The harsh realities facing Lebanon as it approaches a moment of truth

Outlet: Arab News

Language: English

Abstract: Lebanon, once dubbed the ‘Paris of the Middle East,’ now serves as an epitome of state failures. The collapse of the economy, signalled by rising unemployment, poverty, and crime, is the result of a broken political system that prioritises consensus above competence. While parliamentary elections offer a glimmer of hope, upcoming leaders face a difficult task of reckoning with decades of corruption. Furthermore, the economy, which is reliant on dwindling foreign reserves, is on a downward spiral due to delayed reforms and self-serving policies. Urgent action, aligned with IMF recommendations, is crucial to prevent further catastrophe, with potential solutions ranging from a comprehensive IMF agreement to a perilous path of hyperinflation and currency devaluation.Thus, Banking sector restructuring, macroeconomic stabilization, and inclusive reforms are vital for Lebanon's recovery.

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