A. In order to prevent and discourage corruption, and return the embezzled funds of the nation, the State of Lebanon must formally request all nations to assist in the collection of bank account details and statements of all Lebanese politicians, and politically exposed people (PEP), including family members, associated businesses, and partners (direct and indirect) with no exception. This includes all firms that have received government contracts since 2005. This information must be made publicly available and a national tribunal must be established to investigate all cases of corruption (international investigation team composed of the top 5 audit firms).
B. With focus on transparency, and in an effort to gain the public’s trust, open source accounting must be implemented and is non-negotiable. All Lebanese government agencies and expenditures must be publicly published online and without delay, with the exception of classified army documents. Procurement departments must be re-activated and government tenders must be opened and awarded in public, with every bidder submitting their official bids at the time of the price opening.
Decentralized solutions for power and water must be implemented. Privatization or private public partnership on the basis of build operate and transfer (BOT) must be implemented to help realize these critical infrastructural reforms.
A. Power: Implement a decentralized hybrid gas-renewable energy solution to provide stable and continuous power. Replace the current privately owned generators through a “swap deal” with on-grid solar systems and smart meters that reduce the electricity cost and fuel expenditure, and fairly compensate private energy providers at a cost lower than that of the gas power plants. This new initiative should be legalized for all Lebanese citizens to improve the economic competitiveness of the nation as well as reduce pollution and ensure our national carbon footprint is in line with international efforts to go green. In addition to reducing the energy cost and increasing power efficiency, this will also provide a stable income for Lebanese solar farm owners, directly contributing back to our own economy, all while reducing the carbon footprint, unlike the current outdated inefficient fuel generator and fuel power plant system. Tariffs must be raised to immediately balance the cost and raised gradually, once the economy has recovered, to generate income and fund future government budgets.
B. Water: Water must be provided through the water network and without the use of water tankers, that incur unnecessary operational, fuel and human resource costs that must be invested elsewhere in the nation and create growth in the GDP. This improves national productivity and reduces unnecessary expenditures, creating a more competitive economy. Solar farms must be utilized to power all water pumping stations and provide adequate water to all users with collection tanks or reservoirs, at various altitudes, with enough capacity to ensure continuous flow of water to all regions. Smart water meters must be installed for every user and in every household with a community meter to facilitate transparent accounting of water delivery and consumption.
C. Telecommunication: This sector must be privatized and liberalized to discourage monopoly, provide better service and competitive offers. It is eminent, that losses are cut as soon as possible, and instead, this sector becomes a revenue generating sector.
D. Internet: High speed fiber optic networks to be installed nationwide, with a roll-out plan prioritizing designated areas for technology hubs and start-ups. Emphasis must be given to the IT sector to encourage its quick development.
Investors, tourism and citizens’ well being depend on a free and independent judicial system that functions efficiently. The selection of judges, the promotion of judges must be independent of the political establishment and must incorporate a mix of nationally and regionally elected judges and judicially nominated judges that govern the judiciary system. Judges will be evaluated and monitored based on established key performance indicators (KPIs) to avoid unnecessary delay in court hearings, settlements, and verdicts. Court cases will be classified based on severity and the time-frames will vary with minor cases expected to be resolved in the shortest time frames (less than one month) and court cases must not exceed 12 months without a verdict.
Taif agreement has resulted in a failed political system, with no functioning executive government and a nation that suffers from political vacuum since the withdrawal of the Syrian forces from Lebanon. The political paralysis has handicapped economic growth and the instability will continue to do so. Therefore, decentralization of the political system is required to decisively elect an executive government with unhindered executive authority that can administer the nation, implement the necessary reforms, and a political structure that takes into consideration the delicate sectarian fears into account. The system should encourage sects to campaign for executive office as a multi secular team, to promote inter-secular collaboration and cooperation, while maintaining and respecting fair sectarian representation.
Neutrality to be adopted by the state of Lebanon and relationships that have been severed must be re-established. Lebanon should respect international treaties and not deal with internationally sanctioned countries. Neutrality should be projected by Lebanon’s foreign policy decisions. No state or non-state foreign party should be permitted to interfere in Lebanese internal politics, nor Lebanese foreign policy.
Lebanese army and security forces must be in charge of the security of the entire state and should be the sole bearer of arms. All other armed organizations should submit their arms to be nationalized.
An economic recovery plan must be drafted and implemented to reduce the impact of the economic crises on citizens, stabilize the economy and create economic growth. All incoming governments must provide a plan to achieve acceptable GDP growth rates.
Grand economic strategy with economy strategies for every sector shall be devised with the objective to create economic growth targeting a GDP per capita of over USD 20,000. Economic strategy must be drafted with a 5, 10, 15 and 20 year forecast that sets out targets for exports, imports, tourism, and self-sufficiency in a food security program. The grand strategy must include a national positioning strategy for Lebanon that focuses to market and position Lebanon as a destination of choice for specific niche market tourism and for a range of high quality products.
Lebanon’s pre-crisis trade deficit, for the past decade, was on average USD 15 bn. In respect to the Lebanon’s GPD the trade deficit is unsustainable. Export of Lebanese goods must be encouraged to reduce the deficit created by the pre-crisis, USD 20 bn worth of imported goods. Imports must be studied and local manufacturing must be encouraged through tax waivers and other incentives to encourage local production and reduce imports that drain the national economy.
Laws must be drafted to encourage foreign direct investments and a one stop shop for investors must be established that houses representatives from all government agencies and ministries that are responsible to within an acceptable time-frame review and approve all documentations for any investments. Failure to do so will grant the investor the permits from the delaying ministries without hindrance and will result in the termination of the employee. Interest rates on loans to SMEs (small medium enterprises) should be reduced.
Lebanese agriculture production must be selected based on national economic strategy with cooperatives established to ensure the goods are traded and do not perish. Marijuana related executive decree bills must be finalized and passed to ensure the export will be legalized and taxed acceptably. Farmers must be supported and provided with regulations for chemical usage and fertilizer regulations must be placed and enforced to ensure that Lebanese products abide by international quality standards and can gain a reputation of quality. Organic pesticides and fertilizers to be encouraged with collaboration with international organizations.
E-governance must be implemented throughout the government to improve the citizens’ standard of living and to improve national productivity. In line with the economic recovery plan, government employees on a last in first out basis must be introduced into the private sector to reduce expenditure on civil servants and encourage the youth to be integrated into the private sector where their energy can be invested to grow the economy and reduce the government operational expenditure.
Foreign labor must be regulated, organized and taxed in order to protect Lebanese citizens and encourage increase in wages. Foreigners must be issued and charged for short term driver’s license and work permits. With a national plan to introduce Lebanese labor as a priority “Lebanesation”. Firms utilizing foreign labor must incorporate a plan to introduce, train and hand over these tasks to Lebanese citizens within 3 years. Focus must be given to technical schools to build a strong Lebanese work force that can be relied upon to build the nation and the economy. A nationwide cap on foreign labor must be established with a plan to gradually reduce the ratio until the Lebanese unemployment rate drops below 5%.
Technical schools should be promoted; certification and curriculums should be improved and standardized.
A comprehensive review of the current education system must be executed and reforms that promote increased student equity must be duly implemented. This can only be achieved when every student receives the resources they need to graduate and prepare for life after school.
Allowances must be put in place to integrate in the curriculum, subjects and courses that teaches and encourages the youth to pursue studies in emerging technologies, IT and AI advances, logic and analytics critical thinking and arts, as well as applied sciences, among others. Budget must be allocated to provide public education institutions with the applications and hardware to maximise experiential learning among students.
This sector is vital for the well-being of the citizens and residents, and medical tourism should be promoted to boost the economy. Targeted Social Aid must be setup and well managed to support the vulnerable social segment through organized subsidization of food, healthcare and educational expenses. The Social Aid must be funded by an independent national fund (Social Aid Fund) that allows international donors to participate in the funding. For transparency’s sake, open-source accounting must be utilized by the Social Aid Fund, where all income and expenses are accessible to the public.
Budgets must emphasize capital and investment expenditure and reduce operational expenditure. Budget duration and cut-off deadlines must be respected. Taxes and tariffs should balance and fund the operating expenditure of the nation. Borrowed funds should only be invested in investment expenditure.
Currency must be unpegged, and the LBP exchange rate must be unified and regulated through a Currency Board.
Restructuring of Lebanon’s external sovereign debt is required. This would allow the country to again access external credit markets, which was forfeited after the USD 1.2 billion Eurobond default that occurred in 2020. State assets must be transferred to a Sovereign Fund, which shall be used to guarantee the depositors’ deposits and, with a buyback option, this shall offset BDL Treasury bills.
Capital control must be temporarily (1-2 year initial duration) enforced alongside a sound economic recovery plan. Capital control must not obstruct nor discourage foreign direct investment (FDI). Which is essential for the creation of jobs and helps with reducing unemployment rates in Lebanon. Increased employment results in higher incomes and strengthens consumer buying power, creating sustainable growth in the overall economy of Lebanon.
The banking sector must be restructured to suit the size of the economy. Forensic audit must be carried out. Recapitalize restructured banks through foreign direct investments (FDI).
IMF negotiations must be expedited and the required reforms must be implemented. The IMF funds will secure the required liquidity, international trust and credibility that the nation requires.
International conferences must be organized to raise funds that can be used to implement the reforms in Lebanon’s essential sectors: Tourism, Industry, Transport, Water, Irrigation, Solid Waste, Wastewater, Electricity and Telecommunications. This will help stimulate the economy, create jobs and will also help build up the nation to improve its readiness to attract investments and tourism.
Firstly, for the sake of the general public health, and secondly, as a nation that relies heavily on tourism, the environmental catastrophe in Lebanon must be addressed urgently. Every generation is after all, only the caretaker of this planet, who will hand it over to the next generation.
Private garbage sorting facilities must be encouraged and regulated. Sales of recycled materials must be facilitated. Designated areas must be identified for construction of private waste to power plants.
Lebanon’s pleasant sea water temperature during the summer and its strategical location, near both Europe and the GCC, gives the nation a competitive advantage that can be utilized to promote economic growth and job creation. It is therefore necessary that all sewage must be treated, and all required measures must be taken to ensure that solid waste does not reach the sea.
Oil blocks must be re-tendered in case the companies fail to remobilize to their respective blocks. The tender documents must be audited for corruption and embezzlement schemes. Sovereign wealth fund should be created to invest the proceeds of this sector. Sovereign wealth funds should be invested in lucrative projects that can contribute to fiscal revenue and the growth in the GDP. The Sovereign Wealth Fund can contribute to the payback of bank deposits and fund the pension and Social Aid Funds.