Evolution and prospects of the economy of Lebanon

The state of Lebanon’s economy is growing worse day by day. This issue has garnered international attention after the continued protests, which started in October 2019. The Beirut blast in August once again put Lebanon’s problem on everyone’s radar. However, the economy did not deteriorate overnight. Lebanon’s current situation is a culmination of all the bad policies which the government pursued and the inherent corruption and incompetence; the subsequent government bodies possessed since its independence from France. Another major factor was the involvement of Lebanon in many wars, both external and civil. Lebanon was a playground of regional powers that were involved in proxy wars, which evidently left a lasting scar on the economy. Add to the fact the structure of Lebanon’s parliament, which is divided based on different religions and sects; the politicians were involved in constant blaming of one another and the development took a backseat. In this thesis, historical analysis is performed and a detailed report is presented on how a country that was once dubbed as “The Switzerland of the Middle East” is on the verge of bankruptcy, how a country which was a haven for investors in the financial market is now struggling to maintain the value of its currency. This thesis will also discuss the current measures taken by the government in the wake of COVID-19 and other disasters and will analyze its long-term implications. This report will discuss the underlying causes of the dire state of the economy of Lebanon and even attempt to propose a solution to revitalize the economy. This is empirical research that will give more importance to the data than the opinions of people