HUMANITARIAN AID

Robin Hood in reverse – how countries in deficit are funding billionaires

By Neville Berman

Something extraordinary is occurring in the financial world. Let’s start by looking at Lebanon. It is clear that the once thriving country of Lebanon has become a failed state whose economy is in free fall. Everyone understands that the policies of Hezbollah, acting on behalf of Iran, is responsible for this situation.  

Early in October this year, the newly appointed Prime Minister of France, Michel Barnier, announced that the French budget for 2025, would be one of austerity, and would include cuts in social programs and increased taxation on the rich. A few weeks after this announcement, the French President, Emmanuel Macron, chaired a meeting in Paris of senior officials from over 70 counties to raise money for Lebanon. Macron declared that France would give 100 million Euros to the fund. It seems surreal that while France is facing huge deficits and an austerity budget, the French President is promising aid to a failed Arab state. This becomes even more absurd when one considers the huge surpluses of Arab oil exporting countries that could help Lebanon, but  either refrain from doing so, or pay only token amounts.

Sitting right next to Macron at the donor conference was Najib Mikati, the interim Prime Minister of Lebanon. Forbes magazine estimates that Mikati’s net worth is $2.8 billion. Did it not occur to Macron, or any of the other delegates, that it would be reasonable to request that Mikati should personally be called upon to donate to help Lebanon?  What is even more absurd is that Lebanon has five billionaires that are estimated to be worth over $11 billion and hundreds of millionaires.  Between them they could come up with billions and still be incredibly rich. Why should countries in huge deficits donate money to Lebanon?  What is even more glaring is that these billionaires will probably be the very people that will be awarded the contracts to rebuild Lebanon. Mikati was previously charged with corruption in building contracts in Syria. He was cleared due to “lack of evidence.” It seems obvious where part of the aid will end up.

As ridiculous as this might seem, it is even more ridiculous when we look at the funding of UNRWA. Since 1949, UNRWA has received billions in donations. According to figures published by UNRWA, nearly $1.3 billion was pledged to the organization just for 2023. The funding comes from the following:

– 91%  was pledged by American and European countries

– 5% came  from Japan and Australia, and only

– 4% was pledged by Muslim countries. 

This is really extraordinary, as it shows that the super-rich countries in the Middle East give token amounts to UNRWA, while counties that are mostly in debt donate 96% of UNRWA’s budget. The European community was the number one supporter of UNRWA for 2023 with pledges of $686 million. The US was the top individual country with a donation of $422 million. With one of the world’s highest per capita deficits, Japan still managed to donate $48 million to UNRWA. Saudi Arabia and the United Arab Emirates pledged $17 and $15 million respectively. The UAE spends more on horses than on support for UNRWA.  Now the interesting fact is that the top leadership of Hamas is also reportedly worth billions and are living in five-star luxury in Qatar.  What a farce the whole system of humanitarian aid and donations has become.

Humanitarian aid has really become a case of Robin Hood in reverse. Countries and entities with billionaire leaders are receiving aid from countries with huge deficits. The billionaires are smiling all the way to the bank. They know that they will soon be even richer when they inevitably skim off part of the donations that sucker donor countries are promising. The stupidity of donor countries seems unbelievable. It is time to wake up to where donations are being sent and where part of humanitarian aid actually ends up. Swiss banks could probably provide part of the answer.

About the writer:

Accountant Neville Berman had an illustrious sporting career in South Africa, being twice awarded the South African State Presidents Award for Sport and was a three times winner of the South African Maccabi Sportsman of the Year Award.  In 1978 he immigrated to the USA  to coach the United States men’s field hockey team, whereafter, in 1981 he immigrated to Israel where he practiced as an accountant and then for 20 years was the Admin Manager at the American International School in Even Yehuda, Israel.  He is married with two children and one granddaughter.

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