News updates

Beirut Mayor, Bilal Ahmad, inaugurated this week the “Beit Al Dai3aa” heritage house located in Jean D’arc Street, Hamra district of Beirut, in the presence of the head of the Council for Cultural Development of Beirut, Muhammad Al Assi, and president of the Culture Fans Association, Zuheir Daou, representing Prime Minister Tamam Salam, and other guests. In his opening speech, Al Assi highlighted the importance of reviving Beirut’s heritage and reiterated his municipality’s endeavor to support such development and cultural initiatives, adding that such projects fuel the economic life cycle of Hamra main and side streets. In outlining the project, Muhammad Abdallah described it as a true replicate for a rural house. Each piece of content of the house, he explained, is marked with the original name and description given by the previous generations.  He concluded by saying that “Beit Al Dai3aa is carrying the spirit of the Lebanese traditional village into the capital-city and should be considered as a museum reflecting the traditional social rural life. To close the ceremony, the Culture Fans Association honored both Hamad and Abdallah for their commendable efforts. (Al Mustaqbal, 18 February 2015)

For the first time in more than 10 years, the inflow of foreign remittances to Lebanon witnessed a large decline during last year. Thus total foreign remittances recorded a drop to USD14.5 billion in 2014 from USD16.1 billion in 2013, which amounts to a decline of USD1.6 billion representing 9.9%. In an interview with Al Diyar newspaper, the President of the Association of Banks ABL, Francois Bassil, said that the decline was not huge given the historical performance of remittances which are difficult to forecast depending on the situation in source countries, as well as the prevailing conditions in Lebanon. Bassil disclosed that Lebanese expatriates normally are pumping about USD 7 billion a year which is equivalent to 17% of the GDP, thus making Lebanon the largest recipient of remittances in the Middle East and North Africa. He pointed out that these inflows reflect positively on Lebanon’s economy for a number of reasons, notably since they contribute to an increase in the level of domestic consumption and expenditure and play an important role in maintaining the balance of public debt. They also cover a significant part of the deficit in the balance of trade. One of the reasons for the above decline, according to ABL President, is that that the majority of European countries are going through economic difficulties, and that Euro zone economy is in recession, thus pushing doe the price of the Euro currency. This in turn, he added, negatively affected the Lebanese expatriates’ remittance inflows. He revealed that the political and security turmoil in the country and region prompted families to migrate which stopped the inflow of remittances which otherwise would have been destined to them. Nevertheless, he appealed to Lebanese not to be too much concerned about the fall in remittances, while pointing out that a more serious area of concern is the precarious security and political situation presently prevailing in Lebanon. (Al Diyar, February 17 2015)

The Ministry of Agriculture, in collaboration with the European Union, the Association for Volunteers in International Service (AVSI) and the Italian Institute, Brio Menus, held a celebration to commemorate the graduation of the first group of agricultural workers. The event took place at the Public Vocational Agriculture School under the patronage of Agriculture Minister Akram Chhayeb. The group included 120 Lebanese and Syrian students of both sexes, who were trained by professors from the various agricultural schools. Following the opening ceremony presided by the Head of the Agriculture Education Department, Engineer Abeer Abul Khudod, the Program Director, Dr. Marina Molino Lufa, from AVSI, noted that Syrian and Lebanese students had a unique opportunity to exchange their respective  knowledge in the field of agriculture, while stressing that the ultimate objective of the project was to support and strengthen agriculture schools and provide them with the capacity to support the young generation in stead-fasting on their land. For his part, Minister Chehayeb expressed his satisfaction with the completion of the project and described it as a light of hope during the present difficult times. He then expressed his gratitude to the EU for helping out Lebanon through several projects. (Al Mustaqbal, Al Diyar, Feb 17, 2015)

This is the second part of the summary of the survey focusing on Lebanese attitude to budgeting and expenditures which we covered last week under the title “Lebanese Women are more effective than men in managing their monthly budget”, focusing this time on social rights. The survey showed that 32% of the Lebanese under 60 and who have not reached retirement age, are unaware of the importance of old age planning. Figures revealed that women are behind men, by 36% to 72%. Also, some 69% of respondents are unfamiliar with the fact that the Social Security does not include a retirement income, and 41% do not know the difference between end of service indemnity fund offered by the Social Security and the pension plan. As for planning for the future of children, the survey found that while 50% of Lebanese families are able to prepare to financially cover their children’s studies, 13% have resort to savings and 17% use their investments, while 17% do not carry out any planning. It also uncovered that against 47% of the Lebanese who do not attempt to save money, there are 53% who do so. Again 39% of the Lebanese plan their expenditures on a weekly basis against 11% who keep a 6-month planning. On the management of money and decision making side, the survey demonstrated three cases: In the first, the decision is individual in 31% of cases, whereby men are the decision maker in 50% of the cases against 16% for women. The second case, shows the involvement of the couple in 10%, of the cases noting that women more than men tend to consult their partners to make the decision together, (14% of women against 5%.of men). In the third case, the decision is up to one partner in 9% of the cases, and whereby women rely more on their spouses (16% as opposed to 1% or less for men). Regarding health insurance, the study showed that 22% of the Lebanese people are health insured by private companies; 30% of which are employers or entrepreneurs while 29% are wage workers. Tendency to get health insurance increases notably with high income, raising from 20% in average income to 40% for high income people. (Al Diyar, February 1, 2015)

Member of the Board of Directors of the Association of Industrialists stressed the need to boost the conventional productive sectors, which are mainly dependent on uneducated and inexperienced workforce. Michele Mikhbat who also owns Fillitex Company said that neglecting these sectors will further aggravate the country’s economic, social and security conditions, especially when a wide group of people are losing their main livelihoods only to become poorer. He pointed out that theses conventional production enterprises, namely those in agriculture, attract unqualified labor who turned fifty and sixty, and still do not have the necessary education or capacity to work in more sophisticated industries or to hold administrative positions or become self-employed in liberal professions.
Mikhbat noted that these institutions employ nearly 85% of the total number of Lebanese workforce, adding that besides the normal challenges facing conventional productive sectors, there are new problems in exporting. Garments factories, for example, ship their merchandises to Western European and Scandinavian countries, amidst a diminishing Arab market which has become uncertain. However, the present regional crisis has negatively impacted on trade with the West. The German client, for instance, are now requesting a four-month shipment period ahead of the deadline to guarantee a safe arrival of the goods.
Mikhbat added that the situation has led to a decline in the volume of exports to Europe, and called for an emergency plan that cuts the cost of production. He also stressed the need for add-on bank interests to operational capital allocated for export and subsidizing them by 4.5% similar to new investments in industrial machinery and equipment. He disclosed that the Central Bank of Lebanon has agreed the plan, but the case is still under deliberation at the Ministry of Finance. (Al Diyar, 15 February 2015)

The Beirut International Awards Festival (BIAF) launched in collaboration with an Austrian relief organization a new initiative entitled “Together for a Better Tomorrow” aimed at financially supporting young people who wish to implement social projects. The program was launched during a press conference at "Indigo" restaurant, Le Grey Hotel, in Beirut City Center. BIAF President, Dr. Michel Daher, HWA Executive Director, Heidi Burkhart and Dr. Claudia Abi Nader outlined the main theme of the program which is to give the young generation an opportunity to realize their goals and ambitions. People who wish to participate should be between 20-30 years, enrolled in an academic institution and residing in Lebanon. The concept of projects should focus on economic, social, environmental, or educational fields. Lebanese media figure, Rima Njaym, was appointed as the official ambassador for the Social Initiatives Program and received a certificate for that end. BIAF will announce the list of honorees at their upcoming 6th annual awards ceremony that will take place on June 12 in Zaitouni Bay, Beirut waterfront area. (An Nahar, 14 February 2015)

Some 47 food manufacturers, members of the Association of Lebanese Industrialists and Syndicate of Owners of Food Industries, took part in the 20th Gulf Food exhibition just held in Dubai’s World Trade Center. Despite the high media profiling of domestic food safety scandals, the Lebanese participants occupied an unprecedented area of 650 m2 across two pavilions in the Sheikh Rashid and Al Zabil Halls. General Director of the Ministry of Agriculture, Engineer Louis Lahoud, inaugurated the Lebanese section acclaiming the large participation from his country this year which will result in boosting confidence in Lebanese food products, as per the high official’s declaration.
The President of the Food Syndicate, Munir Al Bsat, expressed his satisfaction concerning the high level of Lebanese participation as it demonstrates a regional and international confidence in the high quality of Lebanese food products. He commended the exceptional efforts made by Lebanese exhibitors who did not receive this year any concrete support from the government, while expressing his gratitude for the support from the Lebanese Federation of Chambers of Commerce, Industry and Agriculture and USAID.  In a similar note, the Minister of Agriculture, Akram Chehayeb, while visiting the Lebanese pavilions referred to the imbalance in trade between Lebanon and the EAU due to the problems on the border with Syria, which he said have impeded overland exports, adding that the alternative air freight is costly and is rendering Lebanese products uncompetitive. Finally, he promised to work on resolving this matter in the near future and will aim to readdress the imbalance of trade between the two countries.
(As Safir, Al Diyar, Feb 12, 2015)

Lebanon together with 10 other countries has been chosen by World Bank to carry out a national survey on how people manage their finances and budgets, as well s their perception of public finance management. The 2012 survey was conducted on the basis of a representative sample of 1214 households drawn from across the country. It indicated that Lebanese women performed better than men as 58% of women managed their monthly expenditures more effectively against 46% of men. Moreover, only 49% of the Lebanese people were aware of the size of their weekly expenditure; 51% of married couples tend to have a clear idea of the size of resources at their disposal against 42% of single men and women. Furthermore, some 69.6% of Lebanese people knew how to estimate the size of the financial resources available to cover their essential expenditures, (74% of women against 63% of men).
On prioritizing luxuries, the study indicated that women were less inclined to spend on these items compared to men, whereby 44% of women gave the priority for necessities over luxuries, against 35% of men.  Married couples tend to spend on the basic needs first and 47% of them limit themselves to basic procurements against 25% of single respondents. One other finding of the survey is that demand for secondary needs increases with the increase in income, whereby 65% of low income families do not spend on nonessentials against 29% of high income households. Similarly, 58% of families living on low wages are not able to secure their basic needs until the end of the month, while 37% barely make a living and that 45% accumulate a steady monthly surplus.
In the case of financial deficit, the study revealed that 53% of the Lebanese borrow from family or friends to cover their essential monthly expenditures. Whereas 33% reduce expenditures on essential items; 12% get help from their families, 11% take loan from their work; 10% cut spending on secondary needs and only 9% resort to bank loans.
(Al Diyar, Feb 1, 2015)

Beirut Center for Development and Human Rights launched a new project to empower women economically which will focus on those living in remote areas. Funded by USAID, the project aims at rehabilitating and training more than 600 women in remote rural areas while motivating them to engage in social and economic life in pair with men, and therefore, to enhance their overall living conditions.
The head of the Center, Ahmad Shams Eddine told Annahar newspaper that the project involves a theoretical a practical component. He added that while the first focuses on the importance of developing women’s participation in the economy since it results in increased family income, the second component will provide participants through training with new vocational skills.
Furthermore, Shams Eddine explained that the one-year project will seek to create new economic opportunities for rural families in remote areas that will assist them in remaining in their villages. He added that this can only be achieved by enhancing the economic participation of women through acquiring new income generating skills that require only small capital input and which will enable them to operate from home.
(Al Nahar, Feb 12, 2015)

Prime Minister Tammam Salam announced yesterday the launch of the rural tourism strategy saying that “security stability realized in the past 10 months in some areas of Lebanon allows us to achieve progress in the field of tourism”. The PM was speaking at a press conference at the Grand Serail in the presence of the Minister of Tourism Michel Pharaon, Minister of Information Ramzi Jreij, Minister of Environment Mohammed Al Mashnuq, Minister of Culture Rony Areiji and the Minister of Youth Affairs and Sports Abdul Mutalleb Hinnawi, as well a other parliamentary, diplomatic, political and municipal officials. In his speech, the Minister of Tourism pointed out that a growth rate target in rural tourism ranging from 5% to 20% should be paralleled by plans to implement balanced development and to curb rural and migration and migration to other countries. In addition, he said, efforts should be focused on the development of rural areas, environmental awareness-raising and preservation of rural community resources. Marketing of local resources should be carried out domestically and abroad among the Diaspora and Lebanese expatriates should be encouraged to return and invest home. For his part, the Environment Minister called for adopting the concept of rural tourism aimed at strengthening man’s bond with his land, rather than forcing him to relocate or emigrate.
Similarly, the Information Minister presented the rural tourism strategy which included the following components: develop rural tourism, institutionalize its across Lebanon, protect cultural environmental heritage, improve public policies related to the tourism sector, namely legislations, promote rural tourism among the young generation, foster collaboration between various public and private institutions and finally, develop international relations in this field”.
(Al Diyar, Al Nahar, As-Safir, Feb 12, 2015)