Influential figures convened at the Gefinor Rotana Hotel in Beirut on Monday to chart the present and future of the country’s economy, focusing on the recent regional crises and global downturns.
“This conference comes at a consequential time, especially due to the current events and changes the Arab world has faced economically, financially and politically,” said Adnan Qassar, president of the Federation of Chambers of Commerce, Industry and Agriculture.
The conference, held under the auspices of Prime Minister Rafik Hariri and entitled the Future of the Lebanese Economy in Light of Recent Regional Developments, brought together experts in banking, industry and commerce to further the positions of varying schools of thought on the direction and future of the economy at a critical time in the country’s history.
“In respect to the title of the conference, it is the right time to look back at Lebanon and study the development during the last 10 years,” Hariri said during the opening ceremony.
The prime minister said Lebanon was able to overcome many obstacles, no matter how difficult, and flourish.
“The Sept. 11, 2001, attacks, as well as the recent war in Iraq, have left the region, in particular Lebanon, in an ambiguous situation,” said Rafik Zantout, general manager of Confex, the organizer of the conference.
“We are proud to host an event that helps decision leaders find crucial solutions to help in the future growth of the Lebanese economy,” he added.
Sponsors for the event included the Federation of Chambers of Commerce, Industry and Agriculture, the Lebanese Industrialists Association, the Lebanese Businessmen’s Association, the Association of Banks in lebanon, the Beirut Merchants Association, and the Lebanese Economic Forum.
According to Qassar, the Lebanese economy has witnessed many structural changes, including open markets, which has allowed Lebanon to position itself as a hub to attract investment, expand production and exports, as well as increase job opportunities.
However, Qassar added that the Lebanese government was not able to implement all the terms which were requested during the “Paris II” conference last year.
“Having achieved a fraction of what was expected from Paris II, Lebanon is still in need of special attention,” he stressed.
“We presented the government with requests at the end of June 2002, which we believed could be beneficial and profitable on an economic level, but it has yet to be considered,” Qassar added.
Nevertheless, Qassar pointed out that at a regional level, Lebanon has the opportunity to take advantage of free trade in the Arab world and also participate in the reconstruction of Iraq.
“The private sector, by collaborating with Iraqi businessmen, can play an important role in rebuilding Iraq,” Qassar said.
“Lebanon is also at a stage where it can benefit from the European Union agreement, through innovation and using the latest technology to compete in European markets,” he added.
According to Hariri, the EU, laissez faire economics, as well as the current decrease in the value of interest rates for the private sector, will help improve industrial production, the market and the country in general, and turn Lebanon into a financial hub.
“Despite the economical obstacles and the competition created through globalization and open markets, the public and private sectors should collaborate and take advantage of the opportunities that lie ahead to promote our economy,” concurred Fadi Saab, president and chairman of Trans Mediterranean Airlines, and conference moderator.
According to Joseph Torbey, president of the Association of Banks in Lebanon, the role of the Lebanese banking sector has proven to be efficient and admirable despite the regional uncertainties.
Torbey revealed that by the end of May 2003, the accumulated budget in commercial banks witnessed an increase of 17.4 percent compared to the same period last year, totaling $55.5 billion.
“Since the banking sector secures the financial needs of the public sector accumulated at $16.4 billion, it has to bear a huge part in the public debt,” he said.
Torbey explained that the banking sector played a key role during the Paris II conference, since it tried to reduce the public debt, provide the required terms and means to promote the economy, and pull Lebanon out of the current economic slump.
“The banking sector is the most important sector in the country. It has played an important role in fighting money laundering, and consequently, succeeded in removing Lebanon from the watch list,” Torbey said.
“Deposits in banks increased by 14 percent between May 2002 and May 2003, amounting to $45.3 billion,” he added.
He also stressed that there is more confidence in the Lebanese pound since May 2003 when deposits in dollars decreased to 67.8 percent, compared to 74.2 percent last May.
The prime minister ended the conference on a positive note by saying that “the future of Lebanon is favorable.”