Editorial

  Issue No 8, Feb 2003

A Word From Us

Privatization or Liquidation?

With all the seminars, speeches and articles on privatization and its role in reviving the economy, one can argue that Lebanon is already “privatized” by taking a look at the workings of the parliament, government and definitely the pubic utilities sector.

The fuel market, for example, is controlled by a handful of companies (refer to Ii Monthly Issue 0 for details), the mobile phone sector by two companies, while Electricite du Liban is run by concessions in Jbeil, Aley and Zahle, in addition to more than 30% of the Lebanese public who refuse to pay their electric bills. Private health and education institutions are not only free to charge what they like, but are also supported by the public sector through tuition and health allowances to employees to the tune of $550 million annually. Government donations through the Ministry of Social Affairs can also be considered “privatized” since they are restricted to confessional and politically linked NGOs which receive more than $50 million annually.

As for the cellular operations dilemma, two companies monopolized the mobile phone sector through a non-transparent contract approved by the same interests that had this contract cancelled when it began to benefit the state. Those interests are now insisting on a course that is mostly beneficial to them - a 20-year lease. We cancelled the contracts not to “privatize” the sector, since it was already privatized, but to liquidate it. Yes, Lebanon is pursuing a course of liquidation and not privatization.

There seems to be a consensus by the ‘international community,’ the Lebanese government and the majority of the parliament on privatization. Those opposed to this path have approached the subject from an ideological perspective, stressing the role of the state in achieving social justice and preventing the control of public resources from being in the hands of a few.

But the issue is not about numbers, efficiency or ideology. It is about public morality. Can the country embark on a privatization course with the politicians having vested interests in it?

It is time that politicians abide by the Illicit Wealth Law and liquidate their INTERESTS in public utilities, instead of liquidating THEM. Only then can we debate the merits and plan the phases of efficient and fair privatization. The World Bank and the IMF would do well to give this advice to Lebanon’s decision makers.

Jawad Adra
Managing Partner

  

  Current Statistics

Stolen cars

• 1,373 cars were stolen in the year 2001 and 249 were recovered.

Passport office

• 403,464 new passports were issued between 2001-2002 and 188,256 were renewed for the same period.

Motor vehicle inspection

• 847,000 private cars had their registrations (mecanique) renewed from January - October 2002.

CDR expenses

• $844 million in expenditures are estimated for the Council of Development and Reconstruc- tions’ 2003 budget, with $536 million in external funding.

Loans

• $80 million is the amount of a World Bank loan to Lebanese municipalities in the year 2000 for infrastructure works. Since that time, only 10% ($8 million) has been disbursed.

Artisana

• LL 500 million was the government’s contribution to the Artisana in the year 2002.

Debt service

• LL 4,622 billion was the cost of the debt service in 2002, of which LL 411 billion was paid in December.

 

 

Company Activities

  
 

Opinion poll on cultural and literary awareness

This poll, conducted in Greater Beirut, aims to assess the general public’s preferences in the domains of art, culture, literature and entertainment.

Respondents were queried regarding their favorite TV programs and preferred reading, including literary habits across the different mediums of newspapers, magazines and books.
The popularity of cultural activities such as visiting museums, attending the theater, exhibitions and musical events was also gauged.

Finally, respondents were asked to name their favorite entertainers and were tested on their knowledge and recognition of prominent Arab artists, writers, musicians and other personalities.

 

 

Frontpage | Leader | The Economy | Sectoral Outlook | Private Sector | Public Sector | Opinion Poll
| Public Sector (2) | Focus on Syria | Private Sector (2) | Discover Lebanon | Interview | Editorial | Feedback

© Information International SAL. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, photocopying, recording or otherwise, without prior permission from Information International SAL. No statement in this issue is to be construed as a recommendation to buy or sell assets or to provide investment advice.