1. Why a Traditional Austerity Plan Would Exacerbate Lebanon’s Woes
- Author:
- Mounir Mahmalat
- Publication Date:
- 01-2020
- Content Type:
- Journal Article
- Journal:
- Harvard Journal of Middle Eastern Politics and Policy
- Institution:
- The John F. Kennedy School of Government at Harvard University
- Abstract:
- Following the eruption of mass protests in autumn 2019, Lebanon’s economy slid into a deep financial and economic crisis. Given the magnitude of Lebanon’s contemporary economic woes, a bailout program with participation by the International Monetary Fund (IMF) appears unavoidable. However, while a bailout program could avoid formal default and cushion the immediate effects of financial impasse, the austerity measures that will come attached are unlikely to achieve their goals. This article argues that in clientelist polities with weak states such as Lebanon’s, austerity programs carry the risk of leaving unaddressed the underlying inefficiencies that led to economic decline in the first place. Instead of prioritizing budgetary measures and spending cuts in a conditional reform program, international donors should seize this novel window of opportunity to legitimize a reform plan with popular demands. Measures to increase judiciary independence and political accountability in particular bear a larger potential than austerity measures alone to change politics and finally create a sustainable economic model.
- Topic:
- Financial Crisis, Austerity, Sustainability, and Economic Stability
- Political Geography:
- Middle East and Lebanon