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DiasporaEconomics & Policy

Bel Lebnééné calls for Lebanese Arabic to be standardized

by Jeremy Arbid March 13, 2019
written by Jeremy Arbid

Lebanon has a long history as a shipping and trading hub, leveraging its geographical location on the Mediterranean Sea and connecting mainland Europe to the Arab hinterland. It was several thousand years ago that religious texts referenced the peoples of Mesopotamia (in what is now modern day Iraq) first migrating and settling on the coastal lands of the area. These people were known as Canaanites. Later, the Phoenician civilization dominated the coastal lands of the Eastern Mediterranean and was centered around the present-day geographical borders of Lebanon. For a period, the Romans ruled over the area before the Arabs, and this was followed by a struggle over control of the region during a period known as the Crusades. Fast forward to the 1500s, and Lebanon was part of the Ottoman Empire for nearly 400 years until its collapse following World War I. From then until the Republic of Lebanon was established in 1943, the country was under the French Mandate. In the post-World War II period, following the lead of the politically and financially superior Americans, Lebanon, alongside many other countries, was integrated into the global economy. Throughout its entire history, it is thought that the maritime tradition has had as strong an influence on the country as religion, foreign control, or other cultural influences, and that the language spoken today in Lebanon is rooted deeply in its past.

Lebanon is, in a formal sense, very much an Arab country. Politically, it is integrated with the region through bilateral trade agreements and other pacts with neighboring countries, and is part of the Arab League, a regional organization fostering relations and common interests of its member states. Arabic is the language of formal settings and is the country’s national language, according to the constitution. However, the language spoken in everyday settings is not formal Arabic, but the local dialect of Lebanese Arabic. There is, according to Hsen Andil, co-founder of the new online collective Bel Lebnééné, a huge linguistic difference between formal Arabic and Lebanese, to the extent that they are two different languages. Bel Lebnééné aims to standardize a script for the local language and build a library of content. The collective aims to raise awareness and encourage Lebanese speakers to write and express themselves in Lebanese.

A common language

Andil and fellow Bel Lebnééné co-founder Mahmoud Rasmi suggest that the problem may be that Arabic as a language has not evolved; they have struggled in academic settings to convey technical subjects in Arabic, and instead have to revert to English. Latin and Ancient Greek was the lingua franca of academia until the start of the 20th century. Nowadays, English is the go-to language for the definition of terms of global capitalism. This is especially evident to journalists listening in on the English-to-Arabic translation at conferences where the speaker uses a term or concept in English, and the retranslation into Arabic does not come out very easily, meaning the concept gets altered and diluted. To see this in practice, bilingual readers can try this exercise: How does one translate data breach, meaning a security incident where digital information is compromised, into Arabic, and how would that concept be retranslated back into English?

In terms of audience size, the online collective has big potential. The main communities that could benefit are the Lebanese that live abroad as part of diaspora communities living mostly in North and South America, Europe, Australia, and Africa. They number in the millions, and, for many in the diaspora, formal Arabic is not a language taught to schoolchildren. Instead, many in diaspora households might only be speakers of Lebanese and may have limited formal writing and reading ability, and so Lebanese diaspora may consider Lebanese, not formal Arabic, their mother tongue. That means that when they visit Lebanon, or return to live in the country, they can speak and interact in day-to-day conversations but may struggle in formal settings or when reading or completing official paperwork.

Those that come to Lebanon seeking to learn Arabic often find out very quickly that the country, and especially in the capital, Beirut, is not an ideal place to study the language. This is because the language that is taught in the textbooks is not what is spoken on the streets outside the classroom. For foreign language students to learn Arabic in Lebanon is really challenging, and it is more akin to learning two foreign languages instead of just one.

At Lebanon’s primary schools the situation is similar, formal Arabic is taught, but according to 2017-2018 enrollment figures from the Center for Educational Research and Development under the Ministry of Education and Higher Education, more than half of Lebanese students (almost 550,000) are enrolled at schools that teach French as the primary foreign language, with about 48 percent of students (almost 520,000) enrolled at schools that teach English as the primary foreign language. Schools are licensed by the ministry to offer curriculum of the American system, the French system, or the International Baccalaureate system. However, the Lebanese official curriculum is taught alongside a foreign system, while the national exam, which must be passed to obtain the high school diploma, is offered only in Arabic. Often students have studied subjects, such as science or math, in English or in French. Those test subjects are part of the national exam, with their terminology transliterated from the foreign language into Arabic.

Standardizing Lebanese

At home, Lebanese tend to speak the local dialect and not formal Arabic, and there are some households where French or English is the dominant language. Media in Lebanon, such as the newspaper or news broadcasts as well as books are mainly delivered or written in formal Arabic. Locally produced television programming is often in the colloquial dialect with foreign productions dubbed, or subtitled in formal Arabic. But now in the digital era, many of these mediums are not as widely consumed as they once were. This makes practicing formal Arabic outside of the classroom somewhat challenging for Lebanese students and for foreign language learners.

Andil and Rasmi think of formal Arabic as almost a dead language. It is not an extinct language, they say, because it is still used in religious and formal settings, but dead in the sense that it is not commonly heard in day-to-day conversation. Lebanese is unique from formal Arabic in that it incorporates terms and concepts from other languages. This is most easily seen through code-switching, a term that refers to alternating between languages during a conversation. At its simplest, there is the famous phrase “Hi, kifak, ça va?” and conjugating words using spoken Lebanese Arabic rules, such as the use of “bonjourayn” to reply in greeting.

Bel Lebnééné looks to standardize spoken Lebanese into a written format and to build a library of content to make written Lebanese more mainstream. The two co-founders point to poet and prose author Maurice Awad, financially-inclined academic Nassim Taleb, and other well-known authors that wrote in Lebanese, such as Said Akl and Talal Haidar. Their effort is not one with political goals—they do not aim for the collective to serve as a platform promoting national identity, but to express themselves better when talking about philosophical, political, or economic issues, and to inspire Lebanese to write as they speak.

March 13, 2019 0 comments
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Economics & PolicyQ&A

A new legal class on digital

by Thomas Schellen March 13, 2019
written by Thomas Schellen

Political class is not always a flattering term. Actually, undercurrents of personal animosity and/or political criticism are endemic when discussions turn to the political class—in any country. In Lebanon, the most frequent connotations of the term appear to be wasta and corruption. Hailing from a political family is in this sense a definite reputational burden in the court of public opinion.

However, in reality there are as many nuances on political positions and achievements as there are political individuals in Lebanon, and the task of legislating a framework for the country’s digital transformation is much more important than bickering over ideology. As a significant stepping stone toward the digital future, Law 81 was adopted by Parliament last year and went into effect on January 19. Executive sat down to interview MP Nadim Gemayel, the head of the Parliament’s information technology committee and lead sponsor of Law 81.   

E   Do you already have a sightline on how Law 81 is impacting the Lebanese economy and being adjusted to by enterprises?

Until now, we have not had any feedback about the application of Law 81, since it entered into force on January 19. After 10 days, we still have no feedback from enterprises. But I am sure that over the next six months [the law] will provide an easier way to do business in the country, especially for e-commerce enterprises and for e-banking. We are also contemplating an enhancement [of the law] with regards to dealing via emails and electronic transactions, especially concerning processes that used to be paper-based in terms of C2G [consumer to government] transactions and payments. This relates specifically to the realms of government to consumer and government to business interactions, or G2C and B2G, in areas such as payments at the ports and all kinds of e-payments. We are contemplating this, together with many companies, in order to provide them with the best environment, even though we do not have e-government yet.

E   Does this plan for new legislation interlace with projects under the CEDRE framework and initiatives coordinated with World Bank-related projects, such as the streamlining of customs procedures?

Exactly. It all goes together. It is not only about CEDRE, but about creating a real, modern country that has [digital] procedures and regulations that extend all the way.

E   So what are the most important points in Law 81 from your perspective, as its sponsor in producing it in Parliament?

Law 81 has three main aspects. The first is the civil law aspect, the second is the penal or criminal law aspect, and the third is organizational. The most important one is the aspect on civil law. This aspect includes four chapters. The first chapter includes the e-signature, all sorts of e-transactions, and electronic writing. Then there is the e-commerce chapter, an e-banking chapter, and the data protection chapter. These are the four main chapters [under the civil law aspect]. Then you have the criminal law aspect that covers all kinds of electronic crimes and cybercrimes, hacking, etc. All this is being covered under the penal aspect. The third aspect or section is the organizational one that provides [measures for the organization of] .lb and on how to manage internet service providers and data service providers.

E   So, under the penal section of Law 81, cybercrimes and their penalties are clearly defined?

Yes, there are penalties for hacking, for intrusion into [IT] systems, for pornography and child abuse over the net. There is a set of [legal sanctions] for e-crimes.

E   Is there also a provision in the law’s penal section that deals with online harassment or bullying over the internet?

No, harassment is not included. It is still very general. The section has a set of articles that address a small part of the e-crimes but does not go into [all forms of] abuse, social media, or freedom of speech.

E  This sounds as if victims of online trolling in Lebanon might, for the time being, still have to resort to the existing judicial means when seeking protection. As concerns the organizational section of the law, you say that the .lb issuance is included?

On the organizational [segment] we have two chapters, one that is related to regulating the .lb—I personally have many reservations about this chapter because it is very badly done, and it was changed at the last minute in Parliament. It is not applicable, and we are attempting to change it again.

E   What is the weakness of this chapter?

[By changing the text of Law 81, members of Parliament] created an entity to manage .lb that by law cannot be created; there is a contradiction in the chapter. There is another chapter in the organizational section of Law 81 that talks about all kinds of [Internet Service Providers and Data Service Providers] and all kinds of servers.

E   You mentioned in a speech at a cybersecurity conference on January 31 that the law is a step toward something comparable to the EU’s General Data Protection Regulation, or GDPR?

Right. This is the part that is related to data protection. This is in the fourth chapter of Law 81’s segment relating to the civil aspect. We have a foot in the water in terms of data protection but it is not yet complete data protection, similar to GDPR.

E   So it is not yet in the organizational segment?

There is a small [data protection aspect] in the organizational section, on how companies are to do business, and how [they are] to be regulated by the ministries.

E   What is your perception regarding the readiness of Lebanese companies that do business online with European customers?

Any company that wants to deal with European citizens, or do business in Europe, has to comply with GDPR. This is much stronger than our data protection regulation, but the companies in Lebanon will still have to adapt to Law 81.

E   Is there enough awareness and training in Lebanon on how to comply with GDPR, noting that European countries have recently appeared to enforce the regulation with larger fines?

It is not enough. Probably only banks are aware of all the procedures related to GDPR. But in the overall Lebanese market there is no awareness at all, and especially there is no awareness in the ministries that have to apply the data protection. That is why I requested a meeting on data protection last week with the ministries on how to implement the data protection. There was a sort of mess in this regard.

E   What sort of mess is this? Is it concerning all ministries? 

We have four ministries that are related to data protection. We are trying to coordinate the [issuance] of decrees that these ministries have to release. The Ministry of Justice, the Ministry of [Public] Health, the Ministry of Economy [and Trade], and the Ministry of Interior [and Municipalities] will all have to coordinate in order to have a competent structure [for data protection].

E   How do you perceive the establishment of a new ministerial role, namely the Office of the Minister of State for Information Technology and Investment, in this context of need for coordination on digital policies and processes?

I heard very good things about this minister as being very competent and trustworthy. [Ed: a first meeting between MP Gemayel and Minister Afiouni was arranged after Executive conducted this interview.] I hope that we will be able to cooperate with the new minister for [information technology], in order to organize this sector and move it forward to achieve better expansion.

E   How is the situation, or need, in terms of implementation decrees for Law 81?

Some issues need regulation by the ministers, and some issues need government decrees. This should all be set [soon]. Law 81 needs about 10 decrees, and we are pushing the ministers. These decrees should have been implemented [in January 2019], but since there was no government [at the time when Law 81 went into effect], we are giving them a few weeks to organize themselves to start decreeing what needs to be decreed.

E   You serve as head of Parliament’s IT committee. How do you see the digital awareness of fellow members of Parliament?

The awareness is very good. This is a domain that is very young, dynamic, efficient, and that is evolving very quickly. Of course there are some colleagues among deputies who are more aware than others, but each is [aware] about a sector. Even I have been thrown into dealing with this sector, and did not know all details about it, but I decided to take this into my hands. We are also making efforts to improve our knowledge of all relevant issues. For example, we are organizing a trip for all parliamentarians in the [IT] committee to Estonia, which is the number one state for e-government, cybersecurity, etc. We will be going there to discover this horizon and take the necessary training to know what to expect.

E   A fact finding tour?

Exactly, a tour to study, have e-government meetings, regulatory meetings and all this. [Ed: the tour had been conducted by the time of publication.]

E   Without resorting to external ratings of Lebanon’s digital readiness by think tanks and organizations such as the World Economic Forum, how do you personally rate Lebanon for digital and cybersecurity development when comparing it to peers in the Middle East?

Without having other criteria, from a legal point of view I think we are very late. [Law 81] was the first time that a law concerning IT and e-transactions was voted into existence. It has been a first step, but other countries are very advanced in this. I also believe that we need to do a lot in the ecosystem, from education to evolving job descriptions for people to know from the beginning that we need different jobs from the traditional ones. We also need to reach new markets, find new horizons, and new ways to integrate the values of Lebanon into companies within this [digital environment]. We are late.

E  Two years ago, Executive published an analysis by a legal expert on digital legal frameworks in the region, and it indeed showed that Lebanon was behind the regional curve in legislation and adoption of policies for digital transformation as well as in cybersecurity issues.

It is far behind, but I can add one comment: Lebanon has always been known for private initiatives and personal initiatives in adopting new technologies, evolving new sectors, etc. I believe that this time, the state needs to be following the private sector. We [in the state] must not be afraid to say that we are following the private sector. The private sector should be the pioneer and lead us. We are there to support them.

E   In this context, it appeared from recent conferences on the digital ecosystem and cybersecurity, such as a Cybersecurity Day at the American University of Beirut, that Lebanese students are extremely eager to learn more skills in areas such as cybersecurity. Do you agree?

Of course. Cybersecurity is the future, not only for the state, but also for your personal digital identity.

E   Do you recommend any specific steps that the state should take under the concept of following the private sector in the areas of digital innovation and cybersecurity? Should the state, for example, devise new curricula for tertiary education on cybersecurity?

No, but I believe that much should be done to make people from a very young age learn how to think differently and orient themselves in this area. It is also very important to create jobs in this area. Awareness is very important. Digital is part of our daily life. It’s like learning how to drive a car—understand your limits. In a similar way, you need to learn how to use the [digital] technology around you. You have to know the limits that you have in this technology and how to protect yourself.

E   Should the state take a leading role in education for digital, or should this digital transformation be driven by private education providers?

Both have a role to play. The ministries and the government have to play a role, and the whole public sector has to play a role, but it is complementary. It is similar to how creating awareness of child abuse problems is part public and part private responsibility—it is part of schools, cultural clubs, families. It is about everybody.

E   For the interaction with the government today, are there special contact points at Parliament for the private sector, where companies can relate to the IT committee?

Of course, I am open to everybody, and I’m talking with all the sectors. Our committee engages on education, with the Ministry of Telecoms, with IT companies, with the clusters, with everybody. We are trying to talk to everybody and be part of [answering] their needs and requirements.

E   How are you dealing with specific situations involving state contracts and work on issues such digitization of the cadaster?

We have yet to start on this issue, which goes into the development of e-government. This issue requires many strategic decisions, for example, who will own the data and what will be the [ID] number that you use to identify yourself? Will it be a number [given to citizens] by the interior ministry, the finance ministry, or any other ministry? We need to define this [ownership of data] first, and this has been a big debate; the ministries still do not accept to share their data among each other. If you do not organize this today, especially between the Ministry of Finance and the Ministry of Interior [and Municipalities], you will not be able to go forward.

This is because you need the personal, individual [data]—name, family name, and date of birth—as well as the financial information, and the data from the Ministry of Justice, which owns the cadaster. It is a management of three [ministerial stakeholders], of whom each considers themselves to own the data and wants to preserve it [at their ministry] without sharing it with anybody. This is problematic. It is where we are today, but I think that we shall be able to find a solution very soon. Also, let me tell you about another innovation that we [in the IT committee] are working on: I am proposing a law on companies in technology that will be favorable for entrepreneurship and startup companies in the digital ecosystem. This law aims to provide simplified [processes] and quick registration, where we will waive many [requirements] for young companies in order for entrepreneurs to be able to start new tech companies and take them forward very quickly.

E   Would this also involve smoothing of access for young tech companies to the Electronic Trading Platform, or ETP, once this entity is established?

The issue is completely different. [The new legal proposal] is for companies that seek to be incorporated in an easy and light process. That is what we are doing. If these companies later want to join the ETP or evolve onto the Beirut Stock Exchange or somewhere else, they are free to do what they want, but [this law will be there to help them] if they are young startups and want to go forward.

E   It has been a request from participants in the entrepreneurship and tech startup ecosystem to have simpler incorporation requirements for startups. Is your new law proposal addressing this issue then?

Exactly. This [sort of complex requirement] is what we are going to waive. We are helping the [startups]  do things. We know very well that perhaps two of 10 startups will fly. For the rest, we are facilitating the bankruptcy or shutdown, and in case that they are flying alone, we will facilitate their registration so that they can get integrated into the ecosystem. I hope that this law that we are preparing will help a lot in this way. It is a new law that I have not proposed yet, but plan to launch in the near future. It is being drafted.

E  May I ask how you personally first became involved with the issue of digital empowerment, and what made you aspire to become the chair of the IT committee in the current Parliament?

I have always been interested in IT and technology issues and digital identity. In the last Parliament, I was a member of this committee that, at that time, was chaired by my colleague, [Tripoli MP] Samer Saadeh. So when Samer lost the election [last May], I proposed to become the chairman of the IT committee. I nominated myself because I believe this sector is the future, where a lot needs to be done, and where I have a lot to give.

E   When you gave a speech on Law 81 and your perspectives on the challenges for politicians in the digital era at the end of January, you referred in the conclusion of your speech to issues of leadership and influencing—specifically the dilemma of whether politicians will resort to following the demands and pressures exerted on digital social networks, or if the networks should follow the politicians and their leadership. Would you elaborate on how you perceive this issue and what you see as the appropriate paradigm for digital political behaviors?

I believe that, today, big data is corrupting our mindset and is also corrupting the way we see things in society. It probably is also corrupting the values we have. I believe that, while [digital influences] can corrupt, we should not lose our values, our credibility, and our identities, or the human way of thinking. Data should help [politicians in making decisions] but it should not be [directing] our decisions instead of ourselves. I am pro-technology and pro-evolving, but I also believe that humans still need to [stay in charge]. There are many stories about things like dataism and the danger of data today. We cannot control it, but we need to contain it. 

March 13, 2019 0 comments
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Economics & PolicyQ&A

Interview with the new Lebanese minister of state for information technology and investment

by Thomas Schellen March 13, 2019
written by Thomas Schellen

Lebanon is well-acquainted with the true diaspora returnee: the individual born in Lebanon who departed at some point in the 20th century, who has one or multiple tertiary education degrees—often earned at a ranking European or American university—and who succeeded in his career abroad before returning to Lebanon, for reasons ranging from family responsibilities or/and love to entrepreneurial hunger and will to invest. Some spirited entrepreneurs even get involved in diaspora organizations.

However, while this personality is frequently encountered in the entrepreneurial private sector economy of Lebanon, it has not been so common—at least for several political generations in positions of power, until the arrival of the 2019 Council of Ministers—to meet a minister that fits the profile. Executive sat down with Adel Afiouni, minister of state for information technology and investment, to understand his vision for this new role. Having been able to check the above-mentioned achievement boxes on Minister Afiouni’s professional track record in education and international banking, Executive is now standing by to tick off the delivery boxes on the new ministry’s KPI fulfillments or flops in the coming years.

E   What is your perspective on knowledge economy development in Lebanon, including the state of the digital ecosystem and the readiness of our cybersecurity?

I have not yet gone into the details of the cybersecurity topic. I just started and am first mapping the space. I am pretty familiar with the ecosystem, with the entrepreneurs, the VCs, and the government entities on the knowledge economy side, but in my first few weeks on the job I want to do a full mapping [of the digital landscape] and listen to all the key stakeholders from the government and the private sector, so that I can figure out what mandate I want to design for this ministry, what is the scope of work, and what is the vision that we want to achieve. From there, I want to determine the strategy and the deliverables. My ministry is actually a startup, which goes well with the way in which I like to operate. I am very excited about this and want to operate it in the way you found a business.

E   Are you, in the sense of a startup enterprise, bootstrapping?

In my opinion, the ministry has a very strategic role, and I myself have high expectations as to what we want to achieve. I also am dealing with stakeholders who have high expectations, as this sector is, by definition, a fast-growing sector with entrepreneurial participants. I want to build a long-term strategy with clear deliverables.

E   Of course, one does not expect a ministry to bootstrap, but there have been instances where entire ministries had no clear budgets and were forced to resort to tapping into external funding sources. Do you have a budget?

There are challenges. [The ministry] is a startup, and funding is obviously a key component when you build a startup. We have a commitment from the Prime Minister to grow this ministry and deliver on our ambitions. I need to submit a plan with a budget. If you look at the policy statement [by the Council of Ministers] that was presented to Parliament [in February], there is a portion that says that ministers of state will be given resources, including budget[s]. We have to ask for [such allocations] as we operate in an environment where we can obviously not overspend. We have to be very rigorous [on spending control], and I do not have any issue with leveraging existing resources and cooperating with a lot of stakeholders inside the government. There are some ministries where there is complementarity and scope and the need to cooperate, like the Ministry of State for Administrative Reform (OMSAR) and [the Ministry of Telecommunications]. All ministries effectively are partners, we are all partners in the project of digital transformation. There are also large components of the private sector who want to be involved and help. We need to leverage those resources.

E   As you mentioned, more than one ministry has been a stakeholder in building IT capacities in public administrations and Lebanon’s transition into the knowledge economy. OMSAR was a stakeholder together with UNDP in developing an e-government strategy document as far back as 2003, and then in producing another, similar strategy document that was published late last year. Did you already have time to look at the priorities as they were presented in those papers and determine which of them you will pursue as minister?

Yes, you are right that we had a number of strategy papers and strategic initiatives that we need to execute; the key is execution. I looked at a lot of documents, not only from OMSAR, but every ministry had developed [such documents and plans]. Some administration units have made substantial progress, but others are a bit late in the game [in terms of digitization]. We have not implemented the full strategy so far, so we can leapfrog. There are new technologies and new ways of digitizing the government and the economy. That is the first priority item.

Secondly, this government has a strong commitment to the knowledge economy as a pillar of our strategic vision for the economy. Therefore, and this is also in the policy statement, there is a strong commitment to the digital transformation of the administration and the economy. We are going to start discussions, such as [convening] inter-ministerial committee meetings. The key for such initiatives, in my experience from other countries, is to first put the governance in place. The strategy is key, but the governance is fundamental for executing it. We need to establish the governance structure and decide on the role of each ministry within the governance structure and how we will work on a shared infrastructure platform to be most efficient. Beyond this, each ministry or administration obviously will have its own [digitization] priorities and implementation inside the governance structure that can oversee the execution and [fulfillment of] KPIs.

Now, going back to my own priorities in entering into this position, I see the scope as twofold. One scope is the digital transformation of the government. That scheme has, for many reasons—transparency, efficiency, and the journey of the citizen—to be made much easier. This is important for the economy, but also for regaining the citizen’s trust in the government. That is one side of the scope. Equally important is the second side: the emergence of Lebanon, from an economic and business perspective, as a hub for technology and the knowledge economy. This is a sector where we have many advantages and have the potential, contrary to other sectors, to grow and become a meaningful player in the region.

For me, therefore, there is the digital transformation of government, where I have to work closely with every partner in government who is involved—[which is] pretty much everyone. OMSAR has done a great job in setting the stage, but we need to progress from there. And there is the private sector, business side to the knowledge economy, which we need to grow and transform from an emerging sector with a lot of potential into a well-established center for the region.

E   What is your position on interaction with the academic and civil society sides?

I have many ideas on that side but, to be fair, I need to develop these further. This weekend I spoke with the minister of education to jointly organize meetings with all the large universities and come up with a strategy where the universities can be actively involved in our vision and plans. When I talk about the private sector and how we can transform Lebanon into a business hub in the knowledge economy, enablers are key. Two enablers are first on my list. One is infrastructure, and that is where our neighbors at the ministry of telecoms are set on improving the infrastructure in the whole country. The second enabler is education, research, and development. We need to create [intellectual property] in the country; we do not just want to be an intermediary. To do that, we need strong research and development. We need to adapt the curriculum in the universities to the business world and to the new technologies. It is a part of the strategy and very important for us to include new technologies in the curriculum, starting with schools. I have friends in Parliament in this, and, for example, MP Nicolas Sehnaoui is going to propose a new law on introducing technology subjects in schools. We also need to do the same at the university level, where we need to introduce new technologies and link the universities better to the business ecosystem. All this is starting, but I think we need to turn it into a focused plan.

E   If we turn to talk about the business community and specifically the financial sector, what is your perspective on the role of banks, and especially the function of Circular 331, for the development of the knowledge economy in Lebanon?

I think Circular 331 has been a major catalyst that has effectively jump-started the whole ecosystem [of the knowledge economy]. As we all know, you can have many plans, but if you have no funding for a plan, you can’t progress. I salute [Banque Du Liban Governor Riad Salameh] for his vision on this. [Circular] 331 has been a fantastic initiative, and what it did was basically make capital available to the startup ecosystem. Our role in government is not only to support it, but to complement it. [Circular] 331 has brought the banks as major investors into the ecosystem, but there are other types of investors that we also need to bring in [to] diversify the funding sources for the ecosystem. The most important thing is for our country to attract capital, not just in the form of deposits, but in any form of investments. Thus, we need to supply those other investors with sets of incentives and support. We have a pool of capital available, which mostly is diaspora capital, that we need to attract and encourage. So far, we have focused on this pool mostly as a source of deposits. That is fine, but we have to also attract them for investments in productive sectors. One of my priorities as minister for information technology and investment is to see how we can attract more diaspora capital to productive sectors in Lebanon, and in particular to the knowledge economy sector by providing support, help, and incentives.

E   Does the minister of state for information technology and investment then also have a vital stake in collaboration with the central bank and the Capital Markets Authority of Lebanon?

We have a great relationship with the governor and the CMA, and we complement each other. We have to work hand-in-hand supporting crucial flows of capital into the country.

E   Does your sightline also extend to a perspective on financial sector companies and banks on issues such as new payment solutions in the country?

Anything that makes the ecosystem more efficient, where we can see potential for growth and that helps us with digitization and the digital transformation of the economy has enablers that are important, and one of them is moving into a cashless society, where payments can actually be made in a more efficient and transparent way. This is part of my priorities.

E   In order to create a virtuous cycle or upward development spiral for Lebanon’s digital transition, it seems that this country needs to achieve much: investments, reforms, cybersecurity, digital identity, and e-governance. As the country would work on all these issues, do you see them as priority needs that are best pursued consecutively or concurrently? Phrased differently, must we achieve a succession of milestones or will it be better to work on all fronts at the same time?

As I see this, the tracks are parallel, and we should avoid taking on [digital transformation] one step after another. If we have a governance structure and agree on a common platform or shared principles, everything should go in parallel. [In this way,] we will actually create a virtuous cycle. For example, we will not wait for everything [else] to be ready before going to attract investment. This is because having attracted a small investment sometimes puts pressure on other things to progress faster.

E   On the cybersecurity side, there seem to be several options in the sense of having centralization in the management of citizens’ data and single-source issuances of digital identity files or having more of a decentralized approach. Do you favor one approach?   

I have my views on that as I’ve done some work on [such issues] in my previous work. However, to be fair, these are sensitive matters that touch on national security. They involve the Ministry of Defense, the interior ministry and many organizations. Thus I would rather first discuss these matters and hear views from different parties before we can come up with a solution. As far as I’m concerned, it’s very important to take into account some of the opinions from inside the government, especially from [the] security [establishment].

As I mentioned earlier these [cybersecurity issues] are matters where we’ve been a bit too late. At this stage, where we already have digitized a lot of data, we need to put the mechanism in place to protect our country and our citizens. It is also very important to protect the privacy of citizens’ data.

E   Are we going to see another national plan on cybersecurity and other digital and e-government issues, something such as a national digital strategy, the next edition?

I hope we don’t need to recreate this because there’s a lot of good work that has been done. One of the reasons I see for delays [in implementing a national digital strategy] is that we’ve seen a lot of strategy papers come in. They keep reinventing the wheel. I prefer if we actually leverage the work that has been done and really [do this] in the near term. We will agree on a deadline [for the government’s digital transition] so we [can] start implementing [the strategy]. We can get inspiration from a lot of countries that were in similar situations. We need to execute [our strategy].

E   One of the experiences that have marked periods of technical migration and innovation seems to have been that in taking these steps, countries have tended to make mistakes. Perhaps it has even been necessary for administrations to make mistakes on the road to e-governance and learn from them. But as for Lebanon, it seems today that we are out of time and cannot afford to make mistakes and learn from them. How would you solve this challenge?

Hopefully we can progress faster by learning from other countries’ mistakes and journeys into digital transformation. We honestly just need to have a clear governance—something that we don’t have today—and then this governance will lead to the assignment of [the needed] roles. Some of these roles will be handled at the ministry’s level, but to make things more efficient, shared infrastructure, with the ability to communicate between government entities and use similar tools, is very important, and we do not have this yet.

March 13, 2019 0 comments
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CommentEconomics & Policy

Building Lebanon’s destination marketing to fuel growth

by Samer Elhajjar March 13, 2019
written by Samer Elhajjar

Lebanon has long been a crucial center for creativity and innovation, and is reputed to have some of the most successful advertising agencies and marketers among its citizens. Yet the country does not have its own marketing plan. There is no unified strategy for promoting Lebanon as a country to either tourists or investors. It is of the utmost importance, then, that the government develop a cohesive country marketing strategy that could play a role in alleviating the economic situation Lebanon faces.

The post-war situation in Lebanon has been marred by instability, with political conflicts hindering any reform efforts to improve government finances. The deteriorating economic situation since 2010 has burdened the private sector and led to worsening conditions for conducting business. In order to fuel economic growth, the government must re-brand the current image of Lebanon, from a risky unstable country to a safe and stable environment. 

Globalization has led to increased competition among countries as they attempt to secure more resources and attract more foreign investment, both of which have a direct impact on social and economic development. The stability of nations in this aggressive global environment has relied mainly on their ability to create and promote competitive advantages in order to attract investment. Country marketing has become an essential tool used by governments to increase their competitiveness, promote local development, and attract foreign investment. In this context, national governments must act more like business entities, whereby territories are regarded as products that should be marketed and branded to increase their attractiveness to investors and stakeholders.

In Lebanon, a unified marketing strategy for the country has been attempted before. In 2001, then-Prime Minister Rafic Hariri tried to develop a brand for Lebanon in a holistic and coherent way. However, this effort did not materialize due to Hariri’s assassination and the political instability that followed. After the assassination, isolated efforts were made—by the tourism ministry, among others—to create a brand image. However, none of these efforts made it past the planning stage due to a lack of political will and support. Today, the brand image of Lebanon is very fragmented, and there is no conscious effort by the country to develop it. The failure of the government to create and communicate a unique brand for Lebanon has led to the country being perceived with indifference by, for example, its regional neighbors and European markets.

Isolated efforts undertaken by ministers and public influencers cannot create a national brand for Lebanon. If the government wants to play an important role in the region, it has to adopt the marketing tools that will help Lebanon project a better image. To effectively brand Lebanon, the cabinet must first develop its capital market strategy, which includes segmentation, targeting, and positioning. In Lebanon’s case, two groups need to be courted: small and large investors. Small investors—the European market, for the most part, in addition to the GCC—should be courted by the creative and production sectors in order to attract investment in gastronomy and agro-industries.  Large investors, namely the GCC market, should be courted by the financial and tourism sectors; the government should make a special effort to promote Lebanon in the GCC region.

To attract these markets, Lebanon should be positioned as a stable, safe, and alluring destination with fertile ground for investment. Another important step in its territorial marketing strategy is to develop differentiation tactics to attract investors and tourists. Any country marketing strategy should work to highlight any factors that differentiate Lebanon from its regional competition. The Lebanese people’s innovativeness, creativity, and entrepreneurial mindset can be regarded as the main differentiator in Lebanon. Other assets include: the diversity of opportunities that Lebanon offers to investors in various industries; the vibrant, multicultural nature of the country; and the rich natural resources and agriculture conditions.

Finally, the government should make national security a priority to aid the implementation of any marketing plan for Lebanon. The government should also establish an open market economy with high levels of foreign direct investment and local savings. The government strategy should stress that the state’s role in economic issues is important but limited; it should develop the legal framework for an economy in which the private sector is the main actor.

March 13, 2019 0 comments
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CommentEconomics & Policy

An urgent need for reform

by Mounir Rached March 13, 2019
written by Mounir Rached

There has been a growing concern over Lebanon’s debt outlook. True, the fiscal deficit at end of Q3 2018 was twice that of 2017 for the same period. Two main factors contributed to its escalation: First, the wage and salary increases that were adopted during the last quarter of the 2017 budget and extended through the first three quarters of 2018, generated a rise in personnel costs of 21 percent; and second, the escalation in the debt service cost by 8 percent, reflecting both higher debt and higher interest rates.

Bleak fiscal outlook

Rates are likely to post a further rise as the latest treasury bill issues commanded an interest rate rise of 2.5 percent to reach 10 percent on the 10 year note.  Shorter term rates rose by 1 percent to the range of 6-7 percent. Real rates, however, are near zero at the current inflation rate. Nominal rates are expected to remain high and the primary instrument to support the peg.

Revenues have remained subdued, rising at 3 percent, reflecting slower economic activity in most tax bases. In addition, revenues of 2017 included a significant windfall transfer of over LL1 trillion that resulted from the financial engineering operations of Banque du Liban (BDL), Lebanon’s central bank. A repeat of these operations is very unlikely.

The overall fiscal outlook for the whole of 2018 is expected to post further deterioration, and the overall deficit may reach the LL9 trillion ($6 billion) mark, thus raising the deficit ratio to 10 percent of GDP compared to 7 percent in 2017.

This implies that a more serious effort is needed in order to comply with the CEDRE commitment to reduce the budget deficit annually by 1 percentage point of GDP in the coming five years. The budget for 2019 has not yet been approved by the new government in order to be submitted to Parliament and to be passed into law.  But no major changes are expected, as the inflexible wages and debt service are built in, and constitute 70 percent of total spending.

The fiscal risk for Lebanon is high and is generating considerable damage to the whole economy. First, it weighs heavily on the current account of the balance of payments through the saving-investment gap of the public sector. Second, the high debt service, reaching nearly 50 percent of revenues, has limited the options for public spending. It has forced cuts in capital spending in order to have sufficient resources for current spending; a first priority for the government, as evidenced by the generous wage increases. Third, the high capital cost that is being generated is abating investment in all sectors.

Recent media statements reporting on potential debt restructuring damaged confidence in the financial secondary markets. These statements, sparked by a local press report where the then-caretaker finance minister was quoted as having raised the possibility of debt restructuring (comments he quickly refuted, reassuring the markets that no such plan was on the table), were based on unrealistic perceptions of the structure of the debt and the legal implications of such a measure.

The repeated analogy to the Greek case is certainly faulty. Greece owed substantial external debt to European banks, and, given that it does not have its own currency, could not service its debt except through generating substantial surpluses in its balance of payments—quite an impossibility in the presence of perennial fiscal deficits. Foreign banks (mainly European) could offer a reduction in debt (haircuts) to Greece, as each holder had insignificant amounts of Greek debt relative to its assets. Such reductions could have been done without implications for depositors, but certainly at the expense of shareholders’ profit.

In the case of Lebanon, banks have significant holdings of public debt, amounting to 14 percent of their assets, and 64 percent of total bank loans. Any debt reduction of significance, therefore, would have an impact on depositors, and could engender a legal battle. Furthermore, politicians and prominent businessmen would be affected in a tangible way, likely prompting them to block such a move. It is estimated that the distribution of deposit holding is significantly skewed in Lebanon, with 1 percent of depositors holding about 50 percent of dollar deposits.

Debt cuts are a serious matter and are undertaken only when a country is on the brink of a default or de-facto defaulting. Lebanon is not in this category now for the following reasons:

Lebanon’s debt is issued mostly in lira (60 percent), and is being held almost totally by domestic financial institutions. These are as follows: BDL with 45 percent, commercial banks with 40 percent, public enterprises with 9 percent, foreign bilateral and official institutions with 3 percent. Private non-bank debt holders carry only 3 percent of total debt, and this is split among foreign and domestic holders.

The risk of debt could emerge from market risk principally. Banks and the other private non-bank holders account for 43 percent of total debt, of which $16 billion is denominated in foreign currencies (mostly US dollars),  forming only 20 percent of total debt. The ratio of market debt to GDP becomes significantly less at 55 percent, which mitigates debt default risk.

Reform needed

As sovereign debt is one of the major revenue generating instruments for banks, in addition to being constrained by maturities, sudden downloading of government securities is not seen as an immediate threat. International private holders carry less than $1.3 billion, and would have a limited impact on the domestic and international markets in the event that they discount and redeem their holdings. Furthermore, substantive and sudden outflow of capital from Lebanon is technically not feasible due to maturities and clearance constraints.

The current situation does not portend a financial meltdown or crisis. The government can serve its debt in Lebanese currency without difficulty, at the risk of higher inflation, of course. In an emergency it could also pay back its Eurobond debt in local currency. This has undesired consequences, but is likely to be perceived better than a full default. Considering that BDL reserves (at $45 billion) are equivalent to two and a half times market debt in Eurobonds, those risks are quite mitigated.

Nevertheless, the government’s need for reform is very urgent and a continued deterioration of the fiscal outlook could precipitate a forced market adjustment that would reveal itself in a currency depreciation and de facto de-pegging of the lira from the dollar. It is important to pursue reform in order to achieve balanced growth and create job opportunities for our youth and the unemployed, and to reduce economic inequality, which would very likely worsen in a recession phase. Reform could commence in areas that are relatively less controversial, as in the power sector. Leasing power from international producers combined with a power purchase agreement and a tariff adjustment could save the economy $2.5 billion annually, including a cut in the deficit by one third. Hope remains that the new government will address reform issues seriously.

March 13, 2019 0 comments
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Economics & PolicyLegislation

Long overdue reforms

by Jeremy Arbid March 13, 2019
written by Jeremy Arbid

After nine months of deliberations, Lebanon formed a new government at the end of January. Saad Hariri, now in his third term as prime minister, announced a reform agenda as the cabinet’s raison d’être. Since 2011, Lebanon’s economy has been exhibiting recessionary symptoms and reforms are needed to reboot the economy.

According to media reports on the contents of the ministerial statement (the government’s mission statement), the agenda includes: adopting a fiscal and monetary policy to instill confidence in the economy and reduce the debt-to-GDP ratio through growth and spending reduction; passing the 2019 draft budget and auditing public finance from previous years; adopting an anti-corruption strategy; and ensuring 24-hour electricity “as soon as possible,” while reducing the subsidy to the failing public electricity utility. There is much that needs to be done, but given the length of time it took to form this government it is fair to wonder how many of these reforms can be achieved, and whether this cabinet’s term will be long enough to make any substantive difference ahead of the 2022 parliamentary and presidential elections.

A long to-do list

State officials attended CEDRE in April 2018, pledging reforms in exchange for donor financing to develop the country’s infrastructure and ease supply-side bottlenecks. In Paris, Lebanon presented donors and investors with a Capital Investment Plan (CIP). The CIP was prepared to address specific economic shortcomings: tremendous challenges in public finances, monetary policy that has exhausted all options to maintain stability, low growth rates, high unemployment, increasing levels of poverty, and the balance of payments problem.

The reforms promised involved fiscal discipline measures—mainly through the reduction of the debt-to-GDP ratio by decreasing the deficit by one percentage point of GDP over the next five years. The state could work toward this reduction in two ways: First, by reducing the subsidy to the failing public electricity utility, Électricité du Liban (EDL), which averaged $1.6 billion per year between 2010 and 2017, according to figures from the Ministry of Finance; second, by shoring up revenue to the treasury by increasing the tax base and reducing evasion of the value-added tax, which the International Monetary Fund last estimated in 2013 at $1.5 billion.

In February, Lebanon’s political parties met with the Economic and Social Council (ESC)—an advisory body to the government addressing economic, business, and civil concerns—for discussions of a 22-point economic plan. According to a draft version reviewed by Executive, the parties agreed to recommend fiscal measures the state should adopt to address the country’s fiscal imbalances. The plan included: eliminating the EDL deficit, with a timeframe of three years to achieve this; a call to reduce the cost of public debt servicing by at least 10 percent through a mechanism that the government, the central bank, and commercial banks agree on—though at the time Executive went to print it was still unclear how this mechanism would work; and a recommendation that the state reform public sector pension systems and benefits, review public sector personnel and positions, and freeze hiring for 2019.

As Executive reported last month, international organizations have advised Lebanon to adopt an evolving list of structural and sectoral reforms and doing business measures to spur economic productivity and enhance the private sector environment.

Experience and longevity needed

In order for the government to be effective in implementing reforms, it needs ministers with some experience in office. If a seasoned cabinet minister retains their portfolio or is granted a new one, there may not be as much disruption or as long a learning curve as there would be for a fresh member of cabinet. It would not be accurate to call this a technocratic government, but it has a high share of members that have at least one of the following three qualifications: experience as cabinet member in previous governments, experience as a leader in a private sector enterprise, and/or experience that is related to the portfolio they are in charge of. There are definitely individuals in this cabinet appointed thanks to political ties, but even then there is no indication they are completely unsuited to their position of appointment.

What could derail the reform agenda of this new government? In a recent interview published on the website of the Carnegie Middle East Center, the think tank’s director, Maha Yahya, cited internal factors, including the usual domestic political infighting as well as a deteriorating economy, the fight over normalizing relations with Syria, the potential for conflict with Israel, collateral damage from possible US financial sanctions targeting Hezbollah, and other security challenges.

If the maximum constitutional lifecycle of this cabinet is until spring 2022—which is when Parliament and the presidency are up for election (as Parliament becomes the election college for the president)—then Lebanon will need to have a new cabinet empowered to continue the reform agenda soon after. Why? As Lebanon experienced during the presidencies of Michel Sleiman and Michel Aoun, a caretaker cabinet has much less power than an empowered government. For the country to have an empowered government requires three elements, otherwise known as the troika: the speaker of Parliament, the prime minister, and the president. For most cabinets after Rafic Hariri’s assassination in 2005, this has not been the case. In the period since, there have been vacuums in every area: in cabinet, in the presidency, and in the mandate of Parliament—though not in the role of speaker of Parliament, which is somewhat ironic. That the speaker has had a 27-year run in the job would normally be a cause for concern, but for Lebanon this has been almost a happy factor because everything else is so dysfunctional.

Looking back at how much downtime the state has had over the last two decades—in terms of caretaker governments, extended mandates of Parliament, or vacancy of the presidency—suggests why the reform agenda has been stalled for so long. The question now is how much of the reform agenda can actually be accomplished if this cabinet has less than two years left of effective full power?

[/media-credit] Click on image to view timeline.

March 13, 2019 0 comments
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Economics & PolicyOverview

Dipping into digital waters

by Thomas Schellen March 13, 2019
written by Thomas Schellen

When four officers of two highly respected Lebanese military institutions—the Lebanese Army and the Internal Security Forces—in mid-January took their chairs on a panel at the American University of Beirut (AUB) to participate in what the university advertised as its first Cyber Security Day, the assembled students, professors from various academic institutions, and guests, did not exude any boredom or exasperation with the “dry” topic of which the moderator of this third panel had warned. To the contrary, during the panel’s progression, ears opened ever wider, and attention spans were universally beefed to their maximum settings when Major Marc Sawan, head of the ISF’s Digital Forensics and Cybercrime Unit, started telling his cautionary tale of two information technology (IT) experts, one of them an aggressive hacker and the other an IT administrator with a habit of posting personal information.

According to the officer’s revelations of a chain of incidents unfolding over 2017 and 2018, the hacker succeeded to outsmart his insufficiently wary victim in a classical phishing attack on the basis of well-informed social engineering. By doing so, the hacker infiltrated an ISP and then a group of ISPs. When the hacker found governmental sites that were hosted on the infected ISPs, he managed to hack into these sites. The attacks peaked in hacking assaults being launched between governmental sites in Lebanon—the hacker causing them to attack one another just for fun—and even usage of these governmental sites for orchestration of an attack on a site outside of Lebanon that led the foreign site to file a complaint against a governmental site in Lebanon.     

High vulnerability

Sawan’s cautionary tale concludes with “small statistics,” namely that at least six ISPs, 80 governmental sites, and over 700 sites in total were compromised in a single attack. “This is how bad the situation is in Lebanon,” he said, exasperated, before answering the moderator’s question over the immunity of Lebanese governmental sites today by adding, “I think that for the moment we do not have any immunity, because there is no cyber culture, no forensic site, and no cyber security vision in Lebanon.”   

Stories about digital attacks and the damages they cause have, for several years now, been topics of international organizations endeavoring to draw attention to the problems of cybercrime growth rates. “The cost of cybercrime will have quadrupled since 2015, reaching $2.1 trillion by the end of 2019 and outpacing spending on cybersecurity by over 16 times,” said a January 2019 blog entry on the World Economic Forum’s website, which bemoaned that despite growing information security expenditures, the recent past was marked by such egregious disproportionality of cybercrime damages and cybersecurity investments.

The same, well-tested road of citing dystopian estimates “by experts” and providing scary studies to the unaware public via various uncritical media channels is often chosen by the vendors of cybersecurity tools with the dual aim to create greater awareness as well as boost sales of their products and services. By this year, however, this road is already so well-trodden and dusty that it might become difficult for the average business decision-maker to assess her or his investment needs for cyber defense tools or understand the ever-growing importance of covering one’s digital risks.

Underestimating cyber risk in recent years appeared especially virulent in Lebanon, given that citizens and companies were constantly being confronted with overburdens of various problems in the country’s existential economic situation. This possibility would at least help to explain why the country, despite its widely hailed tech-knowledge base and entrepreneurial prowess, has been regularly lambasted as underprepared for the risks of digital assaults from opportunistic cybercrimes to cyberterrorism or cyberwarfare by malignant powers.

However, a more accurate picture of the dismal digital status of Lebanon might be that the country in previous years did not only have too many other problems to pay the needed attention to its cyber risks but also that it lacked basic building blocks for becoming a cyber nation. The deficiencies included the absence of legal structures for protection of citizens’ data and digital privacy, for the punishment of criminal offenders prowling digital spheres, and of widespread digital underdevelopment in the corporate world, not just in the realm of cybersecurity.     

“Our government elites have to appreciate our cyber assets, introducing digitized processes and the language of automation into governmental agencies,” says Hisham Itani, the chairman and CEO of Resource Group, a holding that entails numerous companies with focuses on various aspects of digital development. “After that, we can start thinking about how to protect these assets because then we will have something to protect. But today we have nothing, so what shall we protect? There is cyber, but there is no security. Efforts of implementing and sporadically improving cybersecurity are [undertaken] by the central bank and very few alpha banks but [cybersecurity] efforts are not yet extending to the important level of a state Security Operations Center, or SOC.”

Jacques Seif, the chief operating officer of Resource Group, adds: “From the start date of a cybersecurity ecosystem, which has not occurred yet because we are lacking a large cybersecurity project in Lebanon, we will need at least 36 months. We have the seeds for this since we are implementing cryptography and cybersecurity. Also, IT infrastructure vendors in Lebanon are delivering security applications such as intrusion prevention systems and firewalls, but you need to aggregate all of this around something called a SIEM or Security Incident Event Management system and around a SOC.”

Enter a brave new year

The good news then is that Lebanon today not only has at least a promising shot at political invigoration and reform—with the potential to reduce many headaches in the citizenry although some others look set to increase—but also that the last two months have seen a rising wave of events that appear capable of raising digital awareness. While AUB’s Cyber Security Day impressed as an academic forum with frank evaluations of the real digital Lebanon and participation by representatives of several universities, January and February of 2019 also saw a three-day conference marketed as a “Sustainable Digital Ecosystem Summit” with active corporate participation and media partnerships (Executive Magazine was a strategic media partner).

Tony Ghattas, the chief operating officer of the event’s organizer IFP, said the group was aiming to develop the sustainable digital ecosystem theme into a series of annual events in Lebanon and took the experience of the first summit as a starting point for internal discussions as to whether the next conference in the series will be held before the end of 2019 or in 2020. “It is going to be an annual gathering of like-minded professionals and stakeholders. The objective [of the event series] is to develop the digital ecosystem,” he said, talking about convergence of the key trends such as IoT, AI, Blockchain technologies, and digital identities under a comprehensively legislated framework that would establish Lebanon as the regional leader in its digital ecosystem.   

IFP’s summit was followed by another event with an even more precisely defined focus on new cybersecurity solutions that could be applied in Lebanon. The one-day event at the end of January was driven by a partnership of local information security firm CIEL, an expert in email security and digital signatures, and Finnish firm Ubisecure, a specialist that wants to bring its digital identity management and access management solutions to Middle Eastern markets.

Declaring his satisfaction with the event and optimism for stronger future adoption of cybersecurity solutions in different MENA markets, Salah Rustum, chief executive officer of CIEL, assesses the state of cybersecurity awareness in Lebanon as being significantly improved when compared to two years ago. “I expect good progress and good comprehension of the problem of cybersecurity and am sure that many organizations in need of cybersecurity will go ahead to apply the needed measures,” he tells Executive. “I will not try to forecast if it would be commercial establishments, or banks, or government entities that will be most responsive throughout this year but am speaking in general that awareness of cybersecurity has really surfaced in Lebanon.”

For good measure, the Digital Arabia Network—which presents itself as the entrepreneurial lab for Arab digital future—spiced up the aforementioned corporate and academically themed events with a strong dose of social entrepreneurship in early February when it convened in the Beirut Digital District to present the initial results of an effort toward Digital Mapping of the Arab World. While the complete results were not available at time of writing, a press release of the DAN Mapping Project—the project is covering six countries in the Levant and North Africa—enthuses that “Lebanon appears to be growing in the digital sphere.”

Most importantly, however, the first month of the year witnessed the coming in force of Law 81 that is relevant for the growth of fundamental digital services, such as electronic transactions, privacy and data protection, prosecution of cybercrimes and organization of digital processes in Lebanon.

From the perspectives of private sector stakeholders whom Executive talked to, the progress represented by Law 81 is enormous, despite the limitations of the current framework. “Law 81 has some loopholes, but a law with loopholes is better than no law,” comments Salah Rustum. Resource Group COO Jacques Seif emphasizes, “The merit of Law 81 is that it sets a legal framework for electronic transactions in Lebanon, which is a great progress by itself.”

On the executive side of the government, the corresponding impulse of new digital hope is the appointment of the first Minister of State for Information Technology and Investment, Adel Afiouni.

Overcoming digital déja-vu

The good mood and improved perceptions of Lebanon’s cybersecurity awareness in the eyes of corporate players in this space notwithstanding, Lebanon has much to do to overcome its digital inertia. The result spurt of conferences and talks prompt flashbacks over similar talk of digital development strategies 15 and 20 years ago. Hearing in one conversation that the country is in need of leapfrogging into the digital era reminded yours truly strongly of an interview at the end of the 1990s when a senior expert at the Office of the Minister of State for Administrative Reform, Raymond Khoury, expressed his conviction that Lebanon would need to “supersonically leapfrog” in terms of e-government.

According to a report in The Daily Star, former economy minister Nasser Saidi, visiting in late February, mused how perceived current discussions on AI-enhanced e-government and papers on digital strategy resembled proposals circulated at an e-government themed Beirut conference in 2003. “[Government leaders] are still living back in the ’60 and ’70s, when they should be living in the 2020s and planning for the 2030s,” Saidi was quoted as saying.

Even event organizers IFP caused a hint of déjà vu in the observer’s mind. The company, which so energetically went about lifting the IT topic of a sustainable digital ecosystem in 2019, had been a notable absentee from the organizing of IT-centric trade shows in Lebanon since the early 2000s, when it was running an annual Beirut IT fair by the name of CompEx.

With so many points where depressed digitization and cybersecurity watchers in Lebanon might see the current surge in cybersecurity awareness and new digital vigor—especially on the side of public sector minds—as a temporary flash rather than sustainable change, it should serve well to envision the upside potentials of leapfrogging hops into the digital eras in one’s mind. For example, researching success stories from peer countries, and then visualizing the downsides of not making the overdue jump into the future is useful.

For this exercise, all a Lebanese citizen or resident needs to do is, for example, to visit certain entrenched line ministries and administrative units where paper-based processes are—in 2019 still—being used to incredible bureaucratic excess. Or a seeker of such examples can traverse the central offices of the biggest municipality in Lebanon and pay attention to how much their personal time and effort all urban residents have to invest into jumping over bureaucratic hurdles for accessing normal services that could easily be provided digitally.

March 13, 2019 0 comments
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Special ReportWomen's empowerment

Childcare is not just a practical problem

by Angela Solomon March 12, 2019
written by Angela Solomon

I had been working in childcare for two years before I became a mom. As a founder of Jaleesa, an online platform to find babysitters and nannies in Lebanon, I have spoken to hundreds of parents—mainly moms—about the challenges of work and childcare. Parents have helped us to define a carer’s main role: to keep the kids safe, clean, and fed—and to support their development.

But now I am a parent myself, I realize this is just the beginning. Another key role of childcare is to relieve the pressure on parents. For the wellbeing of the whole family, there has to be a good child-care plan in place when mom returns to work.

Maternity leave is not generous in Lebanon; new mothers find themselves leaving their 70-day-old babies in the care of others as they head back to work. I look at photos of my baby at that age—he was so vulnerable and small. How could I have gone back to work? How could I have concentrated for a whole day on anything but him? It seems impossible—but I did it, just like thousands of other moms. And I was able to do it because I had a childcare plan in place that I trusted was good for my baby.

Designing a childcare plan is not just about solving a practical problem, it is an emotional issue. We are looking for peace of mind and the best for our kids. We also need to know that things are sorted at home, so we can concentrate at work. This is not an easy task, the lack of accessible childcare is one of the greatest barriers moms face when hoping to return to work. A 2017 OCED Gender Equality Report found that the most common response—cited by 23 countries—when asked for the three most effective ways to tackle barriers to female employment was “making childcare more accessible.”

When parents return to work, they have to weigh their options. Most people’s childcare plans combine one or more elements from the available options: daycare, a family member, a domestic worker, and a nanny.

Finding the right fit

There are some truly excellent daycares in Lebanon, and this can be a cost effective part of a working parent’s childcare plan. Daycare is a chance for kids to learn to socialize, which they start to need at around 13-23 months according to the American Academy of Pediatrics. Before this age, babies are interested in other babies, but their brains are not yet developed enough to make friends with their peers, so socialising is more about learning to trust other adults and caregivers. Parents have to anticipate that their children will pick up illnesses while their immunity develops, and that can impact on parents’ ability to work productively. Flexibility can also be a challenge: worrying about getting through traffic to fetch the kids is a stress working parents do not need.

In some families, when a new baby is born, teta steps in as a childcarer. For those who have this option it is fantastic; nobody is better qualified to teach young babies how it feels to be loved, nurtured, and looked after than those who raised us. But with our parents enjoying their health, and working later before retiring, this is not an option for everyone. My mom would love to spend more time with her grandson, but in her mid-sixties she is still busy with her own work, commitments, and travel.

Some families decide to put their domestic worker in charge of childcare, although this is not a choice I would make. I want my carer to be 100 percent focused on the baby, not worrying about other household tasks at the same time. And while many families still do have a live-in domestic worker, not all newlyweds can afford a big enough home to share with employees—if they even want to share their private space at all.

A nanny can be the main solution, she (or he) can be the glue that holds the childcare plan together. Some people fear that a professional nanny will be very expensive, but combining a full or part-time nanny with support from grandma, daycare, and flexible working can actually save the family money.

Hiring your own childcarer or nanny also helps relieve some of the avoidable stresses of returning to work. Childcare is the clear priority, but when the baby’s sleeping my nanny is so proactive that sometimes I feel I have a sitter,  home helper, and PA all in one. She is not just part of my baby’s daily schedule, but also supports our parenting choices and helps to manage challenges like tantrums, weaning, and sleep routines. Jaleesa hand-picks childcarers through an extensive vetting, interview, and training process, designed to find people who are trustworthy, professional, experienced, and who love kids.

A big part of me was happy to return to work—perhaps in part because I work for my own company, and we are extremely parent-friendly. My nanny could bring the baby to the office at lunchtimes so I could feed him, and my team have been very open-minded about this (though our auditors found it to be quite a shock). We have all gotten used to the growl of the breast pump in the office twice a day. However, it has not all been smooth. Some days, I start later and finish earlier than I would like. Not everyone can enjoy so much flexibility, but with the right support at home, hopefully other mothers can find their return to work less stressful too.

Childcare is not just about liberating our time for productivity, it is about freeing up our brain-space so we can be fully present at work. Having a plan, even one concocted from several options, is the first step toward a smooth transition back. Of course there are always hiccups along the road. My baby bumped his head for the first time because I was checking work emails on my phone. I feel guilty about that, of course. But I absolutely do not feel guilty about going back to work, because my baby is well looked after by a nanny I trust. To offer that peace of mind to more families, my plan is to keep working as long and hard—and flexibly—as I can.

March 12, 2019 0 comments
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CommentSpecial ReportWomen in the workplace

The greatest adventure

by Zeina Zeidan March 12, 2019
written by Zeina Zeidan

The greatest adventure of all, that is how I would describe my dual journey: my career and motherhood. The ability to balance two vastly different worlds is testament to the versatility and strength that lies within each woman. This ability is often left untapped and under-appreciated, because the world continually tries to convince us that we are the weaker sex.

Work has been a constant part of my life since my late teenage years because school fees always had to be paid. I had to combine a hectic scholastic life with as many working hours as possible to make ends meet. I was so determined to realize my dream of becoming a successful businesswoman and entrepreneur that I gave little attention to anything else.

I must confess that motherhood was not at the top of my mind during my early twenties, and it remained that way until I met my husband. After marriage, like most married couples, we discussed whether or not we should start a family. But with my career moving forward, as well as my husband’s, the question was: How can we juggle work and a child? I was confident that I would be able to balance life as a businesswomen and a mother—after all, I had managed to juggle work and school. But the first challenge came when I was pregnant and still had to work; it was a trying, yet exciting time.

When my first child was born, it was definitely a life-changing experience. It made every other experience pale in comparison. I was one of those mothers who bonded with my baby even before I gave birth. I felt as if I knew my child. Being a working mother, I felt torn apart. Society makes many of us feel guilty for wanting to pursue a career after having children, and I was prey to those dark thoughts for a while.

Our motherly instincts drive us to provide comfort and security, so the idea of leaving our precious little one at home with someone else can feel like a betrayal or abandonment. I struggled with these feelings, and it took me some time to come to terms with the situation. Women are expected to place themselves on the altar of sacrifice, to not compromise, and those who choose to—or have to—work are silently persecuted for wanting to have it all. This is the cultural reality.

Realistic expectations

My experience of being a new mother while also trying to keep my career moving forward made me realize that we cannot have it all. It is simply not humanly possible. Nevertheless, simple changes would have made it easier—not just for me, but for all mothers. This support includes longer parental leave and greater flexibility in the workplace. If we want more women to be in the workplace and to ascend the career ladder, women should not have to make tough compromises.

The current business arena is set up without such support, and so there will always be many instances where I am forced to miss out on important milestones, either in my child’s life, or in my career. I could miss my toddler’s first word because I had a meeting. Or I could miss out on a work opportunity or a client because my child is sick and needs attention. Beating myself up about such things is futile. I have learned to let go of attempting to make every moment perfect and memorable. Even full-time mothers cannot live up to such unrealistic expectations.

Once I broke free from the shackles of expectations, I had to perfect the art of compromise. Tomorrow there is always a chance to compensate for what was missed today. I do what it takes—even if it means moving my schedule around to wake up earlier or stay up later, or working overtime—to ensure I can enjoy a long weekend of quality time with my child. I see time as something much like the love between a mother and a child: a priceless thing that must be given unconditionally. This is why I strive to ensure my family feels loved, and why I soak up their love in return. It is a heartwarming shield that counterbalances the cutthroat world of business and finance.

With regard to the impact being a mother has had on my career itself, it has helped me develop patience and become exceedingly good at managing time. Those two attributes have made me more efficient, which has benefited both business and family life.

The power of teamwork

Building reliable support networks at work, and also closer to home, has been equally essential. These networks enable me to delegate and trust the right people for the right jobs. As a leader, knowing that I have a team capable of handling even the small details gives me the total confidence to make the best decisions for the company.

It is true that it is challenging to go against the tide of cultural expectations about motherhood, and I have seen so many talented women leave jobs they love to raise their children. And yet, it is ultimately about managing the emotional energy tied to your home, just as you would for work. As my career continues to evolve, the realization that I am not just working for myself, or my future self, but also for my child, the next generation, gives me extra drive to push ahead in this greatest of adventures.

March 12, 2019 1 comment
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RefugeesSpecial ReportWomen's empowerment

Redefining roles

by Lauren Holtmeier March 12, 2019
written by Lauren Holtmeier

Fleeing conflict, leaving one’s home, and settling in a strange—and often unwelcoming—environment is challenging. For female refugees these challenges can be compounded, as many experience a shift in their accustomed gender roles. Many women in Syria played the role of housewife, but in Lebanon they must assume a new role—that of breadwinner.  The 2018 Vulnerability Assessment of Syrian Refugees (VASyR), a report compiled annually since 2013, estimates that 18 percent of households are female-headed and that 16 percent of women participate in the labor force. The percentage of women engaged in formal or informal employment is low, but most women take on more work as a refugee, even if that work is leaving the house to collect humanitarian aid. Executive interviewed six refugee women; only one said her role in the family largely remained the same.

This shift in gender roles affects all female Syrian refugees, whether single or married. But the breadth of work refugee women engage in is varied. While some refugee families can afford apartments in Beirut, and as a consequence, typically have improved access to more diversified labor markets, some live in crowded informal settlements in the Bekaa Valley and are limited in the type of work that is available to them.

Saja Michael, a gender and diversity technical adviser at ABAAD, a gender equality organization, says that socioeconomic status plays a large role in determining what type of work refugees may find. “If you’re a Syrian refugee who’s a bit better off, definitely you’re going to have access to employment opportunities that a Syrian refugee from a lower socioeconomic class will probably not have access to,” she says.

For those at the lower end of the socioeconomic spectrum, many find work in the fields. The 2018 VASyR cites that of employed women the highest percentage work in agriculture (38 percent). According to Michael, whether the woman came from urban vs. rural areas in Syria also often gives an indication as to what type of work, if any, they did back home.

Increasing responsibility

“It’s important to understand where they’re coming from in Syria,” Michael says. “So if you’re coming from urban vs. rural, I think it’s an oversimplification to say Syrian women are more-used to child rearing. In some areas, I think this is the norm, but in more urban settings, women are more likely to be economic providers and caretakers.”

Wiam Ghabash, originally from Darayya, a suburb of Damascus, worked for the Syrian Ministry of Health as an English teacher for nursing students. Arriving in Chtoura in 2014, for her finding work in Lebanon was a continuation of the norm. She works here as an IT and digital security trainer, and runs training sessions on human rights and women’s rights at Women Now for Development, an organization that works with Syrian refugees. But even for Ghabash, who has degrees in public health and English, finding work in Lebanon was challenging.

“It was a difficult stage,” Ghabash says. “I remember spending eight months walking in the streets, looking for jobs. I reduced the expectation to the minimal level. Like, it’s ok if I get a job answering the phone in an office or cleaning offices.”

While Ghabash would have been happy to do any job to support her family of six, she eventually picked up a six-month contract at Oxfam, but this did not solve her long-term financial problems. She says that the Lebanese system makes it hard for Syrians to find work; even if they find work with an NGO, the contract cannot be extended past six months for Syrians.

Syrian refugees began arriving in Lebanon in 2011, and currently there are just under 1 million Syrians registered with UNHCR. Shortly after Ghabash made the trip to Lebanon, at the end of 2014, the government introduced new policies aimed at reducing the number of displaced Syrians. These measures included requiring Syrians to register with the UNHCR and sign a pledge not to work, or to find a Lebanese sponsor to stay in the country legally and pay a $200 residency fee every six months.

For four years Ghabash renewed her residency without issue because she had signed the pledge not to work. However, the last time she went to renew her permit, General Security had learned she had been working and stamped a deportation notice on her passport, effectively rendering her immobile within Lebanon. Ghabash is confined to an approximate 10 kilometer radius around her home for fear of what might happen if she is stopped at a checkpoint.

Ghabash’s future may be uncertain, but she knows for sure that she is not going back to Syria. UNHCR has an agreement with the Lebanese government that they cannot forcibly return anyone to Syria. She has applied for asylum in France and Italy and was waiting for her asylum interview when Executive spoke with her.

Ghabash’s story is just one example of the myriad challenges Syrian refugees face in Lebanon. Following these new regulations, in May 2015, UNHCR suspended registering refugees all together per the host government’s decision, leaving many refugees without documentation or the ability to obtain it.

At this point, more women had to find work as they were no longer able to rely on humanitarian aid to feed their families, says Sabah Hallak, a gender expert at Citizenship League, an NGO that works with Syrian refugees. Confined to working in the construction, agriculture, and environment sector per Lebanese labor law, refugees are limited in their opportunities to find employment. Female refugees are further limited because construction is a typically a male-dominated field. Hallak says that most work in the informal sector, primarily in the fields picking crops. This, of course, is seasonal work, meaning that in order to survive on these earning you would have to save.

Making ends meet

Saving money, however, is hard when wages are low. For those who work in the fields, Michael estimates that women and children may earn LL4,000 – 6,000 for a four to five hour shift, and many will work two shifts a day, making their daily wage around LL8,000 – 12,000. Men make around LL15,000 per shift. A refugee in the Sheikh Raja settlement outside Chtoura in the Bekaa Valley who preferred to be mentioned by her first name, Jouriya, recalls making LL6,000 for a five hour shift, while the men “made more, because they are men.”  An International Labor Organization (ILO) report using data from 2014 found that Syrian refugee women earned on average LL248,000 per month, where the men’s average earning was LL432,000. Women earn less than men, and where women are the sole economic provider in a household, like Jouriya, they will likely be more hard-pressed to make ends meet than men in the same situation.

Jouriya worked in the fields three years ago, but now she has established a tutoring center for 19 children in the camp and also studies radiology. She is the only one in her family of five who works. Even though she charges LL55,000 per month, most people cannot afford her fee, so they pay her what they can. She says she earns around $40 per month to support her family. Her parents are too old to work, and her brother has not been able to find any, leaving the brunt of the responsibility on Jouriya’s shoulders.

In Idlib, Jouriya and her family owned their own land. The family grew their own food, and Jouriya taught fourth graders in her hometown. It was a simple life, but a stable one. Here, her family receives the UN nutrition card each month that comes loaded with LL120,000. When asked if this and her income from tutoring are enough to feed her family of five, Jouriya says, “we do our best.”

Part of the reason many women accept agricultural work, even though the wages fall far below minimum wage (LL30,000 per day or LL675,000 per month) is economic necessity. Women are also more vulnerable to losing hard found work. If a contractor needs to reduce the number of workers on the site, the women are the first to go, says Frida Khan, a senior gender specialist in the ILO Regional Office for Arab States.

An ILO program, the Employment Intensive Infrastructure Program (EIIP), established in 2017, sought to help both men and women get into jobs in the construction sector. Participants are guaranteed employment for a certain number of days in the EIIP program, and then, ideally, will find other work in the sector. As the EIIP guarantees both a period of work and the minimum wage, it is an attractive option for Syrian refugee women who are often underpaid and struggle to break into male-dominated sectors.

Even though many women must work out of economic necessity, most refugee women would prefer not to, both Khan and Razan Hussami, founder of Anamel, an organization that works with refugee women, say separately.  At the onset of the crisis, more refugee women reported going outside the home to make economic contributions to their families, but this did not necessarily mean working in the fields. Up until early 2015, women left the home to collect humanitarian aid at designated locations. While it was not a job, women felt burdened by the extra responsibility of having to collect aid in addition to taking care of their families, Michael explains.

Others have learned skills such as sewing or cutting hair to earn money. Across the country, programs have been established to provide refugee women an opportunity to learn new skills and provide a place where they can work to support their families.

One example is Hussami’s program Anamel. In a two-story workhouse in Bchamoun just outside Beirut, women learn skills they can use to make a living. A tutoring center at Anamel offers women reading and writing classes, and children who cannot attend school, either because they lack proper identification or there are no available spots, also learn at the center.

Hussami says that many women who attend training sessions at the center are then able to find work in the community, and that these kinds of programs give women a sense of purpose and community and are empowering. Hallak, however has a slightly less optimistic view of these type of programs.

“At first we taught them sewing and hair cutting; some learned to make handicrafts,” she says. “But now, things are not good in the camps. Who needs the coiffeur?”

A difference in opinions

It seems organizations, in their attempt to help provide women with livelihoods, flooded the market in camps for these certain skills. Hallak says now there is a shift to teaching women English and equipping them with computer skills. These types of skills may benefit women in the long run, but the restrictions placed on Syrian workers in Lebanon in terms of which fields they can legally work in and the limited jobs available will make it difficult for many to apply these newly learned skills and join the workforce.

Miriam, a refugee from the rural area outside Raqqa, and Sarah Youssef Hussein, originally from a rural area of the Idlib governorate, do not work but have differing opinions on the matter.

Hussein fled to Lebanon in 2012 with her husband and son, and, unlike Miriam, would love to find work, but if she works there will be no one to take care of the children. They have had two children since coming to Lebanon. Her husband, who has no formal employment, typically begins his day under a bridge near the camp and hopes to find a day’s work. If successful, he will earn around $10 that will go toward feeding a family of five. Her family used to collect $260 a month in aid she says, but they have not received any help since October 2018.

Miriam, once illiterate, has been learning to read and write at Anamel for the last two years. Before going to the center, she spent her days at home alone. Everyone in her family of eight either go to work or school during the day, and, for Miriam, studying is a way to pass the time.

“At least when I go back to Syria, I didn’t waste my years here,” she says.

In Syria, Miriam took care of her family and tended the family sheep and garden. When the fighting in Raqqa intensified in 2014, the family sold its sheep and fled toward the border, eventually settling in Bchamoun. Miriam considers herself lucky that her husband and two daughters work, so she is free to continue her homemaker duties, largely as she did in Syria.

Like Miriam, Souad from Abu Kamal in the Deir ez-Zor governorate in Syria, a sous-chef at Anamel, would rather take care of her seven children than work. Another woman at Anamel, Zahra from Aleppo, teaches women to crochet three days a week, and while she enjoys her work, she feels guilty that she cannot spend more time taking care of her family.

ABAAD’s Michael says that, as a women’s organization, seeing women become providers and playing a larger role in their households, staff at ABAAD were excited. But this did not necessarily reflect the reality for the women; many were overburdened by their new role. “Any working woman has two jobs,” Michael says, referring to the pre-defined role as caretaker in addition to any income-deriving activity.

For the women who worked before coming to Lebanon, like Ghabash and Jouriya, this shift seems less harsh. But these women are still the primary economic provider for their families. For women like Souad and Zahra, their shifting role is more dramatic as they did not work outside the home in Syria. Perhaps the only commonality is that refugee women, for the most part, have an increased role in caring and providing for their families as refugees, regardless of individual feelings on that role.

“From what I’ve seen from four years working here, I see a definite change in gender roles,” Ghabash says. “Maybe this is a positive side of the war, that we have an increased role here. Some focus on the work and exploitation. The other side is that they’re the decision-maker, the breadwinner. They’re not aware that it’s a privilege.”

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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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