News updates

The World Bank issued a report last week entitled “Global economic horizons – June 2014 - changing priorities and building the future”, which classifies Lebanon the 8th regionally in terms of expected economic growth for 2014.  The report expects Lebanon’s growth to reach 1.5% by the end of this year and foresees an improvement in 2015 to reach 2.5% and then gradually approaching 3.5% by 2016.  The report further expects the deficit in the current account to reach 6.8%, 7% and 7.2% of GDP for the years 2014, 2015 and 2016 respectively.
Furthermore, the Bank had organized a seminar last week in collaboration with the Issam Fares Policy Institute at AUB entitled “The World Bank’s response to social justice demands in the Middle East”.  The Bank’s senior economist, Shantayanan Devarajan noted in his talk that there is no social justice in Lebanon which has as unemployment rate that is considered amongst the highest in the world and which doubles amongst youth and reaches 60% amongst women.  Devarajan added that all basic services such as health care and education are below standards whereas the infrastructure is of poor quality.  He added that electricity is absent for a considerable amount of time in many regions in the country whereas the roads condition is bad and transportation costs are high.  Also according to Devarajan, the low level of labor intensive industries is one reason behind the current high unemployment.
In its coverage of this seminar, the Al Akhbar newspaper noted that, according to Devarajan, the root causes of the present social and economic problems is the failure of successive governments and of the political system altogether, without referring to the role of the World Bank itself in perpetuating these problems, even if partially, through imposing on governments policies of economic restructuring and shrinking of the state structure.  
Source: Al-Diyar, Al-Akhbar 16 June 2014

The World Bank organised in collaboration with the Levant Business Union a conference entitled “Over the horizon: a new Levant”.  The purpose of the event was to launch the WB new economic initiative for the New Levant aiming at integrating the economies of 7 countries of the region which possess significant but untapped resources namely Lebanon, Turkey, Egypt, Jordan, Iraq and Palestine, while studying the potential for economic growth once regional markets are opened and so are the market channels to Europe via Turkey.
The conference kicked off yesterday under the auspices of Prime Minister Salam represented by the Minister of Economy and Trade, Alain Hakim.  The event started with an address by the Secretary General of the Levant Business Union, Tony Ghorayeb, in which he shared the objectives of the conference which focused on economic complementarity amongst the countries of the region, reviewed capacities, challenges and untapped resources. Sibel Kulaksız who headed the team which drafted the report entitled: “Over the horizon: a New Levant” noted that Levant countries face a number of common challenges during a period of transition.  She added that these challenges included limited diversity of production and exports, poor regional and international integration in trade and investment and considerable unemployment amongst the youth.
For his part, the Lebanese Minister of Economy and Trade, Alain Hakim, noted that despite the critical phase of political and internal instability that has prevailed during the past few years, particularly the economic pressures resulting from the influx of Syrian displaced, the average growth in the country reached 4.2 % between 2000 and 3013 compared to a global average of 2.7%.  According to the official, this is mainly due to the strong performance of the service sector and particularly financial services.  Hakim added that the economies of the Levant witnessed considerable progress in terms of growth during the past decade.  These positive developments included for instance the rise in exports, higher participation in regional trade agreements, the harmonization of trade and customs laws as well as the removal of obstacles to trade and investment.  Hakim emphasized the importance for Lebanon of continuing the negotiation to join the WTO in parallel to Arab regional integration.
Source: Al-Diyar, Al-Akhbar 13 June 2014

The Daily Star newspaper, published last Monday an interview conducted with entrepreneur Zeina Yazbeck Awwad, as part of its weekly articles on pioneer Lebanese women.  Awwad talked about the lifelong dilemma of striking a work-life balance that women have faced ever since entering the workforce.  According to Awwad, all attempts to strike “the ideal balance” are impossible to achieve and that a woman who tells you otherwise is not being truthful".  Awwad further added that all talk about quality time and super women is nonsense.”
Awwad is originally an optometrist, and she introduced the renowned French eyewear chain Alain Afflelou to the Lebanese market back in 1999 when she was already married and had her first child. She admits though that she had to renounce top posts she occupied during her long career every time she felt her kids needed her. Awwad was the general manager at Obegi Better Home.  She also occupied the role of director in Asia and the Middle East of Medica, a cosmetic and aesthetic pharmaceutical firm, until she recently opened her own beauty parlor and nail care center, Emak Urban Spa, right before she earned a degree in management from Beirut’s Ecole Superieure des Affaires.
Awwad believes that in a patriarchal society like in Lebanon, where the law does not protect women, being financially independent is an obligation rather than a choice.  She concludes that she has no recipe for success for other women, adding that what worked for her might not work for others.
Source: The Daily Star 11 June 2014

The Minister of Industry, Dr. Hussein Hajj Hassan, presided last wednesday the first meeting of the steering committee of the project entitled “Development of Creative Industries Clusters”, which is implemented by UNIDO with financial support from the EU and the Italian embassy.  Participants in the meeting included representatives of the association of Lebanese industrialists, trade unions of furniture producers, textile producers, handicrafts, interior designers, Kafalat and the Beirut Creative Coalition.

The meeting started with a presentation by the regional director of UNIDO in Vienna, Gerardo Patacconi, who gave an overview of the project and clarified that it favors the dissemination of information and sharing of knowledge through specialised centres which will be available for on-going and potential projects for cultural and creative production.  The project will includes a training component hat will encourage the sharing of best practices.  Patacconi noted that special attention will be given to creating commercial links between institutions that supports coalitions south of the Mediterranean, with the European Union, with international buyers so as to increase sustainability.  UNIDO regional representative, Cristiano Pasini, explained for his part that the project seeks to strengthen productivity on Lebanon in addition to providing support to small and medium enterprises involved in cultural and creative production as well as to increase their competitiveness on the international market, create new employment opportunities, achieve growth in the region and consequently achieve sustainable development.

Minister Hajj Hassan thanked the European Union and the Italian government for funding this project and added that efforts are on-going to conclude agreements with international customers interested in Lebanese products.  He called on the representatives of the attending syndicates of industries to start with the needed preparations to join this project.

Source: Al-Diyar, Al-Safir 12 June 2014

Safadi Foundation organized yesterday a training workshop on personal development.  The aim of the workshop was to enhance the productive role of women participating in the on-going project entitled: "the exploitation of local resources for the development of the rural economy in Akkar", which is part of the EU-funded "Afkar-3" program, aiming at improving the living conditions of women.
Some 35 women participated in the said workshop which was held at "Safadi Center for Agricultural Development" in Deir Dloum - Akkar, under the supervision of the expert in local development and director of the social development sector in the foundation, Samira Baghdadi, and the social expert and director of projects in the sector, Samar Bulos. The project manager, Ghassan Sroor, explained at the beginning of the workshop the social significance of this type of training, especially in terms of motivating women to participate in local and development projects. The participants then discussed women’s concerns, ways to overcome them, how to set goals and priorities and what are the best methods to achieve them. The workshop also discussed ways to take advantage of available community resources that would help in achieving those priorities, in addition to issues of time management.
Source: Al-Diyar 12 June 2014

The women section of the Future Movement started yesterday the implementation of a new series of English language workshops in Kayta3 in Akkar.  This new workshop is being carried out within the framework of activities designed by FM and aiming at empowering women at all levels. The section’s coordinator, Insaf As3ad, indicated that the workshop, which stretches over a period of one month and a half, targets women members of the section and will focus on acquiring the fundamentals of English language in addition to grammar and applications.
Source: Al-Mustaqbal 12 June 2014

As Safir newspaper published a report on the galloping cost of living in Lebanon and the increase in unemployment and poverty whereas income continues to stagnate.  According to the report, 40 to 50% of graduates emigrate every year and unemployment amongst the youth reaches 34%, according to economic expert, Elie Yashu3i.
Yashu3i notes that given the continued stagnation of the economy in Lebanon, consecutive cabinets and concerned ministries should have taken necessary measures and adopt economic reform policies so as not to reach the present situation.  He emphasized the importance of administrative decentralization through the election of local councils, the formation of development cabinets which would take care of key issues of concerns as well as levy taxes and sign contracts with the private sector.
The report also conveys the realities of Lebanese women who are no longer able to bear the brunt of further pressure.  Leila Khoury for instance (widow and mother of three) works three jobs and notes that she does not make enough money to cover her needs and those of her family namely utility bills, school tuitions, rent, transportation, etc… as she makes a total on LBP 1.5 million a month whereas her bills amount to twice as much.  The report notes that Leila’s story is similar to many who have limited income in a country that does not provide social benefit.  The report adds that the country average growth rate has not exceeded 1% in 2013 at a time when 1,700,000 people are now living in poverty and where the minimum wage is stuck at LBP 675,000.
Source: Al-Safir 11 June 2014

As Safir newspaper published a report about the experience of women in Arab Saleem in sorting and recycling solid waste and selling these to several factories in Lebanon via the Earth Call association which was created by the women in 1998 and which is involved in various other environmental initiatives.
The President of the association, Zaynab Mkalled, notes that the project started with sorting solid wastes and separating plastics, metals and glass.  The activity involved children who were given a symbolic stipend for their work in addition to the women of Arab Saleem who were sorting their wastes as part of their housework.  Mkalled notes that the project then developed and the organization acquired premises and six warehouses to store sorted waste with the support of the Italian government which also helped the, acquire a large electrical generator which is sufficient to operate the large equipment they also bought and go through a number of training workshop on packaging recycle waste.  The group acquired another generator to operate a machine to process plastic material via the German embassy.  The Municipality of Arab Saleem also provided assistance to the group thus underlying the importance of collaborating and coordinating with the state and with the Ministry of Environment as experience shows that the problem of waste cannot be solved unless in collaboration with civil society and with relevant Ministries.
Hamda Haydar, an activist in the organization notes that their aspiration is to implement a project to treat organic waste.  She added that the success of their project is a reflection of the success of their organization which mobilized the community around the importance of the environment and the fact that the problem of waste can only be resolved through on-site sorting.
Source: Al-Safir 10 June 2014

Al Mawared Bank launched its initiative to support young entrepreneurs and small and medium enterprise holders so that they can access financial and banking resources.  This initiative is implemented within the framework of the Bank’s commitment to encourage innovation amongst the youth and limit the current brain drain as well as strengthen trust in the Lebanese economy as per the Central Bank memorandum number 331. This initiative also involves supporting a number of investment funds, projects and educational institutions targeting young people.   As a first step, the Bank has provided financial support to Alt City, which represents a social project that seeks to expand access to resources for innovators.  It will provide spaces for meeting and exchange via training workshops, exhibitions and other activities. Al Mawared bank also sponsored last Saturday at the Beirut Digital City an event entitled DevAppLBHackathon within which teams of participants worked for 12 continuous hours on designing a new APPS.
Source: Al-Mustaqbal 10 June 2014

The Department of Agricultural and Scientific Research inaugurated last week its new agricultural labs to protect vegetation as well as to produce “natural enemies” in Tell Amara in the Bekaa under the auspices of the Minister of Agriculture, Akram Chehayeb, and with the participation of 400 farmers who received from the department some 100000 insects that are considered “natural enemies”.  The Chair of the department, DG Michel Iphram, insisted in his keynote address on the role of his Department is providing agricultural extension.  He added that the department has laboratories to prevent diseases which use European standards to test all edible products.
The Minister of Agriculture, Akram Chehayeb highlighted the important role played by the department in supporting the agricultural sector as well as in using knowledge to support farmers and improve their production.  He noted that the natural enemies’ laboratory is amongst the most modern labs available to combat agricultural pests and to use “natural enemies” to prevent diseases that attack fruit bearing trees.  This is likely to reduce the usage of chemical pesticides thus improving the quality of products and their competitiveness.  He hoped that the services of both vegetation protection as well as natural enemies’ laboratories will extend to include the farmers in all of Lebanon.  Chehayeb also addressed the farmers and noted that the Ministry will be by their side to help them in their problems.  He also noted that Ministers and MPs from the Beqaa are working hard to secure an endorsement of the financial compensation for farmers who have suffered as a result of latest cold and frost.  He added that the Ministry has compiled a comprehensive report which was submitted to the cabinet.  The report includes statistics about the magnitude of this catastrophe.  He noted that this matter is contingent to the availability of financial resources and will be decided by the cabinet.
Source: Al-Mustaqbal, Al-Nahar, Al-Safir 9 June 2014