2017年-世界发展银行全球_Priority_Reforms_for_the_Government_of_Lebanon_20页_305kb

Summary of Priority Reforms for the Government of Lebanon

Core Content

This policy paper outlines a set of urgent and medium-term reforms aimed at revitalizing Lebanon's economy and governance, addressing long-standing challenges exacerbated by the Syrian conflict and refugee influx. The reforms are structured to establish a credible government, improve public services, and create a more inclusive and sustainable development path. The document emphasizes that the international community's support will depend on Lebanon's ability to implement these reforms effectively.

Main Viewpoints

• Lebanon is facing significant internal and external shocks, including a deteriorating macroeconomic environment, institutional weaknesses, and a large refugee population.
• A lack of an official budget since 2005 has led to fiscal instability and hindered development.
• The government's credibility and ability to deliver reforms are crucial for restoring public trust and economic stability.
• Institutional reforms, especially in public procurement, are essential for transparency and efficiency.
• The electricity sector is a major contributor to economic inefficiencies and inequality.
• Improving the business environment and public infrastructure is vital for growth and job creation.
• Social safety nets must be strengthened and better targeted to support the poor effectively.

Key Information

Immediate 100-Day Reforms

1. Passing a Credible Budget

   • The Council of Ministers (CoM) must submit and Parliament must pass a 2017 budget that generates a primary surplus.
   • This will signal the government's commitment to fiscal responsibility and provide a foundation for long-term development.

2. Ratification of Public Procurement Law 2013

   • Parliament must ratify the revised Public Procurement Law to enhance transparency and reduce corruption.
   • The current law is overly centralized and inefficient, leading to delays and lack of competition.

3. Tariff Adjustment Mechanism for Electricity

   • CoM must issue a decree linking increases in power generation output to a commensurate rise in electricity tariffs.
   • This will reduce the financial burden on the government from electricity subsidies and allow for more sustainable funding.

4. Public-Private Partnership (PPP) Legislation

   • CoM must pass an updated version of the existing draft PPP law to improve infrastructure delivery and public service efficiency.
   • PPPs are expected to attract investment and improve the investment climate, leading to job creation and economic growth.

5. Liquefied Natural Gas (LNG) Terminal Tender

   • CoM must issue a tender for an LNG terminal to provide more affordable and efficient fuel for power generation.
   • This will reduce reliance on expensive liquid fuels and improve energy sustainability.

6. Supporting Power Generation Capacity Development

   • CoM must support ongoing power generation projects and hire a transaction advisor to develop new capacity through Independent Power Projects (IPPs).
   • This will help reduce rolling blackouts and improve energy access, justifying necessary tariff increases.

7. Establishing a Bus Rapid Transit (BRT) Network

   • CoM must authorize the CDR to prepare and negotiate the Greater Beirut Urban Transport Project.
   • A BRT network is essential to reduce traffic congestion and improve public transport, with potential for private sector involvement.

8. Scaling Up the National Poverty Targeting Program (NPTP)

   • CoM must expand the NPTP to cover 15-20,000 extreme poor households.
   • MoSA and PCM must finalize the recertification of beneficiaries and update the targeting database to reduce leakages.

9. Integrated Solid Waste Management Law

   • Parliament must approve the Integrated Solid Waste Management Law to address waste management challenges.
   • This is a critical step toward improving environmental conditions and public health.

10. Improving the Business Environment

    • CoM must launch an accelerated program of business environment reforms.
    • This includes the passage of a Secured Transaction and Collateral Registries law, reform of commercial registry and licensing procedures, and the e-signature law.
    • A matching grant program for Micro, Small and Medium Enterprises (MSMEs) will support job-creating investments.

Medium-Term Reforms

1. Making Government Work

   • Institutional reforms are necessary to improve governance, transparency, and accountability.
   • Strengthening the rule of law and public procurement processes will enhance service delivery and reduce inefficiencies.

2. Plugging the Information Gap

   • Improving data collection and transparency in public spending and service delivery will support better policymaking and public trust.

3. Breaking the Debt Chain

   • Reducing the fiscal deficit and current account deficit is critical to stabilizing the macroeconomic framework.
   • This requires long-term fiscal reforms and a more sustainable energy policy.

4. The Dream of 24/7

   • Ensuring reliable and continuous electricity supply is a key goal for economic growth and social development.
   • This involves both increasing generation capacity and improving the efficiency of the electricity sector.

5. Toward a New Social Model

   • The social contract between the state and citizens must be redefined to ensure more equitable distribution of resources and services.
   • Social safety nets must be better targeted and integrated into broader development strategies.

6. Growth for All

   • Economic growth must be inclusive and benefit all segments of society, not just the elite.
   • This requires structural reforms to diversify the economy and reduce reliance on non-productive sectors.

7. And Jobs at Home

   • Job creation is essential for reducing poverty and improving economic stability.
   • Encouraging private sector participation and improving the business environment will help generate employment opportunities.

8. The Refugee Crisis: Creating Opportunities

   • Addressing the refugee crisis involves not only managing the immediate impact on public services but also creating new opportunities for integration and development.
   • Policies must focus on economic inclusion, education, and employment for refugees.

Conclusion

The reforms outlined in this document are critical for Lebanon to overcome its current challenges and return to a path of sustainable and inclusive development. Immediate actions will establish credibility and set the stage for medium-term transformation, while addressing both macroeconomic and social issues. The success of these reforms will depend on the government's ability to act decisively, transparently, and in the interest of the entire population.