World’s worst Internet
There is no country in the world with a slower download speed than Lebanon, according to the website Speedtest.net, which carries out global broadband speed analysis. Of 185 countries ranked (there are some 195 countries in the world), Lebanon placed 185th, with an average download speed of 0.47 megabits per second; in first place was South Korea with an average download speed of 39.26 megabits per second. That means the average South Korean Internet user can download files roughly 84 times faster than the average Lebanese user. In terms of upload speed, Lebanon clocked in at a humiliating 0.1 megabits per second, ranking 184th out of 185 countries and ahead of only the South Pacific island nation of Vanuatu; in first place again was South Korea with an average upload speed of 20.99 — almost 210 times faster than Lebanon.
Mooting devolution
The constitutionally mandated process of administrative decentralization could receive a boost following the release of a new document by the Ministry of Interior detailing the process required, obstacles faced and questions surrounding the issue. Last month, Caretaker Minister of Interior Ziad Baroud released a 231-page research paper that addresses the “fears” that some harbor about the process, plots a course by which decentralization could take place in Lebanon and includes 100 questions and answers on the subject. Many in Lebanon are opposed to such a process, believing it would lead to the federalization of the nation, adding further division in a country already split along sectarian lines. “The book provides a summary of the research,” said Baroud to the press at the unveiling. “We do not claim that it is a comprehensive approach, or that it provides comprehensive questions, but it triggers discussion.”
A little more humane
Lebanon is one step closer to becoming a nation that treats its workers equitably. A new draft law proposed last month by the country’s labor minister aims to improve the lot of the estimated 111,000 migrant domestic workers registered with the ministry. The draft legislation proposed last month by Caretaker Minister of Labor Boutros Harb addresses the lack of regulation in the relationship between business owners and their foreign staff. The new law would limit the work week to a maximum of 60 hours and would require nine continuous rest hours and a mandatory day off per week for domestic workers. The law would also require employers to pay end-of-service indemnity to their employees, which would total one full month’s salary for every year of service for the first five years of employment and 65 percent of a month’s pay for every additional year after that point. The draft law also aims to ease the application process for all foreigners seeking employment in the country and proposes a computerized system that will automatically accept or reject applications in order to “increase transparency.”
Egyptian revolution affects market
While the Egyptian revolution may have been a boon for freedom of expression and a testament to the collective will of the people, it has had negative repercussions for farmers in Lebanon’s rural areas. As a result of the revolution, the export of Lebanese apples to Egypt, the crop’s main market, was severely affected. According to the Lebanese Farmers Association, Egyptian traders bought the crop on credit but delays in processing the apples, occurring mostly at Egyptian borders, left the industry with around 8,000 tons of stocked apples and little prospect of finding an alternative market. Electricity supply has also been affected by the uprising, given that Egypt exports power, via transmission lines through Jordan and Syria, to Lebanon. Électricité du Liban stated that there had already been a 120-megawatt decrease in power imports before Jordan, on February 20, suspended all electricity flows exiting its territory due to natural gas shortages from Egypt. Before the suspension, supply cuts had already led to an average increase in existing power blackouts across Lebanon by more than two hours.
Growth is not development
Lebanon’s recent gross domestic product growth figures tell little of how the country has been sliding backward in terms of the real development of its economy. According to global investment bank Goldman Sachs’ Growth Environment Scores index for 2010, released last month, Lebanon ranks 140th out of 179 countries assessed in terms of economic development. The result represents a rise of seven ranks on the previous year but points to the fact that, since 1997 when Lebanon was placed 87th, the country has been outpaced across the globe. Among the 21 countries looked at by the investment bank in the Middle East and North Africa, Lebanon placed a dismal 18th, narrowly beating Mauritania, Yemen, Sudan, Iraq and the occupied Palestinian Territories. In terms of upper-to-middle income countries, Lebanon ranked behind Gabon, Venezuela and Cuba. The results are based on a wide range of indicators, among them technological capabilities, political stability, education quality, debt levels and macroeconomic stability.
Yearly debt round-up
“The more things change, the more they stay the same” may well have been the sentiment of Lebanese debt market watchers after the end-of-year results of Lebanon’s public debt were released last month. With no plan to reduce the principal, the debt rose another 2.8 percent to hit $52.59 billion in 2010, with the gross domestic product estimated by Lebanon’s central bank at some $40 billion. The level of domestically held debt — which for the most part is in the hands of local commercial banks — rose 7.3 percent year-on-year to $32.02 billion by the end of 2010. Foreign-held debt fell by 3.5 percent to $20.57 billion. Since the end of 2004, the average yearly growth rate of Lebanon’s public debt has been 5.33 percent. Financial inflows to the country over the course of 2010 also took a hit, falling 17.5 percent year-on-year to $17 billion, which is still more than the five year average (2005-2010) of $13.2 billion per year.
Bottoms down
The Lebanese have long been known for their partying habits but, according to the latest figures from the World Health Organization’s (WHO) Global Status Report on Alcohol and Health, they seem to be a little more sober these days. Lebanon ranked 149th out of 193 countries surveyed in terms of average per capita alcohol consumption and third in the Middle East and North Africa-Pakistan region, averaging 2.21 liters of pure alcohol consumption per year per adult (15 years of age and over), behind only Sudan (2.6 liters) and Bahrain (3.6 liters). Of Lebanon’s total adult population, 47.1 percent were classified as abstainers, with 43.3 percent marked as lifetime abstainers and 3.8 percent as former drinkers. Only 28.5 percent of male students and 12.3 percent of female students drank at least one drink every 30 days. Those who do drink tend to prefer spirits, wine second and beer last. Officially, Lebanon does not permit the sale of alcohol to persons under 16 and entrance to establishments serving alcohol is prohibited for those under 18, though neither law is widely enforced.
Port gets more for less
Despite a decrease in activity for the port’s red and blue cranes, the Beirut Port Authority reported a 5.8 percent gain in revenues from $2.8 billion in 2009. Direct port revenues rose year-on-year by 1.4 percent to $165.8 million, customs revenues took the lion’s share at $1.7 billion (up 4.3 percent) and value added tax brought in $1.1 billion, representing 9 percent growth on 2009. The decreased activity could be seen in the number of ships entering the port, which fell 4.6 percent to 2,395 as reflected in the 1.8 percent fall of imports to 5.7 million tons. Exports, however, which make up a much lower portion of total activity, rose 22.6 percent year-on-year in 2010, mirroring the total export growth for the year. Beirut port activity also rose year-on-year during the first month of 2011 by 10.5 percent, with 561,000 tons processed and a 15.31 percent rise in the number of containers.
