Impact of Privatization on Lebanese Economy

Abstract

Privatization of government services is the action that has been taken by local, state, and federal governments to allow private companies to offer their service instead. However, issues have aroused on the benefits and limitations of privatization on the well-being of its people. This study aimed at examining the impact of privatization on Lebanese economy. The paper will seek to answer if the Lebanese government can use this analogy to solve a plethora of issues that the economy is currently battling. The research used mixed method approach where data was collected following both qualitative and quantitative research strategies. A survey collecting data from the management of both privatized firms and government firms was used to come up with the results. The research also looked into the financial and operation performance of the already privatized firms to assess the performance over time. The telecommunication sector which was the first privatized industry is used as the benchmark of this study. The research found out that privatization is a double-edged sword that impacts the social wellbeing both positively and negatively. Regarding solving the ongoing financial and economic crisis, privatization seems to be an effective tool as it will reduce the administrative power of the management and thus lower the level of corruption in the economy which is one of the major contributions of the undergoing crisis. Keywords: Privatization, Lebanon, Lebanese crisis, telecommunication sector DOI: 10.7176/JESD/12-8-06 Publication date: April 30th 202