The Lebanese government is facing significant challenges in providing essential services to the population. Monopolies in key sectors have hindered the country’s economic landscape, hampering its potential for growth and development in key sectors, such as electricity, telecom and airlines.
According to LIMS, the government’s monopoly on the electricity sector has resulted in daily power outages, severely impeding progress. Industries reliant on electricity, including manufacturing and agriculture, have been significantly affected. Without a stable power supply, crucial activities like irrigation and cooling necessary for agriculture cannot be accomplished, stifling the industrial and agricultural sectors.
The telecommunications sector is also monopolized by Ogero, a single company providing nationwide communication services. Ogero’s expensive and sluggish internet connection, combined with frequent strikes by its employees, has hindered the emergence of a local technology sector. Highly qualified telecom engineers from Lebanon are forced to establish their technology companies abroad. To foster investment in technology, it is crucial to introduce competition and allow new companies to enter the internet sector.
The airline sector, particularly Middle East Airlines, holds a monopoly that restricts tourism growth in Lebanon. Despite being a vital economic sector, the country primarily attracts expatriates rather than foreign tourists due to high flight costs. By promoting competition in the airline sector, ticket prices can be reduced, thereby stimulating growth in tourism.
The prevailing decision makers controlling monopolies must recognize the profitability, both for themselves and the nation, in dismantling these restrictive market structures. Many monopolies are operating at a loss, making it unsustainable for the government to continue subsidizing them amidst the ongoing crisis. Fostering competition and embracing a thriving economic landscape will generate positive spillover effects for all stakeholders involved.
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