Perceptions of Stakeholders on the Financial and Economic Crisis in Lebanon: An In-depth Analysis

Abstract

Abstract This study examines Lebanon’s enduring financial and economic crisis, exacerbated by economic challenges, the COVID-19 pandemic, and the Port of Beirut explosion. With over 80 % currency devaluation due to sovereign debt default, the crisis has intensified poverty and unemployment, compounded by political turmoil. Using survey data from 178 stakeholders, experts, and academics, this research explores the intricate drivers of Lebanon’s crisis and offers insights for policymakers. Employing quantitative methods, it uncovers the intertwined role of financial mismanagement, government failures, mounting public debt, financial engineering techniques, and political instability in driving the crisis. Recommendations emphasize prudent financial practices, sound governance, and policy interventions. This study sheds light on Lebanon’s complex financial and economic challenges with data-backed perspectives from diverse stakeholders, providing valuable insights for management practitioners and scholars navigating crises in tumultuous environments. It aims to contribute to the management discourse, equipping stakeholders with actionable strategies for addressing and preventing similar crises. It also explores the interplay between stakeholder perspectives and the determinants of the financial crisis in Lebanon. It delves into the interconnected nature of the crisis and demonstrates how stakeholders from various sectors and backgrounds mirror the factors identified in the literature.