A mixed methods inquiry into the political economy of agriculture and rural areas in Lebanon

The present work, then, is concerned with the forgotten elements of the Lebanese economy, agriculture and rural development. It investigates the main problematic which arose from these forgotten components, in particular the structure of the agricultural sector, production technology, income distribution, poverty, food security, territorial development and local livelihood strategies. It will do so using quantitative Computable General Equilibrium (CGE) modeling and a qualitative phenomenological case study analysis, both embedded in a critical review of the historical development of the political economy of Lebanon, and a structural analysis of its economy. The research shows that under-development in Lebanese rural areas is not due to lack of resources, but rather is the consequence of political choices. It further suggests that agriculture – in both its mainstream conventional and its innovative locally initiated forms of production – still represents important potential for inducing economic growth and development. In order to do so, Lebanon has to take full advantage of its human and territorial capital, by developing a rural development strategy based on two parallel sets of actions: one directed toward the support of local rural development initiatives, and the other directed toward intensive form of production. In addition to its economic returns, such a strategy would promote social and political stability.

Credit-Default-Swaps and the 2008 Financial Crisis: An Inquiry into the Underlying Legal Origins and the European Union’s Regulatory Reforms

After the 2008 financial crisis, the financial innovation product Credit-Default-Swap (CDS) was widely blamed as the main cause of this crisis. CDS is one type of over-the-counter (OTC) traded derivatives. Before the crisis, the trading of CDS was very popular among the financial institutions. But meanwhile, excessive speculative CDSs transactions in a legal environment of scant regulation accumulated huge risks in the financial system. This dissertation is divided into three parts. In Part I, we discussed the primers of the CDSs and its market development, then we analyzed in detail the roles CDSs had played in this crisis based on economic studies. It is advanced that CDSs not just promoted the eruption of the crisis in 2007 but also exacerbated it in 2008. In part II, we asked ourselves what are the legal origins of this crisis in relation with CDSs, as we believe that financial instruments could only function, positive or negative, under certain legal institutional environment. After an in-depth inquiry, we observed that at least three traditional legal doctrines were eroded or circumvented by OTC derivatives. It is argued that the malfunction of these doctrines, on the one hand, facilitated the proliferation of speculative CDSs transactions; on the other hand, eroded the original risk-control legal mechanism. Therefore, the 2008 crisis could escalate rapidly into a global financial tsunami, which was out of control of the regulators. In Part III, we focused on the European Union’s regulatory reform towards the OTC derivatives market. In specific, EU introduced mandatory central counterparty clearing obligation for qualified OTC derivatives, and requires that all OTC derivatives shall be reported to a trade repository. It is observable that EU’s approach in re-regulating the derivatives market is different with the traditional administrative regulation, but aiming at constructing a new market infrastructure for OTC derivatives.