Until the assassination of Mr. Hariri and the subsequent uncertainty, Lebanon had, for the previous 18 months, enjoyed relatively robust economic activity, which allowed for the replenishment of reserves, better GDP growth in 2004, vigorous financial sector liquidity, and, through swaps, more efficient management of the country’s debt stock, which in turn allowed for the lengthening of Lebanon’s foreign debt’s maturity. The fact that these positive gains were set back by one, albeit enormous, bomb blast, proves that no post-war government has yet been able to build the necessary foundations to reduce the vulnerability of the economy to unexpected trauma, nor for that matter set up a sound economic base to generate recurring revenues, diversify the economy or create jobs. This situation has not been helped by the Lebanese government’s failure to implement administrative reforms – especially the privatization program demanded by the 2002 Paris II conference – and by
