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Hariri in a lecture at Carnegie: Lebanon is an asset to the region and the world





Hariri in a lecture at Carnegie: Lebanon is an asset to the region and the world

26 Jul 2017

The President of the Council of Ministers Saad Hariri was invited today by the "Carnegie Endowment for International Peace" think tank, where he delivered a lecture attended by members of the accompanying Lebanese delegation, the director of the Institute William Burns and a large group of thinkers and researchers.

At the beginning, Burns welcomed Hariri and spoke about the role of the Institute and its activities, the situation in the Middle East and the violence and extremism it witnesses.

He praised the role played by Prime Minister Hariri in stabilizing Lebanon, fighting extremism and emphasizing the role of moderation in Lebanon and the region and what the Lebanese are doing to give a boost to their country.

            Prime Minister Hariri delivered the following lecture:

            "The late Pope John Paul the Second has called Lebanon a "message to the region and the world".

I am here to add: Lebanon is an asset to the region and to the world.

            In a region fraught with religious and sectarian violence, in a world where coexistence between Islam and Christianity is increasingly portrayed as impossible, Lebanon offers a model. A model of coexistence, of dialogue and of political solution.

            In a region where authoritarian regimes offer no alternative but repression and civil war, Lebanon's democratic - certainly imperfect, yet democratic - system also offers a model.

In a region where despair is becoming the norm, where economic and social horizons are bleak, Lebanon offers a model of resilience, creativity and initiative.

In a region threatened by extremism and terrorism, Lebanon is a model of a society anchored in moderation, denying extremism a foothold, and of an Army and security forces actively combating terrorism achieving success after success in that battle.

            In a world incapable of accommodating refugees in the thousands, Lebanon, with a population of 4 million, has nearly 1,5 million Syrian displaced, added to about half a million Palestinian refugees on its territory - a ratio of one to two!. In this, Lebanon provides a public good to the world.

For all the above reasons, and more, Lebanon is an asset to the region and to the world.

This asset faced and still faces many threats. Some of which we as Lebanese are dealing with on our own, and some for which the contribution of the International community is a must.

            Let me first discuss what we Lebanese have been doing to stabilize our situation.

Lebanon is emerging from ten years of political deadlock that has polarized the country and led to economic inaction and erosion of investor confidence.

Less than a year ago, we faced the challenges of political tension, paralysis in decision-making, low capital inflows, slow growth and the negative repercussions of the Syria conflict and the associated Syrian displaced crisis.

Since then, we have elected a president putting an end to a 3 years vacancy in power. We have formed a national unity government and adopted a new electoral law. In short, political life has been returned to normal.

Elections are scheduled for next May, which gives our current government 10 months. Despite this short period, I plan to address the economic and social challenges, concentrating on four broad objectives:

            1- Jumpstart inclusive economic growth

            2- Maintain fiscal stability

            3- Mitigate the impact of the Syrian displaced

            4- Implement a capital investment program.

These objectives are mutually reinforcing and will help create a virtuous circle.

To jumpstart growth, we are counting on regained political stability to encourage private sector activity. We are developing a new growth model and diversifying the sources of growth: Information and communication technology, startup ecosystem, the oil and gas sector). We are building manufacturing capacities in industrial zones and special economic zones. We are enhancing private sector participation, adopting a Private Public Partnership law, and capital markets development. And we are providing an incentive package to the private sector.

To maintain fiscal stability, we have passed a budget this year, for the first time in 12 years and we are now working on passing the 2018 budget. We also passed a neutral wage bill, where no additional expenditure is financed through debt, and with it, passed much needed administrative reform. We are improving our tax collection and aiming to stabilize our debt to GDP over the short term. However, fiscal stability also faces the pressure of increased expenditure on our Army and security agencies, who are at the forefront of the fight against terrorism.

Now comes the part where the international community needs to live up to its responsibilities and shoulder the burden with us.

            As I said before, no country in the world and in recent History has hosted as many displaced as a share of its population. No people have shown the generosity the Lebanese have given to 1,5 million Syrian displaced.

            However the effects of the conflict in Syria and the refugee influx have been devastating on our economy, infrastructure and social sectors.

The most recent World Bank estimates put the cumulative loss to Lebanon's GDP since the start of the conflict at 18 billion dollars, and revenue loss is estimated at 4,2 billion dollars. Unemployment particularly among the youth - Syrians and Lebanese - has doubled with more than 500 thousand youth at risk today.

Lebanon's public school system is now working almost around the clock, accommodating more Syrian students than Lebanese: 230 thousand Syrians, and 200 thousand Lebanese. Still it is estimated that 200 thousand Syrian children displaced in Lebanon are still out of school, posing a real danger for their own future, the future of Syria and of Lebanon.

            The same pressure is felt on public hospitals, the electricity grid, water, waste, and all public services.

            Our government has outlined its vision for dealing with the crisis at the Brussels conference earlier this year.

            We have recently witnessed signs of fatigue in host communities as tensions with the Syrian displaced are rising. The situation is frankly a ticking time bomb.

The number of Lebanese youth who have fallen in the trap of radicalization is minimal, not to say negligible. This is a direct positive product of the openness, diversity, tolerance and moderation inscribed in Lebanon's genome.

However, if our schools, hospitals, infrastructure, public services and host communities falter under the current unbearable weight, we will all be faced with a lost generation of both Syrians and Lebanese.

While we recognize donor assistance to the Syrian displaced in Lebanon, it has been mainly humanitarian in nature and much less than needed.

            And here, allow me to reiterate my position on the issue of the return of Syrian displaced to their country:

            First, we fully support the speedy and safe return of the Syrian displaced. However we will under no circumstances force them to return to Syria.

            Second, we will only address the issue in close coordination with the UN and its specialized agencies.

            Third, we will make sure the conditions for return are properly met and in accordance with international law.

We are developing a multi-year capital investment program to modernize our infrastructure, address the gaps, and improve basic public services. Indeed, capital expenditure over the past years has been less than 5 percent of total expenditure. Our capital stock is depreciated. We are now finalizing a program in the range of 12 billion dollars in line with Lebanon's long term development agenda.

Particular emphasis is on transport, water, electricity, education, health and telecommunication.

            For this, we will mobilize assistance in the form of grants and concessional loans, while encouraging the involvement of the private sector.

            I have no doubt we will all together defeat the current brand of extremism and terrorism. However a more dangerous brand could well emerge if no political solution is found in Iraq and Syria, allowing the inclusion of all sects, groups and communities in power.

Lebanon's democratic, inclusive and open system is the model for such a solution.

On a wider scale, the only rampart against extremism is moderation, dialogue and coexistence. Here again, Lebanon is the model.

            Despair can only be fought with hope, with resilience, with creativity. All values for which Lebanon is also a model.

We are doing our share as Lebanese to stabilize our model and succeed. The world at large is invited to help and maintain this model, an asset to the region and to the world".


 














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