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Viewing cable 09BEIRUT473, LEBANON: UNEMPLOYMENT EXCEEDED 9% IN 2007 AND MAY RISE IN

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Reference ID Created Released Classification Origin
09BEIRUT473 2009-04-26 04:35 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Beirut
VZCZCXRO9118
RR RUEHAG RUEHBC RUEHDE RUEHDF RUEHDH RUEHIK RUEHKUK RUEHLZ RUEHROV
RUEHSR
DE RUEHLB #0473/01 1160435
ZNR UUUUU ZZH
R 260435Z APR 09
FM AMEMBASSY BEIRUT
TO RUEHC/SECSTATE WASHDC 4756
INFO RUEHEE/ARAB LEAGUE COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RHEHAAA/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC
UNCLAS SECTION 01 OF 02 BEIRUT 000473 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR NEA/ELA AND EEB/IFD/ODF 
STATE PASS USTR FRANCESCKI 
STATE PASS USAID LAUDATO/NANDY/SCOTT 
TREASURY FOR PARODI/BLEIWEISS/AHERN 
USDOC FOR 4520/ITA/MAC/ONE 
NSC FOR SHAPIRO/MCDERMOTT 
 
E.O. 12958: N/A 
TAGS: ECON EFIN ECPS PGOV KIPR KCORR LE
SUBJECT: LEBANON: UNEMPLOYMENT EXCEEDED 9% IN 2007 AND MAY RISE IN 
2009 (ECONOMIC WEEK IN REVIEW, APRIL 20 - 26, 2009) 
 
CONTENTS 
-------- 
 
-- NEW STUDY:  UNEMPLOYMENT MORE THAN 9% IN 2007 
-- LEBANON AND SYRIA DISCUSS DIALING CODE AND INTERFERENCE ON MOBILE 
NETWORK 
-- LEBANESE BROADBAND STAKEHOLDERS GROUP RAISES PUBLIC AWARENESS 
-- SENIOR BANKER:  SUGGESTIONS FOR WEATHERING THE GLOBAL CRISIS 
-- SECURITY MIDDLE EAST SHOW OPENS IN BEIRUT, CUSTOMS WOULD LIKE 
EQUIPMENT FROM U.S. 
-- AMERICAN LEBANESE CHAMBER OF COMMERCE INTRODUCES BUSINESS CODE OF 
CONDUCT 
 
 
UNEMPLOYMENT MORE 
THAN 9% IN 2007 
-------------------- 
 
1. (U) During the week of April 20, the Central Administration of 
Statistics (CAS) published its latest survey on household living 
conditions showing that unemployment increased from 8% in 2004 to 
9.2% in 2007.  The increase was mostly attributed to the July 2006 
war against Israel, when over 45,000 Lebanese lost their jobs.  The 
survey showed that university graduates suffered most from 
unemployment with a rate of 30.1% in 2007 compared to 21.6% in 2004. 
 The study was prepared in collaboration with the Ministry of Social 
Affairs, UNDP, and the ILO.  Some economists expect unemployment to 
rise further in 2009 with the return of Lebanese expatriates, mainly 
from the Gulf region, who may have lost their jobs as a result of 
the global financial crisis. 
 
LEBANON AND SYRIA DISCUSS DIALING CODE 
AND INTERFERENCE ON MOBILE NETWORK 
-------------------- 
 
2. (SBU)  On the margins of the Arab Telecom and Internet Forum in 
Beirut on April 16, Lebanese Telecom Minister Gebran Bassil and his 
Syrian counterpart  Imad Sabouni agreed to abolish the internal "02" 
area code for calls between the two countries and instead use 
standard international dialing, according to Antoine Boustani, 
Senior Advisor to Bassil.  Lebanese across the political spectrum 
have been asking for this measure to reassert Lebanon's sovereignty. 
 The ministers' discussions also covered the issue of frequency 
interference on the mobile network, and a joint committee was 
reactivated to follow-up on this problem, Boustani said.  Sabouni's 
visit to Lebanon was the first by a Syrian Minister since the visit 
of Syrian Foreign Minister Mouallem in July 2008. 
 
LEBANESE BROADBAND STAKEHOLDERS 
GROUP RAISES PUBLIC AWARENESS 
-------------------- 
 
3. (U) On April 24, the Lebanese Broadband Stakeholders Group 
(LBSG), a coalition of professional associations, companies, and 
individuals lobbying for broadband availability, held a 
brainstorming session with two European experts on ways to push the 
GOL to take action on this issue.  The experts stressed the 
importance of broadband for attracting investment and stimulating 
economic growth.  They recommended immediate implementation of the 
Telecom Privatization Law and liberalization of the sector.  They 
noted that competition and a level playing field are essential, and 
called on the LBSG to act as a platform to create a favorable 
environment for investors. 
 
SENIOR BANKER: LEBANON SHOULD MAINTAIN MACROECONOMIC IMPROVEMENTS 
AND INCREASE LENDING TO WEATHER THE GLOBAL CRISIS 
-------------------- 
 
4. (U) During a workshop on Lebanese banks and future prospects for 
the financial sector, Bank Audi Strategic Advisor Freddie Baz noted 
that although Lebanon has so far avoided the repercussions of the 
global economic crisis, certain precautionary measures should be 
taken to protect the economy and achieve the IMF's projected 4% 
growth for 2009.  Baz suggested that Lebanon must maintain the 
improvement witnessed in recent years in its macroeconomic 
indicators, such as debt to GDP ratio, economic growth rate, and tax 
collection, and move forward with privatization.  With the decline 
in the dollarization rate of deposits, Baz said that the Central 
 
BEIRUT 00000473  002 OF 002 
 
 
Bank of Lebanon (CBL) and commercial banks should work towards 
increasing lending in Lebanese Pounds.  More lending in the local 
currency, with GOL interest rate subsidies, would stimulate growth 
and decrease bank exposure to foreign currency vulnerabilities. 
 
 
SECURITY MIDDLE EAST SHOW OPENS IN BEIRUT 
CUSTOMS WOULD LIKE EQUIPMENT FROM U.S. 
-------------------- 
 
5. (SBU) On April 20-22, the Institute for Near East and Gulf 
Analysis (INEGMA) organized the Security Middle East Show in Beirut, 
featuring exhibitors dealing with internal and border security, 
critical infrastructure security, counter-terrorism, and military 
equipment.  Senior Customs Officer Colonel Walid Habr and head of 
the Customs Control and Commercial Fraud Division at the Beirut Port 
told us that most of the equipment his office has was acquired 
through a 15 million euro grant from Germany to Customs, including 
night vision equipment and hand held detectors.  Germany and Canada 
have also assisted in the restoration of speed boats to patrol 
Lebanese waters.  Although Habr noted that some of the equipment 
they have received is U.S.-manufactured, he hoped that his division, 
which also deals in enforcing intellectual property, would receive 
equipment from the U.S. directly to enhance its ability to control 
ports of entry. 
 
AMERICAN LEBANESE CHAMBER OF COMMERCE 
INTRODUCES BUSINESS CODE OF CONDUCT 
------------------- 
 
6. (U) On April 22, the American Lebanese Chamber of Commerce 
(AmCham) launched its Better Business Values (BBV), part of the 
Better Business Group (BBG), an initiative promoting a corporate 
culture of integrity for a business-friendly environment in Lebanon. 
 The BBV includes ethical standards, equal employment opportunity, 
leadership skills, corporate social responsibility, corporate 
governance, accountability and transparency, anti-trust adherence, 
quality standards and consumer protection, and intellectual property 
rights.  The Amcham has also called on non-members, such as Lebanese 
syndicates and business associations, to endorse the BBV. 
 
SISON