Ii In terms of USAID’s major objective of reconstruction & expanded economic opportunity, can you expound on your micro-finance project and explain what the main advantages and setbacks, if any, you’ve encountered by using this form of aid?

JB We don’t look at it as a cure, but more broadly as a form of access to credit. Those who are poor and displaced can be some of the most vibrant and productive members of the community if they simply have a means of production and the capital they require.

Because these loans are small sums - too small to be ‘on the screen’ of financial institutions - and are very labor-intensive, in terms of research & qualification requirements, USAID has found it is a niche we can fill in our rural development program.

We work in partnership with the Makhzoumi Foundation, the Cooperative Housing Foundation and the Save the Children Federation/Al Majmoua to give thousands of loans (30% of loans go to people in rural areas of Lebanon)

Ii Can you tell me more about USAID’s role in assisting Lebanon’s accession to the WTO? Are there, in your view, any possible threats to Lebanon’s membership and what does it need to concentrate on most at the moment to gain membership status more rapidly?

JB We have been assisting the Lebanese government through PriceWaterhouseCoopers, who is providing major technical assistance to the various ministries. A major part of the work is being done now with the Memorandum for a Foreign Trade Regime and upon its completion, working party negotiations can begin in July.

There is major work to be done and we believe the government is serious about this, but it must not get bogged down by special interests. A political will is needed to make the necessary policy & regulatory changes and this will upset some vested interests in Lebanon. We saw this in the case of the annulment of exclusive agencies, which is part of building competitive policies.

It is interesting to note that Lebanon was one of the first signatories to the GATT Agreement, so we believe if the political will is there and if the government can muster these new political laws, Lebanon can make accession by 2003.

Ii From your experience here in Lebanon, which areas do you believe are the most critically in need of reform?


 

JB Some of the first that come to mind include Lebanon’s inefficient civil service. The country requires a well-performing, leaner civil service.
Also, the rule of law is critical if Lebanon wants to function in the global economy. There must be legal recourse and legally based, binding procedures. In terms of making these laws, reform is also needed when it comes to parliamentary structure. The technical wherewithal must be available to formulate good laws.

Ii Where do you feel environmental projects have had the most impact and are the most sustainable?

JB We work in coordination with local partner NGOs and focus on where we can invest to maximize the effect of each activity. USAID addressed the problem of solid waste and waste water disposal recently and we may get into the issue of air pollution soon. We have also provided assistance to the AUB to set up a Core Environmental Laboratory that can now undertake testing of water, soil and air pollution to build a nation-wide database. But we like to work in coordination with others to maximize any investment made.

Ii There are some that say the United States has been blocking Lebanon’s attempts to organize Paris II, an international donor meeting that would help to revive the country’s economy.

JB Paris II is critically important for Lebanon but it must come at the right time. Nations are being asked to make a leap of faith before seeing that reform issues are being addressed and many are not comfortable that their investment will be worth anything. Privatization is a key step in that sense and when we see such progress in reforms and structural change, we will support Lebanon to the best of our ability.

Ii What do you say to those who consider USAID a foreign policy tool vs a development organization and do you think you have conflicting roles in that sense?

JB I agree that USAID is an arm of foreign policy. Funds are political. Economic growth, good governance and environmental policy are all issues that, as a development agency, we can link up to on a broader level.