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Begin New Search Topic Economic Stability Political Geography Lebanon

1. After the Fall: Lebanon’s Path towards Monetary Stabilization

Author:
Jean Tawile
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Arab Reform Initiative (ARI)
Abstract:
Lebanon is suffering the worst economic crisis in its history, caused by an economic model that produced a rentier economy feeding off a corruption-ridden state and preventing any economic growth and social justice. This model is not redeemable. This paper argues that stabilizing the currency is a first step to getting Lebanon’s economy back on the right track and explores possible pathways for doing so.
Topic:
Economics, Monetary Policy, Fiscal Policy, Strategic Stability, and Economic Stability
Political Geography:
Middle East and Lebanon

2. 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