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Nasrallah unleashed his fighters on the streets of Beirut after the government tried to shut down Hizballah's private telecommunications network. But he has been spoiling for this fight since November 2006, when Shi'ite parties walked out of Siniora's coalition Cabinet. Although Lebanon is a democracy, the legitimacy of its government depends on a system of sectarian quotas; without the Shi'ites--the country's largest, fastest-growing group--the Prime Minister, a Sunni, has lacked both validity and street cred. The Shi'ites' price for returning: a greater share of power, including the right to veto major...

Author: /time Magazine | Title: Welcome to Hizballahstan | 5/15/2008 | See Source »

...disposal an entire country, complete with a sophisticated banking system, an international airport and a friendly neighbor in Syria. Never has a terrorist organization had that kind of infrastructure. Saab notes that Hizballah's leaders can now have their cake and eat it too: "They're in control in Lebanon without having to actually run the state...

Author: /time Magazine | Title: Welcome to Hizballahstan | 5/15/2008 | See Source »

This is all very bad news for Israel, which was drawn into a war with Hizballah in 2006 that cost 1,600 lives mainly on the Lebanese side. "Lebanon," says Israeli Vice Premier Haim Ramon, "is controlled by this terrorist organization, and its government has become irrelevant." Israelis point out that behind Nasrallah and his fighters lurks a possibly greater threat: Iran. Hizballah's dominance in Beirut allows Tehran to project its power into the Mediterranean Sea, something the U.S. and its European allies must now factor into their calculations. (The Pentagon denied reports that the U.S.S. Cole, heading...

Author: /time Magazine | Title: Welcome to Hizballahstan | 5/15/2008 | See Source »

...Bush Administration's response has consisted largely of hand-wringing. President George W. Bush blamed Iran for backing Hizballah, while Secretary of State Condoleezza Rice congratulated the Arab League for issuing a statement rejecting the use of violence in Lebanon. In truth, not for the first time in the Middle East, the Administration finds itself short of good options. It can no longer count on Siniora and the Lebanese security forces to halt Hizballah's growing strength. The only way to achieve that, says Saab, is to press Israel to give up disputed territory it seized in 1967. "It removes...

Author: /time Magazine | Title: Welcome to Hizballahstan | 5/15/2008 | See Source »

...Israel has given no indication it will make any such concession, and few in Lebanon expect Nasrallah and his militia to weaken anytime soon. That's why some U.S. allies in Siniora's government believe it's better to engage Hizballah than pretend it can be crushed. On May 11, Walid Jumblatt, one of the leaders of the governing coalition, placed a call to Nabih Berri, the speaker of Parliament and a Hizballah ally, while TIME waited nearby for an interview. "Tell [Nasrallah] I lost the battle and he wins," Jumblatt said. "So let's sit and talk to reach...

Author: /time Magazine | Title: Welcome to Hizballahstan | 5/15/2008 | See Source »

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