OXFORD Lebanon’s political economy is gridlocked. The country’s political leaders will not commit to the kinds of economic reforms that it needs, because doing so would undermine their own power. For good reason, most published analyses of Lebanon include references to problems such as corruption and institutional decadence. But what most commentaries miss is the role
Summary
Over the past three decades, Lebanon’s ruling class which comprises intertwined political and business elites has run the country into the ground. To survive its ongoing accumulation of challenges, including the financial crisis that erupted in October 2019, Lebanon requires a revamped state backed by a new economic model with social justice at its core. Tax reform is central to such an endeavor and to ensuring that the state has the means both to deliver basic services and to tackle poverty and inequality.
Key Themes
Since 2005, Lebanon has been characterized by extreme inequality in both income and wealth. The richest 1 percent of the population receives, on average, 25 percent of national income, while the poorest half receives less than 10 percent. Regarding wealth, the richest 10 percent of the population owns almost 70 percent of total wealth. Additionally, the middle class and the poor have little chance of upward mobility.