Lebanon ranked 45th worldwide on the annual 2012 Failed State Index authored by Foreign Policy and Fund for Peace, indicating a slight improvement but still falling within the "most unstable countries" zone.
In Washington for meetings at the International Monetary Fund, Lebanese economist and advisor to the Ministry of Fiannce Toufic Gaspard addressed a group of policymakers on the economic opportunities for non-oil Arab countries in the wake of the recent uprisings. He argued for a reform of policies and a stronger state that would implement policies to enhance the private sector.
The year 2011 saw some intense domestic political tension combined with regional political instability that has seriously damaged Lebanon's economic prospects for 2012.
A slow tourist season, and a tumultuous political environment, have dealt a blow to the rapid economic growth that Lebanon has been witnessing since 2010.
The formation of a government and the renewal of the Central Bank Governor's mandate last week brought back some semblence of stability to Lebanon.
This time of year, Lebanese businessmen usually brace themselves for what they hope to be will be a good season for them and, more broadly, for the economy. Tourists begin flooding into the country and resorts reach full occupancy. This year, however, may be different. Regional upheavals have sent tourists venturing into other regions.
With the summer season around the corner, concern is growing in Lebanon about the effects of the delay in government formation on the economy. Prime Minister Designate Najib Mikati has been unsuccessful in brokering a deal among the different political forces taking part in the cabinet, and the talks have dragged for three months with no solution.
Despite the political turmoil Lebanon is facing, analysts are confident that its economy will likely survive the crisis, even under a Hezbollah-backed government. Following the collapse of the cabinet headed by Saad Hariri last mont