearly thirteen-year conflict in Syria, Lebanon has hosted over 1.5 million refugees, maintaining one of the largest refugee populations. This was the first time that the IPC Acute Food Insecurity analysis included Palestine refugees in Lebanon and Palestine refugees from Syria. Currently, many people are dependent on food assistance in Lebanon. While aid keeps flowing into Lebanon, people's needs still escalate due to local and global turbulences.

As we have seen, the food crisis in this country is linked to several other critical topics. It is necessary to talk about the water crisis. Regarding water use in the Middle East, agriculture uses 85 per cent of the total fresh water. The poor water governance and the inefficient irrigation systems augment this country's water shortages. As if this was not enough, water pollution affects the quality of drinking water, agricultural production, and food safety.

Needless to say, water shortages have affected agriculture. Water scarcity resulted in poorer agricultural yields, making it more difficult for farmers to sustain their livelihoods. A recent study discovered that significant rural areas are experiencing decreased production, particularly in coastal locations where citrus fruits and olives are cultivated and at higher elevations where deciduous fruit trees are. Areas depending on irrigation systems in the Beqaa Valley, the country's primary agricultural region, are being harmed by increased groundwater stress and loss of water resources. Farming communities in these areas have already seen severe consequences, such as unreliable household food supply.

The ongoing agricultural crisis is a source of concern. Lebanon's prolonged neglect of the agriculture sector resulted in direct import reliance, which Lebanon still suffers today. Mainly, almost 80% of the food consumed in Lebanon is imported. First, agricultural labour has traditionally been precarious in Lebanon. Second, the high dependence on the agricultural labour of refugees has exacerbated the devaluation of farm workers. Third, more than 20 per cent of heads of households engaged in farming are highly vulnerable. Women farmers, marked by increased poverty, account for 9 per cent of the total farmers.

Over and above that, Lebanon's food resources are squandered due to several drivers. On the one hand, the multiple crises that have affected Lebanon since 2019 have damaged the food security status of its inhabitants. The national and local crises have a direct impact on food security. Referring back to the port incident, grain silos that were stored in the port were turned into rubble during the port blast in 2020, consequently boosting food insecurity in the region.

On the other hand, other global turmoils are impacting food security in Lebanon. To name a paradigmatic example, the Russo-Ukrainian War has added further pressure to the already exhausted Lebanese economy with rising food costs. In fact, 96% of the wheat consumed in Lebanon is imported from Ukraine and Russia. This configuration leads to considerable direct and indirect food price increases. Besides, due to the devaluation of the lira, food prices are currently increasing further. Indeed, food prices have surged by 332% since June 2021. Additionally, the WFP food aid cuts will not help this crisis. Unfortunately, poor water management and corruption add to this list. 

So far, there have been several responses to the food crisis. The first is the provision of aid to vulnerable groups. Since 2012, the World Food Programme has assisted Syrian refugees in Lebanon. Actually, 90% of Syrian refugees in Lebanon now find themselves living in conditions of extreme poverty. Since the crisis began in October 2019, food costs have increased 19 times. The Wheat Supply Emergency Response Project was the second response to this food crisis. Lebanon received a USD150 million loan from the World Bank, effectively sustaining wheat subsidies despite a rise in the exchange rate from USD/LBP 15,000 to 30,000 in October 2023. In May 2023, more availability and access to USD, more job possibilities, and a continuous supply of subsidised wheat helped ease access to food and other vital resources.

Additionally, the World Food Programme's Country Strategic Plan for 2023-2025 is a strategic contingency mechanism against financial system shocks. Since the situation has escalated along the Blue Line in the South of Lebanon, 462 Hectares of agricultural land have been burnt, and 300k animals have been killed, aggravating the food insecurity in this area. Furthermore, OCHA’s Humanitarian Country Team has provided water, meals and food parcels, nutritional supplements, cash assistance and health services.

Conclusion

Lebanon is witnessing an unprecedented crisis, intertwining economic challenges, political instability, and social upheaval. This has led to a severe economic downturn marked by currency depreciation, hyperinflation, and growing unemployment. Vulnerable populations bear a disproportionate burden, while political instability undermines effective governance and exacerbates economic issues. Lebanon's weakened international standing and the recent violence pose additional threats to recovery. Despite initial hopes for 2024, the outlook could be better. Lebanon stands at a critical juncture, requiring collaborative efforts for a sustainable and prosperous future. The increasingly tumultuous political scene that started escalating last Autumn does not contribute to improving the country's economic and food security. Although there was a glimpse of hope last year prompted by the responses to the food crisis, food insecurity persists in Lebanon.

The country's food security status is weak and in danger of worsening over time. Continuous work is needed to combat food insecurity and protect vulnerable groups (e.g. refugees). Violence, political and economic uncertainty, inflation, and discontinuing food aid do not hamper this crisis. These factors indicate that food insecurity will likely worsen in the upcoming months.

January 23, 2023No Comments

New Year, New Debt Distress in Africa

Author: Alessandra Gramolini.

The year that has just begun does not seem to be rosy for the African continent. At the beginning of 2022, Africa suffered from the pandemic and its effects on the economy. 2023 opens with many nations facing another crisis: unsustainable debt.

The crisis has been underway for years, long-term loans have more than doubled reaching 636 billion dollars in the decade 2011-2021, a figure that exceeds the gross domestic product of more than 40 African countries taken together. The pandemic has worsened the economic situation and the war in Ukraine has pushed many countries to the brink, cutting off access to finance, depleting foreign exchange reserves and sending national budgets into a tailspin.

Living on the razor’s edge

Debt is the biggest problem they will face even though the ratings agency, Fitch, expects average debt in sub-Saharan Africa to improve and be below 65% in 2023, after reaching 72% in 2020, helped from the economic recovery after the pandemic, rising commodity prices and efforts to reduce budget deficits, but this level compares with an average of 57% in 2019, before the pandemic, and with less than 30% between 2007 and 2013.

According to the analysis of the public debt of sub-Saharan African countries, almost half of the countries (42%) have a debt-to-GDP ratio above 70%, while the average debt-to-income ratio will continue to be above 300%, double the value of 2013. This would prove the deterioration of the economic bases of these countries and their evolution prospects.

The risks these countries will face are related to high inflation, difficult financial conditions, the general indebtedness of the economies caused by the pandemic and now also by the Russian invasion of Ukraine.

Fitch also forecasts that average inflation in the region will fall from about 8% in 2022 to 5.5% this year and that GDP growth will be around 4%, close to the average of 3.8% in the five years up to 2019, but well below the growth recorded up to 2014. In some countries, however, inflation is well above the regional average. Add to this that there are eight sub-Saharan African countries with government debt payments, in 2023, accounting for a quarter of foreign reserves.

Election year

On the political front, many countries will be called to vote during 2023. The results of these elections could increase the discontent of the populations already strongly suffering from the increase in the prices of basic necessities.

Election time can be very volatile in Africa and the 2023-24 cycle will be no different, with a high risk of political protests, mass demonstrations and strikes in a number of countries. Upcoming elections in countries such as Algeria, Madagascar, Nigeria, South Africa and Zimbabwe could prove hotbeds of disruptive civil unrest in 2023. Worsening socioeconomic conditions in some of these countries, driven by subdued wage growth, rising costs of living and food security concerns, could also prove problematic for incumbent or new government administrations.

What’s next?

While African policy makers can’t influence the global headwinds, they can take steps to build resilience. Rising prices of commodities in a continent endowed with everything from diamonds, iron ore, bauxite, cobalt, copper to platinum offer a chance to create stabilization or sovereign wealth funds to insulate against future shocks. The key to building savings is to have proper governance, by some estimates Africa has 20 such funds already, but not all have delivered.

Recent research says that China and the West should work together to find solutions for African debt distress. The report says that although China’s lending to Africa did not cause the current debt in the continent, it must cooperate with the international community and African nations, to support Africa’s investment needs, after a year of recession for most economies on the continent.

The G7, led by the incoming Japanese presidency for 2023, could develop and build support for a new plan to be eventually embedded at the G20 level on debt relief and investments in Africa. The plan could include a broad-based dialogue led by the G7, African nations, and China on:

  •  Africa’s medium- to long-term external financing needs; 
  • a high-level political understanding between the West and China on the mutual benefit of strengthened cooperation to address African debt distress; 
  • and a detailed action agenda, led by the G7 and G20 Finance Tracks, to address obstacles for debt treatments.

A way out of this situation could be strong reforms to find long-term solutions that can meet African economies’ financial needs and avoid a similar scenario in the future.