According to commit4fitness, Lebanon is a small country located in the Middle East. The economy of Lebanon is largely dependent on its exports, with agriculture and manufacturing being major contributors to the national GDP. Other important exports include chemicals, jewelry and leather goods. Tourism is also an important industry in Lebanon with its vibrant cities, stunning coastline and ancient ruins drawing visitors from around the world. The government has been focusing on diversifying its economy by encouraging investment in infrastructure such as roads and telecommunications networks in order to attract more foreign investors. In addition to this, foreign aid from other countries has also been increasing in recent years which has helped to improve the country’s economic outlook.
According to abbreviationfinder, LE is the 2 letter abbreviation for the country of Lebanon.
Lebanon has since ancient times been a trading center in the Middle East, and developed into an intellectual and financial center in the Arab world from the 1960s. From its independence in 1943, the country has pursued a very open economic policy. Lebanon’s, and above all Beirut’s, position as a financial and trade center was strengthened in the early 1970s, with increased oil revenues in the Gulf, but suffered a serious blow to the civil war of 1975-76. Following this, as well as the Israeli bombing of Beirut in 1982, a number of banks and other foreign companies established in the country moved to establish themselves especially in Cyprus or Kuwait. As a result of the devastation of the war and the Israeli occupation of southern Lebanon, the modern sector in particular was weakened and a large part of the industry taken out of production. The strong weakening of state power from the civil war, also led to increased corruption and less opportunity to collect taxes. Throughout the 1980s much of the trade was controlled by various parties and their military departments; the traditional, strong families and clans once again controlled the parties and militias. This business, including through the control of legal and illegal ports, helped fund the various groups’ warfare. So did extensive drug production and export. In the mid-1980s, the national currency, the Lebanese pound, weakened.
Consequences of the Civil War 1975–1990
Lebanon has a tradition of emigration to several parts of the world, and the transfer of currency from these to their families is an important source of income. As a result of the war in the 1980s and 1990s, far more than normal Lebanon left; especially highly educated, with the negative consequences it has for a society. It is estimated that approx. 900,000 left Lebanon because of the war. It has also been devastating for the once thriving tourism industry, which has to some extent picked up after the end of the civil war, especially in the form of visiting Lebanese abroad. The war has also led to great material destruction. Estimates of the damage from the Israeli bombing in the summer of 1982 alone were estimated at $ 1.9 billion. In total, it is estimated that the war has resulted in material destruction worth at least $ 25 billion. It is also estimated that the war has cost more than 150,000 lives and 68,000 Lebanese have fled their homes. The war also contributed to significant social distress, not least among refugees from southern Lebanon who settled in Beirut. Regardless of the war, Lebanon is a strong class-divided society, with large differences between city and country, and between poor and rich. The social and economic problems are compounded by high unemployment, which is partly due to the fact that hundreds of thousands of Syrian workers have taken up work in Lebanon.
Several post-war reconstruction programs have been prepared, but have not been implemented because of. new periods of war. It was not until the early 1990s that a large-scale reconstruction program began, in particular the capital Beirut, but also the general infrastructure of the country. Businessman and Prime Minister Rafiq al-Hariri was central to this work, securing investment and support, among others. from Saudi Arabia and from several other countries. Lebanon took out large foreign loans to pay for the reconstruction, and has accumulated a considerable debt burden. The rebuilding of the 1990s was also somewhat restrained by new Israeli attacks, especially Operation Grapes of Wrath, 1996. From the mid-1990s, several economic reforms and measures have been implemented, including further liberalization – with the privatization of state-owned enterprises – and strengthening the collection of taxes and fees, including the introduction of value added tax. In 2002, Lebanon signed the cooperation agreement between the EU and the Mediterranean countries.
Agriculture
According to Countryaah, Lebanon is to a large extent an agricultural country, where the sector traditionally accounts for a large part of employment, although agriculture’s share of gross domestic product has decreased. Around 40% of the land area is considered cultivable, but only approx. 23% is grown. Soil erosion and contamination of groundwater are threats to expansion in the sector, which otherwise has good natural conditions, especially along the Mediterranean coast and in the Beka Valley. At the coast, citrus fruits, bananas and olives are mainly grown, while Bekaa is the most important area for growing cereals. In the valleys between the coast and inland fruit and olives are grown; In the more sparse south, olive is the most important product – and livestock farming is widespread. Lebanon also has significant tobacco production, and in Bekaa grapes are grown for wine production. In the northern part of the Beka Valley, cannabis was the most widely used product for many years; The opium poppy was also grown. The Israeli invasion of 1982 destroyed much of southern Lebanon’s agriculture, partly because plantations were destroyed, partly because the farmers were not allowed to transport their produce north, and partly because the Israelis flooded the local market with their own products. Lebanese farmers have also objected to what they consider dumping cheap Syrian products on the Lebanese market. The extensive Israeli action in 1996 also caused great damage to agriculture in southern Lebanon. While almost half of the working population was employed in agriculture (including forestry and fishing) in 1982, the proportion was just over 3% in 2002. partly because plantations were destroyed, partly because the farmers were not allowed to transport their products north, and partly because the Israelis flooded the local market with their own products. Lebanese farmers have also objected to what they consider dumping cheap Syrian products on the Lebanese market. The extensive Israeli action in 1996 also caused great damage to agriculture in southern Lebanon. While almost half of the working population was employed in agriculture (including forestry and fishing) in 1982, the proportion was just over 3% in 2002. partly because plantations were destroyed, partly because the farmers were not allowed to transport their products north, and partly because the Israelis flooded the local market with their own products. Lebanese farmers have also objected to what they consider dumping cheap Syrian products on the Lebanese market. The extensive Israeli action in 1996 also caused great damage to agriculture in southern Lebanon. While almost half of the working population was employed in agriculture (including forestry and fishing) in 1982, the proportion was just over 3% in 2002. The extensive Israeli action in 1996 also caused great damage to agriculture in southern Lebanon. While almost half of the working population was employed in agriculture (including forestry and fishing) in 1982, the proportion was just over 3% in 2002. The extensive Israeli action in 1996 also caused great damage to agriculture in southern Lebanon. While almost half of the working population was employed in agriculture (including forestry and fishing) in 1982, the proportion was just over 3% in 2002.
There is some fishing off the coast, which, however, has limited economic value.
Mining
Lebanon has few mineral resources, and deposits of oil and gas have not been proven for a long time. In 2010, on the other hand, significant deposits, primarily of natural gas, were projected in Lebanon’s economic zone in the Mediterranean. Despite unclear boundaries against Israeli and Cypriot waters, exploration drilling is planned for 2019. Several international energy companies, including Norwegian Equinor, have shown interest in licenses in Lebanon, and Norwegian authorities have contributed advisers in establishing an oil and gas sector in the country through Oil for Development program. In addition, Lebanon has long had a significant petroleum industry, based on imports and refining of the Gulf of Persia, in Tripoli and Zahrani (by Sayda). Some iron ore and lignite (lignite) have been mined.
Industry
Lebanon is a relatively industrialized country, with varied light industry, and somewhat heavier industry. Prior to the Civil War (1975–76), industrial production was stimulated by a relatively rich domestic market, but the sector suffered major damage both during the Civil War and later, partly as a result of the Israeli invasion of 1982. A large part of the factories were destroyed and many were not destroyed. put back into operation. Lebanon is still more industrialized than most other states in the Middle East. The most important industrial sectors are the food, textile, furniture and wood industries, as well as petroleum refining. Building and civil engineering is an important industry, and saw a major upswing as a result of the restoration program implemented in the mid-1990s. This sector has also been important for Syria’s economy, as a large proportion of the workforce consists of Syrian guest workers.
Most of the industry is located in, or near, Beirut and Tripoli, but a larger proportion of the post-war industry is found in the Christian areas of and around Beirut – although this was also inflicted significant damage during the 1989-90 civil war. An industrial zone was established at Sayda from 1976, but was severely damaged during the 1982 invasion, after which the Lebanese industry also suffered to some extent from competition from subsidized Israeli goods.
Energy
Deficit of electrical energy has been a constraint to economic development in Lebanon, and power production was also affected by the war and Israeli actions. In 2018, installed capacity was 2,550 MW, while the need for peak load is estimated at around 3,500 MW.
It has also proved difficult for Lebanon to import oil and gas to meet its energy needs, and the country has relied, among other things, on floating power plants hired from Turkey. In addition, large sections of the population rely on aggregates to meet private electricity needs, which has given rise to an extensive unregulated power market.
In 2012, the Lebanese authorities embarked on a controversial dam and hydroelectric project in one of the country’s most pristine natural areas, but the project was still unfinished in 2019.
Transport and Communications
Lebanon has a road network totaling approx. 7100 km, of which approx. 1990 km constitutes a main road network of relatively good standard – and where the main road along the coast and from Beirut to the Syrian border are the highest priorities. As part of the post-war reconstruction, large parts of the main road network have been upgraded. coastal roads Beirut – Sayda. Large parts of the original railway network were destroyed during the Civil War, and plans have been laid for possible reconstruction of parts of it. The southernmost part of the railway linking Lebanon to Palestine was closed as a result of the 1948 war, after which the border between the two countries was also closed. Until Israel withdrew its forces from southern Lebanon in 2000, the border was controlled by Israel, which opened it to some civilian traffic – including for Lebanese who had jobs in northern Israel and for trade.
Before the Civil War, the international airport in West Beirut was the busiest in the Middle East, but the airport was partially destroyed by the war and closed for long periods before being rehabilitated after the war and reopened in 1992. Several ports were also partially destroyed during the war, and for otherwise largely controlled by various militia groups. The main ports are Beirut, Tripoli and Tyr, as well as Juniyah (north of Beirut); work on the development of the port of Sayda began in the late 1990s.
The telecommunications system broke down along the way during the war, and a number of private satellite-based solutions were created. From the 1990s, the telephone system has been rehabilitated, while the prevalence of mobile telephony has been, relatively speaking, greater in Lebanon than any other Arab country.