Lebanon Ranked First For Strongest Productive Capacities In The Mediterranean

Chateau Kefraya | Greg Demarque

The United Nations Conference on Trade and Development (UNCTAD) recently published a Productive Capacity Index (PCI) determined by 8 components and 46 indicators, with performances rated from 1 to 100.

The index made it possible to measure the capacity of 193 states to achieve their socio-economic transformation. 

These capacities, put together, determine the ability of the country “to produce goods and services that enable it to grow and develop” and they are defined as follows:

  • the productive resources,
  • the entrepreneurial capabilities,
  • the production linkages.

With a KPI of 33.7 for the latest year of data reference, Lebanon ranked first among the Southern and Eastern Mediterranean countries. Tunisia ranked second with a 33.2 KP.

Collected between 2000 and 2018, the KPI data is meant as “a practical guide and diagnostic tool” that the country can use to develop or implement trade and development policies, as explained by Paul Akiwumi, director of UNCTAD’s Division for Africa and Least Developed Countries.

Tapping into the existing strengths or productive capabilities in the country has become even more important now as Lebanon struggles with health and economic crises.

As the UNCTAD Secretary-General Mukhisa Kituyi explained, struggling countries should work on “building the productive capacities of their economies to move towards inclusive and sustainable growth.”

Manufacturing in Lebanon. Photo by: Greg Demarque

“Many developing countries, especially the least developed and landlocked, are in decline in all areas of KPI except natural capital,” the UNCTAD revealed, pointing at their over-reliance on exports as the cause.

According to Akiwumi, “Policies need to be developed at the national level, taking into account the constraints, opportunities, and comparative advantages of each country.”

Lebanon is shaking under compounded crises, however, it does possess the necessary productive capabilities that can enable it to develop and grow out of its current stalemate.

The responsibility remains on the ruling body to take the required swift action, notably to form a capable government that will focus on implementing reforms.

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