LEBANON

Republic of Lebanon Al-Jumhuriyah al-Lubnaniyah CAPITAL: Beirut (Bayrut) FLAG: The national flag, introduced in 1943, consists of two horizontal red stripes separated by a white stripe which is twice as wide; at the center, in green and brown, is a cedar tree. ANTHEM: Kulluna lil watan lil‘ula lil‘alam (All of Us for the Country, Glory, Flag). MONETARY UNIT: The Lebanese pound, or livre libanaise (LL), is a paper currency of 100 piasters. There are coins of 1, 2, 5, 10, 25, and 50 piasters and 1 Lebanese pound, and notes of 1, 5, 10, 25, 50, 100, 250, 1,000 and 10,000 Lebanese pounds. LL1 = $0.000666 (or $1 = LL1,501) as of March 2003. WEIGHTS AND MEASURES: The metric system is the legal standard, but traditional weights and measures are still used. HOLIDAYS: New Year’s Day, 1 January; Arab League Day, 22 March; Independence Day, 22 November; Evacuation Day, 31 December. Christian religious holidays include Feast of St. Maron, 9 February; Good Friday; Easter Monday; Ascension; Assumption, 15 August; All Saints’ Day, 1 November; and Christmas, 25 December. Muslim religious holidays include ‘Id al-Fitr, ‘Id al-‘Adha’, and Milad an- Nabi. TIME: 2 PM = noon GMT. 1LOCATION, SIZE, AND EXTENT Situated on the eastern coast of the Mediterranean Sea, Lebanon has an area of 10,400 sq km (4,015 sq mi), extending 217 km (135 mi) NE–SW and 56 km (35 mi) SE–NW. It is bordered on the N and E by Syria, on the S by Israel, and on the W by the Mediterranean Sea, with a total boundary length of 679 km (422 mi), of which 225 km (140 mi) is coastline. Comparatively, the area occupied by Lebanon is about three-fourths the size of the state of Connecticut. The Lebanon of today is the Greater Lebanon (Grand Liban) created by France in September 1920, which includes the traditional area of Mount Lebanon—the hinterland of the coastal strip from Sidon (Sayda) to Tripoli (Tarabulus)—some coastal cities and districts such as Beirut and Tripoli, and the Bekaa (Biqa‘) Valley in the east. As of January 1988, more than twothirds of the territory was under foreign military occupation. Syrian forces have held northern Lebanon and the Bekaa Valley since 1976; West Beirut and the Beirut-Sidon coastal strip fell into their hands in February 1987. In southern Lebanon, Israeli troops in conjunction with the South Lebanese Army, a local militia, control a 1,000-sq-km (400-sq-mi) strip along the Israeli border. Lebanon’s capital city, Beirut, is located on the Mediterranean coast. 2TOPOGRAPHY The Mount Lebanon area is rugged; there is a rise from sea level to a parallel mountain range of about 2,000–3,000 m (6,600– 9,800 ft) in less than 40 km (25 mi), and heavy downpour of winter rains has formed many deep clefts and valleys in the soft rock. The terrain has profoundly affected the country’s history in that virtually the whole landscape is a series of superb natural fortresses from which guerrilla activities can render the maintenance of control by a centralized government an intermittent and costly affair. East of the Mount Lebanon Range is the Bekaa Valley, an extremely fertile flatland about 16 km (10 mi) wide and 129 km (80 mi) long from north to south. At the eastern flank of the Bekaa rise the Anti-Lebanon Range and the Hermon extension, in which stands Mount Hermon straddling the border with Syria. Lebanon contains few rivers, and its harbors are mostly shallow and small. Abundant springs, found to a height of 1,500 m (4,900 ft) on the western slopes of the Lebanon Mountains, provide water for cultivation up to this height. 3CLIMATE Lebanon’s extraordinarily varied climate is due mainly to the wide range of elevation and the westerly winds that make the Mediterranean coast much wetter than the eastern hills, mountainsides, and valleys. Within a 16-km (10-mi) radius of many villages, apples, olives, and bananas are grown; within 45 minutes’ drive in winter, spring, and fall, both skiing and swimming are possible. Rainfall is abundant by Middle Eastern standards, with about 89 cm (35 in) yearly along the coast, about 127 cm (50 in) on the western slopes of the mountains, and less than 38 cm (15 in) in the Bekaa. About 80% of the rain falls from November to March, mostly in December, January, and February. Summer is a dry season, but it is humid along the coast. The average annual temperature in Beirut is 21°C (70°F), with a range from 13°C (55°F) in winter to 28°C (82°F) in summer. 4FLORA AND FAUNA Lebanon is rich in flora, with over 3,000 species. Olive and fig trees and grapevines are abundant on lower ground, while cedar, maple, juniper, fir, cypress, valonia oak, and Aleppo pine trees occupy higher altitudes. Vegetation types range from subtropical and desert to alpine. Although hunting has killed off most wild mammals, jackals are still found in the wilder rural regions, and gazelles and rabbits are numerous in the south. Many varieties of rodents, including mice, squirrels, and gerbils, and many types of reptiles, including lizards and snakes (some of them poisonous), may be found. Thrushes, nightingales, and other songbirds are native to Lebanon; there are also partridges, pigeons, vultures, and eagles. Lebanon 387 5ENVIRONMENT Lebanon’s forests and water supplies suffered significant damage in the 1975–76 war and subsequent fighting. Rapid urbanization has also left its mark on the environment. Coastal waters show the effects of untreated sewage disposal, particularly near Beirut, and of tanker oil discharges and oil spills. The water pollution problem in Lebanon is in part due to the lack of an internal system to consistently regulate water purification. The nation has 4.8 cubic kilometers of renewable water resources with 68% used for farming activity and 4% used for industrial purposes. Lebanon’s cities produce an average of 0.5 million tons of solid waste per year. Air pollution is a serious problem in Beirut because of vehicular exhaust and the burning of industrial wastes. In 1996, industrial carbon dioxide emissions totaled 14.1 million metric tons. Control efforts have been nonexistent or ineffective because of political fragmentation and recurrent warfare since 1975. The effects of war and the growth of the nation’s cities have combined to threaten animal and plant life in Lebanon. In 1986, the National Preservation Park of Bte’nayel was created in the region of Byblos to preserve wooded areas and wildlife. As of 2001, five of the nation’s mammal species and five of its bird species are endangered. Three of its plant species are also threatened with extinction. The Mediterranean monk seal, African softshell turtle, and dogfish shark are on the endangered list. The Arabian gazelle and Anatolian leopard are extinct. 6POPULATION The population of Lebanon in 2003 was estimated by the United Nations at 3,653,000, which placed it as number 124 in population among the 193 nations of the world. In that year approximately 7% of the population was over 65 years of age, with another 28% of the population under 15 years of age. There were 96 males for every 100 females in the country in 2003. According to the UN, the annual population growth rate for 2000–2005 is 1.56%, with the projected population for the year 2015 at 4,207,000. The population density in 2002 was 418 per sq km (1,082 per sq mi). Most of the population lives on the coastal plains where the major cities are located. It was estimated by the Population Reference Bureau that 90% of the population lived in urban areas in 2001, up from 74% in 1980. More than half of the population resides in the capital city, Beirut, with a population of 2,012,000. Tripoli had approximately 160,000 inhabitants. According to the United Nations, the urban population growth rate for 2000–2005 was 1.7%. 7MIGRATION The economic roots of emigration may be traced to the increase of crop specialization during the 19th century and to the subsequent setbacks of the silk market toward the end of the century. Political incentives also existed, and many Lebanese left their country for Egypt (then under British rule) or the Americas at the turn of the century. After the mid-1960s, skilled Lebanese were attracted by economic opportunities in the Persian Gulf countries. Large numbers fled abroad, many of them to France, Syria, Jordan, Egypt, and the Gulf countries, during the civil war in 1975–76. In 1986, the Lebanese World Cultural Union estimated that some 13,300,000 persons of Lebanese extraction were living abroad, the largest numbers in Brazil, the United States, and Argentina. Since the outbreak of war in 1975, internal migration has largely followed the pattern of hostilities, peaking in 1975/76 and again after the Israeli invasion of 1982. In 1993, the number of refugees in various parts of the country was estimated at over 600,000. As of April 1998, the UNHCR was helping to assist 3,191 refugees in Lebanon, including 1,990 Iraqis, 550 Afghans, 284 Sudanese, 152 Somalis, and 250 refugees from various other countries. Also in 1998, there were more than 350,000 Palestinian refugees who had asylum in Lebanon, where they were assisted by UNRWA. In 2000, the net migration rate was 4.8 per 1,000 population, down from 12.1 per thousand in 1990. There were 634,000 migrants in Lebanon in 2000, including 382,700 refugees. The government views the migration levels as too high. 8ETHNIC GROUPS Ethnic mixtures dating back to various periods of immigration and invasion are represented, as are peoples of almost all Middle Eastern countries. A confusing factor is the religious basis of ethnic differentiation. Thus, while most Lebanese are Arabs, they are divided into Muslims and Christians, each in turn subdivided into a number of faiths or sects, most of them formed by historical development into separate ethnic groups. The Muslims are divided into Sunnis and Shi’is. The Druzes, whose religion derives from Islam, are a significant minority. The Christians are divided mainly among Maronites, Greek Orthodox, and Greek Catholics. All the major groups have their own political organizations, paramilitary units, and territorial strongholds. Other ethnic groups include Armenians (most of them Armenian Orthodox, with some Armenian Catholics) and small numbers of Jews, Syrians, Kurds, and others. The number of Palestinians is estimated at 450,000–500,000. In addition there are about 180,000 stateless undocumented persons. Some of these are inhabitants of disputed border areas. As of 1999, population statistics stood at 95% Arab, 4% Armenian, and 1% other. 9LANGUAGES Arabic is the official language and is spoken throughout the country. Much of the population is bilingual, with French as the main second language. There are also significant numbers of English, Armenian, and Turkish speakers. The distinctive Lebanese Arabic dialect contains various relics of pre-Arabic languages and also shows considerable European influence in vocabulary. 10RELIGIONS Religious communities in the Ottoman Empire were largely autonomous in matters of personal status law and were at times treated as corporations for tax and public security matters. Membership in a millet, as these groups were called in Ottoman law, gave the individual citizenship, and this position, although somewhat modified, has given Lebanese politics its confessional nature. Religion is closely connected with civic affairs, and the size and competing influence of the various religious groups are matters of overriding political importance. The imbalance of power between Christians and Muslims, aggravated by the presence of large numbers of Palestinians, was a major factor contributing to the bitter civil war in 1975–76. As of 2002, it has been estimated that about 70% of the population practice Islam (5 legally recognized groups—Alawite or Nusayri, Druze, Isma’ilite, Shi’a, and Sunni). Christians made up 23% of the population (11 legally recognized groups—4 Orthodox Christian, 6 Catholic, and 1 Protestant). The Maronites are the largest Christian group with Greek Orthodox being the second largest. There was also a small number practicing Judaism. Muslims have come to outnumber Christians as the result of long-term demographic trends and population displacements during and after the civil war. The main branches of Islam are Shi’a and Sunni. Under an unwritten agreement made at the time of the National Covenant of 1943, the president of Lebanon must be a Maronite Christian, the prime minister a Sunni Muslim, and the speaker of parliament a Shi’a Muslim, with a ratio of six Christians to every five Muslims in the legislature. But this 388 Lebanon arrangement has subsequently ceased to reflect the strength of competing religious groups in the population and is widely criticized. The climate of religious freedom in the country has attracted a great deal of immigrants from neighboring countries who are themselves facing religious discrimination. Both Christian and Muslim holidays are officially observed. 11TRANSPORTATION As of 2002, Lebanon had 7,300 km (4,536 mi) of roads of which 6,350 km (3,945 mi) were paved. Construction of new roads have been frequently delayed by recurrent hostilities. Many roads were badly in need of repair; since 1982, fully one-third of the country’s roads have been rehabilitated. Some new mileage has also been added. In 2000 there were 524,900 registered passenger autos, and 200,400 commercial vehicles. The 399 km (248 mi) state-owned railway of which 317 km (197 mi) consists of a 1.435-m-gauge line running parallel to the coastal area where civil hostilities kept the railway virtually inoperable in 1991. And, due to the civil war in 2001, the entire system is unusable because of damage. Beirut, a major Mediterranean port, was closed during the 1975-76 war and intermittently thereafter, reopening by March 1991. When Beirut port was closed, Sidon became the principal port for Muslims and Juniyah for Christians. Other ports include Tripoli and Tyre. The rehabilitation and modernization of Beirut Port is underway, and the rehabilitation and development of Tripoli Port was completed in 2001. As of 2002, Lebanon had a merchant fleet of 67 ships with a capacity of 320,770 GRT. There were eight airports in 2001, five with paved runways. Beirut International, Lebanon’s principal airport, remained generally open until bombing during the Israeli invasion forced its closure in June–October 1982. It had handled 1,660,000 passengers in 1980; by 1985, the number was down to 599,000. Lebanon’s two airlines, Middle East Airlines (MEA) and Trans- Mediterranean Airways (TMA), suffered heavy losses during the 1975-76 war and the Israeli invasion. In 2001, 815,900 passengers were carried on scheduled domestic and international flights. 12HISTORY The geographical features of Lebanon have had a major effect on its history. Its mountains enabled the minority communities to survive the despotisms that submerged the surrounding areas. The sea provided trade routes in ancient times for exports from Lebanese cedar and spruce forests, and for commerce in copper and iron during the time of the Ptolemies and the Romans. Both Lebanon and Syria were historically associated from early times as part of Phoenicia (c.1600–c.800 BC), and both were later swept up into the Roman Empire. In the 7th century AD, the Arabs conquered part of Lebanon. Maronite Christians had long been established there; Islam gradually spread by conversion and migration, although the country remained predominantly Christian. In the 11th century, the Druzes established themselves in the south of the Mount Lebanon area as well as in Syria. Parts of Lebanon fell temporarily to the Crusaders; invasions by Mongols and others followed, and trade declined until the reunification of the Middle East under the Ottoman Empire. For the most part, Ottoman officials of the surrounding areas left the Mount Lebanon districts to their own emirs and sheikhs. Fakhr ad-Din (1586–1635) of the Ma’an family set out to create an autonomous Lebanon, opened the country to Western Europe through commercial and military pacts, and encouraged Christian missionary activity. In 1697, the Shihab family acquired dominance, and from 1788 to 1840, except for a few intervals, Mount Lebanon was ruled by Bashir II of the Shihab family, who extended his power and was partly successful in building a strong state. The Egyptian occupation of Syria (1832–40) opened the Levant to large-scale European penetration and tied Lebanese affairs to international politics. It also heightened the antipathy between Christians and Druzes, with the occupiers from time to time using armed groups of one against the other. The British invasion of 1840–41 served to deliver Lebanon from Egyptian rule and forced Bashir II into exile, but it also involved France and the United Kingdom in the problem of finding a modus vivendi for the religious factions. A partition of government did not work. Economic discontent was inflamed by religious antagonisms, and the Druzes, feeling their power dwindling, organized a major onslaught against the Christians in 1860. When the latter, fearing annihilation, requested European intervention, major powers sent fleets into Syrian waters and the French sent an army into Mount Lebanon. Under European pressure, the Ottoman government agreed to the establishment of an international commission to set up a new, pro-Christian government; an autonomous province of Mount Lebanon was created in 1864, with a Christian governor who, though the Mt. Hermon 9,232 ft. 2814 m. Mt. Sawda 10,132 ft. 3088 m. L E B A N O N M T S . A l B i q a ' (Be kaa Val ley) AL JABA L ASH SHA RQI Jubayl ¯ ¯ MEDITER RANEAN S EA Litani Awwali Hasbani Ibrahim 'Asi Kabir ¯ ¯ ¯ Al Hirmil Ba'labakk Bint Jubayl Shermona Jubayl Al Labwah Beirut Damascus (Tripoli) Al Batru¯n Al Qubayy¯at T¸ar¯abulus Ra¯shayya¯ Marj'Uyu¯ n Ad Da¯mu¯r 'A¯ layh B'abda¯ Al Qa¯ ' Ju¯niyah Amyu¯n Du¯ma¯ H¸ abbu¯ sh ¸Su¯r Zah¸ lah H¸ as¸ru¯ n Riya¯q S¸ ayd¯a Jazzin Ranku¯s H¸alb¯aS Y R I A I S R A E L LebanonW S N E LEBANON0 30 Miles 0 10 20 30 Kilometers 10 20 LOCATION: 35°6' to 36°36' E; 33°4' to 34°41' N. BOUNDARY LENGTHS: Syria, 359 kilometers (223 miles); Israel, 102 kilometers (63 miles); Mediterranean coastline, 195 kilometers (121 miles). TERRITORIAL SEA LIMIT: 12 miles. Lebanon 389 servant of the Ottoman state, relied upon European backing in disputes with his sovereign. The entry of the Ottoman Empire into World War I led to an Allied blockade, widespread hunger, and the destruction of Lebanese prosperity. An Anglo-French force took the country in 1918, and in 1920, an Allied conference gave France a mandate over Syria, in which Mount Lebanon was included. The French separated from Syria the area they called Greater Lebanon (Grand Liban), which was four times as large as the traditional Mount Lebanon and included a Muslim population almost as large as the Christian. The mandate years were a time of material growth and little political development. Lebanon came under Vichy control in 1940, but in 1941, Lebanon and Syria were taken by a combined Anglo–Free French force. The Free French proclaimed Lebanese independence in November 1941, but when a strongly nationalistic government was created in 1943, the French intervened and arrested the new president, Bishara al-Khuri. An insurrection followed, prompting UK intervention and the restoration of the government. In 1945 agreement was achieved for the withdrawal of both UK and French forces, and in 1946 Lebanon assumed complete independence. The 1950s and 1960s were generally characterized by economic and political stability. Beginning in 1952, Lebanon received increased US aid and also benefited from an influx of Western commercial personnel and from growing oil royalties. It also seemed the calmest center of the Middle East, taking little part in the Arab-Israeli war of 1948 and no action in the wars of 1967 and 1973. In 1958, however, a reported attempt by President Camille Chamoun (Sha’mun) to seek a second term precipitated a civil war, and in July the United States sent forces to help quell the insurrection; this move was in keeping with the Eisenhower Doctrine, which pledged US military and economic aid to any country requesting it in order to counter a Communist threat. The crisis was settled when General Fu’ad Shihab (Chehab), who was supported by both government and opposition groups, was elected president in July. By October US forces were withdrawn, and public security was reestablished. In the late 1960s and early 1970s Lebanon’s economy was disrupted by conflict in the Middle East, vividly brought home by the presence, near the border with Israel, of thousands of wellarmed Palestinian guerrillas, many of whom had come from Jordan following the “Black September” fighting there in 1970– 71. Serious clashes between them and the Lebanese army occurred in 1969. Fearing civil war, the government that year signed the so-called Cairo Accord with the Palestinian Liberation Organization (PLO), which virtually made it a state within the state. The PLO gained the right to establish military bases and launch cross-border raids into Israel. This inevitably led to Israeli reprisals, and PLO interference in Lebanese affairs accelerated a slide toward anarchy. In April and May 1974, a series of Palestinian attacks on Lebanese villages killed scores of persons and injured hundreds. Government efforts to deal with the problem were denounced as insufficient by Christian rightists, while Muslim leftists defended the Palestinians, and both factions formed private militias. Intermittent fighting between the armed factions continued, and raids by Palestinian guerrillas based in southern Lebanon drew Israel into the conflict. In March 1978 the Israeli army invaded southern Lebanon, destroyed PLO bases, and then withdrew when the UN Interim Force in Lebanon (UNIFIL) was established to keep the peace. Continuing PLO rocket attacks on northern Israel and Syria’s installation of antiaircraft missiles in the Bekaa Valley prompted Israel to launch a full-scale invasion of Lebanon in June 1982. Israeli forces quickly destroyed PLO bases in the south and in Tyre and Sidon, penetrated to the outskirts of Beirut, and disabled the Syrian missile bases. Several cease-fires arranged by US envoy Philip Habib broke down, but following a two-month Israeli siege of West Beirut, where the Palestinians were encamped, a truce was agreed to by Israel, the PLO, and Syria; by 1 September, more than 14,000 Palestinian and Syrian fighters had been evacuated. The Lebanese estimated their war casualties at more than 19,000 dead and 30,000 wounded (figures disputed by Israel). A multinational peacekeeping force, comprising British, French, and Italian soldiers and US marines, was stationed in the Beirut area in early September. During the early months of 1975, sporadic violence between the two factions gradually erupted into a full-scale civil war that pitted Maronite Christians against Muslims and against other Christian sects, and rightist militants against Palestinian guerrillas and other leftist Arab forces. At least 100,000 people on all sides were killed and some 600,000 persons displaced during the eighteen months of fighting. In April 1976 Syrian forces entered Lebanon, in an apparent effort to prevent an all-out victory by left-wing Muslims and Palestinians; by the fall, some 20,000 Syrian troops controlled the Bekaa Valley. A cease-fire arranged through the mediation of Sa‘udi Arabia and other Arab countries enabled a peacekeeping force (including Syrian troops) to separate the combatants and end the war in October. The conflict not only devastated Lebanon economically, but so weakened the central government that effective power lay with the Syrians, the Palestinians, and some thirty sectarian militias. In general, the Christian Phalangists held sway over east-central Lebanon; fighters loyal to Major Sa’ad Haddad, a right-wing Lebanese army officer, controlled the southern border area, in a security zone set up by Israel; and the PLO, other Muslim leftists, and Syrian forces occupied northern and eastern Lebanon. Despite the truce, the violence continued. On 14 September Bashir Gemayel, a Phalangist leader who in August had been elected president by the Lebanese parliament, was assassinated. Almost immediately, Israeli troops moved into West Beirut to wipe out pockets of Palestinian resistance causing tens of thousands of casualties. Phalangist forces were allowed into the Sabra and Shatila refugee camps, and at least 600 Palestinians, many of them civilians, were massacred; a subsequent Israeli government inquiry was critical of senior officials for indirect responsibility for the killings. In 1983 Israeli and Syrian troops still occupied large portions of Lebanon, and they became targets of attack by Muslim and Druze forces. In May 1983 Lebanon, Israel, and the United States signed an agreement by which Lebanon and Israel agreed to end their state of war. Israel agreed to withdraw all its forces, and both countries agreed to establish a security zone in southern Lebanon patrolled by Lebanese forces and joint Israeli-Lebanese teams. However, Syria opposed it and the agreement, never implemented, was repudiated by Lebanon in 1984. The American embassy in Beirut was bombed in April 1983, and US marines were harassed by sniper fire. On 23 October, 241 of them were killed by a truck-bomb explosion in their barracks at Beirut airport; on the same day, a similar bombing caused at least fifty-eight deaths at a French paratroop barracks. Shortly before, Lebanon and Syria had agreed to a cease-fire pending a reconciliation conference, which began in Switzerland in November, with all major Lebanese political factions participating. Meanwhile, fighting broke out between a radical Syrian-supported PLO faction and guerrillas loyal to Yasser Arafat, chairman of the organization; defeated at Tripoli, Arafat withdrew from Lebanon in December. As 1984 began, the position of the government headed by Amin Gemayel, who had been elected president to succeed his brother, was deteriorating. In February the United States, the United Kingdom, and Italy pulled their ground troops and nonessential personnel out of the Beirut area. In March, the Lebanese reconciliation conference dissolved without reaching substantial agreement. The following month a “national unity” 390 Lebanon government was formed, bringing together the leaders of all the major warring factions. But it almost never met and could not pacify the country; intermittent clashes between factions continued. Israel’s withdrawal of its troops from Lebanon (except the south) in early 1985 left in its wake renewed fighting for the evacuated territory. In December a Syrian-sponsored cease-fire agreement that included constitutional reforms was signed by the Druze, Amal (Shi’i), and Christian factions, but its terms were never implemented. The general lawlessness encouraged terrorist groups of all kinds to promote their own ends by assassinations, kidnappings, and bombings. Among the most feared was the Hezbollah, or Party of God, which was aligned with fundamentalist Iranian Revolutionary Guards. In 1985–86 there was sporadic fierce fighting between Palestinian and Shi’i Amal militia. Syria pushed for political reform and, when opposed by Gemayel and militant Christians, influenced Muslim ministers not to deal with the president, thus paralyzing the government. With the economy in serious decline, Prime Minister Rashid Karami was assassinated to be succeeded by Salim al-Huss. The badly divided factions could not agree on a successor to Gemayel when his term expired in September 1988. Christian Army Commander Michel Aoun asserted himself as prime minister, giving Lebanon two governments, a Muslim one in West Beirut and a Christian one in East Beirut. Aoun was opposed by the Syrians and Muslims and by rival Christian factions. In January 1989 the Arab League appointed a committee on Lebanon which eventually, in September, arranged for a sevenpoint cease-fire and convened a meeting of Lebanese parliamentarians in Taif, Sa’udi Arabia. The Taif Accord that resulted in November led to the election of Elias Hrawi, a Maronite Christian, as president. He named al-Huss prime minister. When forces of General Aoun (who was technically deposed by Hrawi) attacked Christian and Syrian positions, they retaliated in strength and finally obliged him to take exile in France in 1991. In 1991–92 the government gradually began to reassert its authority. Militias, except notably Hezbollah and the Israelibacked army of South Lebanon, were dissolved in May 1991. Palestinian militants were repressed in Sidon in July. In May 1992 the last western hostages were released after years of confinement. Lebanon joined the Israeli-Arab peace talks in Madrid in October 1991. Internally, the poor economy aggravated political instability, but parliamentary elections, the first in twenty years, were scheduled for 1992. Poor preparations, widespread irregularities, and Christian abstention produced results that did not prepare Lebanon for an assured future. Yet, the appointment of Prime Minister Rafiq al-Hariri in November 1992 promised a serious effort at reconstruction. Al-Hariri, a self-made billionaire who made his fortune in Sa’udi Arabia, was perceived by many to be a savior of sorts for the war-torn country. He had a long history of philanthropic giving, donating large sums to rebuild Beirut, for instance. As prime minister, he has been frequently accused of corruption and of making sure government rebuilding efforts were directed toward companies under his control. Still most Lebanese approved of his efforts to stabilize the country and unite its many long-warring factions. In 1996, al-Hariri was reelected prime minister in a unanimous vote of parliament. In 1996 Lebanon was still subject to political violence, especially in the Israeli occupied south, where that year 255 people were killed (twenty-seven Israeli soldiers) in violence. Fifty-four of the dead were members of Hezbollah, and nineteen were militiamen in the Israeli-controlled South Lebanon Army (SLA). The violence continued into 1997. The President Ilyas Hrawi had been elected to the six-year post in 1989. In 1995 when his term was set to expire in accordance with the constitution, parliament extended his term for an additional three years. Hrawi proved to be a weak leader and his standing with the Maronites was low. Emile Lahoud, of a prominent Maronite family, had been promoted to major-general in 1985, and general and army commander in 1989. In 1998 his name surfaced as a potential successor to Hrawi. In October 1998 the Assembly introduced an unparalleled amendment to the constitutional clause requiring senior public officials to leave office before running for president. Within two days Lahoud was elected president of the National Assembly. Lahoud was sworn in on 24 November 1998 as Lebanon’s eleventh president. On 4 December 1998 Salim al-Huss began his fifth term as prime minister after Hariri’s sudden resignation. In early 1999 fighting in southern Lebanon escalated as the Hezbollah staged attacks on Israeli forces and the Israeli-backed SLA. Israel retaliated on Hezbollah strongholds, and by February expanded air strikes beyond the “security zone” to southern and northern Lebanon. The al-Huss government’s fiscal austerity aimed at reducing the deficit, which had grown to 15% of gross domestic product, met with resistance from the trade unions. On 24 June 1999 Israel destroyed bridges and power stations with its heaviest air raids in three years. In July 1999 the UN Security Council renewed for six months the mandate for UNIFIL, the UN Interim Force in Lebanon, and restated its support of the territorial integrity and sovereignty of Lebanon. At the end of 1999 in anticipation of elections in August 2000, the government passed a law creating fourteen constituencies of suspiciously varying sizes based on rewarding or punishing political foes or friends. A bill to curb the media, limiting all elections news, advertisements, and coverage to the state-run Tele-Liban and Radio Liban, and limiting campaign spending was also drafted. On 24 May 2000 Israel made a quick withdrawal from southern Lebanon. With the Israeli withdrawal the SLA disintegrated. The exact border between Lebanon and Israel remained unsettled as they disputed ownership of the Shabaa Farms. The Lebanese government sent police and intelligence officers to the newly liberated area, but refused to deploy troops until there was evidence of stability or a comprehensive peace treaty with Israel. In March 2001, Lebanon began to divert waters from the Wazzani River to supply villages in southern Lebanon. The Wazzani feeds into the Hatzbani, which in turn flows into the Jordan River watershed and Lake Kinneret (Lake Tiberias or the Sea of Galilee), a major source of Israel’s water supply. In September 2002, Israel’s Prime Minister Ariel Sharon identified measures to divert water from Israel as a cause for war. Syrian troops withdrew from Beirut in June 2001 to redeploy in other parts of Lebanon, in response to greater Lebanese criticism of Syria’s presence there. In February 2003, the Syrian army completed its redeployment out of north Lebanon. Up to 4,000 troops left north Lebanon for central Syria. The majority of the Syrian army left in Lebanon is assembled in a stretch of the Bekaa Valley on the Syrian border. In February, Lebanon warned Israel against expelling Palestinians to Lebanon if war were to break out in Iraq, stating such a move would be akin to declaring war. In response, Israel stated it had no such plans. As of early 2003, there were approximately 350,000 Palestinian refugees in Lebanon. Also in February, lsraeli warplanes flew over southern Lebanon, particularly over the Shabaa Farms, carrying out mock raids, at which Hezbollah fired anti-aircraft weaponry. Hezbollah and Israeli forces exchanged fire over the Shabaa Farms in January 2003, the first such exchanges since August 2002. Israel and Hezbollah are locked in a territorial dispute over the Farms, an area Israel captured from Syria during the 1967 war. Lebanon claims the region, although the UN holds that it belongs to Syria, and that Syria and Israel should negotiate its fate. Parliamentary elections held 27 August and 3 September 2000 resulted in the appointment on 23 October of Rafiq al-Hariri as prime minister once again. Lebanon 391 13GOVERNMENT As defined by the constitution of 1926 and subsequent amendments, Lebanon is an independent republic. Executive power is vested in a president (elected by the legislature for six years) and a prime minister and cabinet, chosen by the president but responsible to the legislature. Under an agreement dating back to the French mandate, the president must be a Maronite Christian, the prime minister a Sunni Muslim, and the president of the National Assembly a Shi’a Muslim. Decisions by the president must be countersigned by the prime minister and concerned minister(s) after approval by the National Assembly. Legislative power is exercised by a 128-member National Assembly (formerly the Chamber of Deputies), elected for a fouryear term by universal adult suffrage (compulsory for males of twenty-one or over, permitted for women over twenty-one with elementary education). The electoral reform law of 1960 determined the denominational composition of the legislature as follows: thirty Maronites; twenty Sunni, nineteen Shi’a; eleven Greek Orthodox; six Greek Catholics; six Druzes; four Armenian Orthodox; one Armenian Catholic; one Protestant; and one Others. Deputies were elected to the legislature in 1972, but elections scheduled for 1976 were postponed because of the war, and the legislature has extended its term every two years until 1992. The Taif Accord of 1989 set the Christian-Muslim balance in parliament at fifty-fifty, but the failure of Christians to participate in the elections of 1992 and 1996 gave Muslim groups the largest number of seats in the Chamber. There has been no official census in the country since 1932, but most observers believe Muslims now form the majority with the Shi’i as the largest single group. The denominational composition of the legislature following the 2000 elections was: Maronites (34), Sunnites (27), Shi’ites (27), Greek Orthodox (14), Greek Catholics (8), Druzes (8), Armenian Orthodox (5), Alaouites (2), Armenian Catholics (1), Protestants (1), and Christian Minorities (1). 14POLITICAL PARTIES Political life in Lebanon is affected by the diversity of religious sects and the religious basis of social organization. The mainly Christian groups, especially the Maronites, favor an independent course for Lebanon, stressing its ties to Europe and opposing the appeals of Islam and pan-Arabism. The Muslim groups favor closer ties with Arab states and are opposed to confessionalism (political division along religious lines). Principal political groups, with mainly Christian membership, are the National Liberal Party and the Phalangist Party. There are various parties of the left, including the Progressive Socialist Party (of mostly Druze membership), the Ba’ath Party, and the Lebanese Communist Party. The various Palestinian groups, allied under the umbrella of the Palestine Liberation Organization, played an important role in the political life of Lebanon from the late 1960s until Israel’s invasion drove them from the country in the 1980s. Amal, a conservative grouping, and Hezbollah, more militant, represent the Shi’i community. The former gained eighteen seats and the latter twelve seats in the elections of 1992. The Christian community, which was supposed to have half the seats, largely boycotted the elections and, as a result, won only fifty-nine seats. There are currently at least eighteen religious-based political parties in Lebanon. In 1996, parliamentary elections were again held, and again certain Christian sects called for a boycott. Still, turnout was much higher than in the 1992 elections, reflecting the country’s increasing political stability (turnout was about 45%). International observers found the elections substantially fair, but noted some irregularities, including Syrian interference, vote buying and ballot stuffing. The government itself acknowledges these shortcoming and has instituted some reforms. The 1996 elections took place in five stages between August and September. The balloting gave a strong majority to a coalition of pro-Syrian parties, notably the Hezbollah-Amal coalition. There were forty-nine newcomers elected—three of whom were female—and nineteen seats were being contested on charges of voter fraud. Following the election, Prime Minister al- Hariri stepped down, as is tradition, so that President Hrawi and the new parliament could chose a new prime minister. In late October, the parliament, with presidential backing, nominated al- Hariri for his second term, as was expected. The vote in parliament was 121-0 with four abstentions. Al-Hariri, a billionaire, is one of the richest men in the world: in 1996 there were three billionaires and thirty-five millionaires in parliament. Asked by Lahoud to be prime minister in 1998, Salim al-Huss became prime minister after al-Hariri abruptly resigned office. Al-Hariri was asked by President Lahoud to become prime minister once again in October 2000; he received 107 parliamentary votes backing him. Palestinian refugees have no right to vote, despite numbering approximately 350,000 in 2003. 15LOCAL GOVERNMENT Lebanon is divided into the five provinces (muhafazat) of Beirut, North Lebanon, South Lebanon, Bekaa, Mount Lebanon, and Nabatiye, each with its district administration. The muhafazat are subdivided into districts (aqdiya), municipalities, and villages. Provincial governors and district chiefs are appointed by presidential decree. In most villages, councils of village elders or heads of families or clans still play a considerable role. Municipal elections had not been held since 1963, despite widespread civil desire for such elections. In 1995, parliament passed a law extending the term of municipal officers until 31 December 1996, after which elections were slated to be held. Municipal elections were held in May and June 1998. Fifty-four municipal councils and 169 mukhtar or mayors were elected. Seventy-eight seats were won by women on the new municipal councils. 16JUDICIAL SYSTEM Ultimate supervisory power rests with the minister of justice, who appoints the magistrates. Courts of first instance, of which there are fifty-six, are presided over by a single judge and deal with both civil and criminal cases; 17 of these courts are in Beirut. Appeals may be taken to eleven courts of appeal, each made up of three judges. Of the four courts of cassation, three hear civil cases and one hears criminal cases. A six-person Council of State handles administrative cases. A Constitutional Council, called for in the Taif Accord, rules on the constitutionality of laws upon the request of 10 members of parliament. Religious courts— Islamic, Christian, and Jewish—deal with marriages, deaths, inheritances, and other matters of personal status in their respective faiths. There is also a separate military court system dealing with cases involving military personnel and military related issues. The law provides for the right to a fair public trial and an independent and impartial judiciary. In practice, politically influential elements succeed in intervening to obtain desired results. Matters of state security are dealt with by a five-member Judicial Council. The Judicial Council is a permanent tribunal, and the cabinet, on the recommendation of the Ministry of Justice, decides whether to bring a case before the Judicial Council. In the refugee camps, the Palestinian elements implement an autonomous system of justice in which rival factions try opponents without any semblance of due process. Hezbollah applies Islamic law in the area under its control. 392 Lebanon 17ARMED FORCES The conflict of 1975–90 split the regular Lebanese army along Christian-Muslim lines. The force was later reformed, first by the United States, then by Syria. In 2002, active armed forces totaled 76,000 with some 40,000 reserves in the People’s Militia. The army numbered 70,000 equipped with around 327 main battle tanks. There was a navy of 830 and an air force of 1,000 personnel, neither well-armed. Much of the opposition militia has disbanded, and the Moslem Hezbollah (3,000 active) is the only significant communal army remaining. The defense budget was $343 million in 1999–00 or 4.8% of GDP. Also stationed in Lebanon were 3,638 UNIFIL (UN peacekeeping) troops, 150 Iranian Revolutionary Guard Troops, and 18,000 Syrian troops. 18INTERNATIONAL COOPERATION Lebanon has been a charter member of the UN since 24 October 1945 and belongs to ESCWA and all the nonregional specialized agencies. It is the host to UNRWA and UNIFIL and is one of the founding members of the Arab League. Lebanon also is a member of G-77, and a signatory of the Law of the Sea. Lebanon has observer status at the WTO. 19ECONOMY Lebanon is traditionally a trading country, with a relatively large agricultural sector and small but well-developed industry. Until the civil war, it had always figured prominently as a center of tourist trade. The 1975–76 war caused an estimated $5 billion in property damage and reduced economic activities to about 50% of the prewar level. The cost of reconstruction after the Israeli- Palestinian-Syrian war of 1982 was estimated at $12–15 billion. Lebanon has been able to survive economically because of remittances from abroad by Lebanese workers and companies, external aid by the United States, France, Germany, and Arab countries, and foreign subsidies to various political groups. A residual effect of the 1982 war was political uncertainty, which poisoned the economic climate in the following years. In 1984 and after, there was a pronounced deterioration in the economy. In 1987 inflation peaked at 487%. After the 1989 Taif Accord for National Reconciliation ended hostilities, the economy began to recover. Economic activity surged in 1991, and in 1993 the Hariri Government was able to stabilize the economy, and launch a program to reconstruct the economy’s infrastructure. Real GDP grew 4.2% in 1992, after growing by about 40% in 1991. Since 1988, the economy has continued to post growth rates averaging 7.5%, although a rising budget deficit threatens to hamper economic reforms. Israel’s Operation Grapes of Wrath in April 1996 cut economic development short, but in the same year, the stock market had reopened, and investment had made significant returns. In 1997, unemployment remained high at about 18% although inflation had been reduced to around 5% by 1998. Gross domestic product grew by 3% in 1998. Growth in 1999 was 1% and flat in 2000, according to the Central Bank estimate. Projections for 2001 from different sources range from 2% to 4%. Inflation was 1% in 1999 and zero in 2000, and did not exceed 3% in 2001. High unemployment remains a persistent problems, at 20 to 25% in 1999 and 2000, and 15% to 20% in 2001. Among Lebanese youth unemployment is estimated to be 30%. The absence of a government department of statistics (it was closed because of the war) makes all figures questionable. 20INCOME The US Central Intelligence Agency (CIA) reports that in 2001 Lebanon’s gross domestic product (GDP) was estimated at $18.8 billion. The per capita GDP was estimated at $5,200. The annual growth rate of GDP was estimated at 1%. The average inflation rate in 2001 was 0.5%. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange. It was estimated that agriculture accounted for 12% of GDP, industry 21%, and services 67%. Foreign aid receipts amounted to about $55 per capita and accounted for approximately 1% of the gross national income (GNI). The World Bank reports that in 2001 per capita household consumption (in constant 1995 US dollars) was $2,705. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the same period private consumption grew at an annual rate of 7%. Approximately 31% of household consumption was spent on food, 10% on fuel, 7% on health care, and 9% on education. It was estimated that in 1999 about 28% of the population had incomes below the poverty line. 21LABOR The labor force in 2001 was approximately 1.5 million workers, with as many as 1 million additional foreign laborers in Lebanon. The estimated unemployment rate in 1997 was 18%. There are some 160 labor unions and organizations enrolling about 42% of the workforce as of 2001. The General Confederation of Workers is composed of 22 unions with about 200,000 members. Organized labor has grown slowly, partly because of the small number of industrial workers, but also because of the availability of a large pool of unemployed. Agricultural and most trade workers are not organized. Palestinians in Lebanon are free to organize their own unions. While Lebanese workers have the right to strike, there are limitations on public demonstrations which somewhat undermine this right. Lebanese workers have the right to organize and bargain collectively and this is the standard practice in employment situations. Workers as young as eight may legally work with restrictions as to working hours and conditions. However, in reality, age limitations are not effectively enforced. In 2002, a monthly minimum wage of $200 was in effect. The standard workweek is set at 48 hours, with a 24-hour rest period. In practice, most laborers average around 35 hours of work per week. 22AGRICULTURE In 2000, 4% of the working population was engaged in agricultural activity, and agriculture accounted for about 12% of GDP. Less than 30% of Lebanon’s land is arable, and expansion of cultivated areas is limited by the arid and rugged nature of the land. Agricultural production was severely disrupted by the 1975–76 war, and production of citrus fruits, the main crop, was reduced to low levels in the fertile Bekaa Valley by Israeli-Syrian fighting during 1982. Principal crops and estimated 1999 production (in thousand tons) were sugar beets, 290; potatoes, 250; oranges, 155; apples, 118; lemons and limes, 111; bananas, 105; olives, 90; grapefruit, 54; and wheat, 58. In 2001, Lebanon exported $169.1 million in agricultural products (19% of total exports) and imported $1.2 billion (16.6% of all imports). Two profitable, albeit illegal, crops produced are opium poppy (for heroin) and cannabis (for hashish). A joint Lebanese-Syrian eradication effort has practically wiped out the opium crop and significantly reduced the cannabis crop. 23ANIMAL HUSBANDRY Much of Lebanon’s livestock was lost during the protracted hostilities since the 1975–76 war and the Israeli invasion in 1982. In 2001 there were an estimated 399,000 goats, 329,000 sheep, 78,000 head of cattle, and 32,000,000 poultry. As Lebanon’s Lebanon 393 own meat and milk production is below consumption needs, animal and milk products are imported. 24FISHING The fishing industry has not progressed significantly, despite a government-sponsored effort to reduce fish imports and provide employment in the canned-fish industry. The catch in 2000 was 3,666 tons. 25FORESTRY Forests comprised about 36,000 hectares (89,000 acres), or nearly 3.5% of the total area, in 2000. Most of the forests are in the central part of the country, with pine and oak predominant. Few of the ancient cedars have survived; small cedar forests have been planted at high altitudes. Roundwood production in 2000 was 26,000 cu m (917,000 cu ft). 26MINING Lebanon’s mineral industry continued its historically small contribution to the economy. Mining activity was limited to the production of salt and the quarrying of raw materials for the construction industry, particularly limestone and silica for cement manufacture. In 2001, hydraulic cement production totaled 2.7 million tons, down from 3.3 million tons in 1998; gypsum, 1,300 tons; lime, 13,500 tons; and salt, 3,500 tons. Cement exports accounted for 3% of total exports. In 2001, Lebanon also produced semimanufactured iron and steel, phosphatic fertilizers, phosphoric acid, and sulfuric acid. Modest deposits of asphalt, coal, and iron ore occurred, and the country had no petroleum or gas reserves. The success of Lebanon’s minerals industry depended on the long-term restoration of peace and stability in the country. 27ENERGY AND POWER Political instability and conflict curtailed petroleum exploration in the 1970s and 1980s. In early 1991 natural gas discoveries near El-Marq encouraged further exploration. A refinery at Tripoli satisfies only about 15% of domestic demand; imports from Syria, Romania, Bulgaria, Greece, and Italy meet the remaining demand for petroleum products. Italian, French, and Korean firms have been contracted to rehabilitate power stations, install transmission networks, and distribute electricity outside greater Beirut. Lebanon’s largest hydroelectric plants are on the Litani River. In 2001, total installed electrical capacity was about 1,323,000 kW. Production in 2000 totaled 7,200 million kWh, of which 96.9% was from fossil fuels and 3.1% from hydropower. Consumption of electricity in 2000 was 8.6 billion kWh. 28INDUSTRY The 16-year civil war that ended in 1991 caused tremendous damage to the industrial sector. By 1993, it was estimated that the Lebanese industry suffered losses of $1.5 billion. Inadequate infrastructure and shortage of skilled labor are major obstacles in the process of rehabilitation. By 1995, the industrial sector was showing signs of improvement. Industrial exports in the first quarter of 1995 were up 76% (to $79.5 million) compared with the same period in 1994. Industry accounted for an estimated 28% of GDP in 1995. Industrial production grew at rates of 3.8% in 1997 and 2.8% in 1998. In 2000, industry contributed 21% to GDP. Major industrial products are clothing, metal, food, marble and sanitary equipment, cement, jewelry, furniture, paper, beverages, and plastic. In 2002, manufacturing contributed 17% to GDP and accounted for 40% of total exports. Industrial activity is concentrated in construction material (35%); food and beverages (20%); textiles and ready-made garments (14%); and furniture (10%). The sector remains weak due to obsolete equipment, high operating costs, low productivity, and limited access to financing. Lebanon’s two main oil refineries suspended operations for most of the 1990s after 1992 but were operative in 2002. Total refinery capacity in 2002 was 42,000 barrels per day, including 38,000 barrels per day of crude oil distillation; 7,000 barrels per day catalytic cracking capacity; and 7,000 barrels per day reforming capacity. 29SCIENCE AND TECHNOLOGY Lebanon’s advanced technology is limited to oil refining, the facilities for which were installed by international oil companies. The National Council for Scientific Research, established in Beirut in 1962, draws up national science policies and fosters research in fundamental and applied research. The council operates a marine research center at Al-Batrun. Seven colleges and universities in Beirut offer degrees in basic and applied sciences. In 1987–97, science and engineering students accounted for 30% of college and university enrollments. 30DOMESTIC TRADE Trade is by far the most important sector of the Lebanese economy. Before the 1975–91 civil war, Beirut was an important commercial center of the Middle East. During the first year of civil violence alone, 3,600 commercial establishments were destroyed, burned, or looted. Reconstruction and returning confidence have improved commercial activities since 1995. The main trading activity is related to the importation of goods and their distribution in the local market. Distribution is generally handled by traders who acquire sole right of import and sale of specific trademarks, and although competition is keen, the markup tends to be high. Distribution of local products is more widely spread among traders. Franchising has become popular with major firms representing the restaurant, hotel, and clothing industries. Prices are generally controlled by the Consumer Protection Department of the Ministry of Economy and Trade. Retail credit is common, and advertising has developed rapidly in motion picture theaters and the press. Government offices are generally open from 8 AM to 2 PM Monday through Thursday, and from 8 AM to 12:30 PM on Friday. Most banks are open with similar hours, occasionally with a half-day on Saturday as well. Private businesses and shops have varying hours, sometimes exceeded in a 40-hour workweek. 31FOREIGN TRADE Foreign trade has been important in the economic life of Lebanon as a source of both income and employment. Some 40% of total exports are actually re-exports, principally machinery, metal products, foods, wood products, textiles, and chemicals. The most expensive products that Lebanon exports are gold, silverware, jewelry, and precious stones (21%). Other exports include fruits, nuts and vegetables (10.5%), scrap metal (7.2%), and printed matter (4.5%). Major imports include food (29%), machinery and transport equipment (28%), consumer goods (18%), and chemicals (9%). Principal trading partners in 2000 (in millions of US dollars) were as follows: COUNTRY EXPORTS IMPORTS BALANCE Saudi Arabia 78 165 -87 United Arab Emirates 75 48 27 Switzerland 51 432 -423 United States 49 458 -613 France 37 527 -625 Syria 26 283 -212 Turkey 23 139 -159 Italy 18 680 -794 Germany 18 520 -590 United Kingdom 11 243 -298 Japan 6 211 -291 China (inc. Hong Kong) n.a. 287 -277 394 Lebanon 32BALANCE OF PAYMENTS Lebanon traditionally maintained a favorable balance of payments, with rising trade deficits more than offset by net earnings from services, transfers of foreign capital, and remittances from Lebanese workers abroad. Although the trade deficit increased substantially between 1977 and 1984, a balance of payments deficit was recorded only for the last two years of the period. By 1985, a surplus of $249 million was again achieved, with a modest trade recovery following in 1986–87. Hostilities in the industrial and prosperous areas of Lebanon in 1989–90 triggered a substantial outflow of capital and a deficit in the balance of payments. Order was restored in 1991 and a resumption of capital inflows averted larger deficits in the following years. In 1995, net capital inflows offset a large trade deficit to produce a $256 million surplus in the balance of payments. A large portion of the trade imbalance consists of imports of machinery that should ultimately increase productivity. In 2000, the balance of payments registered a deficit of $289 million, which compared to a $267.7 million surplus in 1999. The US Central Intelligence Agency (CIA) reports that in 2001 the purchasing power parity of Lebanon’s exports was $700 million while imports totaled $6.6 billion resulting in a trade deficit of $5.9 billion. 33BANKING AND SECURITIES The Bank of Lebanon, established on 1 April 1964, is now the sole bank of issue. Its powers to regulate and control commercial banks and other institutions and to implement monetary policy were expanded by amendments to the Code of Money and Credit promulgated in October 1973. To encourage the movement and deposit of foreign capital in Lebanon, a bank secrecy law of 1956 forbids banks to disclose details of a client’s business even to judicial authorities. There are no restrictions on currency conversions and transfers, and no foreign exchange controls effect trading. In the late 1990s, the banking sector was undergoing a period of expansion and consolidation with a number of banks listed on the Beirut Stock Exchange. In 1998, over 70 banks were operating in Lebanon with total assets of around $31 billion. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $1.6 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $35.1 billion. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 20%. The Beirut Stock Exchange was officially opened in 1952 as a center in which the few available company shares could be traded. The exchange closed during the civil war but reopened in 1979; however, there was little trading in stock during 1980-81. In 1982, Beirut was chosen as the headquarters of the Arab Stock Exchange Union, reflecting Lebanon’s continuing importance as financial center of the Middle East. In September 1995, the Beirut Stock Exchange reopened after a 12-year closure. Trading began in January 1996, but with just three companies listed, all of them producers of cement or construction material. A fourth company joined in mid-1996. A secondary market was opened to trade shares in the private property company, Solidere. Solidere is developing the destroyed business heart of Beirut. With the secondary market considerably more successful than the stock exchange, plans to list Solidere on the latter have, for the moment, been shelved. In 1997, however, Solidere moved its shares from the secondary market to the Beirut Stock Exchange. An important reason for the move was a plan to cross-list Solidere shares on the Kuwait Stock Exchange. Kuwait said it would do so only if shares were traded on the official bourse rather than on the secondary market. The Lebanese Stock Exchange authority signed an agreement to cross-list shares not only with Kuwait but also with Egypt from early in 1997. Solidere has a 115 million-125 million GDR (global depository receipt) to be listed on the London Stock Exchange. In 2001, the stock market remained sluggish, with only 12 companies, including Solidere, listed. Market capitalization was at around $1.2 billion. 34INSURANCE Activities of insurance companies are regulated by the National Insurance Council. All insurance companies must deposit a specific amount of money or real investments in an approved bank and must retain in Lebanon reserves commensurate with their volume of business. There are at least 85 insurance companies operating in Lebanon, most of them national insurance companies. In 1999, there was $134 million spent on insurance in Lebanon. 35PUBLIC FINANCE The annual budget of the central government must be approved by the National Assembly. The Lebanese government annually faces the formidable problem of financing a massive deficit resulting from heavy financial obligations and huge shortfalls in revenues. To reduce the deficit, the government has tried to increase revenues by raising taxes and tightening the budget. The government relies heavily on grants and loans from multilateral agencies, Arab governments, and the French to cover the deficit. As a result, the country’s total debt reached $28 billion in 2001, about 150% of total GDP. The US Central Intelligence Agency (CIA) estimates that in 2001 Lebanon’s central government took in revenues of approximately $4.6 billion and had expenditures of $8.9 billion Overall, the government registered a deficit of approximately $4.3 billion. External debt totaled $8.4 billion. The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above. REVENUE AND GRANTS 100.0% 4,601 Tax revenue 71.9% 3,306 Non-tax revenue 27.9% 1,284 Grants 0.2% 11 EXPENDITURES 100.0% 8,901 General public services 11.7% 1,045 Defense 10.6% 947 Public order and safety 3.8% 343 Education 7.2% 644 Health 2.0% 180 Social security 5.2% 462 Housing and community amenities 1.3% 119 Recreation, cultural, and religious affairs 0.7% 59 Economic affairs and services 15.9% 1,411 Other expenditures 0.8% 71 Interest payments 40.7% 3,620 36TAXATION A graduated tax is imposed on individual salaries, real profits, and real estate income. Corporations and joint stock companies generally are taxed on net real profits derived in Lebanon at a flat rate of 10%, and 5% on dividends. Also levied are inheritance and gift taxes, social security payroll taxes, flat and graduated property taxes, and a stamp duty. Lebanon 395 37CUSTOMS AND DUTIES Customs duties, based on the Harmonized System of tariffs, depend on the type of product and range from 0–70%, averaging 15%. Lebanon acceded to Arab League’s Arab Free Trade Area agreement in 1997 and also has bilateral free trade agreements with Egypt, Kuwait, Syria, and the United Arab Emirates. It also adheres to the Arab League boycott of Israel. Lebanon has applied for World Trade Organization membership and is in negotiations for accession. 38FOREIGN INVESTMENT Lebanon’s liberal investment policies are designed to attract foreign direct investment to foster economic recovery and rebuild its war damaged infrastructure. Some analysts estimated that the rebuilding costs would exceed $18 billion with construction accounting for a large part of foreign investment. As of 2002, French, Italian, German, British, Korean, and Finnish companies were the predominant investors in Lebanon. Their presence is most strongly felt in the fields of electricity, water, and telecommunications. US-based investment was only $7 million in 1996, though this had climbed to $65 million by 1999. In addition to limiting the maximum income tax rate to 10% for foreign investors, the movement of funds in and out of Lebanon is free from taxes, fees, or restrictions. Lebanon also has bilateral trade investment agreements with China and a number of European, East European, and Arab countries. To conserve cash, the government uses “build, operate, transfer” (BOT) agreements to finance major projects. In 1997 total foreign direct investment (FDI) totaled $150 million. By 2000 this had nearly doubled to $297.8 million. In 2001, the annul FDI inflow fell to $249.3 million. Other forms of capital inflow—remittances, repatriated capital and placements in treasury bills—far outweigh inward FDI. 39ECONOMIC DEVELOPMENT Since World War II, Lebanon has followed free-enterprise and free-trade policies. The country’s favorable geographical position as a transit point and the traditional importance of the trading and banking sectors of the economy helped make Lebanon prosperous by the early 1970s. Lebanon became a center of trade, finance, and tourism by means of a stable currency backed largely with gold, by a conservative fiscal policy, by various incentives for foreign investors, and by minimization of banking regulations. Lebanon’s development went awry in the mid-1970s, as factional conflict, always present in Lebanese society, erupted into open warfare. The loss to the economy was enormous, particularly in Beirut. The reconstruction plan submitted in 1979 by the Council for Development and Reconstruction (CDR) envisaged total expenditures of LL22 billion for rebuilding, including LL10 billion in the public sector and LL12 billion in the private sector. The cost of new housing and repair of damaged homes was estimated at LL4.5 billion, and of major road construction at LL1.5 billion. Redevelopment of the port of Beirut and reconstruction of Beirut airport were begun under the program. In November 1979, Sa‘udi Arabia and six other oil-producing Arab countries promised to contribute $2 billion for Lebanon’s reconstruction effort over a five-year period, but only $381 million had been provided by October 1987. (After Israel invaded Lebanon in June 1982, the Arab countries decided to withhold future funds until Israeli forces had withdrawn completely.) Under the leadership of prime minister Rafiq al–Hariri, Lebanon embarked on the Horizon 2000 program in 1993. Areas of major activity targeted by the plan were the rehabilitation of telecommunications, electricity grids, highways, sewage, waste management, water networks, renovation of the Beirut International Airport, harbor, education, and housing. The plan also called for investment in commercial facilities that will reestablish Beirut as an international business center in competition with Hong Kong and Singapore. The government established a private company, Solidere, to carry out the reconstruction and development of downtown Beirut. No investor can hold more than a 10% share in the company. The parliament also established a public company, Elyssar, for developing southwest Beirut. Under the government’s five-year program (2001–2005) the “three pillars” of reform were affirmed by the Hariri government to be 1) economic revival and sustained growth with the private sector as the engine of growth; 2) fiscal consolidation and administrative reform; and 3) monetary, financial and price stability. 40SOCIAL DEVELOPMENT A government social security plan is intended to provide sickness and maternity insurance, accident and disability insurance, family allowances, and end-of-service indemnity payments. The employer contributes 8.5% of payroll, while the employee and government make no contribution. The system provides lump sum payments only for retirement, disability, and survivor benefits. Foreigners employed in Lebanon are entitled to benefits if similar rights are available for Lebanese in their home countries. Family allowances are provided for households with children and non-working wives. Voluntary social work societies also conduct relief and welfare activities. Careers in government, the professions, and, less commonly, business are open to women. However, in some segments of society, social pressure prevents them from taking full advantage of employment opportunities. Lebanese citizenship is passed on only by fathers to their children. The children of Lebanese women married to foreigners are unable to secure citizenship. Many of the religious laws governing family and personal status discriminate against women. Despite these circumstances, there are a growing number of women in business and in government. Domestic abuse and violence affects a significant percentage of women. Human rights abuses include arbitrary arrest and detention and the use of excessive force and torture. Prison conditions are substandard and include severe overcrowding. Palestinian groups operate within Lebanon in autonomous refugee camps. Human rights organizations are allowed to operate freely. 41HEALTH As of 1999, there were an estimated 2.1 physicians and 2.7 hospital beds per 1,000 people. The Lebanese Ministry of Health’s review of hospital use identified the major health problems as follows: hypertension, diabetes, and asthma, in addition to eye and ear diseases, cardiac conditions, and dermatological problems. In 2000, 100% of the population had access to safe drinking water and 99% had adequate sanitation. As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 8.2 and 14.7 per 1,000 people. About 61% of married women (ages 15 to 49) used contraception as of 2000. Life expectancy in 2000 was 70 years and the infant mortality rate was 26 per 1,000 live births. The fertility rate was 2.3 births per childbearing woman. The maternal mortality rate in 1998 was 100 per 100,000 live births. In 1999, immunization rates for children up to one year old included diphtheria, pertussis, and tetanus, 94%, and measles, 88%. Vitamin deficiencies are a problem; 25.7% of all school-age children have goiter (1996). Between 1982 and 1990, there were approximately 144,000 war-related deaths due to the Israeli invasion. In fact, the major causes of death between 1987–1991 were violence and acts of war. War has had a significant impact on the development of 396 Lebanon many Lebanese children. Many children suffer from posttraumatic stress disorders. The HIV-1 prevalence in 1999 was 0.1 per 100 adults. In 1996, there were 91 HIV cases. Malaria, polio, and neonatal tetanus are rare. In 1999, there were 24 cases of tuberculosis per 100,000 people. 42HOUSING Despite substantial construction activity since World War II and a boom in construction during the 1960s, which increased the number of housing units to 484,000 in 1970, there was a housing shortage, especially of low-cost residential units, in the early 1970s. The situation was aggravated by the civil war (ending in 1990) and subsequent factional strife in which half of the country’s real estate was severely damaged or destroyed. About 750,000 people were displaced. Under the CDR 1983–91 plan, nearly 30% of total expenditures were allocated to build new dwellings and to restore war-damaged houses. According to the last available information for 1980-88, total housing units numbered 820,000 with 3.3 people per dwelling. Housing needs until the year 2000 have been estimated at 400,000 units. 43EDUCATION Lebanon’s illiteracy rate is relatively low for the Middle East. For the year 2000, adult illiteracy rates were estimated at 13.9% (males, 7.7%; females, 19.6%). Free primary education was introduced in 1960, but about two-thirds of all students attend private schools. In 1997 there were 382,309 pupils in 2,160 primary schools. In the same year, there were 347,850 secondary school students. The pupil-teacher ratio at the primary level was 19 to 1 in 1999. In the same year, 71% of primary-school-age children were enrolled in school, while 70% of those eligible attended secondary school. In 1996, the total enrollment for all higher-level institutions was 81,588 students with 10,444 instructors. Leading universities include the American University in Beirut; St. Joseph University; the Lebanese (State) University; the University of the Holy Spirit; and the Arab University of Beirut. As of 1999, public expenditure on education was estimated at 2.1% of GDP. 44LIBRARIES AND MUSEUMS Lebanon has about a dozen sizable libraries with specialized collections of books, manuscripts, and documents. Most libraries are in Beirut, but there are also collections at Sidon and Harissa. The National Library of Lebanon, founded in 1921, had more than 100,000 volumes when it was destroyed at the beginning of the war in 1975. By 2002, it had restored that collection to 150,000 volumes. The Arab University Library has 200,000 volumes, but the largest library is that of the American University in Beirut, with 546,000 volumes. St. Joseph University has several specialized libraries, including the Bibliothèque Orientale, with 400,000 volumes. The library of the St. John Monastery in Khonchara, founded in 1696, contains the first known printing press in the Middle East. The Université Saint-Esprit de Koslik in Jounieh has the largest provincial collection with 200,000 volumes. The National Museum of Lebanon (1920), in Beirut, has a collection of historical documents and many notable antiquities, including the sarcophagus of King Ahiram (13th century BC), with the first known alphabetical inscriptions. The American University Museum also has an extensive collection of ancient artifacts. Beirut also houses the Museum of Fine Arts and the Museum of Lebanese Prehistory of St. Joseph University. There is a small Khalil Gibran museum in Bghori. 45MEDIA Before the civil war, Beirut was an international communications center with an earth satellite station and two oceanic cables linking it to Marseille and Alexandria. As of 1999, the rebuilding of Lebanon’s telecommunications system was well under way. Government-controlled Radio Lebanon broadcasts in Arabic, and Tele-Liban broadcasts on three channels in Arabic, French, and English. Some 700,000 mainline telephones were estimated to be in use as of 1999, with an additional 580,000 cellular phones in use as well. In 2001 there were 36 radio stations and 7 television stations. The government owns one radio and one television station and the rest are privately owned. In 2000, there were 687 radios and 335 television sets for every 1,000 people. In 2001, there were 300,000 Internet subscribers served by 22 service providers. Historically, Lebanon has had the freest press in the Arab world. Even during the civil war some 25 newspapers and magazines were published without restriction. Newspapers freely criticize the government but refrain from criticizing political groups that have the power to retaliate forcibly. As of 2002, the largest Arabic dailies included An-Nahar (The Day, 77,600), Al- Anwar (Lights, 58,675), As-Safir (The Ambassador, 50,000), Al- Amal (Hope, circulation 35,000), Al Hayat (Life, 31,030), Al- Sharq (36,000), and Al-Liwa (The Standard, 15,000). Also influential are the French-language papers L’Orient–Le Jour (23,000), Le Soir (16,500), and Le Réveil (10,000). Though the constitution provides for freedom of the press, the government uses several means short of censorship to control freedom of expression. The Surete Generale is authorized to approve all foreign materials, including magazines, plays, books, and films. The law prohibits attacks on the dignity of the head of state or foreign leaders, prosecuting through a special Publications Court. A 1991 security agreement between Lebanon and Syria effectively prohibits the publication of any material deemed harmful to either state. 46ORGANIZATIONS There are chambers of commerce and industry in Beirut, Tripoli, Sidon, and Zahlah. There are Rotary and Lion’s Clubs in Beirut. Lebanon has an Automobile and Touring Club, a French Chamber of Commerce, and an Association of Lebanese Industries. The Amel Association is a major social welfare organization providing emergency relief and social, medical, and educational services. The National Council for Scientific Research offers major support for promoting scientific study and research. A smaller organization, the Nadim Andraos Foundation, also provides financial support for medical and scientific studies. The Red Cross is also active in the country. National youth organizations include the Lebanese Scout Federation, Lebanese Youth and Student Movement for the United Nations, the Progressive Youth Organization, the Democratic Youth Union, and YMCA/YWCA. 47TOURISM, TRAVEL, AND RECREATION Before the civil war, Lebanon’s antiquities—notably at Sidon, Tyre, Byblos, and Ba‘albek—combined with a pleasant climate and scenery to attract many tourists (more than 2 million in 1974), especially from other Arab countries. During the war, however, fighting and bombing destroyed or heavily damaged major hotels in Beirut and reduced the number of tourists to practically zero. The country has been rebuilding slowly. Most attractions are historical sites in Tyre and Tripoli. The temple complex in Baalbek, which includes the remains of the temples of Jupiter, Bacchus, and Venus, is one of the largest in the world. Tourists who are not Arab nationals need visas to enter Lebanon. In 2000, Lebanon had 741,648 tourist arrivals, a 10% increase over the previous year. Hotel rooms numbered 14,500, with 25,450 bed-places and an occupancy rate of 28%. That year tourist receipts totaled $742 million. Lebanon 397 In 2002, the US Department of State estimated the cost of staying in Beirut at $210 per day. 48FAMOUS LEBANESE Khalil Gibran (Jibran, 1883–1931), a native of Lebanon, achieved international renown through his paintings and literary works. He is best known for his long poem The Prophet. Charles Habib Malik (1906–87), for many years Lebanon’s leading diplomat, was president of the 13th UN General Assembly in 1958/59. 49DEPENDENCIES Lebanon has no territories or colonies. 50BIBLIOGRAPHY Abraham, Antoine J. The Lebanon War. Westport, Conn.: Praiger, 1996. AbuKhalil, As’ad. Historical Dictionary of Lebanon. Lanham, Md.: Scarecrow, 1998. Akarli, Engin Deniz. The Long Peace: Ottoman Lebanon, 1861– 1920. Berkeley: University of California Press, 1993. Bleaney, C. H. Lebanon. Santa Barbara, Calif.: Clio Press, 1991. Bustros, Gabriel M. Who’s Who in Lebanon: 1990–1991. 11th ed. Beirut: Publitec, 1990. El-Khazen, Farid. The Breakdown of the State in Lebanon, 1967– 1976. Cambridge, Mass.: Harvard University Press, 2000. Harris, William W. Faces of Lebanon: Sects, Wars, and Global Extensions. Princeton, N.J.: Markus Wiener Publishers, 1997. Hiro, Dilip. Lebanon: Fire and Embers: A History of the Lebanese Civil War. New York: St. Martin’s, 1993. Khalaf, Samir. Civil and Uncivil Violence in Lebanon: A History of the Internationalization of Communal Contact. New York: Columbia University Press, 2002. Khater, Akram Fouad. Inventing Home: Emigration, Gender, and the Middle Class in Lebanon, 1870–1920. Berkeley: University of California Press, 2001. Najem, Tom. Lebanon: The Politics of a Penetrated Society. London: Routledge, 2002. Picard, Elizabeth. Lebanon, A Shattered Country: Myths and Realities of the Wars in Lebanon. New York: Holmes and Meier, 1996. Winslow, Charles. Lebanon: War and Politics in a Fragmented Society. New York: Routledge, 1996.