“Quis custodiet ipsos custodes?”

Lebanon, a Small Country with Huge Worries

If you’re reading this blog, you are more privileged than 78% of the Lebanese population! The United Nations stated that 78% live under the line of poverty in 2021. Let me walk you through all the evidences and solution. GDP per capita is a perfect metric to measure the economic conditions of a country’s citizens: Lebanon’s GDP per capita plunged to a negative 21% growth in 2020. However, a bigger problem looms over Lebanon: It is far from being able to meet the UN’s 2030 Agenda, more specifically, section 8 related to economic factors. Section 8.1.1 in the 2030 Agenda requires all countries to sustain a 7% GDP per capita growth.

How can Lebanon Catch Up?

The answer is straightforward: Secure Foreign Funds! To secure such funds from international institutions like the IMF or World Bank, the Lebanese Government should implement quick local economic reforms.

The secured funds will then be used to transform Lebanon from a major importer to a major exporter. The funds must be invested in local production, tourism and domestic spending (infrastructure). This can definitely boost Lebanon’s GDP among several other reforms in different sectors.

Is it Really a Good Idea?

Many people are skeptical on borrowing from international institutions like the IMF due to the severity of their rules. However, let’s take Egypt as an example: Egypt increased IMF borrowings by 1,500% from 2015 till 2020 (yup, you read right, no additional zeros). The Egyptian government spent the funds on enforcing its local production and improving the tourism sector. As a result, Egypt met the UN’s Agenda 2030 economic goals and especially goal 8.1.1 (GDP per capita growth > 7%).

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