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DE RUEHLB #1251/01 3291625
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R 251625Z NOV 09
FM AMEMBASSY BEIRUT
TO RUEHC/SECSTATE WASHDC 6102
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RHEHAAA/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC

UNCLAS BEIRUT 001251 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EINT SENV PGOV LE
SUBJECT: PM HARIRI PLEDGES ECONOMIC AND SOCIAL PROSPERITY 
(ECONOMIC WEEK IN REVIEW, NOVEMBER 16 - 22, 2009) 
 
CONTENTS 
-------- 
 
-- PM HARIRI PLEDGES ECONOMIC AND SOCIAL PROSPERITY 
-- MICROSOFT SAYS WORK IN LEBANON REMAINS A CHALLENGE 
-- NEW FINMIN STRESSED EDUCATION AND TRAINING 
-- PM HARIRI TO ATTEND COPENHAGEN CLIMATE CONFERENCE 
-- ARAB FORUM FOR ENVIRONMENT AND DEVELOPMENT MEETS IN BEIRUT 
-- LEBANON FALLS IN 2009 CORRUPTION PERCEPTION INDEX 
 
 
PM HARIRI PLEDGES ECONOMIC 
AND SOCIAL PROSPERITY 
-------------------------- 
 
¶1. (U) PM Saad Hariri, speaking at the 2009 Annual Arab Banking 
Conference November 19 in Beirut, noted that his recently formed 
cabinet was not only a national unity cabinet politically but also a 
"social and economic development unity cabinet" that reflected the 
ambitions of the Lebanese.  He stressed that the ministerial 
statement (currently being drafted) should be a "real introduction 
to achievements awaited by all the Lebanese in all fields" in order 
to "improve their living conditions and ensure a better life."  To 
that end, Hariri planned to attract more investment to Lebanon by 
improving the country's comparative advantages and developing its 
productive and creative capacities.  He praised the sound policies 
of the Central Bank of Lebanon (CBL) which led to a solid and 
resilient banking sector. 
 
¶2. (U) Meanwhile, CBL Governor Riad Salameh said that the CBL had 
established a specialized unit on corporate governance in banks and 
financial institutions.  The CBL will continue encouraging banks' 
expansion overseas and is considering extending until June 2011 the 
incentives granted to banks for lending in Lebanese pounds, he said. 
 Salameh noted that, as a result of confidence in Lebanon's future, 
banking deposits increased by 20% in annual terms, the dollarization 
rate dropped to 66% (from 73% a year ago), the balance of payments 
surplus reached $6 billion by October 2009, and remittances - 
according to World Bank estimates - were expected to reached $7 
billion. 
 
MICROSOFT SAYS WORK IN 
LEBANON STILL A CHALLENGE 
------------------------- 
 
¶3. (U) Microsoft Lebanon officially launched Windows 7 on November 
18, although the product has been in the local market since October. 
 Microsoft regional director for North Africa, East Mediterranean, 
and Pakistan Sherif Seddik noted that as Microsoft celebrates its 
tenth year in Lebanon, it will continue to engage with the public 
and private sectors to promote widespread use of technology and 
genuine software.  Microsoft will continue its support for the 
Partnership for Lebanon, and other corporate social responsibility 
commitments in the country, he said.  (Note:  The Partnership for 
Lebanon is a U.S. private sector initiative launched after the 2006 
July war by the heads of Cisco, Intel, Microsoft, Ghafari, and 
Occidental Petroleum to help assist in reconstruction efforts and 
create long-term growth.  End note.) 
 
¶4. (SBU) Microsoft country manager Leila Serhan told us that Lebanon 
remained a challenging environment given the prevalence of pirated 
software -- a problem in most countries in the MENA region -- and 
that pirated versions of Windows 7 had already been discovered in 
Lebanon and the region.  Serhan said that Microsoft will nonetheless 
continue to work closely with major retailers to ensure sale of 
computers with genuine software, with the ministry of administrative 
reform to ensure genuine software in public administrations, as well 
as with the ministry of education to integrate technology in public 
schools. 
 
NEW FINMIN STRESSES 
EDUCATION AND TRAINING 
---------------------- 
 
¶5. (U) "Public service requires vision, innovation, commitment and 
respect," newly-appointed Finance Minister Raya El-Hasan said 
November 18, adding that "leadership needs to be inspirational." 
Speaking during the opening of the Governance Institutes Forum for 
Training-Middle East and North Africa (GIFT-MENA) Network Annual 
meeting, she noted that education and training were top priorities 
to maintain sustainability, and stressed the importance of 
accountability.  (Note:  El-Hassan, the first woman to head the 
finance ministry, worked as an advisor at the finance ministry in 
the 1990s, and contributed to Paris II and Paris III reform 
programs.  End note.) 
 
PM HARIRI TO ATTEND COPENHAGEN 
 
CLIMATE CONFERENCE 
------------------------------ 
 
¶6. (U) PM Hariri announced November 18 that he will head the 
Lebanese delegation to the UN Climate Change Conference in 
Copenhagen in December 2009.  Following a meeting with Lebanese 
environmental NGO League of Independent Activists (IndyAct), Hariri 
said Lebanon will start playing an active role in the international 
efforts to fight climate change.  Indyact requested that Hariri 
consider climate change as one of the new cabinet's top priorities 
and suggested that a new national committee with public sector and 
civil society stakeholders could build a long-term strategy to 
tackle climate change.  According to IndyAct, Lebanon has already 
begun witnessing the consequences of climate change, through 
increased forest fires, reduced agricultural output, and changes in 
the patterns of rainfall. 
 
ARAB FORUM FOR ENVIRONMENT 
AND DEVELOPMENT MEETS IN BEIRUT 
------------------------------- 
 
¶7. (U) The Arab Forum for Environment and Development (AFED) held 
its second annual assembly in Beirut November 19-20, during which it 
presented its report on the impact of climate change on the Arab 
world.  According to the report, some of the greatest consequences 
of climate change in the region include higher sea levels, reduction 
in sources of freshwater, and extinction of endangered species. 
 
¶8. (U) During the opening ceremony, two members of Lebanese IndyAct 
lifted a banner saying " Arabs are more than oil," criticizing some 
Arab oil-producing countries -- especially Saudi Arabia -- for their 
obstructive role in global climate negotiations.  In preparation for 
the Copenhagen UN Climate Change Conference in December, IndyACT has 
intensified its awareness campaigns for Lebanon and the Arab region 
to play a more active role in climate negotiations. 
 
LEBANON FALLS IN 2009 
CORRUPTION PERCEPTION INDEX 
--------------------------- 
 
¶9. (U) Lebanon fell in Transparency International's (TI) 2009 
Corruption Perception Index (CPI), the Lebanese Transparency 
Association (LTA) announced November 17.  Lebanon ranked 130 out of 
180 countries worldwide, and 14 out of 20 MENA countries in 2009, 
compared to 102 worldwide and 11 within MENA countries in 2008 in 
terms of perception of corruption.  The index measures the 
perception of corruption estimated by public officials and 
politicians, and focuses on corruption in the public sector, which 
it defines as an abuse of official power for private interests. 
 
¶10. (U) According to TI, Lebanon's score in the current CPI is the 
lowest ever since it was included in the index in 2004.  TI noted 
that Lebanon's decline reflected the deterioration following the 
2005 political crisis and the absence of legal mechanisms promoting 
transparency.  LTA helped draft a law on access to information, 
which is pending ratification, and is currently working on the draft 
law for whistleblower protection. 
 
DAUGHTON