151. The Lebanese Crisis and the Mirage of Natural Gas
- Author:
- Benedetta Brossa
- Publication Date:
- 10-2020
- Content Type:
- Working Paper
- Institution:
- Istituto Affari Internazionali
- Abstract:
- Lebanon is teetering on the brink of collapse as mounting economic, political and geopolitical pressures put unprecedented stress on the country’s institutional – and deeply sectarianised – setup. In October 2019, when large scale anti-establishment protests erupted across the country, what has been described as the Lebanese “Ponzi scheme”,[1] a shady mechanism through which the country was able to attract continuous injections of foreign currency to sustain Lebanon’s financial system with artificially inflated interest rates, came to a breaking point. The value of the Lebanese lira dropped significantly, as have socio-economic conditions for large parts of the population. Then came the massive explosion in Beirut, the latest, severe blow to the country’s economy, already suffering from a dysfunctional political apparatus, the recent default on the state’s debt in March 2020 and the COVID-19 pandemic. The tragic explosion reignited popular anger. Lebanese citizens renovated their grievances against the pervasive corruption and sectarianism that has dominated Lebanon’s confessional system, leading the country to the brink of bankruptcy.
- Topic:
- Natural Resources, Gas, Economy, and Domestic Policy
- Political Geography:
- Middle East, Lebanon, and Mediterranean