By Toufic Gaspard
This paintings assesses Lebanon's improvement adventure in the course of 1948-2002, a case research of laissez-faire functionality over greater than 50 years. The textual content analyzes the robust financial main issue of the mid-1980s and the reconstruction coverage that produced susceptible development and excessive govt indebtedness.
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Additional info for A Political Economy of Lebanon, 1948-2002: The Limits of Laissez-Faire (Social, Economic and Political Studies of the Middle East and Asia)
Thus, the material eﬃciency of capitalism coexists with a tendency to generate waste and instability. Capitalism is also seen to generate a poor working class and an expanding “reserve army of the unemployed”. More speciﬁcally, real wages are predicted to ﬂuctuate around a socially accepted minimum, in addition to a growing polarization in incomes between the rich and the poor. The prediction of the growing poverty of the working class did not materialize in industrial societies, where real wages and standards of living continue to grow.
See Krueger, 1991. GASPARD_F3_5-41 11/11/03 11:23 AM Page 15 15 The NC view is therefore that markets are the best form of economic organization for eﬃciency and growth, whatever the stage of development of the economy. If there is market failure and some markets are absent, markets may still be established now or in the future. g. defense and law and order, only in limited and speciﬁc circumstances would government intervention contribute a net positive outcome. Above all, the rule is that free markets should dominate and spread in the domain of economic exchange.
LDCs mostly suﬀer from shortages of skills, capital and technology rather than from the excess capacity and associated demand management problems of Keynesian economics. Moreover, LDCs have to cope with problems unknown, or resolved long time since, in industrial countries, namely ruralurban migration and underdeveloped government and legal institutions. Keynesian economics may therefore appear to be less well equipped to deal with LDC-speciﬁc problems that, on the other hand, NC economics could pretend to address through the establishment of markets and the free operation of the price mechanism.