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Economics & Policy

Ramzi Naaman

by Ramzy el-Amine August 15, 2013
written by Ramzy el-Amine

In Ramzi Naaman’s first nine months as head coordinator of Lebanon’s Syria response plan, Lebanon’s government collapsed, the number of refugees grew exponentially and violence escalated in many parts of the country. In these circumstances, designing a response plan is becoming a challenge. 

 

Should the response to the refugee crisis be treated urgently and separately or under a general poverty relief plan for both Lebanese and Syrians?

When you talk about an ‘urgent’ relief plan, you are talking about a period of two to three months. In 2006, Lebanese sought refuge in Syria for 33 days. When the war was over they came back. But now we’re talking about people who have been here for two years, and might stay here for another two years or more; especially when you know that you have 1.8 million completely destroyed housing units in Syria — that’s 1.8 million families that have no homes to come back to.

[There is] a huge number of people that has surpassed by far Lebanon’s capacity. You see that you have 45 percent of the Lebanese villages containing more Syrians now than their original population. For instance, a village that had 100 Lebanese citizens now has 2,000 Syrians. Won’t the Lebanese citizens be scared? First, this is a foreign presence. Second, the Lebanese are starting to suffer from an economic condition, because they now have competition since the Syrians are looking to make a living. This is building up a lot of tension in the villages. 

 

Since there is no government, does that mean the response plan is struggling?

No.

 

So is the government’s plan currently enough to control the crisis?

We are talking about the plan, but there is another side to the story, which is political commitment and how serious this is. How serious are we? Us, we are serious. But remember that you are in Lebanon, in a country that is politically oriented, the country of crises. Politicians in Lebanon are not technical people: they look at benefits, elections, Parliament, before they look at the crisis that they’re in. We said in the beginning that the crisis should be their priority before anything else. All ministries must perceive the crisis as one emergency cell. No single ministry can solve this crisis.

 

Do many Lebanese have the impression the government is not doing much about the Syrian issue?

Why that impression? The government is working. The public hospitals are full. The public schools are full. It is designing programs for Syrian students, and they are receiving education. The government is taking them into social centers and providing them with services, [and it] is organizing activities and projects in the villages in an effort to absorb the tension.

 

How could aid funding be better organized? 

That’s the question, because, until now, we haven’t suggested a mechanism yet. Now we are working on what we call a Trust Fund. The idea is that this fund is under the government’s responsibility along with an international partner which is concerned in the issue, so they would be doing a sort of supervision so that everything is exposed… This multi-national trust fund is going to be managed by the World Bank with the                  Lebanese government.

 

Why does the Lebanese government have limited control over aid to refugees? Are you unable to gain the trust of international organizations?

Remember that aid is linked to politics. At the end of the day, Jordan is in a much better political situation to make use of the money; it is a friend to the West and the Saudis. So most of the money that came to Jordan came under that pretext, basically, to stabilize Jordan and support the king. On the contrary, the government of Lebanon has been labeled as the government of Hezbollah. So, even though we insisted on keeping politics on the side, and dealing with the situation from a humanitarian perspective, everybody still insists that we are the government of Hezbollah. At the end of the day, we haven’t seen a penny because of that. That’s a prejudice against the Lebanese government.

Now, with all the pressure that we’re exerting, on our friends, especially Western countries, that first, this is not a Hezbollah government; and second, the situation has escalated so dramatically, and it does not suit anybody if Lebanon falls apart. That’s why they are trying to pump money, but of course with very limited resources. When we’re talking about $100 million or $150 million, even though it sounds like a big number, it’s nothing, it’s a drop in the ocean when I’m talking about $1.7 billion [needed], from now until December.

August 15, 2013 0 comments
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The Buzz

Business briefing: 15 Aug 2013

by Executive Staff August 15, 2013
written by Executive Staff

Economics and Policy

International oil companies are frustrated by the failure of politicians to form a Cabinet to designate the offshore gas and oil blocks for exploration.

More from The Daily Star

 

Lebanese industrialists are seeking a deal with religious authorities and municipalities to provide cheap land for new factories amid rising costs for the industrial sector.

More from The Daily Star

 

Security forces struggled to clamp a lid on Egypt on Thursday after hundreds of people were killed when authorities forcibly broke up camps of supporters protesting the ouster of Islamist President Mohamed Morsi, in the worst nationwide bloodshed in decades.
 
More from Reuters
 
 
Companies and Strategies
 

Dubai developer Nakheel has floated a tender for piling works for the new $680m Nakheel Mall on Dubai's Palm Jumeirah.

More from Arabian Business

Saudi Telecom's (STC) Indonesian unit has picked Moelis & Co to advise it on negotiations with lenders as the operator steps up efforts to restructure a $1.2bn Islamic loan.

More from Reuters

 

August 15, 2013 0 comments
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Economics & PolicyLuxury

Not your grandpa’s TV

by Nabila Rahhal August 14, 2013
written by Nabila Rahhal

Television has come a long way since it was introduced to the masses in the 1930s. Originating with the humble black and white 15-inch screens encased in heavy wooden cabinets and producing grainy images, some of today’s TVs boast 85-inch screens, ultra slimness and images that compete with reality. 

In 1936, only 200 televisions sets were in use worldwide and a set was considered an extravagant purchase. A TV set in America cost $500, when the average annual household income was $1,300. Today, it is estimated that 1.4 billion households around the world have at least one TV, according to a report published by Nielsen, making it one of the basic consumer electronics. 

Though most models are no longer considered extravagant, TV manufacturers still compete to offer their clients sets that provide the best viewing experiences and are laden with extras at a significantly higher price tag, making some TV models a lavish purchase once again.  

The latest television technology available in Lebanon is “4K”, or “ultra high definition”. Agop Kassabian, managing director at Unilec, the exclusive distributors of Toshiba TVs in Lebanon, explains these designations refer to the number of pixels on the TV panel. Instead of the 1,920 by 1,080 pixels displayed by high definition (HD) panels, 4K panels provide four times that: 3,840 by 2,160 pixels. The higher the number of pixels, the higher the resolution, which means a wider palette of colors and a much more realistic and clear picture, says Kassabian.   

The 85-inch Samsung S9 Smart TV is the biggest screen offering on the market to date, and it sells for $45,000. It is considered this season’s pinnacle of luxury, consumer electronics offerings from Samsung, according to Yasmina Cherfane, marketing manager at Cherfane Tawil and Company (CTC), the distributors of Samsung Electronics in Lebanon. Hanging within a solid silver frame, the screen provides the picture smoothness associated with 4K TVs, and watching it, one feels close to a cinema experience, given its size. 

Aside from the features found in smart TVs — such as internet connectivity and ability to store content — the S9 also has the technology which allows for motion control — flipping channels with a wave of your hand — and voice control — through a smart touch remote you talk into. These are made possible by its quad-core processor, as opposed to the dual processors found in conventional TVs. 

Sony has also recently launched its 4K televisions in Lebanon, the biggest being an 84-inch model priced at $30,000. Roger Haswani, business manager at Fattal Holding, which distributes Sony products in Lebanon, says the 84-inch is usually bought by hotels for conference rooms or lobbies, or by wealthy film fanatics who have the space in their villas. Sony’s other sizes are the 65-inch, for $10,000 — now considered a standard size globally but still large in Lebanon where the rooms tend to be smaller — and the 55-inch, $6,000. This more affordable price tag gives hope that 4K technology will be available for the masses, soon. 

LG’s 84-inch 4K TV has been available in Lebanon for eight months. Its price tag is $20,000 — still not petty cash. A spokesperson at LG’s showroom in Dora says they have sold 15 models since its release, a number he believes is “quite satisfactory”.

Regza, Toshiba’s brand of high-end TVs, will be releasing its 58-inch and 84-inch 4K models with a processor that will help produce even clearer images. Kassabian explains that much of today’s broadcasts are in the older, lower resolution HD format, so 4K screens are not displaying at their maximum clarity. Regza 4K TVs, which Kassabian says will be launched near the end of 2013, will come with a Cinema 4K Advanced Processor system, a processor that can convert full HD content into 4K content. Though no prices have been communicated yet for those models, Kassabian estimates they will be in the “several thousands of dollars”. 

Luxury televisions are performing better than one would expect in Lebanon, and Cherfane says that CTC is already replenishing its stock of S9 Samsung TVs, which were sold to technology fans and social trendsetters with a budget. 

As for the looming economic downturn, Haswani is not worried about the market for luxury consumer electronics in Lebanon. He explains that while sales of their mass consumer level electronics declined in recent years, sales of their high-end products did not. “Luxury is recession proof because those who have the money to spend on luxury will not care if the economy is disrupted: they will still buy,” Haswani says.

August 14, 2013 0 comments
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Economics & Policy

The Bekaa boiling point

by Emma Gatten August 14, 2013
written by Emma Gatten

In the village of Saadnayel in the Bekaa Valley, 25-year-old Mohammed Hoss says refugees now outnumber locals. Around the village, there is no one whose state of mind has been unaffected by the refugee crisis, and the tension, having built up week after week, is now palpable.

Hoss himself might not be here were it not for the fact that the Lebanese economy has been stuttering for more than a year. A mechanical engineering graduate, he says he and his peers find it nearly impossible to find jobs in their field. Thus, in absence of qualified employment offers, he runs a small shisha cafe, where he actually benefits from the influx of Syrians willing to work for less than the locals.

 

Related articles: Lebanon’s Syria response in crisis

Interactive map of Syrian refugees in Lebanon

 

He employs both a Syrian and a Lebanese worker, but pays the Syrian a lower hourly wage. “What are you going to do, if you can employ a Syrian for $200 a month and a Lebanese for $400? It’s good for the companies, but not for the workers,” he says.

An elusive equilibrium

But while local businesses are benefiting from the reduced cost of labor, competition for jobs and other resources is fuelling resentment between the Syrian population and some of the young men in the village. Fights have broken out, Hoss says.

“The people that live here are losing their patience and can’t control their anger. When there’s no work, it’s tiring,” he says.

Saadnayel shopkeeper Milham Shebassy is also caught up in the pressure cooker of an increasingly divisive social environment. On the one hand, fewer Lebanese customers come into his shop since Syrians began to be a major presence. On the other, the Syrians who linger outside his store are now his customers. His shop accepts World Food Programme vouchers and Shebassy says he has around 200 regulars.

“At first I was angry with the refugees being here,” he says. Now, he’s made peace with their presence, and claims to be one of the few shopkeepers who have not raised their prices.

The refugee flood has intensified local market demand and international aid monies have boosted the habitually underpowered rural Lebanese economy. But the Syrian refugees themselves have also started new enterprises. These grey economy businesses brought sharp competition to the area, which is a real concern for the Lebanese authorities. 

In April, a security cell was established between the Ministry of Social Affairs (MoSA), and the Ministry of Interior to investigate, among other things, businesses started by Syrians in refugee areas. So far they have only looked at seven different towns in the East Bekaa, where they found that 377 new businesses have been opened by Syrians since early 2012. 

The investigation found that some of the new competitors pushed local operators out of the market. “Some of these businesses are pretty big,” says Makram Malaeb, the program coordinator for the Syrian Crisis Response Unit at MoSA. According to him  one restaurant discovered by the cell was so large and offered food at such low prices that it forced “four or five” established restaurants near it out of business. 

However, it is the smaller businesses that are causing problems in villages like Saadnayel. New sandwich shops, grocers, mechanics and other services are opening up and Syrians desperate for income are able to undercut local businesses. With profits already low, this creates a ‘race-to-the-bottom’ effect, Malaeb says.

The result is friction between the Lebanese hosts and Syrian refugees, which according to MoSA has led to a rise in attacks against refugees. The ministry sees the solution in applying the registration requirements and regulatory frameworks for businesses to the unlicensed newcomers, but it lacks both the resources and the authority to close them down.“We are asking for an implementation of the law: that they register with and abide by the laws of the ministries of tourism, health, labor and economy,” says Malaeb. “There’s a balance between offering a humanitarian environment and making Lebanon seem an attractive option for further displacement,” he adds. 

With efficient inter-ministerial cooperation not being one of the hallmarks of the national administrative mills, the task of investigating and regulating the new refugee economy may be a major test of Lebanon’s ability to manage the refugee crisis, which by all evidence from the Eastern Bekaa is going to stay with the country for years. 

Pent-up resentment

In the meanwhile, the Syrian refugees in and around Saadnayel have more immediate worries. Just outside of Saadnayel 43-year-old Khaled is not feeling too welcome.

 Along with four other families, he and his wife are being forced to leave the building they have been living in for a year and a half after fleeing Homs, because the landlord no longer wants Syrians renting from him. 

“The Lebanese consider the Syrians to be beneath them,” Khaled laments. He tells Executive that the treatment of refugees by locals has become worse in recent months. Most of the other families in the building, a stripped down shell of a home partway through construction, have no idea where they will go. Virtually all Syrian refugees who spoke with Executive in and around the village say that they feel looked down upon, and they resent it. They point to what they say was a different and much kinder treatment that the Syrians afforded to the Lebanese who came to Syria during past times of strife in Lebanon. 

However, the two countries’ relationship is historically fraught, and includes long-held resentment from many Lebanese for the years when Syria imposed its military presence. As the strained coexistence between refugees and locals stretches on, it is unpredictable how well the Lebanese will manage these old feelings and also cope with new frustrations that the tight quarters is creating on both sides. 

 “Lebanon is 10,450 km2. How many people can you possibly fit in it?” says Mohammad Hoss. With refugees dispersed among the population, and heavily concentrated in poorer areas, their presence has begun to feel like a weight. Nonetheless, and despite increasing friction, there also continues to be large-scale sympathy for the refugees among the majority of the Lebanese, and an acceptance that they are not to blame for the current situation. When it comes to the question who, then, is to blame, there is always the Lebanese perception that their government should be solving problems but is not. “The disadvantages [of the refugee influx] are because of the government. In any other place, there would be somewhere to provide for the refugees,” says Hoss. 

August 14, 2013 0 comments
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Comment

Oil and gas should fuel negotiations

by Zak Brophy August 14, 2013
written by Zak Brophy

In recent years there have been significant strides made in Lebanon’s incipient oil and gas sector. This has in no small part been down Gebran Bassil, the caretaker minister of energy and water. His interpretation of the rules and regulations may have at times been somewhat flexible and his rhetoric hyperbolical, but there is no denying that he has gotten the show on the road. 

The passage of the offshore petroleum resources law and the Petroleum Administration regulations, the creation of the Petroleum Administration, the launch of the first licensing round and the pre-qualification of 46 international oil companies (IOCs) all have been the major landmarks in this journey. This momentum all threatens to come to a shuddering halt, however, as the political apparatus of the country descends into a debilitating funk.

A timetable was set at the beginning of the licensing round that would see the first contracts between the government and the IOCs signed in early 2014. However, if the decrees pertaining to the delineation of the offshore blocks and the revenue sharing model are not passed by September, then the government simply cannot proceed. The resignation of Prime Minister Najib Mikati in March has rendered the Council of Ministers — Lebanon’s cabinet — toothless to do little more than manage its day-to-day business with its caretaker status, impotent to pass new laws. Herein lies Bassil’s dilemma. Eyeing this fast approaching dead end, the minister is calling for an extraordinary cabinet meeting to push the decrees through. 

  Israel’s recent discovery of the Karish gas field near the disputed maritime border with Lebanon has been cited as a further reason for the Lebanese to get their act together and cooperate in this domain at least. Both President Michel Sleiman and Mikati, who remains in office as caretaker prime minister, have expressed their intention to hold an urgent session so the two decrees can be passed and the Committee of Legislation and Consultations has also given the green light — so Bassil may get his way yet. There are however other issues dividing the body politic — most notably, the dispute over the leadership of the armed forces in which the leader of Bassil’s Free Patriotic Movement Party, General Michel Aoun, is a key protagonist — that threaten to overshadow the oil and gas sector and therefore delay any consensus on a meeting.

Even if Minister Bassil is successful in pushing through the pending decrees, there are reasons to be wary of charging full steam ahead in what pretty much amounts to a political and legal vacuum in the country. In late May, Parliament voted to extend its mandate, in the first such move since the end of the civil war in 1991. Since then not only has that institution been crippled but Lebanon’s highest judicial court, the Constitutional Council, has also been seriously debilitated. 

The Constitutional Council was meant to be invulnerable to an otherwise highly corrupted body politic. However, when it was called upon to offer its verdict on the highly contentious vote by the majority of the parliamentarians to extend their own terms in office it succumbed to the same fetid forces that bastardize pretty much every institution in the nation. With several of the judges hamstrung by their loyalties to political and sectarian leaders, the 10-member council did not have a quorum and failed to convene, despite four callings. The separation of powers in Lebanon was further tarnished and the court stripped of its import. 

“This is the most sacred body in the nation… The vacuum we are seeing is a red flag to everyone who is following what is going on in the Lebanon; politically, militarily or commercially,” Roudi Baroudi, an independent energy and environmental consultant and secretary general of the World Energy Council, recently said. 

The state is inherently weak in Lebanon, and the nation is no stranger to political voids. That is reflected by its crumbling infrastructure, rampant corruption and nepotism, which permeates every area of public life. A similar mismanagement of the nascent oil and gas sector would not only line the pockets of the rich at the expense of the poor but would actually blight the whole economy. 

The efforts to push ahead with the oil and gas sector are understandable but, in the words of Baroudi, “it is essential we get our house in order first.” The vital importance of this sector should not be used as an excuse to sidestep the flawed institutions of power but rather as a reason to try to fix them.

 

Zak Brophy is Free Speech Radio News’ Lebanon correspondent and a freelance business journalist

August 14, 2013 0 comments
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The Buzz

Business briefing: 14 Aug 2013

by Executive Staff August 14, 2013
written by Executive Staff

Economics and Policy

Russia has said an international peace conference on Syria is unlikely to take place before October because of "other events."

More from AFP

 

Saudi Arabia’s inflation rate is estimated to reach 4.5 per cent this year, due to the strong performance of the Kingdom’s non-oil sectors, projected a Kuwait Finance House (KFH) report.

More from Reuters

 

OPEC oil producer Libya told its customers on Tuesday it could make no promises on crude deliveries next month as on-off strikes paralysed its major sea terminals.

More from Reuters

 

Brent crude oil rose toward $110 per barrel Tuesday after oil exports from Libya fell to their lowest for two years.

More from Reuters


Companies and Business
 
Security at the Jiyyeh power plant in south Lebanon has been bolstered as part of efforts to protect a Turkish electricity barge that arrived a day earlier.

More from The Daily Star

 

Carlyle Group, the US private-equity firm in which Abu Dhabi’s Mubadala Development Company owns a 7.5 percent stake, has agreed to sell aerospace communications firm Arinc for $1.39bn to Rockwell Collins.

More from Arabian Business

 

Jeddah-based Alkhabeer Capital says it plans to broaden its investments around the Gulf and seek a listing on the Saudi stock exchange, underscoring an improvement of investor sentiment in the region.

More from Reuters

 

August 14, 2013 0 comments
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The Buzz

Destination Lebanon

by Benjamin Redd August 14, 2013
written by Benjamin Redd

During the first year of the Syrian uprising, relatively few refugees registered with the UNHCR, the United Nations’ refugee agency. By the end of June 2012, only 25,000 had registered and they were largely concentrated in North Lebanon. Since then, the numbers have soared. By the end of the year, the count had quintupled and the flow was permeating all populated areas. And by the end of June 2013, there were nearly half a million registered refugees in more than 1,400 Lebanese communities. Most of these communities were home to fewer than 100 registrants, but more than 100 housed 1,000 or more — with several hosting more than 10,000.

Click here or on the image below to see our interactive guide to all Syrian refugees.

August 14, 2013 0 comments
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Finance

Colony Capital

by Maya Sioufi August 13, 2013
written by Maya Sioufi

Roughly $8 billion have been transferred from the Middle East and North Africa into the care of Tom Barrack, the founder and chief executive of real estate private equity firm Colony Capital. Grandson of Lebanese immigrants to Los Angeles, Barrack founded the company in the City of Angels in 1991 and now manages $25 billion of assets. Colony is the fourth-largest real estate private equity (PE) firm in the world. 

To lure investors’ capital, 25 percent of which comes from the MENA region, Colony is diversifying its investment strategy as it adds distressed debt and media investments to its abundance of real estate projects. 

Since 2008, Colony has been acquiring distressed loans from, among others, the United States’ Federal Deposit Insurance Corporation, which has been buying out failed banks and selling their assets. Colony holds about $7.5 billion in distressed debt.

Another $5 billion are deployed in hospitality projects and $2.5 billion are in the residential real estate sector. The remaining assets are spread between investments in offices, industrial and retail projects such as French hypermarket Carrefour and media ­— most prominently, the film    distributor Miramax.

Barrack’s affiliation to Lebanon has not only led him to sit on the advisory board of the non-profit organization LIFE (Lebanese International Finance Executives), which aims to channel the influence of Lebanese financial executives for the benefit of the country, but also to choose Beirut as the regional headquarters for the firm’s Middle East operations. With Barrack’s old friend Sylvio Tabet heading a team of four, Colony’s Beirut offices, which opened in 2004, cater to a variety of clients in the region from sovereign wealth funds (SWFs) to pension funds to endowment funds to ultra-high-net-worth individuals to institutional clients such as Lebanon’s  Optimum Invest. 

A darling of gulf funds

Regional sovereign wealth funds (SWFs) feature as partners in Colony’s most prominent deals. Qatar’s wealth funds, in particular, have proven to be steadfast partners of Colony and to serve as reliable exit options for the firm.

The Fairmont Raffles Hotel Chain, for instance, is currently owned by a consortium that includes Colony Capital and Qatari Diar, a SWF. Qatari Diar, a 35 percent stakeholder in the chain, is reportedly in talks to acquire Colony’s stake of 20 percent. 

Colony’s MENA regional manager Sylvio Tabet

 

When Colony sold its controlling share in football club Paris Saint-Germain in 2011, it picked SWF Qatar Investment Authority (QIA). Last year, Colony sold its 100 percent stake in Sardinia’s Smeralda Holding, owner of luxury hotel resorts on the Italian island, for an undisclosed amount to Qatar Holding, a QIA subsidiary. 

And when Colony started venturing into media, it yet again turned to QIA along with California-based Tutor Saliba Corporation, a contracting and engineering group co-founded by Nassib Saliba, also of Lebanese origin, to acquire film distributor Miramax from Disney in 2010, giving it access to 700 film titles.

While media accounts for just 5 percent of Colony’s assets, Tabet, Colony’s regional manager, believes it is a sector worth betting on. He credits major upheavals in the industry for “creating a lot of unique opportunities for equity investors.” Digital media is disrupting traditional media, media conglomerates are divesting their non-core assets and banks are withdrawing from non-core lending, he says.

M.E.N.A. money, foreign investments

“Given the overall uncertainties and changes in Lebanon and the region, investors… have been looking for overseas opportunities and have shown a growing interest in the US market,” says Tabet.

While Arab investors feature among Colony’s roster of clients, the region does not appear on its investment list — 90 percent of its capital is deployed in the US.

Tabet stresses that Colony is open to making investments in the region, but the firm has so far completed just one: it acquired in 2007 a 55 percent stake in Turkey’s Mars Entertainment Group, an entertainment, cinema and sports chain, which it exited three years later generating an internal rate of return of 26 percent. The only other regional investment that Colony came close to sealing was a $2 billion contract for the development of a tourism project in Morocco. The project fell through, however, and as talks over legal repercussions are still ongoing, Tabet could not comment on this issue. 

While Tabet sees investment opportunities in Turkey, Colony’s eyes are fixed on the West, and the US in particular, where they foresee lucrative returns. To realize them, they will continue to venture hand in hand with their Middle Eastern partners. 

August 13, 2013 0 comments
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Economics & Policy

A response in crisis

by Joe Dyke & Tamara Rasamny August 13, 2013
written by Joe Dyke & Tamara Rasamny

Everyone is overwhelmed. United Nations bodies are desperately trying to raise funds, the Lebanese government is seeking to maintain control and local and international charities are providing care to the refugees across the country, all seemingly unable to cope with the sheer scale of the crisis.

A country that is home to little more than 4 million people, Lebanon currently hosts 600,000 Syrians who are registered or awaiting registration with the UN, and the total number is estimated to be much higher. Among the refugee community needs are increasing, as those with savings run dry, while within the Lebanese population many previously poor people are increasingly destitute as cheap Syrian labor pushes down wages. Dealing with this is an unenviable task.

Related articles: Does Lebanon need refugee camps?

Interactive map of Syrian refugees in Lebanon

But while the scale of the crisis and its devastating impact on Lebanon has been so vast no single organizational structure could have dealt with it in its entirety, serious questions are being raised about the way in which all bodies have responded to the crisis. The impression insiders give is that much of the response has been inadequate, myopic and badly coordinated.

A delayed reaction

Perhaps the worst case of inertia has come from the government itself. When the Syrian crisis started in early 2011, the government’s position was to remain neutral because of its close relationship with President Bashar al-Assad. There was little discussion of the crisis continuing for more than the immediate months, partly because many expected the Syrian conflict to end quickly as other uprisings in the region had. It was not until 15 months into the crisis that the Lebanese government produced its first crisis-management plan.

Even government officials say the response has not been ideal. Makram Malaeb, program manager at the Ministry of Social Affairs, admits “there was a period of time when there was a denial,” while Ramzi Naaman, lead coordinator of Lebanon’s Syria response plan, believes that the government has failed to understand how fundamentally the crisis is changing the country. As such, he says, their response has been piecemeal, with no medium-term planning. “They are not scared enough,” he told Executive.

The health sector epitomizes many of the concerns. A recent paper in the UK-based health journal The Lancet found that “pressure on domestic health systems is immense,” with hospitals struggling to cope with a sharply increased workload, even though capacity has not increased. Among the concerns are new diseases, such as the skin disease leishmaniasis — which is common in northern Syria but not in Lebanon — brought to the country by Syrian refugees, as well as a dwindling number of available beds.

Fouad Fouad, member of the Faculty of Health Sciences at the American University of Beirut and co-author of the Lancet report, believes medium-term planning could have allowed the government to use the crisis as an opportunity to invest in much-needed infrastructure. “My feeling is that with this long-term crisis, the only way to face [this] issue is to adapt the system to absorb more, or to be the kind of system that deals with such an unexpected crisis.” Instead, he says, the government has hoped the current infrastructure will be able to cope.

Fouad was in fact tasked with drawing up part of the government’s strategic planning document for dealing with the Syria crisis. Shuffling through the files in his third-floor office he produces the document, which calls for major investment in hospitals as a way to help benefit the local population as well as aid refugees. The plan, he says, was delivered at the end of 2012 but was never published. “Can you believe that this is the only copy? Well maybe they [the government] have another copy,” he says. “It’s just all papers, and documents, there’s no action plan.”

Syrians using Lebanon’s hospitals have put a strain on the country’s infrastructure

Critics of the government argue the Syria file has not been taken seriously enough. Syria has been dealt with primarily as a humanitarian crisis and thus has fallen under the remit of the Ministry of Social Affairs (MoSA) — one of the smaller ministries with historically little sway — while the Ministries of Health, Education and Interior have played smaller roles. 

There have been numerous calls for a new strategy recognizing the scale of the crisis. Ziad Sayegh, a former advisor to the Ministry of Labor, is among the leading voices for such a framework. Speaking to Executive in late June, he called for either an independent but powerful body of around a dozen expert technocrats to coordinate the government’s response to the crisis or, more radically still, an independent ministry within the government dedicated to dealing with the crisis. “We have an executive opportunity, now this is the right time,” he says. “The new prime minister along with the president should have a serious look at this proposal without going into political agendas.”

 

Sayegh is, of course, referring to Tammam Salam — Lebanon’s prime minister-designate. Since former Prime Minister Najib Mikati resigned his government in April, Salam has been trying to form a new government — a process unlikely to end soon. With Parliament’s term ‘temporarily’ extended by 17 months due to the deadlock over elections, the office of President Michel Sleiman is now the only fully functional part of government.

Antoine Haddad, secretary-general of the Democratic Renewal Movement, organized one of the first major conferences on the impact of the crisis on Lebanon. Haddad, who is close to the president, thinks a prolonged period without a government could force Sleiman to take matters into his own hands and reshape the response to the crisis. “The [prime minister] is more fit to [deal with] this, but I suppose that there is a possibility that we live without a government for a long period. So what shall we do? I think in this case the presidency shall have to deal with the issue.”

A shifted burden

Without a coherent political response, much of the burden for responding to the crisis has fallen on the international community. UNHCR, the UN’s refugee body, has led the response to the crisis, simultaneously coordinating the operations, implementing them and partnering with NGOs to deliver assistance. They have launched five, six-month long Regional Response Plans (RRP) in which they have appealed for funding. But they have found the sheer scale of the crisis difficult to cope with.

Syrian women receive aid packages from one of many NGOs working on the situation

In January this year, they launched RRP4 based on an estimated 300,000 refugees coming by the end of June. By mid-February that number had been surpassed, but they had only raised 48 percent of the desired funding. As such, many assistance programs had to be scaled back dramatically. “We have to make difficult choices every day in terms of who we assist and how much assistance we can give,” Joelle Eid, information officer at UNHCR, says.

While the funding crisis is acute, questions have also been raised about UNHCR’s role. Historically, the body was not as heavily involved in Lebanon as the Palestinian relief agency UNRWA. UNHCR has thus grown rapidly, from just 50 staff in 2011 to 400 currently, and questions are being raised about its capacity.

Olivier Beucher, head of the Danish Refugee Council in Lebanon and the chair of the body that represents the top international NGOs in the country, believes the UN agency is overloaded. “Too much is demanded or required from UNHCR… Now with the size of the crisis in Lebanon, the caseload is so high that they can’t do this,” he says. Beucher suggested that there are a range of other ways in which the system could be organized, including a cluster-style system where different agencies take on different key sector coordination roles, working in closer conjunction with the government and NGOs.

Making difficult choices for the future

As it becomes increasingly clear that the crisis will continue to affect Lebanon for years to come, those in the field are concluding that a medium-term plan is necessary. The principle of aid targeting perhaps provides an example of how a lack of strategic planning early in the process can encumber the response later on.

In theory, targeting aid is the right thing to do. With a refugee crisis of this severity and funding shortages, it is not possible to provide quality care to everyone. As such, aid agencies should provide support to the most vulnerable. “Either you reduce the assistance, or you don’t deliver assistance to everybody. And we do believe that the combination of both is and was needed a long time ago,” Beucher says.

The current plan is to target aid in three particular areas: food vouchers, hygiene kits, and baby kits, starting in September. The aim is to reduce the amount of people receiving these services in order to support the most needy. But Beucher believes that poor planning has made it difficult to differentiate those who are more in need than others. 

Normally, in order to make needs-based assessments, he says, aid agencies would visit “every set of families [that register] to make sure that people are not lying [about their needs].” This is most easily done when families first register, but the UN has merely recorded the “bio data” — basic information about the families.

As such, Beucher says, there is little chance that the targeting can now be accurate. “Our worry is that the UNHCR will do the targeting on its own based on the criteria that they gathered, but this will have a big error in the selection… [then] they will ask the NGOs to verify that these people are vulnerable, and we know we will find a lot of people that are not as vulnerable as they mention, and they will need to be excluded from the assistance. And this is where you have conflict with the refugee families,” he says. 

Beucher believes this could endanger his field workers as they will be forced to tell refugees they are no longer entitled to, for example, food vouchers. A key way to avoid this is a major communication push to let refugees know. For a program due to launch in September, the UN is perhaps running a little late. UNHCR’s Eid told Executive in mid-July that the “criteria [for who is eligible for targeted assistance] has not yet been set”, but that they hoped to finalize the terms of targeting by the beginning of August. This will leave the body with a month to communicate the new policy to the huge refugee community.

Eid admits problems in the past with communication but says they are being resolved. “This time we are devising a strategy whereby we would communicate to refugees the changes that are expected to happen,” she said.

Better communication

If the UN has struggled to communicate with the refugees, then coordination with the government and NGOs is also sub-optimal. Insiders talk of communication breaking down between different bodies, meaning they are often duplicating work or failing to share information. UNHCR’s Eid denied these claims, saying, “I have not heard of these rumors.”

“Unfortunately the coordination is [poor] on many levels. You need to have a strong strategy for collaboration. I know that several UN agencies working here, but there’s no one plan for all. And many big international organizations don’t talk to UN agencies,” AUB’s Fouad says.

In recent months, however, there have been a few positive signs that the entities are starting to work together better. In June the UN launched its fifth RRP calling for funding from international donors. For the first time, the government was a partner in the bid, with $450 million of the $1.7 billion appeal aimed to support government projects. This, Eid says, was a major step toward improving the response plan.

Similarly, in recent weeks the government established a trust fund with the World Bank. While the size of the fund is still being confirmed, Naaman said the basic plan is that it “is under the government’s responsibility, along with an international partner that is concerned in the issue, so they will be doing a sort of supervision so that everything is [transparent].” In June the acting government released a new plan for dealing with the crisis. Despite the lack of details, it promises that they are tackling the matter in a more serious manner.

Related articles: Does Lebanon need refugee camps?

Interactive map of Syrian refugees in Lebanon

However, unless there is a new government, there is little hope that the response to the crisis will markedly improve. Without a carefully orchestrated national strategy, the refugee crisis is likely to remain in the hands of the overstretched UNHCR — making essential medium-term planning less likely.

Note: This article originally said Beucher proposed a cluster system

August 13, 2013 0 comments
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Business briefing: 13 Aug 2013

by Executive Staff August 13, 2013
written by Executive Staff

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