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Development against All Odds? The Case of Lebanon

Author

Listed:
  • Marktanner Marcus

    (American University of Beirut)

  • Makdisi Samir

    (American University of Beirut)

Abstract

This paper explores Lebanon's development potential associated with greater fiscal capacity building to promote more equality of economic opportunities and productive economic activity and examines their impact on the country's likelihood of sporadic or lasting armed conflict. It is found that Lebanon forgoes a substantial amount of socio-economic development due to the political system's inability to build an efficiently sized public sector that can complement private economic activity. But even if Lebanon utilized its full development potential, it can barely beat the odds of armed conflict. This can be explained by Lebanon's exposure to considerable geoeconomic and geopolitical constraints.

Suggested Citation

  • Marktanner Marcus & Makdisi Samir, 2008. "Development against All Odds? The Case of Lebanon," Review of Middle East Economics and Finance, De Gruyter, vol. 4(3), pages 101-133, September.
  • Handle: RePEc:bpj:rmeecf:v:4:y:2008:i:3:n:4
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    References listed on IDEAS

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    1. José G. Montalvo & Marta Reynal-Querol, 2005. "Ethnic Polarization, Potential Conflict, and Civil Wars," American Economic Review, American Economic Association, vol. 95(3), pages 796-816, June.
    2. Joan Esteban & Debraj Ray, 2008. "Polarization, Fractionalization and Conflict," Journal of Peace Research, Peace Research Institute Oslo, vol. 45(2), pages 163-182, March.
    3. Gustav Ranis, 2004. "ARTHUR LEWIS's CONTRIBUTION TO DEVELOPMENT THINKING AND POLICY," Manchester School, University of Manchester, vol. 72(6), pages 712-723, December.
    4. Norris, Pippa, 2005. "Stable Democracy and Good Governance in Divided Societies: Do Powersharing Institutions Work?," Working Paper Series rwp05-014, Harvard University, John F. Kennedy School of Government.
    5. Gustav Ranis, 2004. "Arthur Lewis' Contribution to Development Thinking and Policy," Working Papers 891, Economic Growth Center, Yale University.
    6. José Garcia Montalvo & Marta Reynal-Querol, 2004. "Ethnic polarization, potential conflict and civil wars," Economics Working Papers 770, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2005.
    7. Arellano, Manuel, 2003. "Panel Data Econometrics," OUP Catalogue, Oxford University Press, number 9780199245291.
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