Back to the Future: Postwar Reconstruction and Stabilization in Lebanon

Occasional Papers, June 18, 1999

Source details

Canonical URL: Back to the Future: Postwar Reconstruction and Stabilization in Lebanon

Following the 15-year civil war that started in 1975, Lebanon's government undertook simultaneous programs of economic stabilization and postwar reconstruction.
The paper analyzes the government's progress with the policies adopted to (a) rehabilitate severely damaged infrastructure for private-sector-led growth over the medium term, and (b) stabilize expectations and reduce inflation through an exchange-rate-based nominal anchor policy.
Authors: Thomas Helbling, Sena Eken
Publication date: June 18, 1999

Government-led reconstruction efforts aimed to rapidly rehabilitate the country's severly damaged infrastructure in preparation for private-sector-led growth over the medium term.
Emphasis on formulating programs to coordinate reconstruction and development activities.

Lebanon introduced an exchange-rate-based nominal anchor policy to stabilize expectations and cut inflation.
Policy purpose: confidence building and inflation reduction via exchange-rate nominal anchoring.

The paper provides an analysis of the government's progress with the adopted stabilization and reconstruction policies.
Subject areas covered (as listed): Expenditure, Financial institutions, Government debt management, Public debt, Public financial management (PFM), Revenue administration, Treasury bills and bonds.

Keywords include: Asia and Pacific, Banque du Liban, East Africa, excess return, exchange rate, Global, government, Government debt management, IMF staff estimate, interest differential, Lebanese pound, maturity structure, Middle East, North Africa, OP, private sector activity, service factor, State apparatus, Treasury bills and bonds, U.S. dollar treasury bills.
Regional emphasis: Middle East, North Africa; additional regional mentions include Asia and Pacific and East Africa.