Lebanon's economy is worth roughly a third of what it could be, according to Minister of Economy and Trade Dr. Amin Salam. Speaking at a seminar at the Lebanese American University (LAU), Salam said the country has the economic and human resources to grow its economy to around $100 billion, if those resources are put to work the right way.
"Lebanon's gross domestic product currently stands at around $30 to $33 billion," Salam said, adding that "the GDP gap remains very large." He noted that several economic models point to the possibility of doubling the size of the economy.
Sovereignty as an Economic Condition
Salam tied any path to growth directly to political and institutional change. He said "Lebanon faces a serious political challenge that hinders reform" and that "sovereignty is directly tied to economic growth."
In his view, sustainable growth requires the state's full presence, including a monopoly over decisions on force, arms, war, and peace.
Five Sectors on the Reform List
Beyond politics, Salam named the sectors he said need broad reform: banking, electricity, communications, transportation, and public administration. "Lebanon therefore needs a comprehensive reform path that includes political, security, and economic aspects," he said.
People Over Physical Assets
Salam also pointed to the private sector, human capital, and Lebanese living abroad as the country's strongest assets. "Lebanon's most important competitive advantage is not in physical capital, but in human capital," he said.
He described the diaspora as "a major national wealth that has not been sufficiently invested in."
Inside the LAU Seminar
The seminar, titled "Lebanon's Political and Economic Priorities: Recovery After War, Institutional Transformation, and Democratic Governance," opened with welcoming remarks from Imad Salamey, Director of the Institute for Social Justice and Conflict Resolution at LAU.
Dr. Chantal Sarkis followed with an intervention on the Lebanese reality and the challenges of the current phase. The event closed with remarks and a presentation by Dr. Zeina Mehanna on the Lebanese situation and the events the country has been through.
