How Cannabis Legalization Can Help Lebanon’s Economy
By Ryan Follin
Lebanon made history on April 20, 2020 in becoming the first Arab country to legalize cannabis farming. The Lebanese Parliament passed legislation that legalizes cannabis cultivation for medical industrial purposes. This law permits the cultivation, trade, research, and use of medical cannabis.
Historically, Lebanese farmers have long grown cannabis and produced hashish as it was commonly grown during the era of the Ottomans whose navy relied on various of the hemp products. The cultivation of cannabis was banned legally and officially in 1992, under pressure from the United States government. Cannabis still remains illegal for personal use.
Cannabis cultivation in Lebanon is concentrated mainly in the valleys of the Bekaa region, one of the poorest in the country. The eastern region extends 120 km from north to south. This cultivation in Lebanon dates back to several centuries, as old as the Ottoman Empire in Lebanon. Lebanese hashish is legendary, as hashish from Lebanon made up around 80% of the world’s supply during the years of the country’s civil war from 1975-1990.
New Order
Under the new law, the cultivation of cannabis by farmers would be regulated within the country. This comes as the COVID19 Global Pandemic has brought unprecedented economic cooldowns, as social distancing and business closures forces governments to rethink their laws on cannabis. Lebanon is positioning itself to foster a new legal industry producing cannabis pharmaceutical products, such as fabrics and textiles, and even producing cannabis for medical use. Lebanon’s legal cannabis plans have been evident since 2018 ; it was estimated by Lebanon’s former caretaker minister for economy and trade Raed Khoury that legal cannabis for medical and industrial use could generate $1 billion annually.
In March 2020 the law legalizing cannabis was supported by parliamentary committees, as Lebanon’s stressed economy was on the verge of collapsing. Lebanon defaulted on its debt repayment for the first time shortly after and the country continues to face a severe shortage of American dollars. However, given the governance power of Hezbollah, it is not clear on how transformative this transition will become. Hezbollah, a Shia Islamist and extremist political-militant party, does not support the legalization efforts as Hezbollah is a primary beneficiary of cannabis trafficking. Hilal Khashan, professor of political studies and public administration at the American University of Beirut, speculates that “The only way for Hezbollah to accept the ratification of the law is to be directly involved in its implementation—i.e., get its share from it.” This corruption has only been greater amplified in recent months by the fallout from the August 4 2020 gas explosion in Beirut that killed 190 people.
Weed Cultivation In Lebanon Goes Back to The Ottoman Era
Lebanon’s economy has become almost entirely dependent on imports, as its exports have dropped to next to nothing. Importing has become too expensive and cannabis presents a unique opportunity: Lebanon already produces 6% of all cannabis produced, globally. It achieved that milestone despite cannabis and hemp being illegal to grow, buy or sell, leaving out any possibility of generating tax revenues to benefit both the macro and micro economics of the country.
Talal Shreif, the mayor of the village of Yammoune, described the situation in these terms: "The people plant [the cannabis] and they don't care about the government. And if the government comes to destroy the fields, the people all with their guns [are] against the government." Shreif is advocating for legalization, as it would allow farmers to work and plow their fields for the highly profitable plant. This could benefit all people: "You can get the best thread for making clothes. You can get the best rope out of it. You can get cellulose out of it. You can get the best paper out of it. You can get more than 40 substances. And the oil, which is cholesterol free!"
Lebanon now is in a prime position to turn the historically illicit market into a multi-billion dollar business that fuels the economy. "It is one piece of a whole economic plan. If Lebanon doesn't go from a rentier economy to a productive economy in agriculture, in agro-industry, in industry and in knowledge economy we will not get out of the crisis we are in." Integrating legal cannabis marketplaces to national economies is the future, and Lebanon is one of the first countries in the Middle East to change direction and embrace this financial gold mine.