Lebanon Once Led the Mediterranean. Can It Rise Again?

Phoenicia was a cluster of coastal city-states such as Tyre, Sidon, and Byblos that became

economic powerhouses through trade, craftsmanship, and innovation. These cities thrived

together rather than under centralized rule. They lacked natural resources and relied on

manufacturing and seafaring to build their wealth. Their sailors and shipbuilders carried goods

across the Mediterranean and founded colonies. They traded glass, dyes, metals, textiles, olive

oil, wine, and introduced viticulture to regions from Egypt to Spain through their extensive trade

networks. The influence of their alphabet shaped later scripts.

Modern Lebanon was once at the heart of that legacy. Today it faces one of the most catastrophic

economic collapses in modern history. Since 2019, GDP dropped by around 38 to 50 percent and

the national currency lost over 98 percent of its value. Inflation rose into triple digits,

unemployment and poverty surged. Poverty rose from 12 percent in 2012 to 44 percent in 2022,

and multidimensional poverty affects up to 73 percent of the population.

A liquidity crisis crippled the banking system, freezing up to 100 billion USD in deposits and

paralyzing financial institutions. Public debt now exceeds 170 percent of GDP. Imports dominate

the economy, reaching about 91 percent of GDP by 2023, undermining local production.

Tourism and remittances have been major lifelines, but are unreliable and susceptible to shocks.

Electricity and fuel shortages triggered nationwide outages in 2024. Power plants ran out of fuel,

halting water pumping, airports, ports, and basic infrastructure.

Recent conflicts worsened the situation. The war and its wider effects are estimated to have

caused $14 billion in combined infrastructure damage and economic losses. GDP dropped

further by around 8 to 9 percent, trade plunged by 21 percent, and essential sectors such as

tourism, agriculture, and construction were hit hard.

Public frustration is widespread. Around 80 percent of the population lives in poverty, while

corruption, inequality, and lack of public reform deepen the divide. Generational wealth has

vanished, the middle class has shrunk, and many Lebanese have fled abroad. Despite the crisis,

discussions on Phoenician heritage remain strong. Many are urging greater pride in the ancient

legacy, noting that Lebanon’s identity and cultural influence extend well beyond its current

hardships.

To move forward Lebanon can learn from its ancient past in several ways:

Rebuild domestic industry by focusing on high-value craftsmanship. Restore confidence in trade

and shipping. Promote knowledge-based sectors rooted in innovation, while reforming banking

systems to regain trust. Reform public finance, cut corruption, simplify taxes, and reduce

reliance on debt. Strengthen institutions to enable governance, transparency, and fair resource

distribution.

Highlighting Phoenicia helps remind us that Lebanon is not defined by crisis. It once led

regionally through trade, craft, openness, and cultural transmission. Today, the path to recovery

lies in reconnecting with that spirit. Lebanon must leverage its educated diaspora, rebuild trust in

institutions, encourage innovation, and reinvest in sectors that produce rather than consume. That

legacy is worth reclaiming.