Close Menu
    Facebook Instagram LinkedIn
    • العربية (Arabic)
    • English
    • Français (French)
    Facebook Instagram LinkedIn
    Middle East Transparent
    • Home
    • Categories
      1. Headlines
      2. Features
      3. Commentary
      4. Magazine
      Featured
      Headlines Saad Azhari

      Facts and Myths in the Lebanese Financial Crisis

      Recent
      9 July 2025

      Facts and Myths in the Lebanese Financial Crisis

      6 July 2025

      A New Palestinian Offer for Peace With Israel

      3 July 2025

      Why al-Sharaa’s success in Syria is good for Israel and the US

    • Contact us
    • Archives
    • Subscribe
    • العربية (Arabic)
    • English
    • Français (French)
    Middle East Transparent
    You are at:Home»Categories»Headlines»The Political Economy of Reform in Lebanon and its Challenges

    The Political Economy of Reform in Lebanon and its Challenges

    0
    By Khalil Youssef Beidas on 23 June 2025 Headlines

    In the midst of Lebanon’s continuing financial collapse, now entering its sixth year, a growing debate is taking shape within international and domestic policy circles over the country’s capacity—and willingness—to implement credible economic reforms. Central to this debate is Yassine Jaber, the recently appointed Minister of Finance in Prime Minister Nawaf Salam’s cabinet. His appointment has drawn scrutiny due to his long-standing political alignment with Speaker of Parliament Nabih Berri, whose Amal Movement has exercised significant control over Lebanon’s public institutions for decades.

     

     

    While Jaber is nominally presented as an independent technocrat, several current and former officials interviewed for this report suggest that his role within the new government may serve to extend the influence of existing patronage networks into the core of Lebanon’s financial restructuring efforts.

     

    Central Bank Leadership and the Vice Governors File

    One of Jaber’s first actions as Finance Minister has been to advance nominations for the four Vice Governors of the Banque du Liban (BDL). Internal government memoranda reviewed by this reporter indicate that the top candidate for reinstatement is Wassim Mansouri, who served previously as acting governor. Mansouri was closely linked, according to public records and media investigations, to a small group of officials—Salim Khalil, Mohammad Hamdoun, and Mohammad Baalbaki—who managed substantial foreign currency operations at the height of Lebanon’s currency stabilization efforts.

    Multiple sources confirmed that these operations, while aimed at slowing the depreciation of the Lebanese pound, lacked sufficient transparency and were largely managed outside the formal governance structures of the BDL. The proposed return of Mansouri and his team is raising alarms among international observers who worry about the entrenchment of political influence in currency management.

     

    Stalemate Over the Banks’ Resolution Law

    A second point of contention is the draft Banks’ Resolution Law, which seeks to restructure Lebanon’s insolvent commercial banking system. The BDL under Governor Karim-Antoine Souaid has called for a series of amendments to ensure the independence of the central bank, the application of international banking standards, and protections for small depositors. These amendments have not yet been accepted by the Ministry of Finance.

    People familiar with the internal deliberations suggest that Jaber’s position is tied to a broader negotiation. According to diplomatic sources, the Minister of Finance has conditioned his approval of the revised law on concessions in unrelated appointments, specifically: the selection of a new financial prosecutor, and the chairmanship of Intra Investment Company, a central bank-affiliated holding company with significant public assets. Critics argue that these linkages politicize what should be a purely regulatory reform and risk undermining the independence of Lebanon’s financial institutions.

    Rene Mouawad Airport in Qoleiat, North Lebanon

     

    Infrastructure and Economic Geography

    The Ministry of Finance has also remained noncommittal on the reopening of the René Moawad Airport in northern Lebanon. Although the Ministry of Public Works has positioned the airport’s reactivation as a regional development priority, official documents show delays in budgetary approvals and coordination with customs and civil aviation authorities.

    Former transport officials and northern business leaders believe that the delays are politically motivated. They argue that a functioning international airport in the North would shift trade and tourism revenues away from Rafic Hariri International Airport, which is widely regarded as a revenue stronghold for established political actors. The Ministry of Finance’s inaction, they say, reflects broader dynamics in which infrastructure is managed not solely for national development, but for fiscal and political control.

     

    International Scrutiny and the Road Ahead

    Jaber, a long-serving parliamentarian and former minister, holds a degree in business from the American University of Beirut and has overseen multiple portfolios over the past three decades. Though not a trained lawyer or finance professional, he commands substantial influence within the Amal bloc and has access to high-level interlocutors in regional capitals.

    His role is now under close observation by international donors, including the International Monetary Fund, the World Bank, and members of the Quintet (U.S., France, Saudi Arabia, Egypt, and Qatar). Senior diplomats from two of those states confirmed that Jaber’s current positions on the Banks’ Resolution Law and the vice governors’ nominations have already been raised in confidential diplomatic channels and may influence the timeline and conditionality of future disbursements.

    An IMF staff-level agreement remains in progress, but progress is contingent on Lebanon’s ability to demonstrate a coherent and depoliticized approach to restructuring its financial system. The concern among Western donors is that institutional reforms will be subordinated to the same political economy dynamics that contributed to the collapse in the first place.

    In private meetings with fund representatives, the central bank governor has stressed the need for a firewall between political actors and financial regulators. It remains to be seen whether the government—and the Ministry of Finance in particular—will endorse this model or revert to the practices of negotiated appointments and inter-factional compromise.

     

    Conclusion

    As Lebanon approaches a defining moment in its relationship with the international financial community, the conduct and decisions of key officials, including Finance Minister Jaber, will determine the credibility of the government’s reform narrative. The country’s economic survival depends not just on technical plans, but on political willingness to insulate financial governance from partisan interest.

    For now, donors are watching. The architecture of reform has been laid out, but its success may hinge on whether figures like Yassine Jaber act as transitional stewards—or gatekeepers of the status quo.

    Share. Facebook Twitter LinkedIn Email WhatsApp Copy Link
    Previous ArticleSky Theft: How MEA’s Monopoly Is Pricing Lebanon Out of the Skies
    Next Article US ambiguity shouldn’t stop work on a two-state solution
    Subscribe
    Notify of
    guest

    guest

    0 Comments
    Newest
    Oldest Most Voted
    Inline Feedbacks
    View all comments
    RSS Recent post in french
    • Du Liban indépendant et de son « héritage syrien » (avec nouvelles cartes) 8 July 2025 Jack Keilo
    • Nouvelle approche des Forces Libanaises: Alliances ou Endiguement ? 5 July 2025 Kamal Richa
    • Ce que nous attendons de vous, Monsieur le Président 3 July 2025 Michel Hajji Georgiou
    • Il faut être pour Nétanyahou lorsqu’il affaiblit la menace iranienne ; et ardemment contre lui lorsqu’il détruit Gaza 1 July 2025 Denis Charbit
    • En Syrie, la mystérieuse disparition du corps de Hafez el-Assad 11 June 2025 Apolline Convain
    RSS Recent post in arabic
    • الحقائق و”الأساطیر” في الأزمة المالیة اللبنانیة 9 July 2025 سعد أزهري
    • قاعدة نورخان الجوية وأهميتها لواشنطن 9 July 2025 د. عبدالله المدني
    • عن “الإرث السوري” للبنان (مع تحديث وخرائط جديدة) 8 July 2025 جاك كيلو
    • كربلاء.. وسرديتها 6 July 2025 فاخر السلطان
    • مقال “وول ستريت جورنال” الذي يثير ضجة: إمارة إبراهيمية في “الخليل”! 6 July 2025 الشفّاف
    26 February 2011

    Metransparent Preliminary Black List of Qaddafi’s Financial Aides Outside Libya

    6 December 2008

    Interview with Prof Hafiz Mohammad Saeed

    7 July 2009

    The messy state of the Hindu temples in Pakistan

    27 July 2009

    Sayed Mahmoud El Qemany Apeal to the World Conscience

    8 March 2022

    Russian Orthodox priests call for immediate end to war in Ukraine

    Recent Comments
    • Khaled Mahrouq on Why al-Sharaa’s success in Syria is good for Israel and the US
    • Edward Ziadeh on Why al-Sharaa’s success in Syria is good for Israel and the US
    • Giant Squirrel on Holier Than Thou: Politics and the Pulpit in America
    • Edward Ziadeh on As Church awaits a Conclave, President Trump puts up picture of himself as next Pope
    • Victoria Perea on As Church awaits a Conclave, President Trump puts up picture of himself as next Pope
    Donate
    Donate
    © 2025 Middle East Transparent

    Type above and press Enter to search. Press Esc to cancel.

    loader

    Inscrivez-vous à la newsletter

    En vous inscrivant, vous acceptez nos conditions et notre politique de confidentialité.

    loader

    Subscribe to updates

    By signing up, you agree to our terms privacy policy agreement.

    loader

    اشترك في التحديثات

    بالتسجيل، فإنك توافق على شروطنا واتفاقية سياسة الخصوصية الخاصة بنا.

    wpDiscuz