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‘Public–Private Entanglement’: Entrepreneurship in Lebanon’s Hybrid Political Order

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  • Nora Stel
  • Wim Naudé

Abstract

While the literature is clear that political influence and clientelism characterises the investment decisions of entrepreneurs and the performance of their firms when governance is weak, it is less understood how governance systems and entrepreneurs interact, particularly when governance is of a hybrid nature. We address this issue in this paper by studying how entrepreneurs obtain access to electricity in Lebanon, showing that the hybrid political order imposes a high cost on electricity. We furthermore find that a hybrid political order channels entrepreneurial talent into lobbying and bribery. The key constraint that emerges from the hybrid political order in this case is the corrupt organisation of governance of the electricity sector. This results in higher prices (because bribes for contracts have to be earned back) in entrenchment of oligopolies, because contracts often come with political protection.

Suggested Citation

  • Nora Stel & Wim Naudé, 2016. "‘Public–Private Entanglement’: Entrepreneurship in Lebanon’s Hybrid Political Order," Journal of Development Studies, Taylor & Francis Journals, vol. 52(2), pages 254-268, February.
    • Handle: RePEc:taf:jdevst:v:52:y:2016:i:2:p:254-268
    DOI: 10.1080/00220388.2015.1081173
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    References listed on IDEAS

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    1. World Bank, 2008. "Lebanon : Electricity Sector Public Expenditure Review," World Bank Publications - Reports 7990, The World Bank Group.
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    Cited by:

    1. Bužavaitė Monika & Korsakienė Renata, 2018. "Inter-Personal and Inter-Organizational Networks In Internationalization of SMEs: A Bibliometric Analysis and Review," Open Economics, De Gruyter, vol. 1(1), pages 94-104, August.
    2. Moore, Henrietta L. & Collins, Hannah, 2020. "Decentralised renewable energy and prosperity for Lebanon," Energy Policy, Elsevier, vol. 137(C).

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