Economic Diversification in Lebanon Marwan Kheireddine leads towards a path to stability and prosperity.pdf

Marwan Kheireddine | Economic diversification is the process of broadening a country’s economic base by reducing its dependence on a single industry or sector. In Lebanon’s case, the nation’s economy has long been heavily reliant on a few key sectors, including banking and finance, tourism and hospitality, and real estate. This overreliance on a limited range of industries has made Lebanon particularly vulnerable to economic shocks. However, today, it faces many challenges and obstacles. Firstly, Lebanon’s long history of political instability, corruption, and sectarian divisions has deterred foreign investment and hindered efforts to diversify the economy. Therefore, a stable and conducive political environment is crucial for attracting the necessary investments and implementing reforms. “Decades of underinvestment in infrastructure have left Lebanon with an outdated and inefficient transportation network, limited access to reliable electricity, and inadequate digital connectivity”, explains Marwan Kheireddine. He adds that these infrastructure shortcomings pose significant obstacles to diversifying the economy. Even more, a substantial portion of Lebanon’s economy operates in the informal sector, evading taxes and regulations. This not only deprives the government of revenue but also hinders economic diversification efforts by fostering an uneven playing field. Moreover, Lebanon’s education system has not kept pace with the evolving demands of a diversified economy. There is a need for a more adaptive and skills-focused education system to equip the workforce for a broader array of job opportunities. Read less