🇱🇧 Lebanon

Lebanon is a Mediterranean country of about 5.5 million (plus 1.5 million Syrian refugees) that's experienced one of the worst economic collapses in modern history. GDP crashed from about $55 billion in 2018 to roughly $20 billion by 2023 — a 60%+ contraction. The Lebanese pound lost over 98% of its value. Beirut was once called the "Paris of the Middle East," and the country's banking sector was the region's most sophisticated. The 2020 Beirut port explosion — one of the largest non-nuclear explosions in history — killed 218 people and caused $15 billion in damage. Lebanon's sectarian political system divides power among 18 recognized religious groups.

The economy has essentially collapsed. The banking sector, once the backbone, froze deposits — an estimated $100 billion in savings is trapped. Tourism and remittances (about $7 billion annually) are the remaining lifelines. The country imports about 80% of its food. Electricity supply averages just a few hours per day from the state grid, with private generators filling the gap at enormous cost. There's been no IMF deal because political factions can't agree on reforms.

Lebanon's Jeita Grotto contains one of the world's longest stalactites at 8.2 meters. The country has the oldest continuously inhabited city in the world — Byblos, settled around 5000 BC, which also gave us the word "Bible" (from the Greek "Byblos" for papyrus). Lebanon's cedar tree, on the national flag, was prized by ancient Egyptians and Phoenicians — fewer than 400 old-growth cedars remain.

Lebanon's collapse is a cautionary tale about what happens when a political class loots a country. Recovery requires political reform that the ruling elite has no incentive to deliver. The human cost is staggering.