The latest draft capital control law purports to impose formal rules on this unfair situation. Yet, in doing so, the bill would place the system’s management in entirely untrustworthy hands. Under the legislation, the nation’s rapacious politico-banking elites would have ample opportunities to twist capital controls to serve their narrow, selfish interests.
Lebanon's capital control proposal risks entrenching financial corruption by granting banks undue amnesty and empowering a politically biased committee.
For decades, Lebanon’s economy has overwhelmingly served the interests of certain economic actors, who preside over widespread monopolies and oligopolies.
These informal capital controls – which have no basis in law – facilitate rampant discrimination between well-connected elites and most other depositors.
Holding those in power to account will be no simple task, given Lebanon’s notorious culture of impunity in the construction sector.
Reckless profiteering and the banking sector’s insolvency demand a bold deposit recovery plan to restore financial integrity in Lebanon.
Announced in February 2022, a World Bank-sponsored redevelopment plan could finally turn Beirut Port into both an economic powerhouse and vibrant community space. Unfortunately, early signs suggest that the proposed planning and regulatory reforms risk entrenching the same corrupt management and practices that brought the port to its current nadir.
How Misplaced Aid, Elite Capture, And A Devalued Currency Are Causing Crisis In The Water Sector.
Explore our infographic on the interconnections and vested interests among the players vying to control LibanPost.