Lebanon and the International Monetary Fund bailout

Abstract

Lebanon is today suffering from a complex and unprecedented crisis at various interconnected levels. A combination of an economic, financial, political and health crises together with the deadly blast in August 2020 has caused damage in Beirut. All these disasters together with the outbreak of COVID-19 have led the country towards a socio- economic collapse. However, international organizations such as the “International Monetary Fund” decided to intervene or to contribute by providing recommendations. Such recommendations have focused on transformation and restructuring leading to different reactions among the three most powerful parties (The Free Patriotic Movement, The Future Movement, and Al-Hizb). This paper aims to examine the different conditions that might be set by the IMF in order to provide Lebanon with the loan program and to assess the response of the three parties. A qualitative approach will be used to collect information. The results of this paper will be concluded via the three parties’ perspectives by drawing a comparative study to emphasize the three parties’ benefits and disadvantages based on the IMF’s recommendations. This study theorizes that the ongoing political battle and financial implication are vital to the political dynamic, especially through the attitude and reactions of the three most important parties in Lebanon.