The BCL studies the corporate landscape in Lebanon with the goal of supporting the rise of an dynamic private sector. In the coming years, the private sector needs to take the lead in propelling Lebanon’s economic growth along a new trajectory, based on productivity, diversification, and export. It would have to create good and numerous jobs so the country can export good and services rather than its youth. And it would have to support a tax base large enough to finance the strong state needed to defend the country, regulate its markets, and provide the inclusive and sustainable services.
Supporting private sector development requires good government policies, institutions, and reforms. This in turn requires a much closer understanding of how policies can help boost the sector’s potential and reduce the constraints it faces. To effectively improve our understanding of firms requires an investment in capturing the foundation of corporate dynamics at the micro level -- looking close to the ground at the real experiences of firms that try hard to survive and strive.
The project aims to fill an important missing space in the understanding of the Lebanese economy, as little is known about the behavior of firms, the impact of their interaction, and how they respond to economic circumstances and policies. Except for a handful of studies based on small samples surveys (notably the World Bank Enterprise Surveys), little is known about the corporate landscape and the determinants of firms' performance. This constitutes an important barrier to evidence-based policymaking in dealing with challenges such as how best to go about improving access to credit for SMEs, implementing successful competition policies, encouraging innovation, increasing exports and import substitution, or maximize job creation. Studies will investigate how understanding corporate behavior can help better navigate macro-economic tradeoffs, making thoughtful budget allocations, and developing tools of industrial policy to reduce market failures.