Economic Liberalization in Lebanon ; Stimulating Financial Reforms (FDF & LEA, 2008, ARAB&ENG)

The link between economic liberalization and growth has drawn wide attention, with free markets expanding on evidence that greater economic freedom accompanies higher income per capita. Lebanon’s economy underperformed in 2006: growth stood at 0 percent — some sources suggest a 5 percent contraction — inflation reached 7.5 percent, and public debt rose to 180 percent of GDP. Lebanon ranked 77th of 150 countries in the Heritage Foundation’s 2007 Index of Economic Freedom, held back by weak investment freedom, corruption, and property rights. This report uses a simulation financial model to assess the 2007–2011 Paris III reforms and their impact on Lebanon’s ranking.