Marwan Kheireddine | Economic reforms in Lebanon face a complex set of challenges and opportunities in the context of a globalized world. Lebanon has been grappling with economic and political instability for many years, and addressing these issues requires a comprehensive approach. According to Marwan Kheireddine, economic reforms in a globalized world are essential for countries to adapt and thrive in the increasingly interconnected and competitive global economy. “In Lebanon’s case, these reforms aim to enhance economic efficiency, foster growth, attract investment, and address various challenges”, he adds.

1. Marwan Kheireddine delves into the challenges and opportunities of
economic reforms in a globalized world.
Economic reforms in Lebanon face a complex set of challenges and opportunities in the
context of a globalized world. Lebanon has been grappling with economic and political
instability for many years, and addressing these issues requires a comprehensive approach.
According to Marwan Kheireddine, economic reforms in a globalized world are essential for
countries to adapt and thrive in the increasingly interconnected and competitive global
economy. “In Lebanon’s case, these reforms aim to enhance economic efficiency, foster
growth, attract investment, and address various challenges”, he adds.
Challenges to face
Lebanon's political landscape is characterized by deep divisions among sectarian groups, which
often lead to political gridlock and instability. Implementing economic reforms requires a
stable political environment, which has been elusive in recent years. Adding to that Lebanon
has been facing a severe economic crisis marked by hyperinflation, a collapsing currency, and a
sharp decline in GDP.” The country's public debt-to-GDP ratio is one of the highest in the
world, and servicing this debt is a major fiscal challenge”, explains Marwan Kheireddine. These
difficulties are crumbling the country due to widespread corruption in Lebanon that has
undermined public trust and hindered economic development. Reforms must address
corruption at all levels of government and in key institutions. Moreover, Lebanon's
infrastructure and public services have deteriorated significantly and the influx of displaced
Syrians in the last decade has worsened the situation. Investments are needed to upgrade
infrastructure, including electricity, water supply, and transportation, to support economic
growth. On one hand, Lebanon's fiscal policy has been unsustainable, with high government
spending and a lack of revenue diversification. On the other hand, reforms must include
measures to control public spending, increase tax collection, and reduce budget deficits,
however, none are passed. To sum up, Lebanon is heavily dependent on imports, and its trade
balance is unfavorable. Fluctuations in global commodity prices and currency exchange rates
can have a significant impact on the cost of living and trade balance. In a nutshell, addressing
these challenges would require a coordinated and sustained effort, encompassing fiscal
reforms, monetary policy adjustments, anti-corruption measures, political stability, and
international cooperation to make sure Lebanon stands on its own two feet once again.
Opportunities to grasp unto
Lebanon has a large and influential diaspora that can play a significant role in the country's
economic development. Engaging with the Lebanese diaspora for investment and expertise
can bring in much-needed resources and skills. ”Lebanon's rich history, culture, and natural
beauty make it a potential tourism hub. Developing the tourism sector can create jobs and
generate foreign exchange earnings”, explains Marwan Kheireddine. He adds that the 2023
summer season has seen a financial boom like no other due to tourism that included not only

2. the diaspora but also foreigners from Europe, the Gulf as well as the Americas. Not to forget
that Lebanon has a traditionally strong financial sector. Reforms can focus on modernizing and
regulating this sector to attract international investment and promote stability. According to
Marwan Kheireddine, reducing trade barriers, such as tariffs and quotas, is a fundamental
aspect of economic reform in a globalized world. It allows countries to access international
markets, expand exports, and attract foreign investment especially by participating in trade
agreements and organizations like the World Trade Organization (WTO) that can facilitate this
process. Adding to that, Lebanon has untapped potential in renewable energy, such as solar
and wind power. Developing the renewable energy sector can reduce dependence on costly
fossil fuel imports. “Lebanon has already started to explore offshore natural gas reserves in its
exclusive economic zone in the Mediterranean. These discoveries could have been a potential
revenue source and helped address energy needs”, explains Marwan Kheireddine.
Furthermore, Lebanon's strategic location can make it a regional trade and logistics hub.
Investments in transportation infrastructure and trade facilitation can boost economic activity.
In terms of worldwide support, the international community has shown a willingness to
provide financial assistance and technical support for Lebanon's economic reforms. Leveraging
this support can help implement necessary changes. To be more connected and to ensure
more transparency and monitoring, in the last few years Lebanon has been growing a tech-
savvy youth population. Fostering a digital economy and promoting innovation has created
opportunities for entrepreneurship and job creation. The latter will greatly benefit from labor
market reforms that can increase flexibility, reduce unemployment, and improve productivity.
These reforms might involve changes to labor laws, training programs, and unemployment
benefits.
In a nutshell, economic reforms in Lebanon in a globalized world are crucial for addressing the
country's deep-seated economic challenges. These reforms must be comprehensive and
address political, fiscal, and structural issues. While there are significant challenges to
overcome, there are also opportunities for Lebanon to leverage its strengths, engage its
diaspora, and tap into its potential in various sectors to promote sustainable economic growth
and stability. “In the end, achieving meaningful reforms will require strong political will,
international support, and a long-term commitment to change”, concludes Marwan
Kheireddine.