News updates

In Lebanon’s southern border areas, where Syrian labor provides the backbone of the agricultural sector, landowners and investors are sounding the alarm, concerned that government recent restrictions have decreased the number of available workers, with potentially dire consequences for their harvests. General Security’s decision to restrict the entry and residency permits of Syrians in Lebanon hit both farmers and investors, with the much needed Syrian workers becoming subject to a constraining “Kafala” sponsorship system. It is to be remembered that large numbers of Syrian workers were seasonal, who would stay in Lebanon for only a couple of months. But many Syrian laborers now see the high cost of entering Lebanon as a result of the new government regulations as outweighing the benefits and are more hesitant to come. It is also to be noted that the Lebanese government also barred Syrians who register for refugee status with UNHCR from working in the country, forcing them to sign pledges not to work. The domestic workforce has been so far unable to compensate for the loss. Agriculture ventures often require hundreds of workers, and landowners say the sector is facing a major shortage of labor which can affect all of the agriculture cycle. During harvests, fruits and vegetables will perish if not be picked quickly enough, and farmers stand to lose a significant portion of their crop and income as a result. Riad Khalifeh, the local representative of the Agricultural Workers Syndicate, explained that members of the National Union for Agricultural Associations in Lebanon met recently with General Security chief Maj. Gen. Abbas Ibrahim to express their concerns. Khalifeh said that a number of options for bringing in more Syrian workers were currently under study, adding that Agricultural Associations will meet soon to review the situation. “If no solution is found, agriculture in the south will be ruined,” he warned. (The daily star, 22 June 2015)

The President of the Federation of Lebanese Chambers, Chief of Chamber of Beirut and Mount Lebanon, Mohamad Shucair visited the town of Aley upon the invitation of the Union of Mount Lebanon Merchants headed by Nassib Gemayel and Aley Merchants Association chaired by Samir Shehayeb where he was briefed on the region’s commercial and economic situation as well as its developmental needs. The first stop in Shucair’s tour was at the Aley Municipality where he stated the purpose of his visits to different Lebanese districts namely to show support for traders and business people and listen head on to their demands. Shucair then discussed with Aley Mayor Wajdi Murad the setting up of a branch of the Lebanese Food Safety Training Center in the town catering to workers in this sector. Finally, he called for a wide participation in the upcoming civil protest action which is planed to take place next Thursday at the BIEL center in Beirut and which will be organized under the motto ‘June 25 Declaration… for a Decision against Suicide’. Parties expected to attend include major economic institutions, the General Trade Union, syndicates of liberal professions and various civil society organizations. (Al Diyar, June 22, 2015)

Another call for protest launched by civil society organizations, including the main economic institutions, the General Trade Union and the Unions of Liberal Professions. The protest call which will be held next Thursday, at 11:30 in the International Exhibition Center of BIEL in Beirut, is organized under the slogan of  ‘June 25 Call… for a decision against suicide’.  This new call targets the political elite which have indulged in its quarrels while turning a blind eye to more fundamental national issues, according the organizers, such as the presidential elections. Organizers of the above event promised further actions based on the outcomes of Thursday’s protest. (Al Diyar, 20 & 21 June, 2015)

Lebanese newspapers publish almost on daily basis statements by officials and experts or field reports describing the general deterioration of the economic and living conditions and blaming scarce job prospects on the influx of Syrian refugees. Usually, these feature stories or articles largely overlook the collective responsibility of political parties in dealing with key issues, particularly their failure in dealing with the refugee problem, a failure resulting from political polarization and political exploitation of the humanitarian dimension of the problem. In an attempt to snub the real causes of the deteriorating conditions, officials boast the latest statistics of unemployment warning of the worst yet to come while mobilizing their constituencies against Syrian workers whom they say are at the root of the problem. In doing so they fail to pinpoint to the responsibility of many who benefit from the low paid Syrian labor. High but still uncertain figures on unemployment figures range between 25% (according to Labor Ministry sources), to 50% among youth (according to As Safir) and 40% among the labor force (Al Diyar). There is no doubt that unemployment rate in Lebanon was high before 2011, with some analysts even saying that the problem is structural and is closely related to the function of Lebanon in the world economy. However, the escalation of the problem following the start of war in Syria is largely due to the failure of the Lebanese government to agree on national priorities and on how to regulate the influx of displacement across the border.

Afak Association, the Center of Rashaya and West Bekaa Development, organized a seminar on pesticides and their associated risks at the Kamal Jumblat Socio-Cultural Center in the Chouf mountain area. The event was held as part of the agricultural extension program carried out by the Ministry of Agriculture across Lebanon. During the seminar, the head of the Agriculture Department – Mount Lebanon, engineer Aboud Freiha, noted that farmers are suffering from the spread of agricultural diseases as a result of the irrational use of pesticides. He called for the rational and moderate use of pest control agents and for their replace with organic non-toxic products. He went on to explain that pesticides affect human beings on the long term and may lead to chronic and cancerous diseases. He urged farmers to comply with Agriculture Ministry instructions on the use of such agents, warning against the chemical precipitation on vegetables and fruits. (Al Diyar, 18 June 2015)

Data and Investment Consult Lebanon held yesterday its second meeting of experts for small and medium enterprises at the Coral Beach Hotel in which it announced the launch of the first electronic business incubator and insurance assessment system in the Middle East. Work groups specialized in developing and assisting such enterprises to activate their merger with digital economy was also formed. In his opening speech, the Company’s Director General Maan Barazi stressed the need to create a legal formula that allows the legislator to give those enterprises a comparative advantage in market access and enforcement of taxes. The first work meeting was headed by Adnan Hajj, editor of As Safir newspaper’s economic page who disclosed that 80% of nearly 54 thousand enterprises in the country recruit between 5 to 20 employees and are thus classified as small and medium. Hajj pointed out that the overall size of the presently 16900 subsidized loans has reached LBP 8700 billion but that SMEs are the least to benefit from these loans. Likewise, Director of the Association of Banks in Lebanon, Najeeb Shucair revealed that the number of debtors in 1993 stood at 32 thousand (both individuals and institutions), amounting to a total of USD3 billion in loans. But with the progressive credit facilities and incentives, he explained, the number has now increased to 800 thousand debtors with a total value of USD 52 billion in loans, thus outweighing GDP. (As Safir, 17 June 2015)

Al Diyar daily published recently an article on the growing phenomenon of large malls which globally mushroomed throughout the past 20 years and grew remarkably in Lebanon during the past five years. The newspaper met with the president of the Beirut Traders Association Nicolas Shammas who noted that big shopping centers are part of the social and economic fabric and have become a basic pillar in the way of life of middle class communities. He added that his association encourages their development because of their positive economic impact. He stressed the need for a balance between the traditional open markets and malls as each have their unique function. Compared to other countries in the region, mainly the United Arab Emirates, the number of large commercial complexes in Lebanon is still relatively small particularly in terms of the size of the population, Shammas explained. Similarly, Mar Elias Traders Association, Adnan Fakhani noted that Lebanon should not stay away from the global developments, of which malls represent a spectacular feature. As to their impact, Fakhani dismissed any negative impact since prices of goods in the traditional markets remain 10-15% less than the same products showcased in malls. Finally, he urged the Municipality of Beirut to create new parking spaces in Mar Elias main street so as to promote fair competition with giant malls. (Al Diyar, 17 June 2015)

Al Diyar daily published one week ago an interview with head of the Economy Committee at the Chamber of Trade, Agriculture and Industry in Zahle and Beqaa, Tony Tomeh, to discuss the advantages of introducing new crops as alternative livelihoods to the cultivation of hashish. Tomeh accused the government of neglecting and of relinquishing its responsibilities in providing the basic services and rights to farmers, thus forcing them to resort to the growing of hashish. There are many alternative crops, he explained, that could generate additional income for the country, primarily cereals, (like wheat, barely, lentils, etc). He emphasized that the growing of wheat on lands now cultivated by hashish, help the country achieve food self-sufficiency and even export some surplus. It is to be noted that presently Lebanon imports 80% of its food requirements at a cost of USD 300 million. He went on to say that the growing of aromatic herbs like thyme, rosemary, lemon-balm, oregano, sumac and damask rose which are processed into perfumes and tisane or herbal teas will also create new job opportunities and will lead to the setting up of new processing factories. Finally, Tomeh highlighted the important role that sunflower growing can play in boosting the economy, increasing exports and decreasing the deficit of the balance of payments. (Al Diyar, 16 June 2015)

The Finance Minister Ali Hassan Khalil distributed financial aid to some 13 municipalities as part of the current program adopted by Regie ‘Libanaise des Tabacs et Tombacs’ aiming at supporting tobacco growing localities through funding to local development projects. An event was held for this purpose at the Finance Ministry in the presence of Regie Director General Nassif Siqlawi, Regie managers and concerned mayors. Siqlawi pointed out that the Company has been funding for the second consecutive year a series of development initiatives in the South, North and Bekaa regions and that most of these development projects are now operational. He added that the Regie aims through its financial aid to contribute to sustainable development in towns and villages that cultivate tobacco. For his part, Minister Khalil reiterated his Ministry’s preparedness to help in provision of assistance to the agricultural sector particularly in order to cover the extra transport cost of exports by sea and air incurred as a result of the closure of land borders between Jordan and Syria. However, Khalil expressed grave concern over the state of general paralysis engulfing the country at all levels, and particularly hitting the role of the government. (Al Diyar, 16 June 2015)

The Chief of Beirut Traders’ Association, Nicolas Shammas, said he was not optimistic about the future of the trade sector which is influenced by the political turbulence in the region. Speaking to Al Diyar daily, Shammas lamented a shortage of liquidity and a weakening purchasing power among buyers, for whom consumption is no longer a priority, while pointing out that nearly 80% of consumption is accounted for within the GDP, thus when sluggish can result in an economic crisis. This bleak situation, Shammas added, is particularly worrying as it is accompanied by a decline in exports, an overall freeze in public investment since 10 years and decreasing private investments. Elaborating on his meeting with the World Bank delegation that visited Lebanon recently, BTA chief underlined that WB reports do not give the due attention to the commercial sector as they mainly focus on data provided by the government and banking sector and which largely overlook the internal trade sector. However, he drew the delegation’s attention to the need to address the growing debts of the sector, as well as the high level of merchandise stockpiles among traders as a result of low consumption. Shammas finally praised the existing cooperation between the commercial sector and the Governor of the Central bank who continue pumping liquidity in order to stimulate growth, while attempting to address various bottlenecks in the commercial sector. (Al Diyar, 15 June 2015)