Question

please i need from someone to do for me a English documented research essay on the causes of the Lebanese economic crisis it should be composed from:

introduction, body 1 , body 2 , body 3, rebuttal, conclusion, links of articles that have be used to get information.

Answer 1

Introduction: Lebanon, a geographically troubled but upper middle-income state in the Middle East, is in the midst of a deep financial and political crisis banks have been intermittently closed and depositors around the country consider access to dollar balances difficult. While capital controls have not been officially imposed, it appears that banks have taken it upon themselves to maintain liquidity and capital by dictating what amount of funds customers may withdraw or move from outside. Currency shortage has contributed to a 30 per cent premium over the official exchange rate for actual cash dollars. (The economy is strongly dollarised as well as cash-oriented).

Body- What is obvious in retrospect is that the time immediately after the 2008 global financial crisis when around $30 billion of capital flew into Lebanon was a wasted chance to turn things around.
Most inflows resulted from repatriation of foreign assets against the backdrop of low global interest rates. Although Lebanon's central bank) used some of these inflows to shore up its reserves, approximately one-third ended up financing the widening of an already large current account deficit. More than half of the current account deficit expansion has, meanwhile, been attributed to an increase in primary government spending

The simultaneous need to retain high reserve rates and rescue distressed banks ultimately led to unorthodox – and contentious – financial engineering policies being enforced. This included offering incentives to commercial banks able to raise central bank dollar deposits. Such policies brought in substantial fiscal costs. Yet they also mirrored a Ponzi scheme in many ways because the central bank charged increasingly higher interest rates to raise dollar funds, even though those funds did not produce adequate returns to repay the interest and capital.

Alternatively, the cause for the current crisis was Prime Minister Hariri's sudden resignation and disappearance in Saudi Arabia in November 2017, which may have stood up to wealthy Lebanese depositors and prompted them to move funds out of Lebanon. The strange incident, on November 4, 2017, saw Hariri publicly resign from his role in a Saudi Arabia televised address. He could not be tracked for more than 10 days after the presentation, raising concerns that the Saudi leadership was keeping him hostage.

Likewise, because Lebanon's primary deficit — the overall government deficit minus interest payments on government debt — is small, a well-designed reprofiling of public debt (i.e. extending maturity at lower interest rates without a face value reduction) could go a long way in restoring fiscal sustainability. The banks carry substantial sums of government debt, however, and will profit from such intervention. Although a haircut may be appropriate on depositors it is important not to continue bailing out bank shareholders. Additionally, it's important to treat all depositors equally.

Conclusion- While many regular people have lost complete access to their bank accounts, some well-connected depositors have continued to transfer their funds abroad. Therefore, to be genuinely successful and equitable, the haircut on bank deposits would have to be extended to balances before banks begin to enforce withdrawal limits, and likely exclude small depositors to compensate for this unfair treatment.

Source- New York Times