To save Lebanon from its ailing economy, Prime Minister Saad Hariri is set to declare a state of economic emergency to push forward his administration’s reforms.
According to the prime minister, the main focus of these reforms is to reduce the country’s huge deficit. His administration hopes that their new austerity measure can slash the country’s deficit and take advantage of foreign assistance worth $11 billion.
A Gathering to Save the Country
Almost all religious communities in Lebanon attended the meeting to discuss the plans for reforms. The Constitution says they’re not the official government to take over the decision makings. But these religious leaders are running the government and represented by the government.
Furthermore, coming from a highly revered background, their decisions can be better and more influential than the Council of Ministers’ discussions.
Lebanon’s Current State and Possible Solutions
According to the International Monetary Fund, Lebanon has a public debt of about 150% of its GDP, making it one of the world’s most indebted countries.
As of now, there are no detailed agreements on how Prime Minister Saad Hariri’s administration can precisely reduce Lebanon’s deficit. But there may be a state of freeze in hiring, an increase in tax and net income. Also, a 2% tax on imported goods is possible.
The Problem of Corruption
The issue of widespread corruption appears to be one of the most significant factors that would push Lebanon’s economy further below. According to the Christian, Druze and Sunni communities, privatization is one of the most significant solutions against corruption. However, Hezbollah and Speaker of the House Nabih Berri are against the idea.
Lebanon’s History
Lebanon has a population of 6 million with 18 different religious communities. This is due to the arbitrary border-drawing by French generals who established Lebanon in 1926.
It won independence from France in 1943 but maintained a French-inspired system of pluralistic democracy.
Unique Consensus Government
With Lebanon’s diverse population, a unique consensus government was crafted to favor this diversity. The country possesses a power-sharing structure. Its three most dominant religious groups are the only groups that can occupy the country’s three highest positions.
A Sunni must occupy the Prime Minister position. The President must come from Maronite Christian, and the Speaker of the House must come from Shia.
