Is Lebanon collapsing?

by | Jul 21, 2020 | 118 comments

Gabrielle Debinski

Lebanon, one of the world’s most indebted countries, is spiraling into poverty and political chaos after decades of economic mismanagement. Its government is seeking a $10 billion bailout package from the International Monetary Fund (IMF), but the IMF insists that Lebanon must first reform its bloated and corrupt public sector. So far, Beirut’s power brokers have resisted. Is Lebanon about to implode?

A crisis decades in the making: While coronavirus lockdowns have exacerbated Lebanon’s economic woes, the country’s financial crisis has been deepening for decades. Lebanon’s byzantine sectarian power-sharing system has brought the government to a standstill, while years of pocket-lining by politicians has crashed the economy and sent standards of living into freefall. (Even before the pandemic, the World Bank predicted that 50 percent of Lebanese could be living below the poverty line if economic trends continued.)

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