No monkeying around on the markets

Financial markets despise uncertainty, but in Lebanon, these markets were served with large doses of uncertainty time and time again in 2004. Certainly, Lebanon’s geographical location did not help matters: worsening developments in Iraq, ongoing violence in the Palestinian territories, and the stand-off between Syria and the international community, all made markets twitchy. On the domestic front, the recurrent political clashes between President Emile Lahoud and former PM Rafik Hariri plagued the political arena for most of the year, resulting in more delays in economic reforms and an indefinite postponement of privatization plans. The controversial renewal of Lahoud’s mandate along with the resulting appointment of the Karami cabinet were both frowned upon by the international community, which looked on these developments as a direct result of Syrian influence on Lebanese internal politics and has reiterated its call for the implementation of UN resolution 1559. Nonetheless, Lebanon’s financial markets registered a