Nawaf Salam @nawafasalam, Lebanon’s designated prime minister, is now navigating the murky waters of the country’s complex sectarian politics. To understand his position, let’s analyze it through the lens of economics—specifically, game theory.
#Lebanon #لبنان

A thread: Game theory studies decision-making under uncertainty over time. While many interactions appear zero-sum—where one party's gain comes at another’s loss—there are instances where strategic cooperation can create win-win outcomes. The challenge is knowing when and how to cooperate.

#Lebanon's successive governments' policies to buy time have inflated the cost to unsustainable dimensions. Here's the harsh truth: Crisis will be only solved through one or more of the actions below:
- Devaluation
- Haircut
- Debt restructuring
- Combination of the three.
#لبنان Crises happened before and will happen again in the future. The collapse is not the end of history. But, one issue is largely more important: How to build our nation following the meltdown and what basis do we want to restore the State, economy, and society.
#Lebanon #لبنان