From Ahmad Nazzan
Lebanon, once known as the Switzerland of the Middle East, faces one of the worst economic crises in its history. According to the World Bank, this is due to decades of financial mismanagement.
Lebanon, said to be marching towards failed state status, faces a mammoth task in freeing itself from years of sectarian violence, corruption, as well as religious and ideological differences.
In the 90s, after years of civil war, Lebanon initiated several economic reforms that saw the country developing at a rapid phase. Foreign investment helped bolster the economy and the country witnessed a period of political stability and development.
However, the euphoria did not last long. Soon, due to religious differences and other causes, there was political instability. Proxy governments were set up every now and then, and there was a failure to implement political and economic reforms.
When the Covid-19 pandemic hit, Lebanon did not possess the finance nor the structure to manage it.
Today the economy is in deep trouble and banks are paralysed. The currency has crashed, driving a large portion of the population – more than 70% – into poverty.
Economists are quick to point out that Lebanon has been derailed by mismanagement as the elite borrowed with few restrictions. Lebanon’s GDP plummeted from US$55 billion in 2018 to US$20.5 billion in 2021.
This gloomy picture should jolt Malaysians as there are many similarities, both politically and economically, between the situation in Lebanon and that of our nation.
Once described as an Asian Tiger, today we have lost the shine and will to pursue excellence. Satisfied with mediocre performance, we struggle on while other member states of Asean have overtaken us economically.
Indonesia is progressing rapidly, Vietnam has become the favourite of foreign investors while Cambodia has become the poster boy of a vibrant developing third world.
Corruption, cronyism, mismanagement and about-turns in policymaking have reduced us to a struggling third world nation with huge foreign debts, without a clear vision to get out of the economic nightmare.
Political infighting and jostling for power and posts have caused the ruling elite to deviate from its actual role of governing this country well. There is a general feeling of hopelessness among the population and many are praying for a miracle to save us from becoming a failed state.
Political stability, wise economic management and accountability are needed from those in power. There is also a need for social cohesion so that we can become a leading nation in Southeast Asia again.
Ahmad Nazzan is an FMT reader.
The views expressed are those of the writer and do not necessarily reflect those of FMT.
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