Can Lebanon's 'green gold' rescue the economy?
The debate over Lebanon's "green gold" continues to capture attention as the country grapples with economic challenges. The potential economic benefits are said to be substantial, but political and regulatory hurdles persist.
Lebanon, facing a severe economic downturn, is revisiting the debate on legalizing Indian hemp, often referred to as the country's "green gold," as a potential remedy for its financial woes. Minister of Agriculture Abbas El Hajj Hassan's recent push for the implementation of decrees has thrust the economic potential of this controversial crop into the spotlight.
Despite legislative approval in 2020 for medical and industrial use, the legalization process has encountered setbacks, prompting questions about why Lebanon has not harnessed the economic benefits of Indian hemp. The cultivation of industrial hemp is expected to have lucrative returns for farmers in the Bekaa Valley and the national economy. A 2018 study by consulting firm McKinsey & Co. suggested that Lebanon could potentially earn one billion dollars annually through the legalization of hemp cultivation.
In an interview with GSW, Minister El Hajj Hassan emphasized the urgency of the matter, stating, "I will present this file in the upcoming session and in every cabinet meeting because I consider this matter crucial and sensitive in Lebanon."
The minister cited "political obstruction" as the primary obstacle, pointing to unresolved issues due to the ongoing presidential vacuum. He called for the expedited formation of the regulatory body, relying on existing laws in the parliament that mandate its establishment.
The minister noted that forming a regulatory body poses no additional financial burden as there are currently employees in the state available to fill the vacancies. "We are losing around a billion dollars annually because we have not yet formed the regulatory body," he added, expressing hope that the regulatory body would be approved in the upcoming sessions.
The criminalization of hemp cultivation and restrictions on farmers' movement creates a situation where farmers are confined to their restricted lands, cultivating prohibited crops for the benefit of powerful cartels controlling marketing, exporting, and pricing mechanisms.
Member of the "Strong Republic" Parliamentary Bloc, MP Antoine Habshi, also addressed the issue, highlighting that "in recent years, the state has proposed alternative crops, but they haven't succeeded because farmers didn't benefit."
Habshi stressed the need for Lebanon to transition from a rentier state to a productive one, stating that "the incentive here is multi-faceted. Firstly, there's economic viability; partnering with private pharmaceutical or health companies proves five or six times more profitable than dealing with traders, making it beneficial for farmers and a genuine, legal alternative.
"The second incentive is security, as over 80% will become licensed, making it easier for the state to track and combat drug trafficking and protect citizens," he said in an interview with GSW.
He emphasized that "this law ensures an integrated economic cycle, providing a productive economy and state revenue."
In response to a question about the potential economic benefits and opportunities for Lebanon, Habshi noted "Lebanon has two competitive advantages globally: lower production costs and climate-soil synergy, ensuring competitive quality production. Using these materials for medical purposes opens Lebanon to a long-term productive sector, securing a return for a hundred years as the industry continues to develop."
Whether Indian hemp can indeed be the lifeline for Lebanon's economy remains uncertain, but the economic implications of the delayed implementation of the industrial hemp law remain a pressing concern for the nation.
