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World Bank's role in reconstruction: Can Lebanon rebuild without economic and political reforms?
News Bulletin Reports
28-02-2025 | 14:00
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World Bank's role in reconstruction: Can Lebanon rebuild without economic and political reforms?
Report by Bassam Abou Zeid, English adaptation by Yasmine Jaroudi
Lebanon is facing the challenge of rebuilding what was destroyed during the Israeli war, but with a bankrupt state, reconstruction remains uncertain. The focus now is on how, when, and through whom the necessary loans for the process will be secured.
The World Bank has emerged as a potential financer for the reconstruction.
Yet, both the bank and the Lebanese state acknowledge that no funds will be available without significant political and economic reforms, primarily set by the United States, which shares a unified stance with the Quintet Committee, led by Saudi Arabia.
The World Bank has estimated the cost of reconstruction at $12 billion and has initiated an emergency program worth $1 billion for debris removal. So far, only $250 million of that amount has been secured. This funding would not have been possible without the approval of the World Bank's board, where the U.S. plays a decisive role.
Discussions on how to proceed with the remaining funds were held between a World Bank delegation led by Vice President Ousmane Dione and Lebanese Finance Minister Yassine Jaber. While the World Bank insists on the necessity of reforms, it does not explicitly condition the project's launch on their implementation.
Only $250 million has been allocated for debris removal, with ongoing talks between the finance minister, the government, and the World Bank regarding the implementation mechanism.
However, sources familiar with the matter told LBCI that no real progress can be made without establishing a fund to manage the finances.
Moreover, no funds will be disbursed without reforms.
On the political front, sources indicate that decisions will be made on a case-by-case basis, while the government is well aware of the necessary steps it must take.
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