Ours is a turbulent, unstable, often violent neighborhood. Since WWII it is a region with a high frequency of wars domestic and international civil unrest, various forms of coup d'etat, revolutions and other expressions of civil unrest. We live in a small-sized country with limited natural resources, but relatively high population density. These factors, geography, location, the forces and random accidents of history, have been major sources and determinants of Lebanon's economic growth and development, and its natural comparative advantage. The variety of original populations and languages resulted in a diversity of skills, talents and human capital resources.
Small countries tend to be more specialized in terms of production.
International trade provides the variety of goods required for consumption. Historically, Lebanon has always been a trading nation. It has pursued such liberal economic policies even in the most difficult of economic, security and political conditions. Its banking and financial sector has evolved into a sound, well regulated, well-capitalized system. This production structure has been characteristic of the Lebanese economy since the 1960's, long before the evolution of the industrialized economies.