THE ROAD AHEAD
TBY talks to HE Dr. Alain Hakim, Minister of Economy and Trade, on projected growth, the balance of trade, and the role of PPPs.
BIOGRAPHY
With a PhD in Business Management, HE Alain Hakim is currently the Minister of Economy and Trade in Lebanon. He is also the Deputy General Manager at Credit Libanais Group, the CEO of Hermes T&T company (part of the Credit Libanais Group), and a board member in several group subsidiaries. He has previously held several other positions in the banking sector. He has kept a close relationship with the academic world, where he is chairperson at the Business Administration Faculty of Saint Joseph University as well as lecturer at the Institut Supérieur d’Etudes Bancaires. He participates in several academic research studies in the business management field. His actions under his mandate as Minister of Economy and Trade revolve around the idea that the role of the economy is to benefit the welfare of its citizens, where he encourages reforms that aim to increase competition in the market, protect consumers’ rights, and create job opportunities for the youth.According to the World Bank's report on the Global Economic Prospects, Lebanon is among the non-oil-producing economies in the region expected to see reasonable growth from 2015 to 2017. What is the Ministry's outlook for the Lebanese economy over the medium term?
Most forecasts indicate an increase in economic growth rates in the year 2015; however, this improvement primarily depends on a better security situation and on political stability, which can revive the economy and allow an increase in the various economic sectors' activities. Political stability will be achieved, first and most importantly, by the election of the President of the Lebanese Republic as soon as possible in order to rebuild investor and consumer confidence and increase capital inflows to Lebanon. It should be noted that in spite of all that the Lebanese economy has endured since has 2011, it was able to record positive rates of growth, ranging between 1% and 1.5%. This is evidence of the economy's immunity and ability to survive in the face of these crises. In addition, the IMF raised its estimate for growth to 2.5% in 2015, according to its latest report.
What steps are being taken to improve Lebanon's balance of trade?
The Ministry's aim is to promote Lebanon as a trade partner in foreign markets and this is being done through pursuing an action plan and a program of meetings, which aim to activate economic diplomacy with countries outside of the Middle East. Economic diplomacy is the use of the full spectrum of economic tools of the state to achieve its national interest. Economic diplomacy includes all the economic activities related to export, import, investment, lending, aid, and free trade agreements. As such, various meetings with the ambassadors of countries that Lebanon wishes to expand its economic and trade relations with are taking place. Moreover, the Ministry is mobilizing potential trade agreements that would facilitate the market access of Lebanese products such as the free trade agreements (FTA) with Aghadir Countries (Jordan, Egypt, Tunisia, and Morocco) and the MERCOSUR countries (Brazil, Argentina, Uruguay, Paraguay, and Venezuela). On top of this, MoET organized the Lebanon EU Trade, Industry, and Agriculture Services and Internal markets subcommittees, where major subjects were discussed to increase the trade exchange and facilitate the market access to European countries.
What is the role of public-private partnerships (PPPs) in the development of the economy, what initiatives are aimed at strengthening the investment climate and promoting the country as a FDI destination?
The primary objective of the PPP is to be able to use the experience and the ability of private funding on the public platform, whereby investments are private and are managed by the private sector, but within the legal framework depicted in the PPP law. As such, reforms should be set and implemented, in terms of liberalization of economic sectors such as electricity and telecommunications, and in terms of securing an investment climate that allows the development of a suitable economic infrastructure for the execution of existing and expected activities such as oil extraction. On another note, and in regard to the initiatives aimed at strengthening the investment climate and promoting the country as a FDI destination, the MoET launched the “Lebanon SME strategy: a roadmap to 2020," which aims to accelerate the creation of startups, increase the productivity of existing SMEs, and improve the performance of existing SMEs. The main pillars of this strategy are to improve access to finance for startups and existing SMEs particularly through equity financing, strengthen and upgrading the legal and regulatory framework for businesses, facilitate access to markets for SMEs and increasing their compliance with international standards, upgrade the skills available and aligning them with the needs of businesses, and promote innovation.
THE ROAD AHEAD
TABLE OF CONTENTS
Review: Diplomacy
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The Hon. Julie Bishop, Minister , Foreign Affairs, Australia’s Federal Coalition Government
TBY talks to The Hon. Julie Bishop, Minister for Foreign Affairs, Australia's Federal Coalition Government, on areas of cooperation and ways in which both countries are working to support the region.
read articleFocus: Syrian Asylum Crisis
Seeking the Cedar’s Shelter
The impact of Syria's crisis on the economic and social stability of Lebanon has been profound, with over 1.18 million displaced Syrian nationals now living among the 4 million Lebanese population, Lebanon has the highest per capita concentration of refugees worldwide.
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Abdallah Al Dardari,, Deputy Executive Secretary, UN Economic and Social Commission for Western Asia (UN-ESCWA)
TBY talks to Abdallah Al Dardari, Deputy Executive Secretary of the UN Economic and Social Commission for Western Asia (UN-ESCWA), on the participation of women in the economy and the workforce and regional integration.
read articleInterview
Dr. Freddie C. Baz, Vice Chairman and General Manager, Bank Audi
TBY talks to Dr. Freddie C. Baz, Vice Chairman and General Manager of Bank Audi, Group Strategy Director, on the Bank's contribution to Lebanon's economy, its regional diversification strategy, and Odea Bank's expansion in Turkey.
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Saad Azhari, Chairman & General Manager, BLOM Bank
TBY talks to Saad Azhari, Chairman & General Manager of BLOM Bank, on increasing their market share and maintaining a strong regional presence amid the global financial crisis, the Arab Spring, and ongoing instability in Lebanon.
read articleFocus: Lebanese Banks Abroad
Across the Globe
In the era of globalization, Lebanese banks are trying to take advantage of several opportunities, not just in terms of satisfying the needs of a large Lebanese diaspora, but also by filling the niche for anyone who needs optimum banking products and service delivery.
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HE Minister Arthur Nazarian, Minister , Energy and Water
TBY talks to HE Minister Arthur Nazarian, Minister of Energy and Water, on the balance between traditional and renewable energy sources, incorporating wind into the country's energy portfolio, and how the government supports private sector investment.
read articleFocus: Green Spaces
The Other Side of The Fence
The Beirut Municipality has launched the “Beirut is Amazing" campaign, created to invite all independent organizations, private companies, and educational institutions interested in developing green spaces to collaborate with the municipality.
read articleFocus: Beer Culture
Brewed Force
Ever since the first Lebanese beer was produced in 1933 by Brasserie Almaza, the local beer market has been dominated by one single brand. To most Lebanese, Almaza has been synonymous with beer. However, over the past nine years, a new craft beer movement has been challenging the status quo of the Lebanese beer market with newly established brands, introducing new beer styles and more diverse tastes.
read articlePhoto Essay: Reconstruction of Beirut
Building Up Downtown
What is now a beautiful downtown was not so long ago a wasteland of scorched buildings and rubble from a civil war that plagued Lebanon from 1975 to 1990, totally destroying an area known for its picturesque Mediterranean vistas and Roman and Mamluk ruins.
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Not So Secondary
In a drive to create the conditions for increased local economic development and enhanced quality of life, the Cultural Heritage and Urban Development Project has been launched by the World Bank to improve the conservation and management of Lebanon's built cultural heritage and boost the development in country's secondary cities.
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Salam S. Rayes, CEO, Saint George Hospital University Medical Center,
TBY talks to Salam S. Rayes, CEO of Saint George Hospital University Medical Center, Beirut, on the role of R&D at the hospital, the challenges faces the health sector, and Lebanon's potential to become a medical hub for the region.
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Irina Bokova, Director General, UNESCO
TBY talks to Irina Bokova, Director-General of UNESCO, on the organization's campaigns to protect and promote Lebanese heritage, expand educational programs in the country to serve Syrian refugees, and celebrations for UNESCO's 70th anniversary.
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Hamed Al Hammami, Director, UNESCO’s Beirut Office
TBY talks to Hamed Al Hammami, Director of UNESCO's Beirut Office, on their projects in the fields of culture, education, human rights, freedom of expression, and youth in governance across their regional mandate of Lebanon, Syria, Jordan, Iraq, and the Palestinian Territories.
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