Financing Development in Lebanon: Review of Progress and Challenges :

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Financing Development in Lebanon Review of
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• The achievement of sustained economic growth and
  poverty reduction remains the key development
  challenge facing Lebanon
  
• Access to finance has a key role to play in
  addressing this challenge
  
• But Lebanon has, and continues to face, a huge
  financing gap

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4. Key Policy Challenges

• There are six broad areas in the Monterrey
  Consensus. A mid term review of the Consensus
  will take place in the first quarter of 2008.
  Some of the challenges associated with these
  areas are as follows
• 4.1 How to improve domestic resource
  mobilization
  
• Lebanon has low savings ratios relative to other
  developing countries. It also has low ratios
  relative to investment requirements
  
• 4.2 How to mobilize international financial
  resources for development
  
• FDI inflows continue to be concentrated in a few
  sectors
  
• They have very limited employment impact

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• 4.3 How to increase international financial and
  technical cooperation
  
• There has also been an effort to increase the
  quantity as well as effectiveness of aid through
  reductions in tied aid as well as an increase in
  the share of grants in total ODA
• Despite these gains, donors need to increase the
  predictability of aid, improve aid allocation
  (more to poorer countries), as well as align and
  harmonize aid flows.
• 4.4 How to use international trade as an engine
  for development
  
• Lebanons share of world trade is very low
• Need for assistance in diversifying into
  production of dynamic products to improve
  benefits from trade
  
• There is also the need to take Development Issues
  more seriously in the Doha Round trade talks

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4.5 Finding an Effective Solution to the
External Debt Crises Facing Lebanon

• The initiatives have reduced the
  debt service burden facing the country
  
• However,
• 4.6 Addressing Systemic Issues
• There is the need to increase for reform of
  international monetary, financial and trading
  systems to give more voice to Lebanon in
  decisions affecting them.

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5. How is the government reform program Responds
to these Challenges

• In an effort to confront these challenges, the
  Lebanese government embarked on the following
  initiatives
  

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• We are also providing valuable technical
  assistance to Lebanon countries through the
  following activities and interventions
  

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6. Conclusion

• Limited progress has been made in terms of
  fulfilling the commitments in the Monterrey
  Consensus
  
• Therefore, more needs to be done by both Lebanon
  and its development partners to accelerate
  progress
  
• At the national level, there is the need to
  intensify efforts to mobilize domestic savings,
  and create a domestic environment
  conducive to investment and sustained growth
• At the international level, there is the need for
  our development partners to translate their
  pledges to Lebanon into action
  
• The challenges are enormous but with the
  political will of Lebanon leaders and their
  development partners, Lebanon will hopefully be
  able to deal with these challenges