Lebanon stands today not only at the edge of economic collapse but also at the center of a profound governance crisis. The financial meltdown that began in 2019 unveiled structural failures in public institutions—failures rooted in decades of opacity, fragmented authority, and weak accountability. Governance in Lebanon is neither inclusive nor effective; it does not serve the public interest, nor does it inspire confidence.

Rebuilding the country requires more than financial aid or technocratic fixes. It demands a fundamental rethinking of how decisions are made, who is at the table, and how institutions—both public and private—are held accountable. As governance experts from public and corporate spheres, we argue that Lebanon’s recovery depends on bridging these domains. The public sector can learn from corporate governance’s discipline and structure, while the private sector must embrace transparency, public service, and inclusion traditionally associated with democratic institutions.

Lebanon’s sectarian power-sharing system complicates governance reform. Political deadlock and elite capture have stalled national strategies, and fragmented authority has weakened both horizontal and vertical accountability. Yet regional benchmarks show that progress is possible. Tunisia’s post-revolution decentralization law, Jordan’s SOE performance dashboards, and Morocco’s e-Gov portals for fiscal transparency offer instructive models. Lebanon must contextualize reform but also benchmark itself against regional peers to restore credibility and effectiveness.

Lebanon ranks 154 out of 180 countries on Transparency International’s 2023 Corruption Perceptions Index. The 2020 Beirut Port explosion and the financial collapse have revealed how lack of oversight, weak institutions, and impunity led to national tragedy. The World Bank’s 2021 Lebanon Economic Monitor described the crisis as one of the worst globally since the 19th century, citing over $70 billion in banking sector losses.

Transparency International Lebanon (TI-LB)’s work has demonstrated that localized integrity frameworks—such as municipal anti-corruption units in Zahle and Jbeil—can improve procurement oversight and rebuild citizen trust. These models should be institutionalized through legislation and scaled through national adoption.

The collapse of Lebanon’s banking sector also reflects corporate governance failures: weak risk controls, opaque ownership, and conflicts of interest. The 2020 Alvarez & Marsal forensic audit of Banque du Liban revealed systemic breaches of financial governance and reporting standards.

According to a 2021 report from the Organization for Economic Cooperation and Development (OECD) on state-owned enterprises (SOEs) in the region, applying International Finance Corporation (IFC) guidelines on board independence, risk oversight, and stakeholder rights could improve governance across Lebanon’s 140 SOEs and family-owned businesses. Private sector actors must move beyond compliance toward transparent operations grounded in long-term value creation.

As ESG standards become global norms, Lebanese companies must embrace public governance values: inclusion, long-term planning, and civic legitimacy. The World Economic Forum’s Stakeholder Capitalism Metrics and the OECD’s Principles of Corporate Governance both emphasize accountability to a broader set of stakeholders.

Public governance tools—such as open budgeting, civic consultations, and whistleblower protection—can help companies build social capital and mitigate reputational risk.

UNDP’s 2023 report on gender equality in politics and decision making found that women occupy less than 5 percent of board positions in Lebanese listed companies⁵ and only 4.6 percent of ministerial posts. Recent 2025 studies by the Lebanese League for Women in Business (LLWB) confirm structural exclusion across sectors, despite overwhelming evidence that gender-diverse boards enhance decision-making quality and organizational resilience.

The IFC’s 2020 Lebanon Women on Boards report and TI-LB’s advocacy for gender-sensitive governance both call for legal quotas, mentorship pipelines, and transparent nomination processes.

To bridge public and corporate reform, we propose a unified governance framework based on international best practices and local adaptation:
1. Transparency – Mandate real-time disclosure of financials and board decisions through centralized e-platforms.
2. Accountability – Create independent oversight bodies modeled after Jordan’s Audit Bureau and Morocco’s Court of Accounts.
3. Participation – Institutionalize participatory policymaking through municipal and sectoral councils.
4. Oversight – Require all SOEs and public agencies to adopt independent boards and annual audits.
5. Gender Inclusion – Enforce a minimum 30 percent gender quota in all governance bodies by 2026.

We recognize resistance from political elites, fragmented enforcement, and resource constraints. However, reform is possible through a phased approach:

– Phase 1 (0–6 months): Enact procurement transparency laws and appoint interim SOE boards.
– Phase 2 (6–12 months): Establish civic monitoring platforms with civil society partners and introduce gender inclusion laws.
– Phase 3 (12–24 months): Launch a governance academy in partnership with local universities and donor agencies.

This strategy draws on UNDP’s Governance Acceleration Framework and World Bank implementation sequencing models.

There can be no recovery without governance reform. The private sector must be accountable, the public sector must be efficient, and all institutions must reflect Lebanon’s full diversity.

Our work through TI-LB, LLWB, and international partnerships shows that reform is not only necessary—it is feasible. With political will and civic engagement, Lebanon can rebuild on a foundation of trust, transparency, and inclusion.