The Roots of Lebanon's Economic Crisis: Historical Perspectives and Political Failures

Lebanon's current economic crisis is deeply rooted in its historical context, particularly the civil war of the 1970s and 1980s, which led to the establishment of a sectarian political system under the Taif Agreement in 1989. This agreement aimed to balance representation among various religious groups—Druze, Christian, Sunni, and Shia—but created a governance structure that favored political stasis over reform or progress. The 1990s and early 2000s saw a brief period of economic development under Prime Minister Rafik Hariri's pro-business policies, yet this was disrupted by Hariri's assassination in 2005 and subsequent regional instability, including the 2006 war between Hezbollah and Israel and the Syrian regime's collapse post-2011. The ensuing political paralysis led to deteriorating public services and a significant shift in the 2018 elections, culminating in widespread protests against a government perceived to be under Hezbollah's influence. The intertwining of Lebanon's multi-ethnic societal fabric with a complex history of conflict and governance challenges has paved the way for the severe economic troubles that became acute from 2019 onwards.