Rebuilding Lebanon: A Strategy for Post-War Recovery

War

Lebanon faces the task of post-war reconstruction while grappling with a protracted banking crisis and sovereign default. The World Bank estimates war-related damages at $8.5 billion, a sum far beyond the government’s means. Further complicating recovery efforts, Lebanon’s addition to the FATF Gray List has heightened scrutiny over Hezbollah’s financial activities and widespread public sector corruption—both of which threaten to deter crucial foreign aid and investment.

LIMS argued that attracting international capital is imperative for Lebanon’s rebuilding efforts. Key sectors—including electricity, telecommunications, water services, and waste management—must be opened to competition, breaking the grip of inefficient state-owned enterprises. In war-affected regions, allowing private firms to invest in infrastructure would bypass chronic mismanagement and deliver reliable, cost-effective services. A stable electricity supply would revitalize industry, improved water systems would boost agriculture, and modernized telecommunications would attract investments in technology. Meanwhile, addressing waste management would not only improve public health but also enhance Lebanon’s appeal as a tourist destination.

Equally critical is ensuring checks on the use of reconstruction funds. Strengthening oversight on state expenditures and enforcing strict public procurement regulations are essential to restoring investor and donor confidence. Competitive bidding for reconstruction projects—anchored in the Public Procurement Law—would curtail political favoritism and prevent loopholes that enable corruption. Implementing these measures, as advocated by LIMS’  APPLE-C program, could serve as a catalyst for private sector participation in infrastructure development, paving the way for a sustainable and accountable recovery.

Lebanon’s post-war reconstruction cannot be built on the foundations of past failures. Structural reform, private sector engagement, and ironclad financial oversight are the only viable paths toward long-term economic stability and growth.

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