Oil and Lebanon

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The experience of Lebanon with the oil economy differs from that of the oil of Iran. Because the nation did not have the oil reserves of its neighbors, it initially chose a different direction to break the cycle of underdevelopment and dependence on foreigners.This was done in the following ways:
- Lebanon attempted to build a commercial infrastructure to serve as a banking, shipping and educational center for its wealthier neighbors.
- By the 1970s, its plan for economic development was reasonably successful.
- Lebanon had become a commercial center, and a leader in medical and agricultural research.
These advances, however, were negated by a lengthy civil war, which concluded in 1992 and has left Lebanon again impoverished.
Since that time, Lebanon has looked to the oil-producing nations for help to rebuild its infrastructure, and regaining its former preeminence as a financial center. The producing nations, however, have recently faced financial difficulties as oil revenues decline and have been unable to fully fund Lebanese redevelopment. In addition, Western businesses are reluctant to risk capital in the nation that relies on Syrian forces for peacekeeping and contains a potential factious Palestinian presence in the South.
Oil prices have served as the economic force that has allowed the nations of the Middle East to participate in the world economy and provided the opportunity to develop a modern infrastructure. This in turn has frequently created social and political turmoil, as the modernization stimulated by oil revenues collided with a traditional way of life. This turmoil can equally affect both oil-producing nations, such as Iran, and non-producing nations, such as Lebanon.