Following the 2023-2025 Lebanese war: Reshaping Issues of Government Corruption and Economic Instability in Lebanon for a Stable Future

• In Event: Looking Towards Peace: Rebuilding the Economy and Political Governance in Lebanon, Syria, the West Bank and Gaza

Abstract

Once renowned for its business and banking strength, Lebanon has fallen victim to severe corruption, weak government, and one of the worst economic crises in modern times. Specifically, Lebanon suffers from high inflation and unemployment rates, with the World Bank estimating that more than half the Lebanese population lives under the poverty line and that unemployment rose from 11.4% in 2018-19 to 29.6% in 2022. This paper will discuss the effects of colonization by European powers, the lack of industrialization, issues with government structure, and corrupt leaders. This paper will look at the parallels between Lebanon’s 2019 and Greece’s 2009 economic failures. Similarly to Lebanon, Greece experienced financial crises due to government spending and unsustainable debt levels. It lowered its unemployment through structural reforms such as privatization and labor market reforms.

One of the reasons for Lebanon's political corruption and government structural issues comes from its constitution, drawn up by the French before Lebanon was given its independence. It divides up representation by religious and ethnic groups. Along with this, the French favoring of Maronite Christians further created divisions between groups. Due to this, most politicians play into these divisions for their gain, halting any economic progress. Lack of agricultural reform and industrialization created high import dependency and weak farming practices, which contributed to Lebanon’s failed economy. Greece’s 2009 financial crisis utilized international financial assistance, structural reforms, and a gradual return to fiscal stability, providing an example of how Lebanon could recover

Author

• Antoine Aoun, Student