What America Can Learn from Lebanon’s Financial Crisis
Ivoox Radio | August 24, 2020
The massive explosion that took place in Beirut on April 4, 2020 took down the port of Beirut and key districts of the country. The country was already going through an economic recession and people lost their jobs, businesses, life savings and the value of the currency dropped by 80%. Then Covid-19 came on top of the crisis.
The explosion in Beirut was not the cause, but the symptom of years of mismanagement, greed, and indifference by Lebanon’s ruling class. The country is currently suffering from a currency and banking crisis, as well as a fiscal deficit due to the massive amount of public spending. Instead of applying structural reforms, the government decided to finance its spendings through printing money, causing hyperinflation.
In his interview, Dr. Patrick Mardini emphasized on the importance of reconstructing the port quickly, and in his opinion the only way to do this is through privatization. He believes that a privately built, owned and operated port would improve the time and cost of trade for Lebanon, bring prosperity and save the taxpayers from the reconstruction cost.
Dr. Patrick Mardini's Interview with Ivoox Radio(Kibbe on Liberty) on August 24, 2020