Tracking economic shifts in Lebanon: A review of 13 presidential terms – Part 1

Report by Theresia Rahme, English Adaptation by Karine Keuchkerian

With 13 presidents having held office in Lebanon prior to the election of Joseph Aoun, how did the economy perform under each of their terms?

 

Bechara El-Khoury (1943-1952)

During Lebanon's first presidency post-independence, the country saw improvements in the commercial and service sectors, with Beirut solidifying its position as a regional economic hub. 

Infrastructure such as roads, communications, and ports were also developed.

Camille Chamoun (1952-1958)

Under President Chamoun, Lebanon experienced economic prosperity and an influx of foreign investment. 

The tourism and banking sectors grew, largely due to the establishment of banking secrecy in 1956, which attracted capital and deposits, providing a stable economic environment. 

However, by the end of Chamoun’s term, the 1958 crisis impacted Lebanon’s economic stability.

Fouad Chehab (1958-1964)

President Chehab’s term was marked by institutional growth. The Social Security Fund, Civil Service Council, and Central Bank were established, and the "Money and Credit Code" was enacted. 

According to some reports, Lebanon ranked fourth globally in economic growth after the United States, France, and Switzerland. 

The health and education systems also saw significant advancements, with the development of public and vocational education and the establishment of public universities, providing education to all Lebanese citizens.

Charles Helou (1964-1970)

Under President Helou, technological achievements included the approval of the submarine cable project, which enhanced international communications, and the construction of a satellite station. 

Networks for water, electricity, and services were expanded, while the agricultural and industrial sectors were neglected. 

The most significant event during this time was the 1966 bankruptcy of Intra Bank, a severe economic blow to Lebanon. 

Alongside this, the signing of the Cairo Agreement, which legalized the Palestine Liberation Organization's presence in Lebanon, contributed to political and economic instability.

Suleiman Frangieh (1970-1976)

Lebanon's GDP grew during Suleiman Frangieh's presidency until 1974. The country benefited economically after the rise in oil prices in 1973, affected by the Arab-Israeli war. 

Lebanese banks became the main channel for transferring Arab oil revenues, and foreign and Arab banks purchased shares in Lebanese financial institutions to secure a stake in the profits.

However, on April 13, 1975, the spark of the civil war ignited, initially causing significant damage to Beirut's infrastructure.

The total losses amounted to approximately LBP 7.5 billion, with 6.2 billion affecting the private sector and 1.3 billion in the public sector, according to the Beirut Chamber of Commerce and Industry.

What followed in the presidencies after the outbreak of the Lebanese civil war? To be continued...