VZCZCXRO8174
RR RUEHAG RUEHBC RUEHDE RUEHDF RUEHIK RUEHKUK RUEHLZ RUEHROV RUEHSR
DE RUEHLB #0424/01 1030759
ZNR UUUUU ZZH
R 130759Z APR 09
FM AMEMBASSY BEIRUT
TO RUEHC/SECSTATE WASHDC 4661
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RHEHAAA/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 02 BEIRUT 000424 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR NEA/ELA AND EEB/IFD/ODF 
STATE PASS USTR FRANCESCKI 
STATE PASS USAID NANDY/SCOTT 
TREASURY FOR PARODI/BLEIWEISS/AHERN 
USDOC FOR 4520/ITA/MAC/ONE 
NSC FOR SHAPIRO/MCDERMOTT 
 
E.O. 12958: N/A 
TAGS: ECON EFIN PGOV LE
SUBJECT: LEBANON: ELECTORAL PLATFORMS INCLUDE ECONOMIC ISSUES FOR 
THE FIRST TIME (ECONOMIC WEEK IN REVIEW, APRIL 6 - 12, 2009) 
 
REF: A. BEIRUT 416 
 ¶B. BEIRUT 222 
 
CONTENTS 
-------- 
 
-- POLITICAL PARTIES' ELECTORAL PLATFORMS INCLUDE ECONOMIC ISSUES 
-- COMPROMISE ON COUNCIL FOR THE SOUTH BUDGET, NO FUNDING FOR NEW 
PROJECTS 
-- GOL AND USAID SIGN AGREEMENT TO DISBURSE $50 MILLION TO COVER 
WORLD BANK DEBT 
-- IMF: LEBANON IS ONE OF THE COUNTRIES LEAST AFFECTED BY THE GLOBAL 
CRISIS 
-- CALL CENTERS TO PROVIDE NEW JOB OPPORTUNTIES ACROSS LEBANON 
-- MIDDLE EAST AIRLINES WILL BUILD STORAGE FACILITIES FOR 
AGRICULTURAL EXPORTS 
-- SURVEY SHOWS 13% OF LEBANESE EARN LESS THAN $500 PER MONTH, 
PEOPLE FEEL SOME EFFECT OF GLOBAL CRISIS 
 
 
FOR THE FIRST TIME, POLITICAL PARTIES' ELECTORAL PLATFORMS 
INCLUDE ECONOMIC ISSUES 
-------------------- 
 
¶1. (U) During the week of April 6, three of the major political 
parties launched their electoral platforms to rally voters for the 
June 2009 parliamentary elections.  For the first time, these 
electoral platforms tackled economic and social issues.  While 
Lebanese Forces (member of the March 14 coalition) called for the 
adoption of policies to stop emigration and ensure the vital needs 
of citizens, Majority Leader Saad Hariri's Future Movement's 
economic platform was more detailed, focusing on the private sector 
as a backbone of the Lebanese economy, encouraging investment in 
industry and agriculture in order to stimulate growth and job 
creation, and highlighting the need for social protection. 
Meanwhile, Hizballah's platform (Ref A) was comprehensive, focused 
on combating corruption, addressing the budget deficit and public 
debt, and calling for sustainable development. 
 
COUNCIL FOR THE SOUTH BUDGET ISSUE RESOLVED, 
NO FUNDING FOR NEW PROJECTS 
-------------------- 
 
¶2. (SBU) Minister of Finance (MOF) Mohammad Chatah told the 
Ambassador on April 8 that he expects the 2009 budget law to pass in 
cabinet next week after he presented a compromise budget to allocate 
approximately $40 million to the Council for the South (CFS).  He 
said President Sleiman wants consensus on all revisions before the 
budget law returns to the cabinet agenda.  Chatah said this amount 
will enable the CFS, an entity that mostly benefits Shia Speaker 
Nabih Berri's constituents (Ref B), to complete on-going projects, 
without granting it funds for new projects or to undertake central 
government functions. 
 
¶3. (SBU) While Chatah would like to see the CFS and other funds that 
have been a vehicle for political patronage abolished, it is not 
possible to do so without legislation, he said.  In the meantime, he 
is trying to reduce CFS responsibilities by shifting some of its 
activities (such as infrastructure projects, health allowances, and 
UNIFIL rent charges) to the appropriate central government 
ministries.  Such measures strengthen state institutions and reduce 
corruption, while also making the budget more transparent, stressed 
Chatah.  (Comment:  Despite Chatah's good intentions, Berri will 
likely claim political victory on the CFS issue, since the Council 
will receive all the money it requested from the Finance Ministry in 
its original budget request.  End comment.) 
 
GOL AND USAID SIGN AGREEMENT TO DISBURSE 
$50 MILLION TO COVER WORLD BANK DEBT 
-------------------- 
 
¶4. (U) On April 8, the GOL and USAID signed an amendment to an 
existing grant agreement to disburse $50 million to pay part of 
Lebanon's debt to the World Bank.  The agreement is part of $250 
million pledged at the Paris III donors' conference by the U.S. to 
support the GOL as it pursues its economic reform program.  With 
this payment, the U.S. government will have disbursed $175 million 
since 2007 in response to the Lebanese government's progress on 
economic reforms. 
 
BEIRUT 00000424  002 OF 002 
 
 
 
IMF: LEBANON IS ONE OF THE COUNTRIES 
LEAST AFFECTED BY THE GLOBAL CRISIS 
-------------------- 
 
¶5. (U) During meetings with President Sleiman, PM Siniora, and 
Minister of Finance Mohammad Chatah, visiting IMF Director for the 
Middle East and Central Asia Masood Ahmed reiterated the IMF's 
recognition of the stability of Lebanon's current political, 
economic, financial, and monetary situation.  Masood said that 
Lebanon was one of the countries least affected by the global 
economic crisis, mainly due to confidence in the economy and sound 
financial and banking policies. 
 
CALL CENTERS TO PROVIDE NEW 
JOB OPPORTUNTIES ACROSS LEBANON 
-------------------- 
 
¶6. (U) The Ministry of Telecommunications (MOT) signed five new 
contracts to provide international call center services in Lebanon, 
bringing the total number of such contracts to ten since the 
beginning of the year.  Four of the companies are local, and the 
fifth is affiliated with French company Teleperformance.  Each call 
center is expected to employ at least 35 people.  The ten call 
centers are located across Lebanon, creating job opportunities 
throughout the country. An advisor to Telecom Minister Gebran Bassil 
told us Lebanon is well positioned to become a hub for call centers 
because of its multi-lingual population, know-how, and quality of 
service. 
 
MIDDLE EAST AIRLINES WILL BUILD STORAGE 
FACILITIES FOR AGRICULTURAL EXPORTS 
-------------------- 
 
¶7. (U) On April 6, Middle East Airlines (MEA) chairman Mohammad El 
Hout publicly announced that MEA will provide the necessary space 
and build storage facilities at Beirut's international airport to 
ensure proper conservation of agricultural produce.  This will 
facilitate agricultural exports' adherence to international quality 
standards.  The cost of this project will be covered entirely by 
MEA, El Hout said.  (Note:  MEA is owned by the Central Bank of 
Lebanon.  End note.)  According to the Investment Development 
Authority of Lebanon (IDAL), agricultural exports under its Export 
Plus Program (covering 98% of total agricultural exports) decreased 
by 5% to 446,778 tons in 2008, compared to a 27% increase in exports 
in 2007. 
 
SURVEY SHOWS 13% OF LEBANESE EARN LESS THAN $500 PER MONTH, PEOPLE 
SOME FEEL EFFECT OF GLOBAL CRISIS 
-------------------- 
 
¶8. (U) A survey by leading Middle East job website bayt.com ranked 
Lebanon six out of 13 MENA countries in terms of personal income 
levels.  Results showed that the income level of 32% of Lebanese 
respondents ranged between $1000-2000 per month, while 24% earn 
$500-1000 per month, and 13% earn below $500 per month.  (Note: the 
minimum wage was recently raised from $200 to $333 per month.  End 
note.)  Although 17% of respondents believed that their salary and 
employment will not be affected by the global economic crisis, 68% 
said the crisis has affected them personally, a significant number, 
though less than the regional average of 77%. 
 
SISON