The Political Economy of Post-war Reconstruction and Economic Crisis in Lebanon

• In Event: Poster Session: Frontiers in Conflict Processes

Abstract

This research project investigates Lebanon's post-war political economy and its subsequent economic collapse. It aims to unravel how the country's post-war reconstruction phase, characterized by neoliberal policies and sectarian power-sharing, led to its financial crisis. Lebanon's post-civil war period, which began in 1990 following the Taif Agreement, saw substantial rebuilding efforts. However, these efforts inadvertently laid the groundwork for an economic system that jeopardized financial stability.

The study is significant for two reasons. Firstly, it extends the discussion of neopatrimonialism, a system where government resources are exploited for personal gain, beyond its typical geographic confines to include the Lebanese context. Secondly, it empirically examines the interplay between political structures, sectarian identities, and economic policies that led to the current financial crisis. This research, situated within Oxford University's academic environment, contributes to the literature on international development and political economy.

Lebanon's economic narrative post-war has been marked by rapid recovery strategies, including infrastructural projects and economic deregulation. These strategies inadvertently established a neopatrimonial system of crony capitalism, marginalizing rural areas and traditional industries while benefiting urban centers and the service sector. This study will explore the consequences of these policies on inequality, poverty, and underdevelopment.

The research is framed by two main theoretical perspectives: consociationalism and neopatrimonialism. Consociationalism theory will examine Lebanon's sectarian power-sharing arrangements and their impact on governance and economic management. Neopatrimonialism theory will explore how elite networks co-opted state apparatus for personal benefit, leading to economic inefficiencies and crises. The study aims to provide a comprehensive analysis of how these political and economic systems contribute to social and economic inequality.

A mixed-methods approach will be employed, combining quantitative analysis of economic trends with qualitative understanding of social dynamics and political decisions. This methodology is essential for a comprehensive examination of the complex factors influencing Lebanon's economic situation.

This research seeks to fill a significant gap in the understanding of Lebanon's post-war economy. By exploring the intricate relationship between political structures and economic outcomes, it aims to offer insights valuable for policymakers and international parties involved in post-conflict reconstruction.

Author

• Maya El Jundi, Doha Institute for Graduate Studies