The ceasefire agreement between Lebanon and Israel, signed on November 27, has brought an end to hostilities but shifted focus to the urgent task of post-war reconstruction. The scale of devastation in Lebanon is considerable, with critical infrastructure, private housing, and key agricultural and industrial assets severely affected. Meanwhile, residents in hard-hit areas are contending with soaring rental costs and sharply rising prices for reconstruction materials and services, amid allegations of profiteering.

LIMS has raised concerns over the government’s capacity to lead the reconstruction effort, citing fiscal constraints and chronic inefficiencies. Decades of mismanagement and entrenched corruption have eroded trust in state institutions, making it unlikely that traditional aid mechanisms will deliver effective results.

LIMS advocated for a market-driven approach to reconstruction, urging greater private investment and competition, particularly in essential sectors such as electricity, water, telecommunications, and infrastructure. This approach would allow companies to provide sustainable and profitable services while reducing reliance on inefficient state monopolies. Aid, where necessary, should bypass centralized government channels in favor of private investment at the municipal level while fostering competition, and mitigating inefficiencies associated with central government oversight.

The housing market is another battleground in Lebanon’s economic recovery. While the surge in rental prices has provoked widespread criticism, LIMS has cautioned against narratives portraying landlords as opportunists profiting from the crisis. Higher rents reflect a fundamental supply-demand imbalance. War destroyed a large portion of housing supply in affected areas leaving displaced residents with limited options. As stability returns and reconstruction efforts progress, the influx of new housing stock should naturally temper rental inflation. Instead of vilifying landlords, policymakers should focus on creating conditions that encourage new investment in housing and accelerate rebuilding efforts.

• Lebanon… Who Will Rebuild? December 4, 2024: CNBC, Video Interview (AR)
• The Post-War Agenda Is Overloaded With Challenges… Leb Economy Surveys Experts’ Opinions! December 5, 2024: Leb Economy, Article (AR)
• Estimates of Losses And The Impact Of The War On The Economy. December 16, 2024: Beirut Podcast, Video Interview (AR)
• Lebanon After the War… Crisis Merchants Aggravate The Suffering Of Citizens Through Reconstruction Speculation. December 17, 2024: Al-Araby, Article (AR)
• A Housing Crisis Affects The Residents Of The Suburbs, The South, And The Beqaa… 3 Options, The Best Of Which Is Bitter. December 9, 2024: Annahar, Article (AR)