Challenging the Past in Rebuilding the North of Lebanon – Competing Visions

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By many accounts, Tripoli was once on par with Beirut as a leader in commercial and economic activities. Dating back at least to the 14th century BCE, it has many historical and cultural sites, including the Citadel of Raymond de Saint-Gilles, the largest Crusader fortress in Lebanon and the  second largest amount of Mamluk architectural heritage on earth (behind Cairo).

It is now seeking to recapture its economic prominence. Several sources make note that “A Tripoli development plan called ‘Tripoli Vision 2020’ has been formulated and supported by a number of advisory councils including influential key government officials and prominent businessmen in the city. The goal of the project is to provide a comprehensive framework consisting of promoting investment, training, re-skilling, talent placement, and output promotion to reinvigorate the city’s economy.” A number of these projects are included in the Capital Investment Plan that garnered broad international donor support at the recent CEDRE conference in Paris.

Financing aside, there are many obstacles to promoting economic growth and delivery of essential services in the north of Lebanon. This blog will focus on two competing visions: that of Salafist militants who are a source of continued instability in the region, contrasted to the work of the NGO Levant Local www.levantlocal.com, which is pioneering work among youth to deliver social services to underserved and marginalized communities.

A recent article by the Carnegie Institute Middle East Center focused on Salafism in the region, defining it as a “Puritan Sunni religious movement advocating a return to the practices of the al-salaf al-salih, the companions and successors of the Prophet Muhammad.” The article points out that before the civil war and the rise of Hezbollah, Salafism was only marginally present in Lebanon among the Sunni communities, which make up some 90% of the population in Tripoli area.  According to the research presented, “it is apparent that, at its core, the rise of Salafi militancy in Lebanon stems from a sociopolitical revolt—one that originates in disaffected urban areas where the growth of Salafi groups has more to do with social dynamics than with any supposedly ideological appeal of extremism.”

In fact, individuals and groups studied appear to adopt Salafism to receive subsidies from outside funders, and use religious rhetoric to justify “Acts of violence that seem like Salafi militancy but rather align more with long-standing local traditions of social unrest; or providing a vocabulary and platform to contest local sociopolitical marginalization.”  If that is accurate, then the recent rise in Salafi militancy reflects local grievances, identity conflicts, and competing power networks. As with militants from Morocco to Iraq, seeing them only through a security perspective obscures options that may be effective in defusing tensions, reducing instability, and rebuilding communities.

Another critical factor throughout Lebanon, but quite visible in the north, is the economic marginalization of large parts of the Sunni population, where the gap between the privileged and the poor is quite significant. “In Tripoli, where Sunnis constitute the overwhelming majority of the population, 57% of the residents are poor—a far cry from the 28% national average. Yet what is of even more concern is the fast-growing urban segregation between the gated neighborhoods of the well-off, where basic services function, and the marginalized districts, where residents struggle with worsening insecurity, deteriorating infrastructure, poorly performing public schools, and high poverty rates.”

It is in communities that feel marginalized, deprived, and decoupled from the country’s power structure that the Salafists are making inroads, using Gulf money to open schools, run charities, fund orphanages, and help refugees in the absence of the state. And it is in this contested space that Levant Local is taking a stand, investing its resources, and working to make a difference.

The Carnegie study concludes with the statement that “A key priority for the Lebanese government should therefore be to design an ambitious nationwide plan aimed at reducing unemployment, mitigating the spread of the underground economy, developing infrastructure that provides public spaces and deals with overcrowding, and fixing a crumbling public school system. Only confidence in the state and in its capacity to assure the welfare of marginalized citizens will quash the thirst for a social revolt.”

Local efforts to support youth and marginalized

While the national Capital Investment Program and Vision 2020 move through the system, Levant Local is leveraging local resources and ambitions to promote safe spaces for young people by equipping them with knowledge and skills to combat extremism; and they are helping Syrian refugees acquire the tools to build the future Syria. What makes their approach vital? Think of the government as a top-down approach that has to move through the vagaries of the Lebanese political system, and Levant Local as a grassroots strategy. It is empowering young people, women, and local and community groups to develop solutions with limited resources without the numbing bureaucracy that constrains the operations of international NGOs and government agencies.

A few statistics comparing Northern Lebanon (NL) to the Bekaa Valley (BV) area highlight the scope of the challenge. There is 3 times the number of Lebanese in NL (791K to 275k), and it has 9 times the number of people living below the poverty line (608k vs 66k). Although both have a similar number of Syrian refugees (350k), many more Palestinian refugees live in NL (87k vs 6k). So how does NL deal with more than a million poor Lebanese and refugees when it has less political clout and access than other regions? It relies on the resilience of its people, the energy of its youth, and hopefully the wisdom of local leaders who understand that the future of Northern Lebanon rest on an inclusive, dynamic, and power-sharing formula that gives all Lebanese a chance to achieve their dreams.

For more details on how Levant Local works in North Lebanon, go here https://levantlocal.com/

 

 

The Devil is in the Details – Lebanon Gets Boost for Infrastructure Development at Paris Donors Conference

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The Paris IV conference brought together more than 40 countries and institutions to address the need for funding infrastructure projects in Lebanon. The result, as reported in numerous media accounts, is a commitment to some $11 billion in support, mainly in the form of soft loans and concessionary financing for more than 250 projects presented by the government of Lebanon. While some may see this as a ringing endorsement of Prime Minister Saad Hariri’s efforts to draw attention to the needs to stabilize Lebanon’s economy, whether or not Lebanon is up to the task of managing the commitments has yet to be determined. However, the financing will not come about without hard lessons ahead for Lebanon’s patronage and political wasta system.

According to Chris Jarvis, IMF head of Mission in Lebanon, the funding is conditioned on at least two major steps: the development of a management system to handle the funds, and a clear accountability system that ensures that funds are managed and “really contribute to growth in Lebanon.”

Hariri’s game plan has a number of triggers to attract international investors, particularly the use of Public-Private Partnerships (PPPs) that wed government planning and seed funds with investor expertise and control. The danger is in the low level of expertise in the public sector in negotiating PPPs, which can lead to unjustified risk-taking and risk-allocation by government agencies.

Reuters reported that “Jarvis also pointed out that following the IMF’s proposed measures are fundamental to reduce the government’s budget deficit, which includes raising the VAT rate, reintroducing taxes on petroleum products, and raising electricity tariffs to cut down on the subsidy bill.

“We think stricter structural reforms are very important, especially in stepping up anti-corruption efforts, and improving the electricity sector, so that people get a better supply of what they’re paying for.”

A similar concern was raised in an Asharq Al-Awsat story that “The donors would be very strict in following up the Lebanese performance and how to deal with these funding plans, which will last for six years, including two years devoted to the study of the hundreds of projects submitted, and four years of execution. The discussions revealed a key demand to adopt a ‘follow-up mechanism’ to ensure that the government is serious about implementing two issues: reforms and fighting corruption.”

The donors are well aware of the challenges to Lebanon due to many political shocks of the past decade, the continued security challenges, and the burden of support more than 1.5 million Syrian refugees. “The small Mediterranean country’s debt-to-GDP ratio is the third-highest in the world at 148%, and annual growth is projected at around 2% for 2018. Among the major donors was the World Bank, which pledged $4 billion in low-interest-rate loans. Saudi Arabia reactivated a $1 billion line of credit and France pledged $492 million in low-interest-rate loans and $183 million in grants.” The United States committed some $110 million as a grant.

Prime Minister Saad Hariri spelled out the desperate situation, pointing to the impact of Lebanon’s status on the region. “It is not the stability of Lebanon alone. This is the stability of the region and, therefore, of our world,” Hariri said, warning that a collapse in Lebanon could ricochet throughout the Middle East and Europe. Syria’s war has hindered land exports to Jordan, Iraq, and oil-rich Gulf Arab countries. And as The Washington Post added, “Rampant corruption has taken another kind of toll, hollowing out infrastructure and basic services, with frequent water and electricity cutoffs.”

The hard road ahead will only prove more difficult if Lebanon does not adopt needed reforms to make its economy and government more efficient. With a mix of grants, concessionary loans, market loans, and guarantees, having a robust and transparent management system is paramount if Lebanon is to achieve its badly needed economic targets. Estimates are that the first phase of study and initial projects will take four plus years and cost $10 billion, with a total of $17 billion needed over the following seven years.

French President Macron, the host of the conference stressed that “The delivery of the funds is also tied to a series of measures that include public-spending cuts and an assault on corruption. This conference only has a sense if it’s accompanied by your will and your courage, and a precise monitoring of the follow-up,” Macron said in his closing comments. “It only has a purpose if it’s accompanied by a profound transformation.”

Lebanese officials maintain that the private sector would finance around 40 percent of the program, while any grants and loans received would be used for the remaining 60 percent. Yet some view these soft loans – with an interest rate of around 1.5 percent over a period of 20 to 30 years – as an extra layer of debt. Not great news if not properly managed.

Up next is the Brussels conference scheduled later this spring, which will focus on the Syrian refugee crisis.

Fair Trade Lebanon Has a Banner Year Developing Local Communities through Jobs and Business Development

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In the past few years, it has been instructive to see the achievements of Fair Trade Lebanon (FTL), an organization dedicated to empowering rural communities and women’s organizations through economic development. At a time when a great deal of attention is focused on megaprojects to advance Lebanon’s economy, FTL works at the local level to change how people build their futures. Given the well-known attraction of Lebanese food products both at home and abroad, FTL came up with the idea of encouraging local cooperatives and farmers to produce food items for local consumption and export with a fair trade certification. Initially directed at the overseas Lebanese, FTL now exports to over a dozen markets.

I caught up with Philippe Adaime, FTL’s CEO on a recent trip to Washington, DC and asked him to give ATFL a report on their progress in 2017. Here is his report.

2017 has been an extraordinary year for Fair Trade Lebanon. Proud of its 12 years of community engagement, the Lebanese non-profit organization is on the path to move forward from “good to great.”

In a country with regionally displaced populations of refugees, facing socio-economic pressures, and increases in unemployment and political instability, Fair Trade Lebanon (FTL) has been able to implement and manage 7 important projects in 2017 and impacted 2,500 jobs. These projects benefit first the host communities and farmers who are the backbone of the rural areas, and includes efforts to help refugees deal with their uncertain future by generating employment opportunities and the seeds for business development.

In 2017, FTL supported 35 women cooperatives and group of farmers to improve their production in order to access local and international markets. In fact, 19 cooperatives received 40 pieces of new equipment and supplies that benefitted more than 540 people. In addition, 1,000 men and women benefited from a MEPI-funded project (A US foreign assistance program) – a number that doubled in 18 months of activities – through the organization of 187 training sessions to support cooperatives and Small and Medium Enterprises (SMEs) in improving their production. As a result, cooperatives and SMEs within the FTL network saw their sales increase by up to 40%, which affected 500 new jobs among 20 business units.

Furthermore, this improvement in production and increase of sales led to an addition of 15 new points of sales in Lebanon and 2 new importers. Currently, 35% of FTL’s producers’ production is meant for export; 13 units are certified organic, and 4 obtained the FLOCERT certification, which indicates that they have met international standards for fair trade.

Regarding refugees in Lebanon, FTL supported 900 vulnerable women from host and refugee communities through specific food processing training (preserves, catering, saj), and insured that 55% were Lebanese and 45% Syrian. FTL organized 390 training sessions related to food processing, hygiene, marketing, pricing, and event management. Importantly, 12% of these beneficiaries were youth.

FTL linked 300 Lebanese and Syrian to the private sector by enrolling them in a 2-months internship program where 12% where able to find a decent job. In 2017, FTL intensified its work in Akkar with a group of 30 dedicated Lebanese and Syrian women who established a cooperative in Khreibet el Jundi, and their products can now be found in the well-known Topline supermarket in Halba.

FTL’s target in 2017 expanding its domestic network by organizing 33 awareness sessions in mainly schools and universities reaching 1,300 students. In order to revive and promote authentic Lebanese cooking practices, FTL developed the concept of “make your own saj” and adopted the “shop in shop” channel to get closer to consumers. This created 12 new jobs and revenue of 8,000 USD per month of selling saj.

Concurrently, FTL launched a media campaign all over Lebanon through offline and online platforms, which reached 3,000,000 people all over the country and 18,000 followers on Facebook. FTL took part in 22 events in Lebanon and abroad to promote fair trade practices and market the cooperatives’ products. FTL also attended the World Fair Trade Organization conference in India, where it strengthened strengthed its partnerships with fair trade actors from other countries.

Finally, 2017 was marked by two big events. First, FTL organized the World Fair Trade Day in Lebanon with 2,000 attendees, 45 products exhibited, and 15 live stations to cater friends and supporters. Secondly, in partnership with the Lebanese Embassy in Washington DC, FTL organized an event at the Embassy’s residence under the theme “Authentic Lebanese Culinary Products” where FTL presented its mission and the wide range of products from “Terroirs du Liban.” Over 400 guests attended this event, including 10 importers and 5 media representatives who were greatly impressed with the quality of “home-made” Lebanese products now available in the US.

With a fair and ambitious motto “from good to great,” FTL looks back at 2017 with a feeling of satisfaction and yet a feeling of thirst to grow and inspire everyone they come across. Follow this link to see where FTL works all over Lebanon and this link to see the many products available.