Lebanon Continues to Leak Talent and Hope

A recent Gallup World Poll indicates that more than six in 10 (63%) Lebanese say they want to leave Lebanon permanently. This coincides with the findings of a Zogby Research Services poll sponsored by ATFL which recorded the same percentage. It is no surprise, then, that the two highest concerns driving these numbers are the economy and corruption, as people noted that they no longer have enough money for food, transportation, energy, education, or healthcare. 

According to Information International, based in Beirut and cited in a story covered by Al-Monitor, 17,720 emigrated in 2020. After the first 10 months of 2021, “we recorded an increase of about 65,000 people.” Based on official data, Shams al-Din, a researcher at Information International, “expected this number to double in 2022, especially since there has been a 150% increase in passport renewal requests as the Lebanese wish to flee Lebanon before more crises hit.”

The demand for passport services has been so great that Lebanese General Security has had to issue new guidelines on renewals, unable to keep up with the demand. This has prompted some to board various types of sea vessels and head to Cyprus and Greece while others try to steal into Jordan, Israel, and Turkey via Syria. 

Recent figures from Gallup World Poll data in Lebanon “represent one of the deepest and most sudden declines in any country’s economic and humanitarian fortunes since data collection began in 2005.” The economic backstory is compelling enough with social and psychological costs driving the disappearing middle class to shrink even more. 

In the past, especially after the civil war in Lebanon, there have been noticeable rises in emigration, which were not all bad as they both accelerated the brain drain and simultaneously built a pool of expatriates which provide some $7 billion in annual remittances generally directed to families left behind. In those days as in the previous decades, “Western European countries, the United States, Australia and Gulf states have been Lebanese’s top migration destinations in the past.” Of course emigration waves varied, depending on the security, political, and economic situation in Lebanon as well as the countries that received them. 

As stated in the Al-Monitor article, “In the last couple of years, Lebanese youth have started exploring new countries, such as Turkey, Georgia, Armenia, and most recently Serbia.” Although the numbers are still in the tens of thousands, they represent a shift that may create other new nodes of the Lebanese diaspora. Currently, most go into businesses such as tourism and the restaurant sector, or are professionals working in medical or educational centers. 

What is different about the latest waves of emigration are the low levels of those wanting to leave who say they are not interested in returning. It will be illuminating to break down this data by sectarian affiliation as the number of Sunni wanting to leave is increasing which may ultimately change their demographic in Lebanon. According to the Gallup World Poll cited earlier, “The desire to leave Lebanon cuts across major Lebanese communities. Notably, more Muslims than Christians in Lebanon tell Gallup they would like to leave the country (67% vs. 57%). The exodus of Middle Eastern Christians from the historical cradle of Christianity has accelerated in recent decades because of conflict and instability in countries that held significant Christian populations in the not-distant past.”

So what does this portend for Lebanon in 2050? The answers begin with the spring municipal and parliamentary elections. As of now, with 85% saying that they are finding it difficult or very difficult to get by, it is a fair question to ask if voters will seek remedies in their traditional leaders or opt for new faces. Of that 85%, 62% say getting by is “very difficult,” nearly double the figure (32%) in 2019.

Gallup results go on to point out that “Nearly three in four people (74%) now say they experienced stress “a lot of the day.” At least half of people in Lebanon also say they experienced a lot of sadness (56%) and anger (49%) as well. All three are new highs in Gallup’s 16-year trend in the country.”

Whether or not this depressing profile improves may well be impacted by how the election results create opportunities for positive and sustainable change. Lebanon can head in a new direction based on reforms that cleanse the economy of its most egregious corruption and on the restoration of its productive elements. Lebanon can also become another stunning case study of how political leaders dodge responsibility, allowing their country to fail on their watch. It is time for the Lebanese to keep watch over their own heritage and future, and not that of their leaders.

 

The views and opinions expressed here are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon. 

Lebanon Daily News Brief 12/13/2021

DAILY NEWS


Friday Night Explosion in Burj Al Shemali Camp, Tyre | Three Killed in Shooting During Funeral of Hamas Supporter From Blast
After a large explosion occurred in Burj Al Shemali, a Palestinian refugee camp in Tyre, around a dozen civilian casualties were reported. Hamas said in a statement on Saturday that the blast was caused by an electrical fault in a warehouse containing oxygen and gas cylinders for coronavirus patients, as well as detergents and disinfectants, however, there is suspicion that the explosion was caused by the detonation of a stockpile of their weapons. [Deutsche Welle] Hamas reported that three members were killed and others injured in a shooting on Sunday in the Palestinian camp of Burj al-Shemali in Lebanon, following alleged clashes between Fatah-aligned gunmen and members of Hamas. [Reuters]

Minister of Interior Says Elections Likely to Happen in May
Minister of Interior Bassam Al-Mawlawi said that December 27th is the deadline by which the electoral law can be amended and the elections rescheduled. Minister Mawlawi also indicated that he will not issue an official decree appointing a date for elections, signed off by the President of the Republic, before an agreement is settled between President Aoun and Prime Minister Miqati. According to him, President Aoun is unlikely to sign off on a March 27th date for Parliamentary elections.[Naharnet]

ISF Thwarts Captagon Smuggling Attempt Bound for Saudi Arabia
“The Internal Security Forces (ISF) announced Saturday that it busted an attempt to smuggle a large quantity of captagon narcotics to Saudi Arabia, days after Lebanon’s interior minister said that country was undertaking efforts to curtail the outflow of illicit goods from the country.” [L’Orient Today]

OPINION & ANALYSIS


Raseef 22
Innocents Fall Down Along the “Road to Jerusalem,” Why is Disarmament of Palestinian Arms Impossible in Lebanon?
Hussein Chaaban

Chaaban writes, “[Zeina Al-Helou] reveals that the Lebanese security apparatus is “involved in the regime of mafias that is imposed over Palestinian refugees in the camps,” and explains that “the Lebanese state is too weak to touch the weapons of the camps, or decide to remove them. Therefore, the security apparatus has established a network of relationships and interests with the armed factions, planting informants with the thought that they are being smart, or that they have [the camps] under control.”

Read More Here


Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

This Week In Lebanon: 12/11/2021

December 11, 2021
Beirut Blast Investigation Cleared to Resume
Christmas Only For The Rich In Lebanon As Prices Increased Ridiculously
Lebanon’s Elderly Population Devastated by Crash

Beirut Blast Investigation Cleared to Resume
A string of lawsuits filed against Judge Tarek Bitar by those who Bitar had summoned for questioning had suspended the Beirut Port blast investigation for more than a month. A judicial source says the last of the suits have been rejected and Bitar is cleared to resume the investigation. Nizar Saghieh from Legal Agenda warns that the resumption of Bitar’s investigation could only be temporary if more legal complaints are filed. [Al Arabiya]

RESPONSE

“The struggle to keep Judge Bitar in charge of this case is a watershed issue which will determine whether Hezbollah or the government will have the final say in making decisions on how the law is enforced or ignored. PM Mikati and his government are challenged to find a way to proceed which allows Judge Bitar to remain on the job while at the same time ensuring that the Ministers and government officials subpoenaed to testify in the port blast investigation are properly deposed under the rule of law in Lebanon. The Lebanese people are watching this issue closely as it will determine the strength of the current government to push back on Hezbollah.”

-ATFL President Edward M. Gabriel


Christmas Only For The Rich In Lebanon As Prices Increased Ridiculously

The current economic crisis is preventing many people in Lebanon from celebrating Christmas as they usually would. As the Lebanese lira continues to lose value, many Lebanese are unable to purchase the essentials of everyday life. The cost of Christmas decorations is well beyond what an average family can now afford. [The 961]

RESPONSE

“Last week, I bought my Christmas tree. Like many Americans, I purchased it at an inflated price due to transport issues. However, I count myself grateful that I could afford a tree. Thousands of families in Lebanon are unable to purchase everyday essentials let alone holiday gifts and decorations. It is hard to comprehend how Beirut, with all of its festive lights and decorations mostly in the dark and the rest of the country can try to make merry when so many are struggling to even keep on lights or feed the most vulnerable. So please reach out and support CARITAS, or CNEWA, the IRC, or Spirit of America and help Lebanese families share our blessings for at least a few days.”

-ATFL Vice President for Policy Jean AbiNader


Lebanon’s Elderly Population Devastated by Crash

The International Labor Organization (ILO) reports that Lebanon is one of only sixteen countries in the world that does not offer social security. 11% of Lebanon’s population is over 65, making it home to the largest populations of senior citizens in the Middle East. The ILO also estimates that a shocking 80% of Lebanese over 65 do not have health care coverage. The elderly population has been particularly hard-hit in the current economic crisis. [Al Monitor]

RESPONSE

“Is it criminal negligence or politics as usual that Lebanon is one of 16 countries in the world that don’t offer social security? It has the oldest population in the region, and they don’t have the options of their children to take work or emigrate. Lebanon is aging rapidly but there is still little consideration by the government to provide a basic package of social services for those who have spent their lives supporting governments that did not give back by ensuring minimal dignity in old age. This is wrong, just wrong. Time to mobilize the elderly to vote!”

-ATFL Vice President for Policy Jean AbiNader


Disclaimer: The views and opinions expressed are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Lebanon Daily News Brief 12/10/2021

DAILY NEWS


Judge Bitar Demands Immediate Arrest of MP Ali Hassan Khalil
Judge Tarek Bitar demanded the arrest of MP Ali Hassan Khalil – considered the right-hand man to Speaker of Parliament Nabih Berri, leader of the Shiite Amal Movement – after he refused to appear before a court concerning the investigation of the August 4th Port of Beirut Explosion. “The refusal of a security apparatus to implement an arrest warrant constitutes a dangerous precedent that goes against the decisions of the judicial authority,” a judicial source said. [L’Orient Today]

Prime Minister Miqati Requests Energy Support from Egypt
PM Najib Miqati’s visit to Cairo involved the request of natural gas from Egypt to fill urgent needs in the Lebanese electricity sector. The request comes in the midst of Lebanon’s dire fuel and electricity crises. [Reuters]

FPM Head Gebran Bassil Denounces Labor Minister’s Decision to Expand Working Rights to Palestinians, Minister Defends Decision
“The decision of the Minister of Labor to allow Palestinians and stateless persons to exercise dozens of professions reserved for the Lebanese is a violation of the Labor Code and the constitution,” said Free Patriotic Movement Gebran Bassil on Twitter. [L’Orient Today] Labor Minister Mustafa Bayram, who is affiliated with FPM ally Hezbollah, defended the decision, saying “the Lebanese worker is protected.” [L’Orient Today]

Tripoli High School Teacher Accused of Harassment Arrested
After student actions involving sit-ins and protests demanded justice against a high school teacher at George Sarraf Public High School in Tripoli, Samer Mawlawi was arrested by order of the Lebanese Education Minister Abbas Halabi. Mawlawi confirmed that he is closely related to Interior Minister Bassam Mawlawi, who shares the family name. [The961]

OPINION & ANALYSIS


Economic Bits of Interest
Jean AbiNader

AbiNader writes, “I am an avid reader of ‘Lebanon This Week,’ a weekly, English-language report published by the Byblos Bank Economic Research and Analysis Department headed by our colleague Nassib Ghobril…There are several items of interest from the November 27, 2021 edition that are worth sharing and analyzing, given what it tells us about the state of ‘resilience’ in the Lebanese economy and whether or not that descriptor is even appropriate. The first note comes from the Milken Institute’s Global Opportunities Index (GOI) which identified the investment climate in 143 countries to help foreign investors decide on where to place their money. In 2021, Lebanon has slid down 19 places, from 87th to 106th worldwide, as well as down two places among Arab countries, now in 10th place…”

Read More Here

The National Interest
Can Qatar End Lebanon’s Economic Crisis?
Adnan Nasser

Nasser writes, “This appears to be a moment for optimism. It could hardly come at a better time. Lebanon’s economy is in shambles, with some people digging through trash simply to find food to eat. This can be the start of Lebanon’s turnaround, but that can only happen when its leaders create permanent solutions through the practice of good governance and respect for the rule of law—not from robbing its people and then asking for a handout.”

Read More Here

Al-Monitor
Lebanese Opt for New Emigration Destinations Amid Crises
Rabih Damaj

Damaj writes, “Lebanon is witnessing one of the biggest waves of emigration in its history as the country faces its worst socio-economic conditions amid a worsening political crisis; Turkey, Armenia and Georgia have become new destinations.”

Read More Here


Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Special Notice – Thyme to Spread the Word About Lebanon’s Food and Wine

On December 2nd, the Embassy of Lebanon hosted an event featuring Lebanese food and wine for potential business customers. The event was funded by the US State Department Middle East Partnerships Initiative program focusing on developing markets for businesses in Lebanon. By shedding light on the richness and uniqueness of Lebanon’s culinary heritage, the aim is to provide concrete opportunities for Lebanese agri-food companies to expand into the US and increase exports.

Among those attending were Lebanese producers of QOOT Cluster, the first Lebanese agri-food consortium that brings together Lebanese enterprises, rising SMEs, multinational companies, knowledge providers, support institutions, and investment entities to collaboratively catalyze and innovate the agri-food sector in Lebanon. Currently, QOOT Cluster includes more than 70 members of innovative companies. Members consist of small, medium, and large enterprises dealing in food production, input supplies, processing, distribution, marketing, technology, and retail, among other verticals.

 We highly recommend that you contact the producers of these fine products to learn more about how you can source Lebanese products.

Company Name

Sector

Contact person

e-mail

The Good Thymes

Thymes

Fady Aziz

Eshmoon

Healthy chocolate and spreads

Samer Tutunji

Zejd

Olive oil

Youssef Fares

Darmmess

Olive oil

Rose Bechara

Cedar’s Premium F&B

Organic juice

Joe Najm

Raw bites

Healthy protein puffs

Nour Bazzaz

Grapeful

Healthy bars

Bahaa El Kadamani

The Three brothers

Bathtub Gin

Chadi Tannous

As a service to our readers, I sampled all of the above and six different wines and promise that you will find excellence at hand. More information is coming from the coordinators shortly. 

The views and opinions expressed here are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon. 

Lebanon Daily News Brief 12/9/2021

DAILY NEWS


Detained American Journalist Released by General Security
Yesterday, American journalist Nada Homsi was released by General Security after human rights groups called for her immediate release from what they described as an arbitrary detention following her arrest on November 16. [AP]

Labor Minister Relaxes Labor Restrictions to be More Inclusive of Palestinians
Lebanese Labor Minister Mustafa Bayram lifted restrictions on certain trade-union regulated professions that were previously limited to Lebanese nationals, allowing Palestinian refugees to enter professions in sectors such as law, engineering, medicine, and public transportation. [L’Orient Today]

Lebanon’s Central Bank Sets a New Rate of 8,000 LBP for Withdrawals
The exchange rate used for withdrawals from bank deposits nominated in dollars was set at 8,000 LBP to 1 USD, replacing the previous value of the rate at 3,900 LBP. The current market rate, which represents the currency’s real value, is around 25,000 LBP to 1 USD. [Reuters]

Al-Jadeed Investigative Journalist Riad Kobeissi wins State Department Anticorruption Champions Award
Yesterday, Secretary of State Anthony Blinken announced the second annual cohort of Anticorruption Champions in commemoration of International Anticorruption Day. [State Department] Riad Kobeissi of Al-Jadeed was recognized alongside eleven other recipients from around the world for his investigative reporting of corruption at the Port of Beirut, which he began exposing at least seven years prior to the August 4th, 2020 explosion. [Naharnet]

OPINION & ANALYSIS


Economic Bits of Interest
Jean AbiNader

AbiNader writes, “I am an avid reader of ‘Lebanon This Week,’ a weekly, English-language report published by the Byblos Bank Economic Research and Analysis Department headed by our colleague Nassib Ghobril…There are several items of interest from the November 27, 2021 edition that are worth sharing and analyzing, given what it tells us about the state of ‘resilience’ in the Lebanese economy and whether or not that descriptor is even appropriate. The first note comes from the Milken Institute’s Global Opportunities Index (GOI) which identified the investment climate in 143 countries to help foreign investors decide on where to place their money. In 2021, Lebanon has slid down 19 places, from 87th to 106th worldwide, as well as down two places among Arab countries, now in 10th place…”

Read more here

Foreign Policy
Lebanon’s Reformers Trade the Street for the Ballot Box
Tessa Fox

Tessa Fox writes, “The number of diaspora Lebanese who registered to vote in next year’s election has soared to 244,442, a big jump from the 93,000 registered for the 2018 election. People who lost everything—even their homeland—in the last two years will likely vote angry. And the diaspora vote is important in another way: Overseas voters are freed from the clientelistic networks that often chain people to their parties in Lebanon. Traditional political parties intentionally make the state weak in order to monopolize key services, and as elections draw closer, clientelism only increases.”

Read More Here


Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Lebanon Daily News Brief 12/8/2021

DAILY NEWS


Human Rights Groups Call for American Journalist’s Release
On November 16, American journalist Nada Homsi was arrested after General Security officers raided her home without a judicial order. [Al Jazeera] Amnesty International and Human Rights Watch are calling on Lebanon’s General Security to immediately release Homsi and to “promptly, thoroughly, independently, transparently, and effectively investigate the due process violations she faced since her arrest, and bring to justice anyone suspected to be responsible.” [HRW]

Energy Minister Fayyad Invited to France to Discuss Gas Exploration
Following a meeting with President Michel Aoun on Wednesday, Energy Minister Walid Fayyad in a press conference shared his intention to discuss gas exploration in an upcoming visit with French multinational oil and gas companies like Total as well as others others. “Concerning the import of gas and electricity from Jordan through Syria,” Fayyad said that, “the contract is ready and will be signed in the coming days.” [Naharnet]

In-Depth: Economic Crisis Hits Elderly Lebanese Population Hard
According to the International Labor Organization, cited by Al-Monitor, Lebanon has per capita the highest number of elders in the region but is among the sixteen countries in the world that does not offer social security. This has severely challenged Lebanon’s +65 population, 80% of whom have no health care coverage. “Few Lebanese get a retirement pension when they are forced to stop working at 65. Those in the public sector get a small income and they have medical coverage,” said Maya Ibrahimchah, the founder of NGO Beit El Baraka.” [Al-Monitor]

OPINION & ANALYSIS


Economic Bits of Interest
Jean AbiNader

AbiNader writes, “I am an avid reader of ‘Lebanon This Week,’ a weekly, English-language report published by the Byblos Bank Economic Research and Analysis Department headed by our colleague Nassib Ghobril…There are several items of interest from the November 27, 2021 edition that are worth sharing and analyzing, given what it tells us about the state of ‘resilience’ in the Lebanese economy and whether or not that descriptor is even appropriate. The first note comes from the Milken Institute’s Global Opportunities Index (GOI) which identified the investment climate in 143 countries to help foreign investors decide on where to place their money. In 2021, Lebanon has slid down 19 places, from 87th to 106th worldwide, as well as down two places among Arab countries, now in 10th place…”

Read more here

Diwan, Malcolm H. Kerr Carnegie Middle East Center
A Jihadi Resurrection?
Mohanad Hage Ali

Hage Ali writes, “An Islamic State resurgence in Lebanon would also be convenient for the Lebanese political class, in three ways. First, any violence would justify postponing the parliamentary elections next year and decrease international pressure to organize them on time. This would help Hezbollah and its allies maintain their current majority in parliament for longer than the four-year term. Second, the political class would expect more regional and international aid to combat the Islamic State, without having to introduce reforms and meet the conditions of international donors. And third, an Islamic State revival and any ensuing violence would help realign the population behind the country’s sectarian leaderships and sectarian politics in general. This would further undermine any impulse for change in the country.”

Read More Here

The Washington Institute for Near East Policy
Lebanon Stands at a Crossroad Between a Painful Revival and a Complete Submission to Iran
Hanin Ghaddar

Ghaddar writes, “Lebanon is paralyzed in the midst of these challenges facing Hezbollah, which will not allow any reforms, elections, or financial restructuring until the Iran-backed organization resolves its own challenges and finds a way to protect its power and maintain the status quo. This means that focusing on reforms at this point without tackling the political factors hindering it is a waste of time.”

Read More Here


Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Lebanon Daily News Brief 12/7/2021

DAILY NEWS


IMF Delegation Arrives in Lebanon
The International Monetary Fund sent a delegation to Lebanon to meet with Prime Minister Najib Miqati today. The delegation will also meet with Lebanese officials and the ministerial committee that negotiates with the IMF to discuss strategies going into 2022. The delegation is led by Ernesto Ramirez. [Reuters]

Parliament Approves World Bank Loan Amendments, Delays Regulating IMF Special Drawing Rights
Today during a session at UNESCO Palace Lebanon’s parliament passed bills that amend the country’s loan treaty with the World Bank. One will support the government’s social aid plan and the other will make banks transfer $10,000 to every Lebanese university student studying abroad. Also during the session Parliament postponed the approval of a draft law that would regulate funds Lebanon received from IMF Special Drawing Rights. [Naharnet]

Beirut Blast Investigation Cleared to Resume
A string of lawsuits filed against Judge Tarek Bitar by those who Bitar had summoned for questioning had suspended the Beirut Port blast investigation for more than a month. Today a judicial source says the last of the suits have been rejected and Bitar is cleared to resume the investigation. Nizar Saghieh from Legal Agenda warns that the resumption of Bitar’s investigation could only be temporary if more legal complaints are filed. [Al Arabiya]

OPINION & ANALYSIS


Economic Bits of Interest
Jean AbiNader

AbiNader writes, “I am an avid reader of ‘Lebanon This Week,’ a weekly, English-language report published by the Byblos Bank Economic Research and Analysis Department headed by our colleague Nassib Ghobril…There are several items of interest from the November 27, 2021 edition that are worth sharing and analyzing, given what it tells us about the state of ‘resilience’ in the Lebanese economy and whether or not that descriptor is even appropriate. The first note comes from the Milken Institute’s Global Opportunities Index (GOI) which identified the investment climate in 143 countries to help foreign investors decide on where to place their money. In 2021, Lebanon has slid down 19 places, from 87th to 106th worldwide, as well as down two places among Arab countries, now in 10th place…”

Read more here

Arab News
Will Lebanon’s Energy Crisis by solved by Israeli Gas?
Dr. Dania Koleilat Khatib

Khatib writes, “The deal has many dimensions. One is an indirect normalization with Bashar Assad — could that lead to an effort to rehabilitate Assad and push him to break from Iran? Another would be Israel’s indirect normalization, just as it is trying through economic and development projects to break its isolation from the Arab world. The third dimension is preventing a total collapse of Lebanon, as the US does not want to handle the repercussions of such a collapse. Despite all these aspects, one important point remains yet to be highlighted: How can Hezbollah and the Assad regime, whose entire legitimacy is based on resistance to Israel, accept a deal that involves Israeli gas?”

Read more here


Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Economic Bits of Interest

I am an avid reader of “Lebanon This Week,” a weekly, English-language report published by the Byblos Bank Economic Research and Analysis Department headed by our colleague Nassib Ghobril. Focused on a higher level of detail concerning the Lebanese banking and financial sectors, the report is meant to be read by watchers of Lebanon seeking clarity on what’s going on; it is not meant to gloss over the challenges.

There are several items of interest from the November 27, 2021 edition that are worth sharing and analyzing, given what it tells us about the state of ‘resilience’ in the Lebanese economy and whether or not that descriptor is even appropriate. The first note comes from the Milken Institute’s Global Opportunities Index (GOI) which identified the investment climate in 143 countries to help foreign investors decide on where to place their money. In 2021, Lebanon has slid down 19 places, from 87th to 106th worldwide, as well as down two places among Arab countries, now in 10th place.

This may not sound that worrisome given the state of the global economy, but when you note that its ranking puts Lebanon ahead of Zambia, Uganda, and the Gambia, and behind Laos, Nepal, and Guyana, then you can imagine how investment dollars flow away from Lebanon without hesitation. Within the Arab world, Lebanon only placed ahead of Algeria, Sudan, Mauritania, and Yemen. This ranking speaks for itself.

The Index is made up of 96 variables ranked in five categories, and Lebanon did not do well in any of them. In fact, in the category measuring how well the government supports business,Lebanon only placed ahead of these same four countries in the Arab world. It was the highest ranking it received among Arab countries, which equated to 71st globally: ahead of Guinea, Bangladesh, and Lesotho, and behind Sierra Leone, Belize, and Uganda.

The bottom line is that the reforms being called for by international donors are not extreme, as Lebanon is competing globally for investment dollars which respond positively to a supportive business environment, sound judicial and legal structures, and national capacity for innovation and development.

This challenging assessment and current economic malaise were also mentioned by the Consultative Group (CG) made up of the EU, UN, the Lebanese government, and civil society organizations to support the implementation of the Reform, Recovery, and Reconstruction Framework (3RF). Grounded in the initiative of French President Macron, it called on the government to adopt the reforms outlined in an IMF framework and to maximize the benefits of the Special Drawing Rights (SDR) received from the IMF in September.

Among specific sectors receiving attention were housing recovery, post-Port explosion reconstruction, the need for a transparent national budget, strengthening the social safety net, strategies for the recovery of micro and small business enterprises, enactment of laws that support business competition and debt issues, drafting of laws related to enabling the new public procurement law, and other initiatives aimed at supporting rebuilding and recovery following the Beirut Port explosion. The CG, using World Bank figures, puts the physical costs at some $4.6 billion.

On a more positive note, the Association of Banks in Lebanon (ABL) reached an agreement with the military and security services to grant a one year grace period to all members of the security services on their housing loan payments. This covers servicemembers in the LAF, ISF, and General Security and State Security personnel, totalling almost $1.2 billion in mortgages.

A second licensing round for offshore oil and gas explorationhas been opened with a closing date of June 15, 2022. The deadline has been extended three times since January 2020 as investors are looking for Lebanon and Israel to settle their maritime boundary before venturing into the bidding.

Finally, the UN issued a report that only 29% of the funds needed by the Lebanon Crisis Response Plan have been received through September 2021. Although $1.2 billion has been received, the appeal goal was for $2.75 billion in assistanceto vulnerable Syrian refugee and Lebanese communities. Part of the shortfall is being made up by $351.8 million carried over from 2020. One must wonder why such a sizeable sum was not expended as designed. The plan is a joint initiative between the Lebanese government and international and national partners to address challenges related to the large presence of Syrian refugees. The top three categories of disbursements wereeducation (17.3%), food security (16%), and healthcare (14%).

To subscribe to this weekly summary, contact nghobril@byblosbank.com.lb .

 

The views and opinions expressed here are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon. 

Lebanon Daily News Brief 12/6/2021

DAILY NEWS


Macron Announces Initiative to Resolve Diplomatic Row Between Lebanon and the Gulf
Last Friday, Lebanon’s Information Minister George Kordahi turned in his resignation. There was a push to confirm Kordahi’s resignation before French President Emmanuel Macron’s visit to Riyadh that weekend. [NY Times] On Saturday Macron announced a Saudi-French initiative to resolve the diplomatic crisis between Lebanon and Gulf states. In an “important step” towards a resolution, Macron and Crown Prince Mohammed bin Salman spoke with Prime Minister Najib Miqati in a joint phone call with future plans to talk with President Michel Aoun.. [Reuters] Both Aoun and Speaker Nabih Berri said they are satisfied with the movement toward better relations and Miqati has called on all parties in Lebanon to mind the sensitivity of the situation. The talks so far have linked “economic aid to Lebanon with the implementation of required reforms.” [Arab News]

Reported Progress Toward Resumption of Cabinet Meetings
Cabinet sessions remain delayed but there are reports that progress is being made toward their resumption. Amal and Hezbollah sources said that there will not be a solution to the government crisis until there is an agreement to restore the role of the Higher Council for the Trial of Presidents and Ministers. This means referring former prime ministers and ministers to the Higher Council for those who are summoned in the Beirut Port explosion case. [Naharnet] The Free Patriotic Movement and other parties have rejected political interference in Lebanon’s judiciary, but FPM is reported to be showing some flexibility on this matter. [Naharnet]

US Embassy Launches “Digital Mothers” Program
Over the weekend the US Embassy in Lebanon launched the “Digital Mothers” training program in Tripoli. The program will train 68 mothers of school children on technology and English and teach “skills that will help them, their children, and their communities.” The Digital Mothers program will offer 200 hours of digital literacy and English language lessons over the next year to help mothers assist their children’s learning. [US Embassy]

OPINION & ANALYSIS


Foreign Affairs
America is Not Withdrawing from the Middle East
Dalia Dassa Kaye

Kaye writes, “In this moment of strategic flux, the United States has an opportunity to do things differently—to develop and implement a strategy for development and equity. Instead of outsize military investments, it could invest in solutions to the socioeconomic and governance challenges preventing a better life for the region’s citizens. The United States, along with its wealthy allies, could help partners that want to transform the region from a set of problems to a set of possibilities. Either way, the United States and the Middle East are not going to part ways—but Washington should seize the chance to be part of the solution, not part of the problem.”

Read more here


Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.