Lebanon - COUNTRY PROFILE
Geography
Lebanon lies on the eastern shore of the Mediterranean Sea, with it's capital, Beirut, located about halfway up its coastline. Lebanon shares both its northern and eastern borders with Syria, and its southern border with Israel. The southern portion of the country was occupied by Israel from 1978 until it was evacuated in late May 2000. From the coastal region the land rises rapidly to the Mount Lebanon range, the mountain range from which the country derives its name. To the east there is also the Anti-Lebanon range, which defines the border with Syria and stretches down to Mount Hermon on the Israeli border. Between the two mountain ranges is the Bekaa Valley, which has always been the agricultural heartland of the region.
Lebanon enjoys warm summers and mild winters, although the change in altitude makes a difference. Skiing is a popular pastime in the winter, often with plenty of snow and views down to the coast.
Recent History
Lebanon emerged as a state after World War I, when it was placed under French mandate following the Sykes-Picot Agreement of 1916. In recent history, Lebanon was famous for its lengthy civil war, which started in 1975. Many people feel that the division of power between Christian and Muslim Lebanese lay at the root of the civil war. This is because Maronite Christians constitutionally held most of the power in Lebanon, though the Muslims constituted the majority of the population. The war finally ended after the Taif Accord was signed in October 1989. Lebanon spent more than a decade saddled with: Israeli occupation in the south; 450,000 Palestinian refugees; and a large Syrian military presence, especially in the mountains and the Bekaa Valley, following a series of re-deployments from the Beirut area in early 2001.
In late May 2000, with the withdrawal of Israel's troops from southern Lebanon, Syria loosened its grip somewhat over the country. The United Nations and the central government were slow to react once Israel pulled out of southern Lebanon, with Hezbollah, the Syrian- and Iranian-backed guerrilla movement which had led the fight against Israeli occupation, filling the vacuum. In autumn 2000, Rafik Hariri returned to the office of prime minister with a resounding electoral victory, but then clashed openly with President Emile Lahoud, whose term was scheduled to end in November 2004. However, in a move widely seen as a result of Syrian pressure, the election was postponed for three years, sparking a political crisis that resulted in the resignation of the Hariri government in October 2004. It also sparked a realignment of political forces, with Druze, Christian and Sunni parties all taking a position against the Syrian presence.
The assassination of Hariri in February 2005 then sparked a further crisis, including the resignation of Prime Minister Omar Karami's government. International pressure then mounted, while many Lebanese took to the streets in the 'Cedar Revolution' to demand Syrian withdrawal from the country, with Damascus widely blamed for Hariri's murder. Syria did eventually withdraw its troops, with the last soldiers leaving in April 2005. However, assassinations of prominent anti-Syrian media and political figures have continued, while a UN enquiry into the Hariri murder seems to be tracing responsibility ever closer to Damascus' door. Fresh elections in June 2005 returned a coalition government to power, led by Fouad Siniora. However, as the year ended, the coalition appeared to be breaking down over a majority decision to invite an international tribunal to look into the assassinations, a move resisted by the Shiite parties, Amal and Hezbollah.
Government and Politics
Major Political Players:
Emile Lahoud: Previously army chief-of-staff, he has been president since November 1998. When President Lahoud ran for office in October 1998 he had the backing of Syria, which was also widely seen as behind the postponement of presidential elections scheduled for 2004. He may now remain in office until 2007.
Fouad SinioraPrime Minister since the 2005 elections. Well regarded by the business community and widely thought likely to push through economic and political reform.
Walid JumblattLeader of the country's Druze community. Formerly pro-Syrian, his change of tack in late 2004 decisively altered the political balance in the country against the pro-Syrian parties.
Hassan NasrallahLeader of Hezbollah, which won great credibility among the country's Shiia community after leading the fight against Israeli occupation in southern Lebanon in the 1980s and 1990s.
The political balance of power in Lebanon has always been very delicate, with the different ethnic groups always trying to make their feelings heard. Within these ethnic groups, divisions are along more than just religious lines. Socio-economic and political differences are equally important, with economic class, political leanings and religious identity interplaying in different ways according to the issue.
Population
Of Lebanon's 18 officially recognised religious groups, Maronite Christians, Sunni Muslims, Shia Muslims and Druze are the most numerous. Each of these groups is again split several ways, only adding to the confessional nature of Lebanese politics. This is one of the reasons the lengthy civil war began. Many commentators lament that the sense of sectarian identity outweighs that of any national identity.
The variety of religions and minority groups in Lebanon adds to its colour and interest, civil wars aside. The two major Christian groups are the Maronites and the Greek Orthodox, with several other confessions also represented, such as Roman Catholics. Christians have traditionally been in the majority, but during the past century, the Muslim population has grown far quicker and is now considered to be in the majority. Muslims are split mainly between the Sunni and Shia branches, however there is also a substantial Druze population in the Chouf Mountains.
The literacy rate in Lebanon is very high, at around 90%. Today, over 50% of Lebanese students are educated privately. Also, of the seven major universities in the country, only one is public. The health system has obviously suffered during the course of the civil war, but life expectancy is still relatively high at 69.9 years.
The better-off and more urban Lebanese often choose to emphasise their Phoenician heritage, which pre-dates the Arab conquests. Many choose to speak French or English rather than Arabic. A very rough rule of thumb holds that French is the second language of most Christians, while Muslims prefer to speak English. Since the end of the last century many Lebanese have moved abroad, to settle in the United States, South America, Western Europe and Australia. Much of the modern Lebanese culture has come from these emigrant communities, while remittances from abroad remain of central importance to the Lebanese economy, contributing to exports, foreign direct investment and tourism receipts.
Economy
In early 1999, Prime Minister Selim Hoss revealed plans for a five-year plan to help the Lebanese economy get back on its feet. The plan called for higher taxation, including the introduction of a value-added tax in 2001, and a privatisation programme. As well as planning to reduce the deficit-to-GDP ratio, the government also wanted to reduce its debts, which in 1999 stood at 127% of GDP. The "Paris II" Donors Conference in November 2002 secured $4.3bn in financial assistance to help reschedule much of the burden caused by debt. However, the loans secured at the conference were also dependent on reform of the economy, which has been slow in coming. Continued disputes over privatisation between Hariri and Lahoud, particularly with regard to selling off the mobile telephone network, have caused concern that the gains of "Paris II" might be being wasted. Public debt is now estimated at more than 180% of GDP.
Lebanon's tax base is very low, under 20%, causing yet more problems. However, Lebanon has strict bank secrecy laws, regarded as a fundament of the country's economic structure, making it very difficult for the correct authorities to assess income and profit. Reform is badly needed in the public sector, with many being given jobs by the state in order to keep them off the unemployment lines. This has, of course, led to huge wage bills for the government. To make matters worse, pressure not to cut back on jobs was coupled with pressure to increase wages. Corruption has also been a problem throughout the Lebanese economy, and both Hariri and Hoss have been unable to curb it.
The banking sector has yet to recover from the civil war, which left it lacking adequate human resources and with a less advanced infrastructure than its rivals. Analysts worry that banks might be overexposed to government debt; however, the Lebanese government has yet to default on a loan. Given its traditionally liberal approach to economic policy, Lebanon continues to play a unique role in the Arab world. But the expensive post-war rehabilitation effort, political squabbling at the highest levels and regional instability combined have placed the economy under extreme pressure. It remains to be seen whether Lebanon can reassume its position as the banking and financial centre of the Middle East, or if it has been surpassed by young upstarts in the Gulf such as Dubai. For the time being, Lebanon faces the more immediate challenges posed by chronic imbalances within its public finances.
