The Causes,Nature, and Effect of the Current Crisis of Lebanese Capitalism

Abstract

Forty years ago, Salim Nasr identified a “crisis of Lebanese capitalism” as a “backdrop” to the country’s civil war. Thirty years after Taif, Lebanese capitalism is facing another crisis: public debt, a looming currency crisis, failing public services. Explanations that focus solely on the sectarian “weak state” or on Syrian refugees neglect the crucial importance of Lebanon’s dependence on Gulf rentierism. Using recent studies of income and poverty, this article shows how postwar capitalism benefited rentier capitalists at the top, created a precarious middle class, and perpetuated poverty. Economic protests mobilize the precarious middle and they revolve around failing public services.