The Lebanese Economic Crisis: "Greece of The Middle East?"

Abstract

The main objective of this project is to study the economic and financial crisis that Lebanon is currently undergoing and compare it to the financial crisis of other countries such as Greece and Venezuela. The feasibility of the running model will be thoroughly evaluated, discussing the similarities of the Greek Economic Crisis and pointing out the unique characteristics of the Lebanese Crisis. A combination of successive governments, the monetary policy led by the Banque Du Liban and the preferential treatment provided to the banking sector will be scrutinized and the role they played in the prevailing crisis will be elaborated. Lebanon, living in a honeymoon period blinded by the prolong history of excessive reliance on foreign currency inflows, lacked crucial reforms, credible economic policies and clear rounded vision that could have diverged the economic crash and put Lebanon on a secured track. This project will primarily tackle the reasons behind the Lebanese economic crisis with a focus on fiscal, monetary and currency weaknesses in comparison to other countries’ experiences and metrics.