Can countries really collapse?

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I’m reading about Lebanon and what it has been through, especially in the last several years. Inflation is out of control, where salaries are meaningless and grocers don’t even bother pricing their items because they can’t keep up with the changing rate. Basic human services like trash collection and electricity are not available. Citizens resort to holding banks up at gunpoint to get their own money out.

What happens when a country collapses? What does that really mean? What happens to all its people?

Edit to add another question: Is it actually possible for a country to be so mismanaged that its people literally all die out or leave?

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