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Lebanon

FY 2001 Program Description and Activity Data Sheets

>> Regional Overview >> Lebanon Overview

FY 2001 Program

The USAID/Lebanon program will build on its demonstrated success and expand into new areas where similar success is possible. Our program will continue to support Agency goals of promoting economic growth, building democracy, protecting the environment and human capacity development. In the area of reconstruction and economic growth, the flagship of the program will continue to be the Rural Community Development Clusters, which now include 251 villages and almost 600 activities in basic infrastructure, income production, environment and civil society. The Clusters program has already been expanded to areas recently under occupation. Should occupation forces withdraw from other areas of southern Lebanon, USAID/Lebanon has prepared plans to quickly expand the Clusters program into these areas. While the number of microenterprise activities will remain at three, the volume of loans will continue to increase above the 10,000 reached in 1999. Economic Policy reform efforts will focus on implementation of three sector strategies developed in 1999, though new activities to support globalization may be undertaken in 2001. American educational institutions will receive both programmatic support and grants for scholarships and core programs, subject to the availability of funding.

The democracy and governance program was expanded in 1999, with the addition of commitments of $1.4 million from the Office of Transition Initiatives (OTI) for an anti-corruption program. Additionally, new areas of activity, such as rule of law, are being studied. Support to newly elected local governments has proven to be particularly successful, and has generated demand for the inclusion of more municipalities.

In 1998, the environmental program was expanded to include a humanitarian demining program, which has proven to be highly successful. Given the expectations of a withdrawal of occupying forces from South Lebanon, it is anticipated that this program will continue to require USAID support. The program to introduce innovative, appropriate and low-cost solutions to treatment of wastewater and solid waste in the village clusters has also proven highly successful. This program will be expanded significantly in 2001.



ACTIVITY DATA SHEET

PROGRAM: Lebanon
TITLE: Reconstruction and Expanded Economic Opportunity, 268-001
STATUS: Continuing
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $12,700,000 ESF
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $5,000,000 ESF
INITIAL OBLIGATION: FY 1997 ESTIMATED COMPLETION DATE: FY 2002

Summary: This strategic objective is the most complex in the program and contains a number of discrete activities. The Rural Community Development Clusters are the flagship of the program and are designed to aid in the process of reconstruction by returning rural communities to economic and social viability. Local citizens, acting through committees, select and implement projects, and contribute at least 25% of the cost. Five U.S. Non-Governmental Organizations (NGOs) share implementation responsibilities with these local committees in 31 clusters comprised of 251 rural communities, running basic infrastructure, income-producing, civic participation, and environmental activities. We estimate that more than 600,000 people benefit from the program.

The Micro-Finance portfolio consists of three active credit programs implemented by three different NGOs. Initially, the activities concentrated on village banking targeted exclusively at women. While such lending continues to expand, two newer programs are focusing on slightly larger loans. One of the new programs is paired with a commercial bank, which has increased its capital participation to 50% of the total. A multilateral donor is currently contemplating lending to this program.

The Capital Market activity has assisted the Government of Lebanon (GOL) to develop capital markets, by providing technical assistance to draft a modern securities law. A second activity, to strengthen the clearance, settlement and depository functions of MidClear, the financial clearing-house, by designing and procuring appropriate software and hardware, was begun in 1998.

The Economic Policy Reform activity targets the structural reform of three fundamental economic sectors: agro-industry; finance and regional services; and tourism. This activity, implemented by Stanford Research Institute, developed three national sector strategies and identified 27 reform initiatives, of which 15 are now being implemented.

Finally, the Small Grants program enhances the capabilities of local NGOs by providing assistance for discrete activities that may be completed within one year. Since 1997, 22 grants have been made and, after a one-year hiatus caused by the need to finance rural community development in Jezzine subsequent to the withdrawal of occupying forces, the program will be renewed in FY 2000.

Key Results: The projected result of this strategic objective is a significant contribution to the reconstruction and economic recovery of Lebanon in selected priority areas where USAID has sufficient resources and comparative advantage over the government or other donors. When USAID began working with rural communities, municipal governments and micro-finance, few donors were actively engaged in these areas. Given limited resources, a secondary objective of these efforts is their demonstration effect to the government and other donors, so they may be replicated. This principle applies to all activities, including economic policy and structural reform, though the most significant impact is expected in additional donor resources going to rural community development and support to local government.

Performance and Prospects: Since the initiation of the program, in 1997, 575 projects have been executed under the Rural Community Development component, and an additional 125 projects will be completed in FY 2000. These projects include construction of agricultural roads, schools, bridges, clinics, irrigation systems, potable water sources, wastewater collection and treatment facilities, and development of income-generation activities. The Rural Community Development component will be continued in FY 2001. Under the Micro-Finance program, over 21,000 loans to women have been provided in the oldest program, while the programs begun in 1998 and 1999 have together made 675 loans. Under the Dairy Improvement activity, 3,168 pregnant dairy cows have been distributed to 1,000 farmers, resulting in an increase in their earnings. This program has also contributed to the development of 58 new dairy production facilities in the private sector. The Economic Reform activity has invigorated the private sector and resulted in concrete action to implement the initiatives identified in the strategies developed in 1998.

In restoring and revitalizing normal life in rural areas, the local communities and the newly elected municipal governments have been actively involved in the planning and implementation of the activities cited above. The program has earned a reputation for being able to react quickly, as in the case of the de-occupation of the "Jezzine Pocket," which is a template for the anticipated de-occupation of the remaining occupied South. Within two weeks of the withdrawal, USAID had formed committees and initiated 15 activities. Since starting in Jezzine, USAID has initiated over 40 activities, with nearly two-thirds completed.

Possible Adjustments to Plans: For FY 2000, Congress has mandated that additional resources be provided to the American educational institutions in Lebanon, for scholarships and direct support. In FY 2000, $3 million will be provided as directed, in addition to program support already planned. No other adjustments are planned at this time.

Other Donor Programs: Virtually all major donors are involved in reconstruction and economic recovery, with the World Bank (WB) and European Union (EU) having the largest multilateral programs. Italy, Saudi Arabia and France lead bilateral programs, though most support is in trade finance in the form of loans. Most were used for large reconstruction projects in roads, telecommunications, power, and other utilities. Since USAID began its program in rural community development, there has been a marked increase in funding to rural areas by the EU, World Bank, Italy, and the UNDP. USAID is engaged in formal and informal cooperation with these donors and international NGOs, and is increasingly jointly funding activities, where feasible. A donor coordination committee and several subcommittees meet regularly, and several new working groups are planned to cope with municipal development and the anticipated withdrawal of occupying forces in South Lebanon.

Principal Contractors, Grantees or Agencies: USAID implements activities through U.S. and local organizations. The Rural Community Development Clusters activity is being implemented by five U.S. NGOs: Mercy Corps International , Young Men Christian Association (YMCA), Catholic Near East Welfare Agency (CNEWA), Cooperative Housing Foundation (CHF) and Creative Associates International Inc. (CAII). The Micro-finance program is being implemented by Save The Children, CHF, and the Makhzoumi Foundation. The Economic Policy Reform activity is implemented by Price Waterhouse/Stanford Research Institute and Lebanese American University (LAU). The MidClear activity is implemented by Price Waterhouse/Coopers/Metametrics and Baton Rouge International. All implementing NGOs interact with ministries and municipal governments, as needed. NGOs are encouraged to cooperate with other donors and to accept support from donors and local organizations. The implementing NGOs use an electronic consolidated reporting system, which tracks every activity and key indicator of results.

Selected Performance Measures: Baseline
(1997)
Actual
(1998)
Target
(1999)
Target
(2000)
Target
(2001)
Selected Rural Communities Revitalized          
  • Incremental number of hectares irrigated, cultivated, improved or accessed
0 7,838 13,420 19,155 25,256
  • Number of families accessing new and/or improved social infrastructure
0 27,866 66,604 91,970 13,301
  • Number of informal sector loans delivered (Total transactions)
0 9,871 11,900 17,300 40,730
Improved dairy production          
  • Total volume of milk produced per year from USDA cows (In Liters)
0 6,190 17,174 21,621 23,078

U.S. Finance Table (Microsoft Excel)

ACTIVITY DATA SHEET

PROGRAM: Lebanon
TITLE and NUMBER: Increased Effectiveness of Democratic Institutions, 268-002
STATUS: Continuing
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $900,000 ESF
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $2,000,000 ESF
INITIAL OBLIGATION: FY 1994 ESTIMATED COMPLETION DATE: FY 2002

Summary: This special objective contributes to the rehabilitation and reform of the Parliament and local government to better manage a restructured central government and to carry out the country's redevelopment objectives. As part of this assistance, USAID introduces and reinforces concepts of transparency, accountability, and effectiveness of government. The beneficiaries are the Parliament and the selected municipalities, as well as their public servants and the citizens they serve or represent. This is particularly important with regard to municipal governments that were, in 1998, elected in the first local elections since 1963, and lacked the physical means and training to fully exercise their responsibilities.

In 1999, USAID/Lebanon along with USAID's Office of Transition Initiatives (OTI) undertook a new series of activities aimed at reducing corruption. This program encompasses a four-component initiative to empower key Lebanese stakeholders -local government, media and civil society- in their anti-corruption efforts. The four components include: an anti-corruption media campaign; investigative journalism training; municipal government assistance; and a small grants mechanism.

Key Results: Success will be measured by a parliament that is both more responsive to its constituents, and a more effective partner in governing the country. The Parliament will pass better laws, pass them faster, and conduct responsible oversight of government budgets and operations. Also, the capabilities of public entities will be enhanced through rehabilitation of governmental agencies by modernizing, simplifying work procedures, defining and publicizing all rules for executing transactions, and ensuring complete transparency. Local government will be revived with modern information systems, elected council members with awareness of their powers and their responsibilities toward their communities, and skills and information resources to carry them out. The general population will better understand the nature and costs of corruption; selected journalists and media will be better able to investigate corrupt practices and disseminate information; and local NGOs and public/private partnerships will encourage constructive interaction that increases transparency and accountability between the government and citizens.

Performance and Prospects: The point of entry for this activity was the installation of basic modern information systems (word processing, electronic mail, and data bases) to simply put key agencies of the GOL back in business. In the process of meeting these needs, a number of other benefits have occurred. Outdated and cumbersome procedures have been streamlined; and staffs have been trained in the use and maintenance of information systems. Senior civil servants have traveled to the US for policy dialogue to learn about government reengineering, customer service, quality management, transparency of decision-making, and other contemporary public sector management values and concepts.

Currently, 81 municipalities are receiving training and the computer and systems hardware and software necessary to build and restructure the management, human resources, and budgeting capability of their local government. While other donors have supported restoration of Lebanon's devastated postwar government, many in the GOL consider the USAID-supported activity to be that which has set a standard of quick response, sensible problem-solving, educational value for key decision-makers, and systems that can be put to work in key governmental functions. In FY 2001, USAID will follow up on the successful OTI anti-corruption initiative with support to additional municipalities and greater focus on the Municipality of Beirut.

Possible Adjustments to Plans: Since 1997, the focus of this activity has shifted away from assisting Lebanon's "control" agencies-the General Accounting Office, the Civil Service Board, and the Central Inspections Board-which provide oversight of budgets and programs. These control agencies have now gained new autonomy, effectiveness and legitimacy and their work with the Parliament in responding to constituents' inquiries. The evolution of this oversight capacity will increase the parliament's effectiveness in formulating laws and policies. Increasingly, emphasis of this activity will shift toward working with the municipalities. It is uncertain whether the Ministry of Municipalities and Rural Affairs (MOMRA) will maintain its role with regard to municipalities; thus, most work with the Ministry has been suspended. The future of the Ministry, its role and USAID support will be taken up with the Government after the parliamentary elections in early 2000. The uncertainties surrounding MOMRA have had little impact on support to the municipalities.

Other Donor Programs: Democracy building in Lebanon is a field that has now attracted many donors. The World Bank and UNDP have been supporting administrative reform, but their managers and technicians often turn to the USAID program for technical advice in areas such as civil service performance evaluation, standardization of the government-wide budgeting system, and models of quick problem-solving. Part of the World Bank's $20 million loan for administrative reform will fund a study to improve the current municipal financial system. The NGO Forum (an informal association of local NGOs), jointly funded by the European Union (EU) and Canada, was established in 1999. With USAID funding, the NGO Forum established a Parliamentary Center called the "Forum for Parliamentary Dialogue" with the objective of enhancing local NGO participation in the legislation decision process. The UNDP has recently signed a Memorandum of Understanding with the Parliament to deal with regional legal issues and to provide it with technical assistance. The estimated cost is $300,000. The EU will grant the Ministry of Administrative Reform $40 million for activities to be announced later.

Principal Contractors, Grantees or Agencies: Most work to date has been performed under a cooperative agreement with the Center for Legislative Development at the State University of New York/Albany (CLD/SUNY). In the next phase, CLD/SUNY will continue to play a key role, building on the excellent track record and relationships that have been established, though other organizations may be involved in technical aspects of local government. There is also close coordination with the NGOs involved in the rural community development clusters, under SO1. The counterparts in this program are the Minister of State for Administrative Reform, the Ministry of Finance, the Speaker's Office in the Parliament, and MOMRA. The anti-corruption effort is working with Information International, Saatchi and Saatchi, International Center for Journalists, Lebanese American University, and Lebanese University.

Selected Performance Measures: Baseline
(1997)
Actual
(1998)
Target
(1999)
Target
(2000)
Target
(2001)
MOMRA providing technical assistance/information to municipalities
(No. of beneficiary municipalities)
0 30 50 100 150
Improved operation of key central Agencies to support local government
(No. of agencies disseminating info. related to govt. )
0 0 1 2 4
Pilot municipalities are able to interact with central agencies and provide services effectively and fairly
(No. of municipalities using the Automated Budget System)
0 0 1 50 100
Parliament is informed on policy options served by qualified staff and able to oversee government budget
(No. of studies & policy analysis provided to Parliament members & Committees)
0 0 0 2 5

U.S. Finance Table (Microsoft Excel)

ACTIVITY DATA SHEET

PROGRAM: Lebanon
TITLE and NUMBER: Improved Environmental Practices, 268-005
STATUS: Continuing
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $1,400,000 ESF
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $5,000,000 ESF
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2002

Summary: The purpose of this special objective is to help the Lebanese better understand their environmental problems, point the way to policy reforms, and through demonstration activities, illustrate selected environmental solutions at national and local levels. Thousands of families in rural areas will benefit from more sustainable land use, clean water and reduced pollution by developing their ability to manage environmental resources.

Since 1995, USAID has funded the American University of Beirut (AUB) to equip and organize the Core Environmental Analytical Laboratory (CEL), and to establish a multi-faculty research, teaching and outreach program, involving the departments of public health, engineering and agriculture. The CEL gives the university new capacity to conduct testing of water, soil and hazardous substance, and monitoring of air pollution, and to provide policy and technical leadership on some of Lebanon's most pressing problems. The environment program also includes the establishment of the Water Resources Center that studies the country's surface and subsurface water resources (quantity and quality), which will provide needed data and analysis to the country's decision-makers. Under its economic agricultural sustainability pilot activity, AUB is investigating and analyzing the current prevailing farming systems in the Yammouneh region. This effort will determine and propose an optimum cropping pattern that will include new crops that are economically feasible, marketable and environmentally sound. If successful, the pilot may be replicated in other regions.

Beginning in 1997, USAID included environmental activities under the rural community development program, focusing on integrated water resources management activities (mainly solid/liquid waste disposal and treatment pilot projects). These have benefits at both the national and community level, by demonstrating low-cost methodologies for waste disposal and treatment, as well as productive agriculture that is environmentally sustainable. Through sustained community action, and subsequent dissemination of the results and methods, local solutions may be replicated on a national scale.

In 1998, USAID started a new humanitarian demining initiative. The activity builds on the Department of Defense physical demining support provided to the Lebanese Armed Forces, by focusing on awareness and prevention of landmine injuries, as well as landmine victims' assistance, through a consortium of NGOs and community based organizations.

Key Results: Under this Special Objective, USAID intends to establish the basis for environmental concern and awareness among rural communities. It seeks to educate the communities about environmental problems and to improve their capabilities to manage environmental conditions in a more efficient manner. It also attempts to demonstrate innovative solutions that can be supported and replicated by the GOL and other donors, and integrated into their plans. By focusing on initiating waste management projects in rural areas, USAID is demonstrating to rural villages and to other public and private entities the most effective and least expensive methodologies to solve environmental problems. AUB's environmental program is not limited to delivering technical services. AUB intends to disseminate information on environmental conditions and provide analysis of results and expert advice on solutions to environmental problems to the private and public sectors. Through its landmines accident prevention program, USAID focuses on providing understanding and awareness, at both national and community levels, related to the location of minefields, and to the social and economic problems incurred from mine injuries. It indirectly supports the military efforts to remove landmines through cooperation, advice and exchange of data and information. The ultimate goal is the clearing of minefields and the reopening of currently unusable land for development and agricultural production.

Performance and Prospects: Implementation of AUB activities is being delayed in an effort to refocus the program. Efforts are being exerted to strengthen the educational and advisory role of AUB. The purpose of the activity is to extend beyond the inner academic circles of the university through dissemination of data and research results, in an attempt to influence private and public decision making that affect the country as a whole. Currently, the program lacks analytical substance and community outreach. During the coming year, USAID/Lebanon will closely track AUB's progress in producing these latter results.

At the community level, environmental activities are varied. These include building or restoring retaining walls, reforestation, upgrading potable and irrigation water systems, improving road drainage to reduce erosion, tackling community solid and liquid waste disposal problems with low-cost technologies, and in some areas, introducing new crops that serve both income and environmental objectives. The program has begun to effectively demonstrate a number of low-cost solutions to both solid and liquid waste problems, and is enlisting other donors in the effort. The Italian aid program, for instance, is involved in the construction of wastewater network and treatment plants in eleven rural areas. The USAID program has, since 1998, initiated sixteen waste management projects. Five have been completed and started operation, and eleven are in preparation or underway. One solid waste management activity is considered by experts as truly innovative and is drawing numerous requests for replication in other communities. The NGO's are becoming increasingly skilled, and communities and local governments are seeking eagerly to replicate the activities. The concept of initiating appropriate low-cost and low-technology solid and liquid waste treatment models for solving environmental problems in rural areas has become very popular as an alternative to the government's large, expensive, and largely unfunded plans. In FY 2001, major incremental funding will be obligated to these activities.

The humanitarian demining program is unique in that it has succeeded in setting the basis for cooperation and coordination over landmine issues, between the Lebanese Armed Forces special units and the Humanitarian Demining Office representing local NGOs and community based organizations. The information system on landmine victims and locations of minefields is developing successfully and now covers 55% of the country. This database is considered to be the sole information source on the landmine issue in Lebanon. As a result of USAID direct involvement with landmine victims and their families, the urgent need for assisting those victims has emerged. The victims assistance program is presently being initiated and is expected to be launched in early 2000, to assist victims in treatment, rehabilitation, and economic reintegration. The humanitarian demining program has been successful in promoting the problem of landmines in Lebanon at both community and national levels, so that existing minefields are identified and eliminated, and communities can prevent accidents and deaths. Signs of strong commitment to deal with the issue and eagerness to join efforts are found among all concerned parties, which has enabled the activity to exceed expectations after only one year of operation. In FY 2001, additional funding will be provided for a pilot victims assistance center.

Possible Adjustments to Plans: None.

Other Donor Programs: The World Bank and other donors have assessed environmental problems, and proposed programs for coastal resources management, solid waste management, waste water treatment, and national reserves. The World Bank has provided a $55 million loan for a Solid Waste Management Project to construct landfills in seven different locations. This project was put on hold after the new government was formed in the fall of 1998. The Italian government is involved in small to medium wastewater management projects, and the UNDP is concentrating on providing support to local organizations to deal with solid waste problems. The U.S. Department of Defense is supporting physical removal of mines with training and equipment for the LAF engineering regiment.

Principal Contractors, Grantees or Agencies: USAID supports AUB, Mercy Corps, Catholic Near East Welfare, YMCA, Cooperative Housing Foundation, and Creative Associates. Activities are implemented through close coordination with the Ministries of Environment, Water, Agriculture and Interior as well as local municipalities that are cooperating in these efforts. The World Rehabilitation Fund is carrying out education, organization, information, and victims' assistance work on demining with the LAF, Ministry of Health, Balamand University, and a consortium of local NGOs and Community Based Organizations.

Selected Performance Measures: Baseline Actual
(1998)
Target
(1999)
Target
(2000)
Target
(2001)
Non-AUB individuals/or groups are applying AUB technical assistance in their decisions - % lab capacity used for environmental analyses 0 5% 20% 30% 65%
Number of new clients requesting environmental analyses 0 24 48 84 110
Number of villages known to change or initiate activities to improve the condition of water resources 0 42 90 133 173
Population with improved understanding of landmines prevention practices, and landmines locations.
(Number of individuals accessing landmines related information) (in 000s).
0 258 758 1,058 1,758

U.S. Finance Table (Microsoft Excel)

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Last Updated on: November 17, 2000