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Deputy Prime Minister Ghassan Hasbani Sunday warned against banking on the upcoming donor conference in Paris to solve Lebanon’s economic problems and called for implementing reforms rather than waiting for external funding.
Speaking in an interview with Arab Economic News, Hasbani voiced his hopes for the conference but cautioned that “it will not lead to the desired positive results if Lebanon fails to implement the commitments it will make.”
The Cedar Conference, also referred to as Paris IV, will bring together the international community in an effort to boost Lebanon’s economy and infrastructure. More than $7 billion in assistance was pledged at the Paris III conference, held in 2007 in the wake of the 34-day 2006 war between Israel and Hezbollah that crippled Lebanese infrastructure.
Further funding has been pumped into Lebanon to help it cope with the impact of the neighboring Syrian crisis and resulting influx of refugees. However, some Lebanese politicians have voiced frustration that all the funding pledges have not been fulfilled and called for further support, while donors have raised concerns over the need for reforms on the Lebanese side to put received funds to use.
Hasbani said these potential issues were again raised in his meetings at the World Economic Forum in Davos last week. “Officials … including World Bank CEO Kristalina Georgieva and officials from the European Bank for Reconstruction and Development (EBRD) questioned Lebanon’s ability to meet the conditions required for the success of the conference and access to financing for infrastructure projects,” Hasbani said.
The deputy premier added that the officials’ skepticism was based on previous experiences in Lebanon. “About $4 billion allocated to Lebanon from international donors is still stuck because of the inability of the Lebanese government to pay what it is required as a share of those loans – [known as] Counterpart Financing,” Hasbani said.
The Cedar Conference is one of three conferences to be held in the coming months aimed at bolstering Lebanon’s security apparatuses, capacity to cope with the influx of refugees from Syria and economy.