Lebanon

The Collapse of the Telecommunications Sector: Strengthening Lebanon's Position Among Failed States?

The Collapse of the Telecommunications Sector: Strengthening Lebanon's Position Among Failed States?

Lebanon wakes up daily to a new manifestation of the collapse of state institutions and their fundamentals, taking another step backward toward the "Stone Age." The latest news is the cessation of internet services "due to malfunctions in the Ogero network," while the company's employees have been on strike for days, negatively impacting the quality of telecommunications and the internet. In an era of advancement where internet access is essential for carrying out various economic activities, what are the risks of its cessation? How can the economic cycle be affected if it is not provided? Professor Jassem Ajaka, an economics professor at the Lebanese University, confirms through "Al-Markazia" that "in modern societies, the internet plays a vital role on several fronts, particularly in communication, social networking, and also at the economic level. Of course, there are negative uses of the internet, chiefly cybercrime, which should be combated."

He points out two types of repercussions, first economic: "The internet usage varies according to countries; in some, usage is central to the economic machine, while in others, it lies outside its framework. For instance, the core of the American economy relies on the internet and technology; consequently, the repercussions of this service’s cessation vary depending on the country but are primarily related to the level of internet penetration within economic activity, knowing that the penetration rate differs from one sector to another based on the services provided. The higher this percentage, the greater the damage. In Lebanon, the internet is vital for certain sectors; international transactions depend on it in sectors like banking, and even the healthcare sector suffers negatively, just like global or local companies that rely on programs requiring internet availability. Additionally, the internet contributes to reducing the costs of economic activities by providing almost free communication means. Thus, the cessation of the internet is not in anyone’s interest, and all possible efforts should be made to prevent that, especially in critical sectors." He notes that "old means of communication before the internet, such as telex or fax, no longer exist, indicating that the internet has become synonymous with communication, and with its interruption, the country isolates itself from the world."

The other aspect has social repercussions, according to Ajaka, "which are always present and related to general internet usage, depriving citizens of communication internally and externally, although it does not necessarily have economic consequences. For example, if someone stops using online games due to the internet, it won't cause economic harm, but they will be upset because they are denied entertainment."

Regarding the potential losses resulting from the internet shutdown, he clarifies that "the country is in a very poor economic state and is already incurring losses (negative economic growth) regardless of whether the internet service is available or not. Therefore, it is difficult to estimate the internet's share of losses, which have two faces: value and damage. The internet cutoff for some sectors leads to a total stop in their activities, and some record measurable losses, which requires in-depth studies based on unavailable statistics." Ajaka concludes, "The internet problem is one of the issues facing citizens and the economy and indicates the start of the disintegration of state institutions. Those managing the telecommunications sector have failed, whereas this right is exclusive to the state, meaning that the internet service cessation is an indicator of a failed state, and this has begun to materialize because the Lebanese state cannot provide public services, regardless of the reason. In short, with the collapse of the telecommunications sector, the Lebanese state takes a steady step toward reinforcing its position among failed states."

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