How can the Lebanese economy be saved?

In an interview with “Lebanon Debate,” the economist and member of the Economic, Social and Environmental Council, Anis Abu Diab, confirmed that the situation in Lebanon is worse than the numbers stated in the statistics, as the actual unemployment rate ranges between 33 and 36% for the labor force. He explained that the war that broke out had further aggravated the situation, as half of the Lebanese economy was in a state of disruption.

In this context, Abu Diab pointed to the impact of illegal competition from Syrian workers in Lebanon, which increases the economic burden. He considered that these negative factors are worrying indicators of the economic situation in Lebanon, but he expressed optimism about the possibility of reducing the unemployment rate if the presidential elections were conducted correctly and the constitutional institutions were able to work efficiently, which would contribute to attracting Lebanese from abroad and improving economic opportunities at home.

When talking about the impact of the decline in the Syrian labor force on the Lebanese market after the fall of the Assad regime, Abu Diab pointed out that this issue is closely linked to stability in Syria. He also added that it is important to remember that Lebanon needed about 300 to 400 thousand Syrian workers in the agricultural and construction sectors from the 1990s until 2005.

Abu Diab pointed out that, despite this, questions remain about the impact of the changes in Syria on this employment. If the situation in Syria stabilizes, the Syrian economy may return to growth, opening the way for the creation of a joint investment environment between Lebanon and Syria. If the current situation continues, the Lebanese economy will remain in a difficult state.

Regarding the reforms that must be carried out by the President of the Republic, Abu Diab stressed the need for the next president to be a reformist and able to implement laws, with his commitment to implementing the Taif Agreement and Resolution 1701. He stressed the importance of forming a government with exceptional powers, noting that cooperation between the president and the Prime Minister The government is essential for developing a comprehensive economic plan.

Among the reforms he referred to, Abu Diab stressed the necessity of “restructuring the banking sector,” as the reconstruction process in Lebanon cannot be achieved without introducing financing through this sector. He also stressed the importance of restructuring the public sector to create an environment conducive to investment, with the necessity of establishing an international reconstruction fund under the supervision of international institutions. He explained that the support of the Arab countries, especially the Gulf countries, remains the main factor in reviving the Lebanese economy, with the importance of addressing the issues of the banking sector and resolving the problem of depositors.