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CommentFood securitySpecial Report

Less hype,more hope

by Thomas Schellen November 16, 2022
written by Thomas Schellen

It was a sequence of electrifying experiences for a kid from the German provinces. It began with
looking in awe around the grand movie theater in no less than Leicester Square, London, and soon went on to being captivated by the cinematic depiction of abject misery of children in a workhouse, and then to being shaken by the hymnal intensity of one of the first English songs that this youngster heard and actually understood – at least the words “food” and “glorious.” Ergo, the imprinting of memes from seeing the musical “Oliver!” while on vacation around the time of having had the first English lessons in high school, for yours truly, still makes for one very strong chain of associations when the word “food” comes to mind and food security is on the table.

This year, food has surged to the top of international concerns. Political and civil society agendas have been filled with statements on food security, respectable magazines are putting the topic on their covers, and the International Monetary Fund at the beginning of October added a one-year “Food Shock Window” to its emergency response toolkit. The first disbursement from $1.3 billion worth of Special Drawing Rights was made to Ukraine in response to imperilment of the country’s balance of payments due to wheat export revenue losses.

One has to note with both surprise and conviction that what the simple word food, and even more so the inconspicuous word combination “food security” means and stands for in 2022, is actually as laden with contradictions as it was some fifty years ago. And that was at a time when the modern narrative of food security was empowered by the development of high-yielding, corporate involvement supporting crops.

Moreover, the perils of food insecurity are in many parts of the developing, and even the developed, world today as present as they were in Europe almost 200 years ago when Charles Dickens wrote his stirring novel “Oliver Twist”, adapted for film in 1968, about the dichotomous social realities that existed at the time of Britain’s adoption of the poor law amendments. It serves today to remind us of two things: that food is vital for social peace and coexistence and that food crises keep haunting the world to the point that calling
food security both a great need and a contentious issue, is an understatement.

Existential contradictions

Food is full of contradictions. Nutrition is vital for human bodily sustenance and mental health but food is also sensual, emotive and cultural. This is the first contradiction. We cannot hope to cover the cultural value of food by addressing the – indispensable – issue of improving nutrition and lowering food insecurity.

The second contradiction is that the economy of food has been expanding tremendously and that this economic cosmos of food, which includes food expenditures of households as well as the aggregate GDP contributions of agriculture, agro-industry, and industries that are food related, such as beverages, hospitality and restaurants, are riddled with economic dichotomies. For example, whereas in 2022 food insecurity has globally been rising for four years and still is rising precipitously for millions under the specter of future climate trouble and global recession, the world’s largest food com pany and the largest restaurant multinational, are doing very well. Nestle and MacDonald’s, have recently reported better than projected results for the first nine months of the year, with nine-month organic revenue gains of 8.5 percent in the case of Nestle and third-quarter 10 percent improvements in global comparable sales for MacDonald’s.

A third, enduring food contradiction relates to fair and principled access. [inlinetweet prefix=”” tweeter=”” suffix=””]More wheat is being harvested around the world than ever before, and there is more than enough food to feed all [/inlinetweet]– but the amount of food that goes to waste around the world each year in our highly educated, highly networked, and supposedly efficient global economic system, is staggering. The United Nations World Food Programme says that almost one third of food produced each year does not get eaten. The 1.3 billion tons of unconsumed food, according to the United Nations Food and Agriculture Organization’s (FAO) website, entails loss ratios of estimated 14 percent between harvest and retail and 17 percent at the retail and consumer level, whereby an 11 percent household-level wastage of food is the primary culprit of the estimated 17 percent of total global food production that goes to waste each year. “Food that is lost and wasted accounts for 38 percent of total energy usage in the global food system,” the FAO laments.

Zero hunger, responsible consumption and production goals

In this emerging third decade of the century, the obscene historic inability to match food needs and supplies is newly exacerbated by humankind’s oldest enemies: ourselves and the forces of nature. Climate and war and diseases – of plant and animal and people – seem in the last few years to have been threatening our planetary food security to degrees that policy makers and activists may not have not been thought imaginable 22 years ago, and again only 7 years ago when they debated and devised the declarations of Millennium Development Goals (MGDs) and their successors, the Sustainable Development Goals (SDG).

In the first and second decade of the century, [inlinetweet prefix=”” tweeter=”” suffix=””]hopeful aspirations for the eradication of poverty and “zero hunger” were adopted as global targets by the UN[/inlinetweet], first in the Millennium Declaration of 2000 and reiterated and expanded as SDG 1 and 2 in the Sustainable Development Goals of 2015, with SDG 2 calling upon nations to “end hunger, achieve food security and improved nutrition, and promote sustainable agriculture.” This year’s worries over short-term and longer-term increases in acute food insecurity, which have been triggered by the Ukraine conflict but are in the long run interrelated with deep climate fears, are departures from this previous SDG optimism.

Moreover, SDG 12, which postulates a shift towards responsible production and consumption patterns, listing food first among the areas where production and consumption are far behind a responsible and productive equilibrium. Available data on food waste and loss are inconclusive with regard to measurable reduction of the numbers such as the billions of tons of unconsumed food. A 2018 report on progress toward SDG 12 from the year 2000 up to that point, notes that there has been progress in the development of policies and in research but admitted that “the application and implementation of these to foster concrete and tangible changes in practices and impacts remains limited.”

The impressive agreements on the MDGs and SDGs shine as peak expressions of optimism during a long cycle of political calm and economic peace after the end of the Cold War, a period when faith in human capacities and good will were burgeoning. But the current immersion of SDG optimism into deep water suggests some of the SDG enthusiasm towards the later 2010s fed into a wave of cornucopian beliefs which celebrated themselves under disregard of serious warnings over the longterm shameful fiasco of humanity in managing our own species, and the planet that it inhibits.

This is to say that in the global risk aggregation of the past few years, humanity could have witnessed the epitome of divergence between a pious wish for no poverty and zero hunger and a reality of a world being treated to willful and continued denials of environmental and climate costs. These costs have throughout the capitalist era and into the present time been externalized by industries, ignored by policy makers, and underrepresented in modeling by economists who were more interested in coming up with theories that would accelerate or preserve growth than with developing models that showed the risks of human economic activity.

An underappreciated report

Perhaps the purest expression of this culture conflict between dogmas of growth and warnings of human risk was the debate over the population bomb, and the modeling of global resources exhaustion detailed in the “Limits to Growth” book lead-authored by American scientist Donella Meadows. The 1972 original study famously endeavored to warn of unencumbered growth in industrialization, resource depletion, pollution, food production and population, auguring on the basis of a novel computer model that on unchanged trajectories of those factors, “limits to growth on this planet will be reached sometime within the next one hundred years” – a maximum deadline that passed to 50 percent at the advent of this year.

If one continues along this logic of a dialectic of growth and risk, the part desperate and part overoptimistic bent of UN debates at the time when the MDGs were designed and announced as achievable in the year 2000 could be read as antithetical positions to what Meadows and her co-authors concluded in their revised edition, “Limits to Growth: The 30-Year Update” (NLTG). But this dialectic is lessened at first glance by the fact that in some of the ten scenarios that Meadows – shortly before her death due to cerebral meningitis – and her team explored under an adaptation of the World3 computer modeling framework used in Limits to Growth, there is a spark of sustainability.

Diverging from the greed-as-usual and consumption-as-usual presuppositions that rule more than half of the NLTG scenarios, in only one scenario, (and from timing perspective nonimplementable) key sustainability policies are introduced already in the 1980s. Meadows et al conclude that their World3 model’s assumed goals or industrial goods per capita cannot be reached for a world population greater than 7 billion people – an amount which has been passed in the last decade – and that delays in introducing fundamental change to human behavior “reduces the options for humanity’s long-term future.” In full cognition of this dilemma, the NLTG authors still see open pathways for a global transition to a sustainable society, which to them is a society that sustains “the needs of the present without compromising the ability of future generations to meet their own needs.”

The first “future generation” envisioned in NLTG, has already been born and is presently aspiring to shape society to their needs. It is a digital-native generation of more-educated and more-connected-than-ever youngsters who have experienced immense exposure to ahistorical and absolutist ideologies, fake news, and virtual pressures disseminated through faulty social networks. They are confronted by the climate risk mitigation failures of the two preceding generations, plus have to grapple with their unexpected and mentally unshielded vulnerabilities to pandemics, wars, and extremist and populist leaders of all ideological colors and non-compromise persuasions.

This does not bode well for utopian optimism. Jorgen Randers, one of the co-authors of the original “Limits to Growth” and its 20- and 30-year follow-up publications: “Beyond Limits to Growth” and “Limits to Growth – The 30-Year Update”, has commented discouragingly on the worldwide outlook on the 50th anniversary of the original study’s publishing date of March 1972.

“Fifty years later, we know that the world has followed the scenario predicted in the book – broadly speaking,” Randers opined, and prophesied that over the coming decades, human wellbeing will decline with a “too- little, too-late” scenario continuing in response to a dual threat of overshooting nature’s support capacity and of rising social tensions. “In effect, I believe that regional social collapse will precede global environmental
collapse,” he lectured darkly.

Perpetual oscillation between misery and happiness

But even if the propositions of SDG 1 and 2 have been losing momentum to the point of reversing, learned pessimism is not necessarily the view that prevails in the end. The Malthusian trap is not inescapable and what Thomas Robert Malthus believed to be an obvious truth, that “population must always be kept down to the level of the means of subsistence,” has been dismissed by human progress in terms of population and food supply in the past two centuries since the insightful parson and economic thinker published his speculative work, “An Essay on the Principle of Population”.

The disproving of Malthusian population risk dynamics notwithstanding, the correlated polar juxtaposition of Malthusian and Cornucopian views on the fate of society, of which the latter belief stipulates that the future will always be saved by economic means or technological innovation, and which has been clashing throughout the modern ages with the former’s skepticism on human superiority, cannot be disregarded. It should rather be acknowledged that this dialectical contest of wits in what Malthus described as debate between those who claim that “man shall henceforth start forward with accelerated velocity towards illimitable, and hitherto unconceived improvement” and those who see the fate of the species as “condemned to a perpetual oscillation between happiness and misery” in their chase after an unattainable perfect society, lately seems to have again been moving towards the Malthusian corner.

But it is exactly this point where lies the best Lebanese move in the worldwide mental tournament on food security: the country may be best advised in taking a contrarian, anti-cyclical route that steers clear of Malthusian philosophy. Whereas the global route of SDG over-enthusiasm has been curtailed by climate concerns and widening social fault lines, and whereas the threat of food insecurity is escalating in many developing countries, it stands to reason that Lebanon can still be elevated into a comparably comfortable situation with regard to food security – if it only applies the food security insights, SDG wisdoms and rational agrosector development strategies that have not been implemented in this country during the 20 years between 2001 to 2020.

There are certainly limits to the national food security potential if considered in a narrow sense; Lebanon will not be able to create large-scale agriculture that produces millions of tons of commodity crops. In terms of food safety – an important and currently weak pillar of Lebanese food security -[inlinetweet prefix=”” tweeter=”” suffix=””] the presence of cholera is urgent but only the latest warning shot signaling that the combination of crowding people into deprivation zones with substandard infrastructure[/inlinetweet] creates kill zones for epidemics.

However, Lebanon to this day has an uppermiddle-income country’s capacity for healthcare and could have a clear path to food safety if it were to improve critical infrastructure and implement, supervise, and enforce regulations more thoroughly. On the side of securing the nutrition needs of the population, much has been theorized about the creation of social safety nets that even the filing cabinets in the concerned public sector institutions must be able to answer all questions about their essentials.

Finally, as a country with excellent food production potential but efficiency deficits in food production – such as shortfalls in advanced harvesting equipment, good testing, storage, and packing infrastructure – Lebanon can do much to lower food loss. The economic conditions of widespread poverty bring with them a chance to educate consumers on avoidance of food waste and on healthy, inexpensive nutrition. In economic terms, with all appreciation of the increase in food security that by local standards large processors and branches of multinationals bring to Lebanon, the best path to food security is indirect and based on small but sophisticated and institutionally incentivized agriculture and agro-processing.

This indirect path should be trodden by implementing the applicable global standards, developing the identities and brands that appeal in foreign markets, and moving out of ethnic niches. But at the same time strengthening food sovereignty – in sum, by producing more for export markets and by modernizing the amazing native food culture. Then, by contributing to constructive global food interdependence – which conceptually negates the contradiction between food as physical sustenance and food as a cultural asset and trove of sensual treasures – food security might cease to be a concern in the sense that zero hunger can be achieved in Lebanon.

November 16, 2022 0 comments
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AnalysisFood securitySpecial Report

To rise from ruins

by Thomas Schellen November 16, 2022
written by Thomas Schellen

The Souk El Tayeb farmers’ market on Beirut’s Armenia Street has an established feel to it. There are many regulars to be seen on both sides of the small stands. Regular customers are crowding the isles on the main market day, which is a Saturday. Facing the customer streams are market traders peddling fresh produce, flowers, preserves, nuts, hot sauce, chocolate, manakeesh, and an eclectic mix of village goods. Their display tables tend to be crowded, too, as the growers and purveyors of artisanal or small-scale agro-food products make the most of the presentation space that they lease from the market operator – the Souk El Tayeb social organization – for a fee of $12 per day.

The organization does not collect exact visitor stats, but managing partner Christina Codsi estimates that over half of the market’s patrons on an average Saturday are locals and regulars. Although, she notes that during the summer, the market also sees many tourists and visitors from the Lebanese diaspora, in addition to a heightened influx of foreign expatriates who reside in Beirut. According to Codsi, the farmers’ market started out as a social venture in the mid-2000s on a rationale of providing market access to small scale – usually not land-owning – farms with produce and agro-food products.

Neither Codsi nor her social co-entrepreneur, Kamal Mouzawak, have a farming or food trading background. They wanted to allow farmers to bypass wholesale markets that then and now dominate the distribution segment of the agricultural value chain, but cut into farmers’ earning margins while being organizationally opaque and obscure in standards and rules. “When we studied this back in 2004, we realized that a lot of potential for small farmers existed in accessing urban markets,” Codsi tells Executive.

Souk El Tayeb has not always looked as solid as it does nowadays. The twice-weekly affair not only has a stable home in a covered hall with an adjacent, small management tract, but is co-located with a “farmer’s kitchen” restaurant – Tawlet – and a rural-to-urban retail outlet called Dekenet which is especially strong in food preserves and processed items such as jams, molasses, and oils. Both are parts of the Souk El Tayeb organization, which also includes guesthouses and a community kitchen. By contrast, during its first 15 years, the Souk El Tayeb market led a nomadic existence, popping up in open-air locations around Beirut’s affluent neighborhoods.

A tale enhanced by shocks

Whereas there are no exact metrics for comparison of same-stand sales at Souk El Tayeb for daily, weekly, monthly, and annual visitor numbers at the current location, Codsi confidently confirms the market’s growing reach in its urban catchment area. Vendors have told her they are increasing their sales in the past 12 months, while she has also observed that the location has been working well. “We know that demand is strong because the farmers run out of stock all the time. Since day one after opening last year, we had an invasion of people,” she says.

And this is where the Souk El Tayeb venture tale turns Lebanese-metaphorical. “The past three years were turbulent and many things happened,” Codsi says, an epic understatement. As she continues her narration, she mentions three disruptions to the operation in less than two years, shocks that were also key moments in shaping the nation’s mindset.

These disruptions began with the nomadic market’s closure during the thawra protest waves of October, November and December 2019, which continued with the Covid-19 induced lockdown periods of spring and summer 2020. Finally, there was the total disaster in August 2020, when what became the current site of the organization, quite literally was blown to shreds.

This is to say that Armenia Street in its entire length is situated in the area that was hardest hit by the August 4, 2020 port explosion, and the present, permanent location of the Souk El Tayeb is in one of the most devastated parts of the central-northern section of Beirut, which was turned into an urban disaster zone by multitier criminal negligence.

“These moments make you think of the end of the world but then there comes a moment when you know that you need to move on,” Codsi reflects. The market vendor’s reported increase in their sales, and the growing footfall at the operation has to be seen against the backdrop of the restart of Souk El Tayeb at the Armenia Street site less than two months after the catastrophe.

[inlinetweet prefix=”” tweeter=”” suffix=””]Metaphorically, it is a rise from the ruins of a dysfunctional system that has been dealt the final blow by inaction and corrupt indifference.[/inlinetweet] In economic terms, the increase in revenues – which is not an increase in profitability – demonstrates the viability of a new, and copied, direct-to-consumer niche in the Lebanese food market. As well, it shows the great need – and profound opportunity – to work towards and eventually achieve consolidation and sustainability.

Codsi sees a number of factors in play in driving consumer interest in farmers’ markets and shopping local products, rather than being obsessed with branded imports. These factors in her estimate included changing price structures: “Imports started being very expensive,” she says, as well as the growing awareness “of the importance of eating local, clean, and authentic Lebanese foods” among the organization’s target audience, and also the pandemic-induced trend towards cultural introspection, under which people started paying more attention to what is being produced in their locality.

Some specifics of a social market operator

The room for growth, need to realign food value chains, and improve market efficiency, or more importantly blur social efficiencies, is unmistakable when Colsi points out that the Tawlet hospitality operation at the central location has seen stable revenues, alongside a 10 to 15 percent increase in sales volume at three locations outside of Beirut in 2021. A further sales improvement is expected for FY 2022 due to a booming summer season. However, this is juxtaposed with the fact that the menu prices at the central Tawlet, for example, had to be slashed by 20 or more percent in dollar terms versus the pre-crisis offer.

Thus, while the success of the market speaks to the ability of improving food availability, producers’ direct market access and food security, the economic sustainability model has to be vastly improved to make this example of the direct-toconsumer niche become a pillar of local food security. Just as transportation costs are challenging farmers who want to bring produce to any farmers’ market in Beirut, rising costs put a lot of pressure on the bottom line of the Beirut operation of the Souk El Tayeb organization, despite the benefits from consolidating the market, store, and hospitality outlet under one roof.

Energy costs consume half of the revenues of the market, and the $12 per day stand fee has not been set with a profit motive, according to Codsi. “The cost of functioning is greatly increased. We cover costs of Souk El Tayeb jointly with Tawlet and Dekanet operation. The restaurant and shop have been doing good sales, but it is a constant fight to maintain limited profit,” Codsi says.

On the social equity side, the organization’s initiative at the time of its opening in Armenia Street led to setting up of the Matbakh El Kell community kitchen with 2,500 meals per day capacity, in partnership with foreign funders, local charities, and NGOs. It is an example of how Lebanon’s plunge into crises has been triggering community-level support responses which are inadequately accounted for in ubiquitously cited estimates of food insecurity. But at the same time, the charitable activity underscores the persistent lack of food security on a national level, and the need for developing overdue safety nets. “We thought that we would operate it for a year and close it again but then realized that the demand is actually growing,” Codsi explains.

As it is with retail markets in general, the reality of a previously overvalued currency and unsustainable consumption on household and institutional levels loom large in the promising economic niche where farmers access urban markets. This distorted past screams from margin and price deterioration pressures for Lebanese producers and food services providers, when present price levels are compared against the “fresh” dollar, which is de-facto predominant in all segments of the food value chain.

The situation on the side of conventional retail

In the wider retail market segment of medium-to-low end supermarkets, the challenges of contributing to food security are expressed in ways that put the narrative of the substitution of food imports by locally produced foodstuffs into a more realistic perspective, and reveal how the crisis might have engendered market concentration shifts in favor of the biggest players.

As to the progression of food imports substitution, Hussein Bashir, procurement and operations manager at Bashir Business Center, first thought that the Lebanese market would be “flooded with Lebanese products,” but it did not turn out so, he tells Executive. Bashir runs the 1,000 square meter wholesale and retail enterprise and supermarket in Choueifat, south of Beirut. Consumers can find more than 2,000 stock-keeping units (SKU, a codified number that represents specific items available for sale) in the supermarket’s food section.

Instead of a surge in local products, however, markets frequently down-shifted on price points by substituting brand imports from Western Europe and North America with imported processed food from more competitive producer countries which undersell local agro-industrial manufacturers, Bashir confirms. He says some consumer needs, such as detergents and household disinfectants with variable quality, are today supplied locally. But others, such as budget-price sweet biscuits and chocolate wafers which have a domestic manufacturing history going back to the 1950s, are not the cheapest in the market since they are challenged by wafer products made in Turkey.

In examples as diverse as beer, confectionery, and pasta, an alert consumer may indeed have encountered situations where imported products, sold under the house brands of large retail chain, as well as products sourced from agro-food producers in countries with large populations, were equally priced or sometimes significantly underselling local brands.

Retail with a conscience

Another observation of market-influencing change, which is especially notable in the context of reported extreme poverty rates, comprises of revealing consumer preferences. “Sales are still low as a total number but are reverting to the ways things were [before the crisis] in terms of consumer behavior. They show a mentality of ‘if I want it, I will get it’,” Bashir notes. The instant gratification demand, according to him, has caused items which stopped selling during the crisis to sell in a stable way. “The consumers would for example at some point have considered a Mars bar to be a luxury, but now they are putting them again into their shopping carts. Even though it costs a lot [in relation to lira incomes], consumers are willing to spend this much,” he says.

This is opposed by extreme price-consciousness of consumers on other parts of their shopping lists. Strategizing to cope with competition continues on a marginally or even hypothetically supervised playing field. For several years prior to the crisis, Bashir Business Center was developing two house brands: one for canned fish and one for canned vegetables.[inlinetweet prefix=”” tweeter=”” suffix=””] In the environment of depleted purchasing power, however, the customer base is hunkering heavily after the most cut-rate cans on offer.[/inlinetweet]

“We have a can of tuna that retails for $1.5, one for $1, and one for $0.5. Consumers are seeking out the cheapest one,” he explains, but points out that these price tiers represent quality differences in the fish, with consumers apparently not prioritizing that consideration if the lowest priced-can satisfies their nutritional needs. “In some retail markets today, you see certain products that are dubious or not worth buying, and it is hard to compete in a market where such products are present,” he says.

He adds that he has in a personal capacity recently conducted market research on zaatar (thyme) for a friend who, like himself, hails from South Lebanon, and discovered that not everything sold as a budget mix of the healthy herb was containing much zaatar at all.

“You might buy a cheap brand of zaatar and find that it mostly is made from wheat. [Traditional quality mixes] usually contain sumac, zaatar and sesame.[inlinetweet prefix=”” tweeter=”” suffix=””] What the low-end producers are putting, is citric acid, a lot of salt, and some broken wheat like burghul that is passed on as sesame. [/inlinetweet]There also are mixes with a high share of crushed semolina that is passed on as zaatar. These are locally packaged products of questionable origin in either Lebanon or Syria.”

Markets face challenges in balancing the consumer search for the cheapest offer, with their interest to gain customer loyalty and satisfaction by providing budget products of reasonable quality. What Bashir describes confirms that food security and quality can be an issue for both cheap imports and local cut-rate products. Against the dangers of fake products and unhealthy ingredients, many retailers know that they have an important social and economic interest in directing their customers to the best-available quality products at differing price points, yet they cannot perform this function without the regulatory and supervisory function of public institutions.

A pile of further challenges and then problems of market concentration

On top of factors such as having to cruise the aisles to assess price displays for accuracy, and initiate changes in accordance with rather imprecise information on the Lebanese currency, and the latest supply chain impacting events, retailers suffer further from labor supply and engagement issues. “We have more labor, but we have less quality labor,” Bashir says.

According to him, the most qualified persons are no longer in Lebanon, even at the level of farm labor and retail store labor. “What we used to get done by one worker, we have now to use two to three untrained and unmotivated helpers. These days, not only workers but even managers are unmotivated, even owners are unmotivated. It is getting hard for everyone to find motivation to work. I don’t know how to motivate my workers when it is hard for me to be motivated,” he muses pensively.

The competition with what Bashir calls three “whales” in the Lebanese retail space – chains with very strong market power concentrations in modern retail in comparison to competitors – has possible short-term impacts which are detrimental to impoverished persons’ access to food and also more longer-term implications of potential gloom.

“During the crisis, suppliers have given these whales many benefits, which helped them grow and eat a lot of market share,” Bashir says. He alleges that suppliers were accepting banker’s checks from the mega-chains at times when these were not accepted from other retail companies and also would have priority in seeing their stock orders filled at times when supply was constrained to a minimum. “They would get bigger portions in comparison to competitors, so that consumers would find everything at [their supermarkets]. This was harming business for everyone, and I hope that this will rebalance at some point,” Bashir says.

In evaluating the role of retail markets in the economic context of access to food, it is finally important to note that factors which impact food security on the consumer side have arisen on the fronts of inflation and external threats.[inlinetweet prefix=”” tweeter=”” suffix=””] “I wake up every day and check the news to see if Russia has done this or that. Then I go to the store and, if necessary, raise the price of imported sunflower oil,”[/inlinetweet] Bashir comments, describing a new routine that he says never before existed.

Inflation spikes imperil food security, but hit retailers in their revenues and margins, he testifies, and inflation adjustments – by evidence seen in the local food-retail sector in either direction – are therefore often hesitantly implemented and with time lags at the retail level. All efforts notwithstanding, however, the impact of supply chain risk, currency risk, and sovereign risk on Lebanon will find no other final outlet than these food insecurity risks with the retailer or the consumer, and the despondency devil proverbially takes the hindmost.

In the end, the food security and food safety situation of Lebanon from the markets’ perspective is conflicted. Social ventures appear to be in a better position to contribute to food security through different channels they are attuned to when compared to conventional retail. However, conventional retailers do not operate without consciences and regard for their long term economic sustainability. The markets have not failed, in the sense of their ability to deliver products to people who can afford them. There are new opportunities and open windows to growth for retail markets just as they exist for food entrepreneurs, artisans, and industrialists, but these opportunities are juxtaposed with systemic gaps, inefficiencies and shortfalls. All of the latter combine into a system of failures that is very costly and stands against the potential of the retail sector to ultimately, even if indirectly, enhance the food security of the Lebanese people and restore it to the levels that existed before the economic collapse.

November 16, 2022 0 comments
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AnalysisFood securitySpecial Report

Bad market, good market

by Thomas Schellen November 15, 2022
written by Thomas Schellen

Markets were the first places where food security was achieved in a commercial context. It can be philosophically presumed that the other conduits of prehistoric food security consisted of charitable sharing, in the context of group solidarity and religious belonging, and of the intra-familial or tribal organic sharing economy which existed millennia before idle intellectuals and ambitious wordsmiths ever coined terms like “sharing economy”.

The rest of what can be said about individual subsistence living and group living in prehistoric human communities is mostly conjecture and speculation. The entire narrative of the “agrarian revolution” is endlessly suspect in view of recent archaeological discoveries and anthropological theses. The relationship between markets and food security has been acknowledged in research as a component of societal existence whereby the former is empowering the latter, by providing availability of food and making food accessible on the terms of the market. In this regard, the principle of competition and [inlinetweet prefix=”” tweeter=”” suffix=””]the need for market actors to woo customers by meeting their demand helps people access and afford food.[/inlinetweet]

The Food Aid Convention of 1999 and the World Food Assistance Convention of 2012 set standards for food security support for vulnerable populations, but referred to markets more by a way of negative delineation from markets. The 2012 Convention’s second article, on principles governing food assistance, includes stipulations that food assistance must not negatively impact markets. Food assistance must be provided in a way that does not “adversely affect local production, market conditions, marketing structures and commercial trade,” states Article 2a. It is also a principle that the parties to the convention abstain from using food assistance for their “market development objectives,” as per Article 2b.

After the Great Recession of 2007-09 shook the world out of free-market complacency for a while, the moral impulse for seeking recovery from a man-made financial crisis, in combination with then-thriving international enthusiasm for global development goals and species-wide concerns, led to new international declarations and programs that expanded on the work of the four United Natoions (UN) world food and food security summits of the 1990s and 2000s.

In the 2010s, markets were acknowledged as contributing systems in food security. The United States (US), in the context of the Obama administration’s commitment to a global response against hunger and food insecurity, established the 2010 Feed the Future initiative, aimed at assisting 19 food insecure countries in the Global South. Concepts for the use of markets under food security objectives were developed in correlation, one of which was laid out in a study by the Washington DC-based Center for Strategic and International Studies (CSIS).

As a compilation of policy trends and thoughts at the time, the CSIS study advocated in strong support of the US’s determination to fight hunger through market-relevant policies and actions. This was despite that it was at a time, when in hindsight the world was financially challenged, but yet comparatively unperturbed by massive challenges like a health pandemic, wars, or climate trouble, all of which have made this decade much more costly. One recommendation was for reducing supply-side constraints by implementing trade agreements with US partner countries and also lowering protectionist barriers. Other recommendations called for the US to be fostering regional integration in other parts of the world, pushing for reform of international agricultural trade systems, and acting towards the improvement of hard and soft infrastructures in countries which are ridden with corruption, inefficiency, and excessive trade costs.

In the recent peak attention to food security issues in context of the crises of the 2020s, the UN issued the Roadmap for Global Food Security–Call to Action which advocated for seven points of action, four of which were directed at “member states with available resources” and three addressed to all UN member states. These three points included references to the roles and responsibilities of governments in food markets, beginning with an appeal for states “to keep their food and agricultural markets open,” and further calling for states to increase their investments in relevant research and development, and “closely monitor markets affecting food systems, including futures markets, to ensure full transparency, and to share reliable and timely data and information on global food market developments.” It may read somewhat abstract and state-centric, but at least markets were mentioned under a global list of priorities.

The forces of the market, however, are neither known for obeying governments nor are they social per se. Markets appear to have forever (certainly since their conceptual discovery by economists), worked in favor of the resourceful. This makes for a complicated relationship with food security because of the fact that wants are served well in markets if the wants are backed by purchasing power, but needs without the presence of such means, are not.

Rights, as a category of human self-definition and philosophical debate, have been entering markets as an evolving moral category for less than one hundred years. Not inherent in markets, economic rights have gradually been codified from principles of freedoms of conscience and broad economic imperatives, such as the freedom from want into a series of moral and economic rights, like the right to labor and the right to food.

The new millennium’s expansion of moral concepts with economic relevance, such as the Sustainable Development Goals and the UN Global Compact, today provide a joint mental framework with the economic concepts of stakeholder capitalism and corporate citizenship. Forward-looking companies with long-term profit perspectives as well as defined social agendas have become beholden to sustainability and the responsibilities that determine the societal embeddedness of a business.

Notes informed by the Lebanese market dilemma

Lebanon has a peculiar system of societal organization that combines entitlements of quasi-dynastic or familial, tribal, and religious-based entitlements. This combination produces a predilection to maximize economic opportunities through social networking and the exchange of goods. The system’s immersion in the recent crisis illuminates many aspects of the market system which have implications beyond the very painful crisis experience. In this sense of abstract evaluation, [inlinetweet prefix=”” tweeter=”” suffix=””]the crisis has demonstrated impressively that markets react to all interventions.[/inlinetweet] They can be distorted by well-meaning subsidies, but also by charitable interventions that in turn create black secondary markets.

On a very important, constructive note, markets are extremely resilient and the lingering crisis emphasizes how markets, from regulated to gray, and the blackest of black markets, favor not only those who are financially resourceful – in the form of purchasing power – but they also smile on those who excel in negotiations and the uncovering of new opportunities. Markets in this way have self-regeneration capacities which can be indifferent to state actions, and extend far beyond governmental intentions and inferences.  

It is a lesson from the global experience with inflation –  a novel shock for the G7 economies in comparison to their experiences of the past forty years – which shows that concentration of corporate market power in times of inflation makes it easier for the strongest to set prices at will. Customers lose sight of the price logic and are confronted with information deficits on the validity of price increases. High-powered market players can use bouts of inflation to pass own cost increases onto consumers and even increase prices further than justified by cost hikes.

In this regard, in a comparison with developed markets’ far more intense inflation rate, and the complex inflation shocks exposed to Lebanese consumers shows on one hand how severely weak public controls and ill-managed, understaffed consumer protection systems will amplify the market power of the dominant players. In the markets of food security, it will worsen the divergence between powerhouses and lower-powered stakeholders, but also cause a widening of the societal market sphere through the entrance of non-commercial and social orientation.

On a general level, Lebanon is a prime example to show that markets will be stifled in artificial complacency under conditions of imbalanced monetary and market distortions from cronyism. While the departure from such a situation becomes more painful the longer the distorted system has been practiced, freeing the market from illogical and unsustainable restraints, such as the removal of subsidy schemes and forced abandoning of artificial monetary stability, opens new windows for the rebalancing of market shares, product availability and prices.

This removal of stability under a construed status quo can be marginally beneficial to new entrants and detrimental beyond measure for too many stakeholders in food markets. But in decentralized and informal markets, the beneficial effects of entrepreneurial market forces in the essential good markets might come to play out more quickly than in centralized, highly supervised, or concentrated markets – up to a point.

Markets can incur inordinate divergences in the ability to satisfy wants, but markets in the context of an intact social fabric and a tradition of mutual solidarity can perform better than economic models in the satisfaction of needs. Moreover, as crises reshape the economic playing field, markets seem to have the capacity to eventually produce unexpected benefits for the realization of economic rights and unleash new and socially constructive, economic energies.

November 15, 2022 0 comments
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AnalysisFood securitySpecial Report

Falling food safety standards have left a population sick

by Rouba Bou Khzam November 15, 2022
written by Rouba Bou Khzam

Access to sufficient quantities of safe and nutritious food is a basic right, yet in Lebanon, such access can no longer be guaranteed. The three-year old economic crisis, which quickly expanded into a socio-economic crisis, has radically changed the lives of citizens up and down the country. Priorities have switched: how does a mother choose whether to buy meat for her children or sanitary pads for herself? Filling the car with gasoline, or buying medicine? Such ever-present dilemmas have forced many to resort to purchasing cheaper items, which is leading to a higher risk to consumer health and safety. 

In Lebanon, slipping food safety standards is a by-product from a range of external deteriorations: widespread electricity shortages, depreciation of the Lebanese pound, the dwindling state subsidy, and so on. As food inflation has reached among the highest in the world, consumers have turned to cheaper items where safety standards cannot be guaranteed. The electricity blackouts have posed a major challenge for shop owners and restaurateurs, who have been forced to chuck out huge quantities of spoiled meat and dairy produce, together losing revenues and customers. 

 Lebanon’s reliance on imports for 80 percent of its foodstuffs has been exposed during the last three years of economic downturn. The dependence has been to the detriment of the population, as US dollar shortages left the government scrambling to subsidize wheat, grains, oils, and other food items deemed essential. It forced a change in the food market and lower quality products have filled the shelves of shops. 

Food Quality and Safety Standards 

 Agro-food engineer and food safety specialist, Sabine Chahine, tells Executive that a high-quality product conforms to local or international standards which take into account aspects such as: product components, nutritional content, prohibited and permitted substances and their percentage, external shape, color, taste, thickness, acidity, and pollutants. 

 She defines food safety as food free from contamination risks which might lead to food poisoning, a malady many of Lebanon’s residents will have found themselves familiar with over the past twelve months. Possible risks range from biological (germs), chemical (sediments, agricultural pesticides, and antibiotics), physical (hair), allergic risks (wheat), and food-borne diseases, which are especially dangerous to people with compromised immunity, like the elderly or the very young, pregnant people, those chronically ill, or those undergoing chemotherapy treatment. 

Absent Checks 

The economic crisis has led to long-term repercussions and successive crises across sectors. One of the more tangible aspects has been the rise in cases of food poisoning, a direct consequence of the breaking down of basic services like electricity and water. [inlinetweet prefix=”” tweeter=”” suffix=””]Daily blackouts mean food in fridges and freezers cannot be kept at required temperatures[/inlinetweet], which has caused a surge in bacteria growth and sickness, though it is difficult to gauge the precise amount of cases aside from anecdotal evidence, as the Ministry of Public Health does not publish regular figures. 

 “Nowadays, controlling the quality and safety of products in the Lebanese market is no longer as effective as before,” Chahine says, explaining that citizens are no longer able to afford products from reputed international brands with ensured safety standards. 

 “We are witnessing an increase in cases of diarrhea that usually appear in the summer season as a result of the high temperature, but this increase is due today to the power outage that leads to the multiplication of bacteria in foods. As we know, food must be stored and preserved at temperatures below 5 degrees, especially cheese, dairy, meat, raw chicken and eggs… These foods, if they carry bacteria and are placed at normal room temperature, will lead to the proliferation of bacteria and cause food poisoning.” 

 Chahine also notes that salmonella bacteria are most commonly found in foods in Lebanon, as well as other types of bacteria spread through contaminated surfaces. “The roads are full of waste, which causes a gathering of rats, flies and mice, which carry germs with them and distribute them wherever they are,” Chahine says. 

 The economic crisis and subsequent deterioration of living standards has caused a rise in public health concerns, resulting from slacking food safety standards among the responsible government departments. Elie Bteich, chief executive officer of Byscon Consultancy, a local firm specializing in all food safety, quality, health and environment management systems, notes that an absence of proper supervision and safety checks has led to more people buying “corrupt” materials for their lower price. “The spread of spoiled meat is the result of poor preservation or the presence of bacteria in it, which is usually sold at low prices after some traders refuse to dispose of it and seek to resell it,” Bteich says. 

 Some meat and dairy items are entering Lebanon in an illegal manner, according to Bteich, and as such are averting necessary quality control checks. “[The food is] either not fit for eating or spoiled, as a result of being transported in unrefrigerated cars and in very bad conditions, or in warehouses that lack electric current and that do not meet the safety requirements,” he says. 

 Earlier this year, the Bekaa Health Department was forced to shut down four butchers after 50 residents were struck with food poisoning from eating raw meat, and subsequent testing found four separate butchers were selling contaminated meat. 

Bteich notes that among Lebanon’s dairy and cheese factories, while there are “very reliable and respectable factories,” there are also some which are “not subject to any supervision and the quality of their products cannot be ascertained.” 

Careful Consumers 

 Over the last year, many Lebanese have been discovering different ways to avoid food poisoning; buying items and cooking the same day, going vegan or simply choosing to purchase cupboard items which do not rely on refrigeration. Sabine explains that “food remains edible for four hours after a power outage, but after this period some foods spoil quickly, and they must be disposed of immediately, such as raw foods like chicken, meat and fish.” 

 She also says that consumers must be aware of the meat’s color, smell and texture. “It must not have a sticky substance on it because this means that it has begun to spoil. As for chicken, when pressing on it, there should be no traces of fingers on it.” Any animal-based products, like dairy and eggs, Chahine also advises to take similar precautions with, like buying in small quantities at a time. 

Looking at the larger picture, changing mentalities by improving education should also be included as a method to improve food safety among the population. [inlinetweet prefix=”” tweeter=”” suffix=””]Bteich recommends increasing consumer awareness through training seminars[/inlinetweet], or even television campaigns. However, he says that on a government level “a full plan from laws including importation, to distribution chains, storage and food handling should be implemented on all levels.” 

Measures Taken  

 The growing absence of health and safety standards among Lebanon’s food is an ongoing challenge for society and the state, and has already come at a great cost to the wellbeing of citizens, just at a time when the health sector is juggling its own shortages and financial woes. Earlier this year, the Ministry of Public Health launched an action plan for food safety, following a tumultuous previous summer of food-related sickness. Caretaker Prime Minister Najib Mikati called the issue a “top priority” for the reputation of the industry and for the safety of citizens. The ministry’s absence of a central laboratory, which the Health Minister called “one of the most important controls for the issue of food quality and medicine,” will remain one of the major hindrances to safer standards for residents. 

Like many of Lebanon’s other sectors, the support of the international community is necessary to improve standards and services through training and education, equipment and expertise. However, unlike many other sectors, the health of the population is dependent on the quality of the food industry, and as that quality falls, so too does the wellbeing of the individual. 

November 15, 2022 0 comments
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AnalysisFood securitySpecial Report

Lebanon’s food security in crisis-mode

by Rouba Bou Khzam November 15, 2022
written by Rouba Bou Khzam

The latest chapter of Lebanon’s compounded and overlapping disasters has emerged in the shape of a bleak and multifaceted food crisis. As if a hard-hitting dose of COVID-19, the Beirut port explosion of 2020, and a crashing economy was not enough, this year, world-wide economies were shaken by Russia’s war in Ukraine which triggered unprecedented global food security fears. 

For Lebanon, the crisis has exacerbated social hardships among an increasingly poor nation, which has disproportionately impacted poor and vulnerable households, and reinforced inequality. [inlinetweet prefix=”” tweeter=”” suffix=””]Every week, more and more families are resorting to cut staple items from their shopping lists[/inlinetweet] as food inflation rates rise uncontrollably, while politicians idly stand by. Lebanon’s food sector, insecure prior to the economic crisis, now has all its weaknesses exposed. 

 Yet the war in Ukraine and its global ramifications are not only to blame. There are multiple factors which contribute to food insecurity in Lebanon; some have been born out of the crisis, while others have plagued the sector for years, like neglect of agricultural investment, local and regional political instability, and financial mismanagement. 

 Food Availability 

 Lebanon’s position as a net importer of food has been uncovered as a major vulnerability in light of the global disrupted grain supply chain, which is  aggravating existing difficulties in maintaining adequate stocks. In addition, as the Lebanese pound has collapsed, the Central Bank’s foreign exchange reserves are dwindling, and consequently its ability to subsidize essential foodstuffs. 

 The Ukraine-Russia conflict continues to exert pressure on international wheat prices and threaten future harvests for the two fighting countries, both renowned for their grain output. This is particularly concerning for the Middle East, where many countries rely on Ukrainian and Russian wheat to feed societies reliant on bread as a daily food. In Lebanon, around 78 percent of imported wheat comes from the two countries. 

 Prior to this year’s global wheat disruption, Lebanon’s food accessibility had already dealt a major blow in 2020, when the country’s main grain silos were blown apart in the huge port blast in Beirut. With a capacity to store 120,000 tons of grain to meet a consumption rate of 50,000 tons a month, the disaster was a major hit to the core of the country’s food security. 

Meanwhile, Lebanon’s oligopolistic food importers, who hold control over prices and stocks, have worked to the detriment of supplies. Supermarket shelves filled with an array of American and European brands have been emptied and instead stocked with Turkish and Syrian products, as suppliers struggle to access US dollars.  

 Despite rich soil and an apt Mediterranean climate, decades of poorly managed economic affairs led to inefficient use of arable lands. Cultivated land represents less than 25 percent of the country’s total landmass, according to a country profile report on Lebanon from United Nation’s Food and Agriculture Organization. Land ownership is also highly unequal and fragmented. The agricultural sector itself is dogged by poor financial access, partly from the financial crisis and also from unsophisticated production processes. In addition to the high cost of production, it leads to a weaker competitiveness for Lebanese products.  

 

Food Access 

 Several international reports have proven the impact of the economic crisis on food security in Lebanon. Recently, the World Bank published findings showcasing Lebanon’s food inflation rate: the second highest nominal inflation rate in food prices globally during the first eight months of 2022. This was also matched by a report from International Information, a Beirut-based research and consultancy firm, which detailed a 500 percent rise in the cost of living from the beginning of 2020 until the end of August 2022, as the prices of imported goods increased by more than the rise in the exchange rate of the lira to the dollar, as well as the price of locally produced goods.  

 On a day-to-day level, the deterioration of food security has forced a change in local eating habits and citizen’s health. Speaking to Executive, Maha Hoteit, member of the National Scientific Committee for Food Safety of the Ministry of Public Health and professor at the Lebanese University, explains that over half the Lebanese population suffer from poor dietary diversity and are eating less than two meals a day. 

 Food security requires “food availability, food access, proper food utilization, and stability or consistency in these components,” she says. “The biggest challenge today is not in securing food commodities, but in the ability of citizens to pay for them, especially after the dollar exchange rate approached LL40,000 and the purchasing power of citizens decreased further.” She also mentioned that people have been forced to abandon meat and dairy foods since prices jumped, creating potential health vulnerabilities and deficiencies in essential nutrients.  

 “Oftentimes, people are quitting breakfast to eat mankousheh or a falafel sandwich for lunch, and in the evening, they eat sweets to withstand hunger to the next day,” Hoteit says, before adding that such a diet can harm a child’s mental and physical development. Hoteit says the quality of food has been negatively affected by the country’s economic collapse, while underlying poor standards have exacerbated it: “Poor packaging and preservation of foods, especially proper cooling, has caused problems in the digestive system of some, in addition to an increase in poisoning rates, and its symptoms including vomiting, [and] diarrhoea.” 

 Over the past twelve months, a surge in the number of food poisoning cases was reported widely in local media, as the hot temperatures of the summer combined with power outages have impacted refrigeration and food hygiene. 

As for whether the focus on grains is sufficient as a substitute for other items in the diet, Hoteit answers: “Sufficient amounts of proteins that are usually consumed from fish, white and red meat can be obtained if the majority of dishes are from Lebanese cooking characterized by a mixture of ingredients, especially grains and vegetables. As for vitamins, minerals and fiber, they are all available in Lebanese dishes and cereals, thus focusing on them in the diet is more beneficial for human health without meaning that we should completely abandon meat, chicken and fish in our diet.”  

A recent study by the American University of Beirut also demonstrated the changing nature of local food habits. Some 91 percent of households (among a survey of 931) have had to reduce the quantity of non-staple foods that they buy, and 33 percent of adults were skipping meals more than once a week.  

Need for Immediate Action 

Perhaps the worst part of the current food insecurity cycle is that it was predictable. For decades, the international community has warned that without a real long-term food and nutrition security strategy, Lebanon’s next food crisis would be deeper and existentially damaging. 

 Despite the urgency of the situation, the government is still struggling to pass a comprehensive economic recovery plan which could mitigate parts of the crisis. The paralysis has forced the mobilization of civil society and the extensive Lebanese diaspora to meet the growing desperation. Multiple grass-roots organizations, like Food Blessed or Matbakh el Balad, have since emerged and their thousands of volunteers are delivering food packages and warm meals across the country. But this remains a glaringly short-term emergency solution, and does not address root causes, which lie in the hands of the government. 

 In August, the United States announced a $29.5 million humanitarian aid package to Lebanon, which will target vulnerable populations in light of rising food insecurity. Within the package, $14.5 million will support vegetable and grain farmers with seed and seedling supplies to help local food production, among other projects for local producers. 

Lebanon has the highest proportion of arable land per capita in the Arab World, yet its agricultural sector is neglected. Nonetheless, the agricultural sector alone is no miracle cure. Only the adoption of a broader set of economic reforms will help restore confidence in the country and promote financial stability, thus prompting the international community to step up their assistance. Essentially, the world will help Lebanon when Lebanon helps itself. 

November 15, 2022 0 comments
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Food securityOverviewSpecial Report

Food made in Lebanon: Buzzing with diversity and contradictions

by Thomas Schellen November 15, 2022
written by Thomas Schellen

The village of Kfarmishki in the western Bekaa hugs a hillside. Its apparent central intersection, whose main features include a roadside bench and a resilient donkey, takes three seconds to traverse and less to fade into memory. 

 Kfarmishki is not exciting in the picture-book sense of some other Lebanese villages. If there were such a thing as, however staid, a national competition for village beautification (the kind that once upon a time motivated villagers around Western Europe to embark on gardening and decorating frenzies), a crafty public relations copywriter might call Kfarmishki the jewel of the Bekaa or the pearl on the hill. They would be lying – except from the angle that it is an average village in a land where villages have deep-rooted, and thus intriguing, identities and communal histories. 

There are a few routes for getting to Kfarmishki from Beirut or any of the coastal traffic centers. Yet, whatever route and mode of land transport one selects, getting to this village will require a couple of hours travel on bad roads and there is no direct public transport link from pretty much anywhere. Also in this regard, it is a typical Lebanese village in the deep hinterland. But if the copywriter were to attach one or other glorifying epithet to this remote aggregation of humanity, our hypothesized PR wordsmith would actually be speaking truth when portraying Kfarmishki as a village that is looking for a sustainable future, and doing so with foreign financial support – in an initiative that is developing up from the vine-roots (the grass-roots allegory seems misaligned with the agricultural geography in the area) because of its enterprising denizens. 

As an expression of their entrepreneurial vigor and after a two-year interruption, the Kfarmishkites (or Kfarmishkians?) organized their 4th Mouneh and Grape Festival in September 2022. The festival turns the dusty square in front of its church into a stage for young dabkeh performers, and the adjacent street into a lively market with two rows of booths displaying local products; from fresh organic fruits to a large range of “mouneh” or preserves/pickles, as well as wine (“Domaine Pierre”) and arak. The occasion of the festival also makes for an affordable opportunity (exceptionally on this weekend, there is a dedicated bus service from Beirut) to get a first-hand feel for the economic mood among the farming community. 

Wissam Ek-Khoury, the head of Kfarmishki’s local farmers cooperative

 This year, the harvest festival has seen some weakening in the number of urban visitors, Wissam El Khoury, head of the local cooperative, tells Executive. “There have been difficulties in organizing the festival because everything has changed from 2019 until today. The crisis has affected Kfarmishki and all farmers are affected by it,” he acknowledges.  

The agriculturalists struggle to succeed against the same pressures facing the urban majority of Lebanon, like the loss of subsidies, inflation, depreciation, and shrinking purchasing power. Yet, when compared to Beirut and the other large cities, Khoury nonetheless sees a better proposition for sustenance where he is. In his view, [inlinetweet prefix=”” tweeter=”” suffix=””]agriculture is less vulnerable to the economic and political situation than other sectors.[/inlinetweet] “In Beirut, it is more difficult and so we prefer to live in Kfarmishki. Farmers are resorting to plant their produce and meet their own [food] needs from this. It is somehow easier than existing in the city,” he elaborates in a mixture of Arabic and English, with the active translation support of his daughter.

According to Khoury, [inlinetweet prefix=”” tweeter=”” suffix=””]a group of farmers set up the village co-op in 2013 and since then developed a local support farming infrastructure [/inlinetweet]that included trucks and other equipment, which were acquired with the help of Lebanese and international NGOs. The co-op has 25 members among Kfarmishki’s agriculturalists, of whom there are about 100 in total.

Photovoltaic renewable energy capacity was installed on the roof of the village school well before the collapse of electricity subsidies, as well as in the co-op’s most recent initiative, a central mouneh kitchen, which was implemented this year. However, the open-air irrigation water dugout reservoirs down the hill are mostly empty this September, because of high fuel costs that impede the transportation of water, Khoury says. Other infrastructure needs, such as cold storage facilities, require costly transportation, while the farmers’ markets in Beirut are too far away to access regularly. A platform for marketing the village’s agro-food outputs is desirable and being thought about, but absent. 

Within the boundaries of their rural circumstances, the farmers have adopted an ambidextrous mix of practicing subsistence and export orientation. “We plant all kinds of fruits and greens and vegetables on our lands to secure our existence. We use only pesticides that are certified and permitted when shipping products to the world and the co-op has adopted the [European] Global G.A.P. [farm management] standards. We export all our grapes. Our biggest challenge is in developing our competitive advantage versus countries that produce the same [fruits and vegetables] as we do,” Khoury says. 

Hearing a co-op leader talk about competitive advantages and learning that international standards are known and professed to be at the level of Lebanese village farming should not surprise in the least. Assuming agriculturalists to be ignorant, despite their position as economic actors in an ever more interconnected and competitive world would be an insult to the intelligence and development of rural communities anywhere, and certainly in Lebanon with its high-middle-income background and predilection for innovation and advancement.     

Leaving Kfarmishki and crossing the Bekaa plains on the return trip to Beirut, images of ripening crops in field after field, interspersed with fields where groups of seasonal workers are engaged in harvests, reinforce the impression of a highly fertile plateau that is a base for agriculture and sustainable agro-industry. Lebanon, despite its high degree of urbanization and an estimated rural population of about 11 percent, is a country of many villages where economic hardships have assuredly intensified due to three crisis years but where solutions, evidenced most visibly in new renewable energy installations, are in process. 

Journeying past Bekaa villages is finally a reminder that clusters of people have been living on these fertile lands since Neolithic times and those blessed with living here have regularly been producing food far in excess of their subsistence needs. In comparison to the norms of the period, high agricultural productivity has been the prevailing reality already when Josephus, the Jerusalem based, Roman-era historian of the first century AD, saw “not a parcel of waste land” in his military forays into the “Galilee” region between Mount Carmel and the Litani river. 

Some commentators on Josephus’ exuberant descriptions have supposed exaggeration in his praise of a Levantine territory that is partly in modern Lebanon, as one being “everywhere so rich in soil and pasturage and produces  such variety of trees, that even the most indolent are tempted by these facilities to devote themselves to agriculture.” However, save for man-made food catastrophes (most famously the Mount Lebanon famine in World War I), during the past 20 centuries since the scribe of the Roman empire reported from Galilee, [inlinetweet prefix=”” tweeter=”” suffix=””]territories in Palestine and Lebanon have to this day been absent from the long list of famines around the world.[/inlinetweet] Intense and extensive life-threatening disruptions of this agro-system’s productivity have been few and entwined with human failures to let each other live.

Peeling away misperceptions  

The Levant was noted as one of the original interactive habitats of wheat and human by five American University of Beirut researchers in a 2019 paper: “Cereal culture, including cultivated strains of wheat and barley, originated in the Levant and expanded northward… into central Europe in the 6th millenium BC.” But even without agonizing over the irony, it is doubly counter-intuitive to think that this thriving landscape, albeit entangled into a negative cycle of diminishing water, energy and biodiversity resources, would fall into a severe wheat production crisis in the third decade of the 21st century.

It also comes at a time when global wheat cultivation has been producing yields which have fluctuated in annual and multi-year terms, but for half a century have moved along an upward trend line to unprecedented magnitudes. 

Not only run against the historical evidence of the agricultural fecundity of Lebanese lands, and against this year’s harvest season’s evidence of the Lebanese productivity having survived the most intense crisis years that any rational economists could have imagined, such assumptions generate an obligation to check the facts and weed out the exaggerated allegations related to food in Lebanon, and the general size of the food insecurity threat.  

The community of nations officially adopted the goal to eradicate acute food insecurity and hunger along with poverty in 2000 with the establishment of the United Nations Millennium Declaration. When 15 years later, the Millenium Development Goals were expanded into the Sustainable Development Goals (SDGs) the target of “zero hunger” became the second of the 17 SDGs. Against a background of progress towards achieving SDG 1, eradication of poverty, and 2, zero hunger, in the 2000s and much of the 2010s, two things must be recognized: firstly, progress towards SDG 2, according to the UN, has been slipping away since 2015; secondly, only after Russia’s invasion of Ukraine did the topic of food security come to dominate the global debate. 

One cannot ignore that many speeches and passionate declarations about the risk or even certain coming of a “global food crisis” during the past eight months have been driven by politics. The sudden rise of “panicky headlines” about a global wheat crisis was not based solely on the facts, as noted by Sarah Taber, a crop scientist and contributor to US publication Foreign Policy. She wrote that a regional supply crunch of wheat was clearly present for countries that source wheat from Eastern Europe (such as Lebanon and other Middle East and North Africa countries), but argued that this was not the same as a global wheat crisis. According to her, record crops in Australia, India and elsewhere were indicating that globally, “there was enough to feed everyone” – but only if the transport and distribution questions are addressed.    

And yet, the evidence suggests that the politicization of the wheat issue immediately after the Russian invasion of Ukraine has been more than a layer of propaganda warfare. The slinging of mutual accusations of “weaponization of food” by parties with direct and indirect stakes in the Ukraine conflict – the latter including the US  and the European Union and a host of international organizations – has drawn the attention of leaders, global financial organizations (the IMF created a food shock window), and influencers to a food crisis that would otherwise not have received the attention that it needs. The eruption of the Ukraine conflict into a regional supply crunch of wheat and edible oils is a wake-up call in alerting the world to the return of hunger on an epidemic and devastating level. 

In its latest report on the state of food security and nutrition, the danger of hunger has been quantified by the UN Food and Agricultural Organization (FAO) as afflicting nearly 830 million people in 2021. On the occasion of World Food Day this October, the UN World Food Program (WFP) said food crises have this year been escalating in vulnerable countries such as Sri Lanka and Pakistan. Moreover, the organization announced that it was “holding back famine” in five countries: Afghanistan, Ethiopia, Somalia, South Sudan and Yemen. “Things can and will get worse unless there is a large-scale and coordinated effort to address the root causes of this crisis,” warned WFP Executive Director David Beasley. 

 In a search to gain an accurate perspective by starting from the most afflicted area, the acute food insecurity and danger of famine in parts of Somalia stands out through its horrendous dimension. Estimates read that 6.7 million people are suffering acute food insecurity,  and 300,000 lives will be at risk of starvation at the end of 2022, among a population of 16 million. Recent analyses by various scientists, including social scientists, say that the current crisis marks the third famine event in Somalia since 1990. Analyses of Somalia’s large-scale famines of 1991 and 2011/12 stipulate that long periods of drought underlying the catastrophes are linked to long-standing climate phenomena in the past, and to climate change today. 

In a comparison of numbers of victims of starvation in Somalia and Ethiopia in the past decade, other academic researchers have demonstrated the importance of state capacity and governance in keeping famine at bay. Scientists noted the absence of mitigating factors in Somalia, where a quarter of a million people starved in 2011/12, versus Ethiopia, where very few fatalities occurred in a severe drought in 2015. The factors that kept famine in Ethiopia in check included the presence of improved capacity by the state to deliver services and unencumbered use of international aid. 

This is a clarion call to tell all of humankind that the ethos of conflict resolution must prevail against the increasing social and political rifts between and within nations, while diplomacy has to be intensified and international solidarity cannot stop. As the highly divergent food crisis outcomes in countries at the Horn of Africa in the 2010s have shown, provisions of international aid, but also inter-communal and intra-communal support networks of expatriates and families contribute greatly to lowering levels of acute food insecurity and famine. Extension of aid to tribes and ethnic groups that suffer from being ostracized serves food insecurity mitigation needs. Control of unrest and mitigation of underlying factors such as racial hatred and social exclusion of ethnic groups are vital in averting famines, as they can lead to, at least temporary, cessation of internal warfare by militias and a reduction in conflict exposures of aid workers. 

Tackling the obstacles 

The facts (scientifically confirmed) of agricultural capacity and production on the ground are that the world is producing more food than ever before. The moral consensus view of academic and activist food security advocates is that in 2022, no one should suffer from lack of food, let alone extreme starvation.  The issues entwined with the politics and economics of food in the current global setting should leave no mind in doubt that food crises, up to the threats of acute food insecurity and famine – the difference between the two being contained in degrees of severity of malnutrition and the mortality rates in an affected population – are correlated with issues of human behavior, such as war, wastage, and an overweight of anonymized financial greed. 

What does this imply for the food crisis of the tiny country of Lebanon? Like it is for all countries, [inlinetweet prefix=”” tweeter=”” suffix=””]the global rise in food insecurity is also a local wake-up call. [/inlinetweet]This year’s intense declarations of unfolding food security emergencies, whether in drought-hit countries or countries inundated by floods, require looking at the problems of equitable access to food and agro-industry products as the unsolved catastrophe at the core of food insecurity. And so it is in Lebanon. “The four main pillars of food security are food safety, and the availability, accessibility, and utilization of food. Among these four pillars, accessibility relates less to producers but is found on the consumer side, where it is threatened,” Marc Bou Zeidan, a microbiologist and manager of the Qoot food innovation cluster, tells Executive. 

According to him, the economic crisis has impacted food security of the Lebanese people in a tangled way. The local market could not provide hard-currency income to producers and both farmers and agro-industrialists were inextricably drawn to export markets. As these markets are highly demanding in terms of quality, reliability, branding and regulation, smart agriculturalists and agro-industrialists secured certifications and focused on quality for exports. “The crisis has shifted the interest of producers towards exports and neglect of the local market. [This shift] is very important for the sustainability [of producers] but very bad for food security in the local context.[inlinetweet prefix=”” tweeter=”” suffix=””] We are exporting all that is good and all that remains here in Lebanon is what is of lower quality. [/inlinetweet]Although I don’t want to be rude [in saying so], what is left here in Lebanon is risky in terms of food safety. This is a very dangerous result of the shift towards exports.” 

The contradiction between the need to export for economic sustainability and the need to serve the population in the country with safe and healthy foodstuffs, points to the importance of strategies that develop the Lebanese agro-sector from within, under the inclusion of international funding and advisory partners, rather than being imposed from an administrative distance or, as seen early in the 2000s, imported as wholesale concepts that get stuck in the traps of corrupt bureaucracies and centers of political power.  

According to the food security experts and agricultural stakeholders met by Executive, markets and multinational corporations in the agro-industry must not be shunned but a balance of food sovereignty and food security in an overall framework of food interdependence needs to be targeted. Opportunities based on certification, compliance with quality standards such as Global G.A.P., grass-roots collaboration among agro-sector members – of which the Qoot cluster, according to Bou Zeidan, has seen amazing examples in its five years of operations to date – and smart use of natural food export windows, abound. Doing all this while applying partnership strategies that are constructed from the bottom-up and are inclusive of top-down and administrative and regulatory buy-in, will allow the production of an agro-food earnings pie which will be worth multiples of the annual food export earning currently achieved, and that will boost food security for the Lebanese. 

November 15, 2022 0 comments
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PodcastsSpecial Report

Food security & food safety

by Thomas Schellen, Atef Idriss & Marc Bou Zeidan November 10, 2022
written by Thomas Schellen, Atef Idriss & Marc Bou Zeidan

In Lebanon, 46 percent of households are food insecure – a figure likely to rise in the coming months as state subsidies on essential imports like cooking oil, bread and rice, come under strain as the government struggles to provide foreign currency. As Lebanon’s ability to import goods reduces, it is necessary to turn inwards and assess the ability of the local agriculture industry in meeting the country’s growing needs.

With that in mind, Executive talks to Atef Idriss, CEO of the Middle East and North Africa Food Safety Associates, and Marc Bou Zeidan, a cluster manager at Qoot, a Lebanese agri-food cluster, to discuss efficiency gaps in the sector, while exploring feasible solutions and sustainable opportunities.

 

November 10, 2022 0 comments
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Brand Voice

Exclusive Interview with Ali N. Karaman

by Philip Morris Lebanon November 4, 2022
written by Philip Morris Lebanon

He has been with PMI for 23 years, and now, Ali N. Karaman is Philip Morris’s newly appointed Managing Director for Egypt & Levant. In an exclusive interview with Executive, Karaman takes us through PMI’s plans for the next coming years in fulfilling a smoke-free transformation, the value in Lebanon’s market, and PMI’s new vision in today’s fast changing world.

Prior to his appointment as MD of Philip Morris Egypt & Levant, Karaman served as the Director of Smoke Free Products for the Middle East cluster, where he led the commercialization of Smoke Free Products in many Middle East markets while establishing deep industry knowledge and strong commercial expertise across various complex markets. 

  1. Can you discuss the transformation taking place at PMI and the company’s new vision?

PMI’s global business transformation is about delivering on our vision to create a smoke-free future. To make our vision a reality, we are transforming and staking our entire future on scientifically substantiated smoke-free products that are a much better alternative for all adult smokers who would otherwise continue smoking. Getting away from cigarettes would be the most significant, positive disruption for the estimated 1.1 billion adult smokers worldwide—and we have the means to achieve this in the not-too-distant future. 

  1. Why is the Lebanon considered an important investment market for Philip Morris? 

Despite the endured multiple crises including economic, financial, political and security crises, Lebanon remains a dynamic country. I’m impressed by the resilience of the Lebanese people and their ability to remain forward looking and progressive despite the many challenges they have faced. 

PMI has always been present in Lebanon, even during the turmoil of the civil war. In 2018, we took our partnership with the Regie to the next level when we started Marlboro medium production locally at the Regie’s facilities. We invested in new lines that are still operational and remain committed to Lebanon and further development of our business relationship with the Regie. 

  1. Why is it so important for Philip Morris to develop smoke-free products, especially in a country like Lebanon with high smoking rates? 

Since 2008, we have invested more than USD 9 billion to develop, scientifically substantiate, and commercialize smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes, as smoking is the cause of serious diseases, and the best way to avoid the harms of smoking is never to start or, for those who smoke, to quit. That is why PMI is now actively working to expand its purpose and evolve into a broader lifestyle, consumer wellness and healthcare company, extending its value proposition and innovative capability to commercialize products that go beyond tobacco and nicotine. 

In Lebanon, there are more than 1.4 million smokers, and has one of the highest smoking incidences in the region. Therefore, Lebanon is an important market for our smoke-free vision. The latter, combined with the dynamic and progressive nature of the Lebanese people, it was imperative to introduce our smoke-free vision in Lebanon. We have launched IQOS back in February 2020, just one year later we have launched Lil, a more affordable and accessible device. We have increased our offering to the Lebanese consumer and are constantly looking for ways to help Lebanese smokers switch to better alternatives.

  1. Can you explain, in your own words, why heated tobacco products cause less harm that traditional cigarettes which require burning? 

The available information about heated tobacco is not a matter of theory or speculation. It is substantiated scientifically and through tests and practical use. Heated Tobacco products emit on average 90% lower levels of harmful chemicals compared to cigarette smoke, but that does not mean 90% reduction in risks as Heated Tobacco products are not risk free. In heated tobacco products, the tobacco is heated at a controlled temperature without burning it, in order to release a nicotine containing aerosol. In the aerosol of a heated tobacco product, water and glycerin form approximately 90% of the aerosol mass, there are no solid particles, and the levels of toxicants are reduced on average by 90% compared to cigarette smoke.

  1. What can you share about PMI’s long-term goals 5-10 years down the line in the region? 

In 2015, our CEO Andre Calantzanpoulos made a bold statement announcing the ambition of the company to replace cigarettes with smoke-free products. Since then, Millions of adult smokers have already switched to our smoke-free products and given up cigarettes completely—and this is just the beginning. One of our key strategic priorities is to develop, assess, and commercialize a portfolio of innovative tobacco and other nicotine-containing products. We draw on the expertise of a team of world-class scientists from a broad spectrum of disciplines to help us reach our goal of replacing cigarettes with less harmful alternatives. Replacing cigarettes with less harmful alternatives is at the core of our business strategy and sits atop our sustainability priorities.

In our region, there is a high smoking prevalence with little awareness on the available alternatives to smoking. However, I strongly believe a smoke-free future is attainable, and the benefits it can bring to the people who would otherwise continue to smoke, and hence to public health, are enormous. However, the company cannot succeed alone. Together with governments and civil society, we can maximize this opportunity by achieving a consensus that smoke-free alternatives, when subject to proper government oversight and regulation, are part of a sound tobacco policy.

  1. How do PMI’s Environment, Social, and Governance (ESG) goals come into play in Egypt and the Levant? 

To meet environmental, social and governance (ESG) issues it is necessary to employ adequate governance practices. PMI’s plans seek to take into consideration sustainability and social impact strategies, which are very important, especially in Egypt and the Levant. Our company principles of turning words, intentions and commitments into action are going to be translated into cooperation with organizations and institutions to achieve a positive impact and try to make a difference with regard to many aspects of ESG issues.

  1. Why do you think it is critical to be launching a new vision characterized by EPPIC disruption in today’s world? 

In today’s fast-changing world, you can always choose to do nothing. Instead, we’ve set a new course for the company—we have chosen to do something really big. We’re creating a PMI that will be remembered for replacing cigarettes with a portfolio of revolutionary products. This the EPPIC disruption in our opinion as it is characterized by five main criteria, which is being Efficient, Purposeful, Pro-social, Inclusive, and Constructive. 

PMI’s new vision reflects the company commitment to society, which expects us to act responsibly. We are doing just that, by delivering a smoke-free future. Our vision is critical as millions of adult smokers are looking for less harmful, yet satisfying, alternatives to smoking. Our mission is to give that choice while keep warning them about the risks that could be associated with any of our products.

  1. What do you anticipate will be the biggest challenge in your new role as the Managing Director for Egypt & Levant? 

The region has been very welcoming to me so far. I also consider myself lucky to be working alongside a very motivated and exceptional team in Lebanon. Throughout the years, this team has been able to achieve a lot of successes and drive the business forward. Our people are our main asset that will help us to deliver exceptional results and maintain our successful relations with our stakeholders, business partners, consumers and regulators.

I believe a big management challenge in any place is to have a clear vision and strategy. Fortunately, this is exactly the advantage of working with PMI. The company vision and strategy are obvious, and my role as Managing Director is to communicate them to consumers in the region I work in. The challenge is to make the smokers see and feel the benefits of our policy of smoke-free products, to convince them of switching to “less-harmful” products or to quit smoking completely.

This article was provided by Philip Morris Lebanon.

November 4, 2022 0 comments
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Podcasts

Banking & Finance

by Thomas Schellen, Diana Menhem & Khaled Zeidan October 3, 2022
written by Thomas Schellen, Diana Menhem & Khaled Zeidan

Unrest among depositors and citizens has taken new shapes in recent weeks. Tempers are out of control in the face of inactive decision makers and silent banks. The current time is pivotal not only for political decisions, but also for hopes of economic reform and legislation to put the country on the road to recovery, after years of major disruption to Lebanon’s banking and finance sector.

With that in mind, Executive talks to Diana Menhem, managing director of Kulluna Irada, a local NGO advocating for reforms, and Khaled Zeidan, general manager of Capital-EE, a corporate advisory firm, about the future needs of and options for Lebanon’s financial markets.

October 3, 2022 0 comments
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Banking & FinanceCommentSpecial Report

A weak position in the undeclared cyber war

by Rudy Shoushany September 28, 2022
written by Rudy Shoushany

We live in a time when hardly a day goes by without hearing about a cybersecurity incident. The need for a safe and secure digital world significantly grew after the COVID-19 pandemic, as human behavior merged online even more than before, and remote working became an everyday reality. Lebanon is no different to this escalating threat.

Since 2019, however, Lebanon has undergone an economic meltdown; a financial and monetary crisis alongside the challenges related to the health pandemic. Perhaps most importantly, Lebanon witnessed the collapse of its main economic pillar: the banking sector.

Out of all sectors, Lebanese banks had the biggest budgets to invest in cyber defense. As such, they invested significantly on infrastructure, technology, and awareness to reach what was deemed an acceptable protection level. On the other hand, the public sector was left under protected by a budget unable to guarantee a robust and proper digital transformation and cyber defense. What is more, the public sector was mainly dependent on international donors, since there was no national priority to step into the 21st century of a citizen-focused digital experience.

Many local institutions, particularly in 2018, have suffered attacks and breaches. Unfortunately, it is far too easy to access various entities in the public and private sectors. As a result, a secure transformation is greatly called for.

Lebanon’s Cybersecurity Status

[inlinetweet prefix=”” tweeter=”” suffix=””]Lebanon is ranked 109th in the world and 12th regionally in the ITU Global Cybersecurity Index 2020. Lebanon is expected to drop further in the new upcoming index.[/inlinetweet] Earlier this year, in May, the Lebanese Cybersecurity Empowering Research Team, a group of ethical white hackers, found major cyber-attacks on Lebanon. More than 2.5 million attacks had been conducted within 21 days; an alarming amount.

Various public sectors, businesses, educational institutes, and the banking sector suffer from an absence of coordination and implementation of a cyber security risk strategy. The banking sector, which was once considered the forefront of digital innovation and cybersecurity spending, is now suffering from the devaluation of the Lebanese pound, and subsequent inability to pay monthly or yearly software and hardware contracts, hindering its ability to stay up to date. There is a high possibility of software expiring without being replaced, which would arouse further dangers.

Today, Banque du Liban’s Circular 144 of November 28, 2017 regarding the protection of banks against cybercrime, is not ranked as a high priority for implementation or enforcement vis a vis the financial crisis.

The migration of cybersecurity talent or human capital, skills shortage, and inadequate salaries in the private and public sector bring a lot of challenges in maintaining and enhancing cyber security operations in Lebanon, creating a climate of “low-hanging fruits” for cyber-attacks.

The Internal Security Forces are the official body responsible for combating and investigating cybercrime, but they are in dire need of new skills, the latest technologies, legislative changes and even reliable electrical power. It is worth noting that Lebanon lacks specialized judges or lawyers in the field of information technology. In addition, from a legal framework perspective, Law 81/2018 relating to electronic transactions and personal data, has yet to be enforced despite being approved by the Cabinet four years ago.

Although, the ten-year Digital Transformation Strategy was approved in May 2022. Needless to highlight that implementing this strategy is a big challenge, regarding a lack of commitment, funding, adopting simplified and standardized measures in a Lebanese national data center, as well as a waste of time and financial resources.

2019 Cybersecurity Strategy 

After lengthy work, the three-year National Cybersecurity Strategy was published on August 29, 2019 by the government, two months before the October 17 uprising and the beginning of the economic downfall (technically the strategy should have been implemented by now).

Even though different international grants are actually supporting the strategy, having a well-planned implementation framework supported by state authority is crucial for robust coordination with the 2022 Digital Transformation Strategy. 

The strategy aims to protect government assets, markets, commercial sectors, and citizens from cyber threats and attacks. It is composed of two main sections: 1) preparation of a cybersecurity strategy and 2) establishment of a national cybersecurity agency.

The first part rests on eight pillars:

1.Defend, deter, and reinforce safeguards against external and internal threats

2. Foster international cooperation in the field of cybersecurity

3. Expand state capacity to support the development of ICT

4. Bolster Lebanon’s educational capacity within the realm of cybersecurity

5. Build up industrial and technical capacity

6. Promote exports and the global expansion of Lebanese cybersecurity companies

7. Strengthen collaboration between the public and private sectors

8. Expand the role of security and intelligence services in cybersecurity while boosting cooperation and coordination among the agencies with the support and supervision of higher authorities

Future Outlook

Lebanon has a chance to bounce back with the implementation of both the Digital Transformation Strategy and the National Cybersecurity Strategy, by strengthening its position and focusing on digital economy opportunities and citizen services.

The country is a greenfield environment for cyber developments, especially on the public sector side, since not many e-Government services are established or implemented. It actually lays the foundations to secure the right design to the full implementation, while focusing on citizenship centricity alongside contingency plans to ward off local, regional, and international threats.

Cybersecurity General Recommendations

Since the Cybersecurity Strategy was approved, there is an opening for Lebanon’s digital transformation, and with it comes an urgency for cybersecurity, like fighting cybercrime, maintaining good standards for data security, system integrity and preventing high-profile breaches. Such improvements will place Lebanon in a better position and give the country a chance to improve its position on the ITU Global Cybersecurity Index.

Lebanese National Datacenter

For a successful digital transformation, a national data center is not just an option but rather a necessity to host both the public and private sector; particularly considering the range of challenges like electricity cuts and high operating costs. There is fragmentation across the board at present, including within the banking sector; demonstrating the need for the cooperation of security information and critical security data sharing.

A national datacenter will (a) resolve the data residency problems, (b) provide 24/7 operations, (c) ensure business continuity, (d) secure better solutions, (e) centralize the management, (f) allow efficient security analysis and response and, (g) most importantly assure lower cost.

Cooperation Across All Sectors

A public private community partnership should be enabled; particularly to help empower the cybersecurity strategy and have a new business model to move away from outdated and inefficient systems.

Locally developed solutions coming from the private sector and the community can bridge the gap of accessing new affordable solutions; like licensing, upgrades, and more cost-effective management, whilst at the same time boosting the national digital economy.

Outdated Systems

The worsening economic situation and lack of foreign investment is significantly affecting the delivery of basic services and management of digital resources. [inlinetweet prefix=”” tweeter=”” suffix=””]Major capacity constraints are increasing the prevalence of old systems (hardware and software) with an outdated maintenance status.[/inlinetweet] It is important to note that such obsolete systems increase vulnerabilities for hacking attacks directly or indirectly. Among the objectives of both national cybersecurity and digital transformation strategies is to realize the best approach for addressing this emerging deficiency in financial resources. 

Governance and Legislation

Despite the government’s approved Cybersecurity Strategy and with it the establishment of a ‘National Commission against Cybercrime and for the Strengthening of Cybersecurity’, efforts need to be taken towards the actual formation of this commission and other relevant groups. Such a commission is essential to monitor the effectiveness of proposed interventions, sharing of data among various agencies and planning further initiatives to address the impacts of cybercrime. The commission can compel other administrations to comply with decisions or coordinate with automation projects. In this regard, a sustainable institutional framework with comprehensive mandate for co-ordination of all cybersecurity activities and interventions is also critical, and is currently lacking.

However, implementation of the strategy with appropriate human and financial resources are required for the effective enforcement of the Law 81/2018. In addition, implementation decrees for the management of cybersecurity interventions need to be formulated as soon as possible. 

The legal and technical approach should also be enhanced, with the main goal of identifying penal responsibilities throughout the investigation phases, while efficiently implementing actions and measures to combat cybercrimes.

One of the main challenges is to formulate a modern legal framework and to strengthen the law enforcement agencies: Army, Internal Security Forces, General Security, and State Security to provide an updated and comprehensive security system and to establish a national Community Emergency Response Team.

Cybersecurity Skills and Research

The shortage in human resources with cyber skills is contributing further to a national vulnerability for cybercrimes. As such, capacity building and knowledge are indispensable to meet cybersecurity provisions in both public and private sectors. In addition, raising awareness and providing formal training in cybersecurity for all employees who deal with any system in any capacity is necessary to win the undeclared cyber war.

Higher education institutions, like universities, can take a lead role to direct careers towards filling the skills gap, and most importantly be at the forefront of cybersecurity research and development for arising innovation in the field. 

Lastly, Being Proactive, Not Reactive

A proactive approach seeks to prevent cyberattacks from occurring in the first place which can lead to a much higher benefit, strong continuity of operations, return on investment and excellent reputation.

The only way to combat all of the above cyber threats and attacks is through the establishment of a nation-wide system capable of orchestrating a coordinated response within a unified framework incorporating technical and legal aspects.

September 28, 2022 0 comments
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Since its first edition emerged on the newsstands in 1999, Executive Magazine has been dedicated to providing its readers with the most up-to-date local and regional business news. Executive is a monthly business magazine that offers readers in-depth analyses on the Lebanese world of commerce, covering all the major sectors – from banking, finance, and insurance to technology, tourism, hospitality, media, and retail.

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