Hezbollah's financial crisis threatens its regional influence
Hezbollah, a Lebanese terrorist organization, is facing significant financial difficulties. It lacks the funds needed to meet its obligations to fighters and supporters.
Backed by Iran, Hezbollah is feeling the financial strain from its conflict with Israel. According to "The Wall Street Journal," the group's annual budget, not including weapons spending, previously amounted to about one billion dollars. However, now, three months after the ceasefire with Israel, Hezbollah is unable to pay salaries.
Acting as a state within a state, Hezbollah provided jobs and benefits to its supporters. However, the costs of the war with Israel have drained its budget. "I have so many questions about why we were dragged into this conflict, the suffering we endured and who will compensate for our losses," says the owner of a destroyed restaurant in an interview with "WSJ."
Hezbollah is in trouble. The state within a state has lost financial liquidity
The Lebanese government, supported by the United States, is trying to limit the flow of funds from Iran to Hezbollah. Recently, Iranian planes were prevented from landing in Beirut. Additionally, the loss of power in Syria by Bashar al-Assad has restricted the flow of weapons and money into Lebanon.
Lina Khatib of Chatham House, a think tank focused on international relations research, believes the lack of political and financial benefits could weaken loyalty to Hezbollah. The new President of Lebanon, Joseph Aoun, hopes to diminish the organization's influence; however, the country is also grappling with an economic crisis.
Hezbollah is funded by Lebanese business groups, private individuals, entrepreneurs, the Lebanese diaspora involved in diamond mining in Africa, other groups and Islamic countries, as well as taxes paid by Shiite Lebanese. Recognized as a religious organization, Hezbollah has access to zakat, an informal, annually obligatory tax paid by all Muslims.
