It's the Oil, Stupid: U.S. policy for Lebanon

Let's talk about Lebanon; its government:

Lebanon has a form of parliamentary democracy referred to as confessionalism, in which the highest offices are proportionately reserved for representatives from certain religious communities. A similar system has developed in the Republic of Iraq after the overthrow of Saddam Hussein. The constitution grants the people the right to change their government. However, from the mid-1970s until the parliamentary elections in 1992, civil war precluded the exercise of political rights. According to the constitution, direct elections must be held for the parliament every 4 years. The last parliament election was in 2005. The Parliament, in turn, elects a President every 6 years to a single term. The President is not eligible for re-election. The last presidential election was in 1998. The president and parliament choose the Prime Minister. Political parties may be formed; most are based on sectarian interests. Syria occupied the greater part of the country from the time of the civil war until 2005.

Obviously, Lebanon presents a somewhat unique situation, offering little analytical benefit for our purpose here; at least in the space and time constraints.

Turning to the economy:

For 2002, the government has put primary emphasis on privatization, initially in the telecom sector and electricity, with continued planning for sales of the state airline, Beirut port, and water utilities. The government has pledged to apply the proceeds of sales to reducing the public debt and the budget deficit. In addition, it projects that privatization will bring new savings as government payrolls are pared, interest rates decline, and private sector growth and foreign investment are stimulated. The government also is tackling the daunting task of administrative reform, aiming to bring in qualified technocrats to address ambitious economic programs, and reviewing further savings that can be realized through reforms of the income tax system. The Lebanese Government faces major challenges in order to meet the requirements of a fiscal adjustment program focusing on tax reforms and modernization, expenditure rationalization, privatization, and improved debt management.

Tags: oil, Middle East, Corporations, U.S. Foreign Policy, Bush Administration, Lebanon