Lebanon's top 5 economic decisions: A recipe for disaster

Lebanon has suffered a severe economic crisis since 2019, and the government's handling of the situation has only worsened matters. Instead of implementing policies to help the country recover, the government's decisions have led to more chaos and despair. Here are the top five economic decisions made by the authorities that have exacerbated the crisis.

1- Halting debt payments without a plan

The government's decision to stop paying its debts without a well-structured plan has isolated Lebanon from global markets and damaged its reputation. It has resulted in a loss of confidence in Lebanon from foreign countries.

2- Giving subsidies

The financial support provided by the government has been misused to facilitate smuggling and monopolies, while the subsidized food baskets have included luxury items like caviar and cashew nuts.

3- Establishing Sayrafa exchange platform

The establishment of Sayrafa exchange platform has resulted in the waste of US dollars and increased chaos in the market. And the platform is out of service most of the time.

4- Increase public sector salaries

The haphazard decision to raise public sector salaries has led to inflation, high costs, and a collapsing exchange rate. The country has yet to learn from previous experiences.

5- No Action: The worst decision of all 

The government's inaction, particularly in dealing with the International Monetary Fund (IMF), is the most harmful decision. The IMF has been warning Lebanon about the urgency of implementing reforms, but to date, no significant reforms have been enacted.

In summary, the government's economic decisions have been a recipe for disaster, leading to the opposite of what was intended. The authorities are running the country in the wrong direction, and the situation is becoming more severe each day.