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A power outage is just the latest political nightmare for Lebanon.

Lebanon’s electricity failed over the weekend, plunging the country into further difficulty on top of economic collapse, political corruption, and a deadly port explosion in Beirut last year.

Though limited power was restored Sunday after about 24 hours of outages, the collapse of the state-run electrical grid on Saturday is just the most extreme manifestation of a chronic fuel shortage that has plagued Lebanon for the last year and a half.

Lebanese citizens have struggled with the state’s electric company, Electricité du Liban, for years, and its shortcomings mean that private generators are common, at least for those who can afford them. Even in an ordinary week, it’s common for people to have as little as one or two hours of daily electricity from the state grid.

Lebanon’s electricity grid shut down entirely after the country’s two main power stations ran out of fuel.

The city is pitch black except for the lights of a handful of buildings and car headlights.

Read more: https://t.co/61EvFh6J18 pic.twitter.com/7qUzaxpoHC

— Sky News (@SkyNews) October 10, 2021

But the crisis came to a head Saturday when the nation’s two largest power stations ran out of enough diesel fuel to provide even a few hours of electricity in a country already confronted with multiple crises.

The Deir Ammar and Zahrani power stations shut down in quick succession over the weekend after fuel ran out, leaving Lebanon’s population of more than 6.8 million people without public power. The blackout comes just over a week after the government allowed a contract with a Turkish company supplying power via two barges off the coast of Beirut to lapse, cutting off that energy supply.

Though common, private generators proved insufficient during the outage — as Beirut-based journalist Bel Trew pointed out on Twitter Saturday, not only are such generators incredibly expensive to run and equally subject to Lebanon’s fuel shortages, but they do little to keep essential services like hospitals running.

Lebanon now has zero state power meaning the entire country is running on private generators. They are prohibitively expensive: my last month’s bill was 3.75 million lira which is $2500 on official rate& about $250 on black market. How is the airport running?What about hospitals? https://t.co/eFzcVhxH1I

— Bel Trew (@Beltrew) October 9, 2021

According to Washington Post reporters Nader Durgham and Liz Sly, even before the weekend’s outage, chronic fuel shortages meant that hospitals have been “forced to suspend operations or halt vital procedures,” among a slew of other issues.

“It is drastic, and it has been drastic for a while,” Lebanese Energy Minister Walid Fayyad told the Post. “With a few hours a day people can go about their basic needs for a couple of hours, and of course it is better than nothing, but the situation is dire and we need more than a few hours a day.”

But Lebanese citizens put the situation in starker terms.

“We have forgotten what electricity means,” Abdul-Hadi al-Sibai, a Beirut taxi driver, told the New York Times.

A 6 million-liter fuel donation from the Lebanese armed forces brought power back on Sunday, ahead of the schedule originally predicted by Lebanon’s central government. However, it’s not a permanent solution — according to Reuters, the new supply of fuel will only be enough to keep the lights on for three days. A shipment from Iraq is set to boost the fuel supply later this month, according to Al Jazeera, and the energy ministry announced Sunday that it had received a $100 million fuel credit from the central bank of Lebanon, so that the country can again pay to import fuel.

Lebanon has dealt with energy problems for decades; hours-long outages have long been a part of everyday life. But the country’s current economic crisis, combined with political corruption, has turned what was once a serious, but for many, manageable inconvenience into a far more acute crisis.

“There is no fuel and limited generation, so the variation in frequency is ruining the grid,” Marc Ayoub, an energy researcher at the American University of Beirut, explained to Al Jazeera.

Lebanon’s power outage is just one of multiple crises

The shutdown comes as Lebanon is experiencing shocking hyperinflation; the Lebanese lira, which is pegged to the dollar, has dropped 90 percent in value since fall 2019 and is currently trading about 18,900 lira per dollar on the black market. Prior to Lebanon’s 2019 economic implosion, the exchange rate was 1,500 lira per dollar.

That astronomical inflation makes ordinary goods like medicine hard to come by, much less enough fuel to power an entire country.

Critically, the compounding crises have serious political implications, both internally and outside of Lebanon. Hezbollah, the Iran-backed Shia militant group — which is part of Lebanon’s government, although the US has designated it a terror group — brought in gasoline fuel by the truckload from Iran via Syria, according to a New York Times report last month, apparently flouting US sanctions.

Currently, according to the Washington Post, those US sanctions are also a major obstacle to a plan for Lebanon to import gas from Egypt via Syria, which could improve the long-term outlook for Lebanon’s power grid. That could soon change, as US ambassador to Lebanon Dorothy Shea confirmed in August that the Biden administration is seeking “real, sustainable solutions for Lebanon’s fuel and energy needs.”

For the time being, however, the Lebanese government has been conspicuously absent in responding to the interconnected crises facing the country, despite the fact that Lebanon formed a new government last month. That absence has only served to highlight Hezbollah’s ability to deliver basic goods where the central government fails, potentially giving the group a larger foothold in the country.

Lebanon’s new government is also its first functional administration since a major explosion rocked its capital, Beirut, last year, according to the BBC. In the aftermath of that crisis, the existing government resigned, creating a stalemate that took 13 months to resolve.

Lebanon’s political system has enabled chaos for years

In June, the World Bank identified the collapse of Lebanon’s financial system as “in the top 10, possibly top three, most severe crises episodes globally since the mid-nineteenth century,” adding that there’s no sense of how the nation will recover from such a catastrophe.

Despite that severe diagnosis, global actors like the World Bank and the International Monetary Fund have thus far largely declined to step in due to a lack of faith in Lebanon’s government and its disinclination to deal with any of the several interconnected and deeply rooted crises facing the country.

Specifically, Lebanon’s 2019 financial collapse sprang from decades of bad economic policy: Ultra-wealthy, deeply entrenched public servants have long benefited from a peculiar political system and enriched themselves further by helping themselves to public funds. From 2018 to 2020, the country’s GDP fell from $55 billion to $33 billion — a precipitous drop typically associated with the outbreak of conflict, according to a recent World Bank report.

Calls for the resignation of the whole government, with the rallying cry, “All of them means all of them,” erupted in October 2019, after attempts to raise money by taxing the use of WhatsApp, the messaging service widely used both within Lebanon and to communicate with the rest of the world, including a large Lebanese diaspora.

That resignation did eventually occur — but not until August 2020, after a massive explosion in Beirut, caused by more than 2,700 tons of improperly stored ammonium nitrate, killed hundreds, injured thousands, and left hundreds of thousands homeless. The explosion also destroyed Lebanon’s major grain silo, leaving the country with less than a month of reserves at the time. It also destroyed Beirut’s port area, which handled about 70 percent of the food imports in a country that imports about 85 percent of its food.

Despite the popular outrage that drove Lebanon’s previous government to resign, there are signs that the new administration, led by Najib Mikati, a billionaire and Lebanon’s wealthiest man, will be more of the same. Mikati, who is now prime minister, has held the position twice before — meaning he comes from the exact system that plunged the country into its current upheaval.

That government, as Faysal Itani, adjunct professor of Middle East politics and security at Georgetown University, wrote for Vox last year, is deeply entrenched, making it difficult to change, despite its many and obvious problems. As Itani explains:

Lebanon’s political system is the product of a decades-old power-sharing arrangement among leaders of Lebanon’s 18 religious sects, the most important being the Sunni and Shia Muslims and Maronite Christians. This system, known as confessionalism, parceled out political power according to sectarian quotas, with each sect usually led by one or several members of prominent political families.

Despite the lack of public services and the blatant corruption of those in power, Lebanese politicians have generally proved adept at playing up sectarian disputes and doing just enough to keep their constituents satisfied.

However, the depth of Lebanon’s current crises, exemplified by the outright collapse of the state power grid Saturday, means that the status quo of previous Lebanese governments might not be good enough going forward. Already, Mikati, the new prime minister, has pledged to end the fuel crisis and restart talks with the IMF to shore up the economy, a potential lifeline for Lebanon — if he keeps his promise.

Minow, from ValueEdge Advisors, said that the easiest way to try to move your money toward doing good (or at least not something terrible) is to take a look at your 401(k). If there’s an index fund with an ESG component in there and the potential social benefits outweigh the potential costs, consider choosing it. A next step, if you’re up for it, is to look at how funds vote their proxies, meaning ballots shareholders get to vote annually on various corporate issues.

In the case of many funds, the firms behind them vote on behalf of their individual investors, and because they have so many shares, they have quite a bit of sway. Are they voting for or against outrageous CEO pay packages? Climate proposals? Diversity requirements? Big investment managers like BlackRock say they’re paying attention, but are they?

“Either they put their money where their mouth is or they don’t,” Minow said. “If a company says we’re making a commitment to be carbon-neutral by 2050 but they don’t make that part of the CEO’s pay plan, don’t listen to them, because they’re not serious about it.”

There are ways to dive in a little more, if you’re willing to put in the energy. For people who have an investment adviser, you can talk to them about your priorities, where your money is being invested, and why. To be sure, that requires thinking about what matters to you.

“What’s the issue you care about or want to have an impact on? How are you measuring that issue and your impact? And who are you working with to do that?” said Rachel Robasciotti, founder and CEO of Adasina Social Capital. Adasina works directly with social justice groups to craft its investment strategies and offers a suite of products for investors. “What social movements say to us very often is: ‘What future are you investing in?’” Robasciotti said.

If you’re up for it and you remember, you can also vote your proxy on shares of the companies you’re invested in during their annual meetings. (You should get a ballot and information from the company ahead of time, and you can find a company’s proxy statement on the Securities and Exchange Commission’s website.) It’s a little tricky, impact-wise, because big institutions have much more voting power than individuals do, but it’s something. And some votes are non-binding, meaning management doesn’t have to do what shareholders say.

There’s also been a lot of attention and emphasis placed on divestment over the years, with activists pushing universities and pensions to just get out of investments in fossil fuels or other arenas. There’s disagreement among experts about how well divestment works.

Proponents of divestment point out that even if it doesn’t necessarily hurt companies or affect their stock price in the short term, it can make a difference in the long term in creating negative attention. “Social movements make visible that an asset is not a good investment when they mobilize investors to leave that asset. Over time, it can become a toxic asset,” Robasciotti said. This is true even if it doesn’t necessarily hurt companies or affect their stock price in the short term.

In the short term, though, selling shares doesn’t hurt the company or really ding its stock price — someone else just comes along and picks up those shares. The shares being divested are already trading among secondary shareholders, so instead of Harvard holding shares of Exxon or Chevron, it’s just some hedge fund or other investor — often an investor that doesn’t care.

“The people who have the least social interest are the ones who end up holding the stock,” said Alex Thaler, the co-founder and CEO of Ikonik, a soon-to-be-launched trading platform that lets individual investors band together for shareholder campaigns. Proponents of divestment often point to campaigns around South Africa in an effort to bring apartheid to an end decades ago, but evidence on just how much of a role divestment played there compared to other factors is mixed.

“The only thing that it does is allow people to cover their asses, because they can basically say, ‘I’ve washed my hands of it.’ Oil companies still exist,” Fancy said.

A small, climate-conscious activist investment firm secured three seats on Exxon’s board of directors in a shareholder push earlier this year, which activists say could have big implications for its climate-related activities. They wouldn’t have been able to do that had they given up their seat at the table (and, probably, if Exxon hadn’t been losing money in recent years).

You can’t save the planet with your Robinhood account

As good as it feels to believe we’re doing something about the issues we care about, it’s also true that as individuals, we can only do so much. Thinking about a problem as enormous as climate change can make you want to act, including through your 401(k). Indeed, some fossil fuel companies would much rather you think about it through the lens of what you’re doing rather than what they are. But saving the planet — including trying to help with your stocks and retirement fund — requires more than your own action and attention. The government also needs to step in.

One place to start, experts say: The SEC is working to define what ESG is, and it needs to do more. There are many inconsistencies among ESG products, and the firms offering those products are allowed to get away with a lot. The SEC and federal prosecutors are reportedly looking into Deutsche Bank’s sustainability claims, but the German bank is hardly the only one stretching the limits.

The Department of Labor is also taking a look at its guidance for ESG criteria in retirement investment plans. This can be a little wonky, but managers of retirement plans have a fiduciary duty that’s essentially to protect the investment and make money with it. And it’s not clear where issues such as sustainability and social responsibility fit into that.

Experts, such as Lenore Palladino, an economist at the University of Massachusetts Amherst, say that asset managers should be able to look at a bigger picture as part of their fiduciary duty. “There is this whole world of ESG funds and sustainable investing, but they all stay within the framework of essentially the only thing you can do with your money is put it into a fund, and the only thing the person managing that money should care about is increasing the value of money,” Palladino said. “They can’t also care about the status of the planet if that will contradict their ability to make money.”

People with a pension fund to live off during retirement also, presumably, want a planet to live on. Regulators need to open the door more for managers to take that into account. Palladino also said it should come with a bigger shift in how we think about investing.

“If you think the whole purpose of buying and selling shares in corporations is to raise the value of those corporations, but then you realize we as shareholders also live on the planet and deal with the negative externalities created, if you don’t allow for or even push money managers to take into account the fact that we are whole humans and we live in a society, then it’s not ethical investing in my view,” she said.

To be sure, there are significant limits in how much change can be accomplished through investing or shareholder advocacy. The federal government needs to act directly on climate change, and corporations do too.

Fancy, the former BlackRock chief investment officer who now runs an education nonprofit called Rumie, takes a pretty nihilistic view of the entire ecosystem of socially minded and ESG investing. His argument is that ESG products are useless — a fund just shuffles some shares around between ETFs and mutual funds, slaps a label (and likely a higher fee) on top, and keeps churning. He worries it’s a “placebo” that makes people think they’re accomplishing something when they’re really not.

“If you really care about social changes, invest your portfolio as you’ve always done, which is to get the best returns and preserve your savings, and then turn to the government and push political action around solving climate change, because that’s the only level where it can actually be solved,” Fancy said.

Many of the other experts I spoke to for this story disputed that view and held that ESG investing can work — but it requires some effort on the part of investors, and it can’t be the only thing they do.

“We’re kind of ignorantly complicit in the world that we see around us because we’re supporting the companies that are in an extractive and destructive business,” Behar said. “The core of it is to know what you want and then align it with your values.”

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