Lebanon-Beirut: A country out of control, a surprising and difficult watch

Economy and finance Lebanon’s main wealth was its human capital, which was accumulated thanks to a liberal economic regime that contrasted with the dirigisme widely practised in the rest of the Arab world. At a time when socialism was on the rise, Lebanon offered a flexible exchange rate regime, freedom of capital movements and a liberal environment that was unique in the region. The country thus became a centre of attraction for investors fleeing the waves of nationalisation in Egypt, Syria and Iraq, and for capital from oil-producing countries whose financial systems were not yet developed. Its balance of payments had…