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Lebanon
>> Regional Overview >> Lebanon Overview ACTIVITY DATA SHEET
PROGRAM: Lebanon
TITLE: Reconstruction and Expanded Economic Opportunity, 268-001
STATUS: Continuing
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: $22,920,000 ESF
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: $20,000,000 ESF
INITIAL OBLIGATION: FY 1997 ESTIMATED COMPLETION DATE: FY 2004Summary: This strategic objective focuses on revitalizing Lebanon's economy and community life following two decades of civil war and occupation. These years were marked by physical devastation, social disruption, and economic stagnation, and reflected a complex, dynamic, but often divisive web of political, religious, cultural, and regional interests. Israel withdrew from South Lebanon in May 2000. The new Lebanese government, formed in November 2000, intends to rebuild the economy, providing USAID with an excellent opportunity to expand its successful community development activities nationwide. At the same time, USAID can broaden its assistance for shaping programs, policies, and laws that target key growth sectors, trade and investment, and globalization. This strategic objective enables USAID to have extensive involvement with Lebanese policy makers, business leaders and NGOs; substantial influence with other donors; and significant program impact.
The Rural Community Development Cluster activity is the flagship of the program, 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, contributing at least 25% of the cost. Five U.S. non-governmental organizations (NGOs) share implementation responsibilities with local committees that are organized into village clusters, running over 600 basic infrastructure, income-producing, civic participation, and environmental activities in 250 communities. The dairy development program, implemented through the American University of Beirut's (AUB) extension service, is also an integral part of the cluster program.
The microfinance portfolio consists of three active credit programs implemented by three different U.S. and local NGOs. Activities initially concentrated on village banking targeted exclusively at women. While such lending continues to expand, two newer programs focus on slightly larger loans to individual borrowers-one of which is paired with a commercial bank that has increased its capital participation and risk sharing from 25% to 50%.
The World Trade Organization (WTO) accession program, begun in May 2000, will help revitalize economic activity in Lebanon through increased trade and investment. A team from PricewaterhouseCoopers (PwC) has worked with the Lebanese government and the private sector to promote understanding of and support for WTO accession and determine the various laws, policies and regulations needed for WTO membership. The foreign trade regime memorandum is nearly completed; accession is targeted for late 2002.
The Economic Policy Reform activity currently targets the structural reform of three fundamental economic sectors: agro-industry, financial and regional services, and tourism. Implemented by the Stanford Research Institute, this activity has developed three national sector strategies and identified 27 reform initiatives (15 completed and 12 in process). Adding two new sectors-information technology and media-will address all of Lebanon's current major growth areas.
Finally, the small grants program strengthens selected, well-screened NGOs by providing assistance for discrete, short-term social and economic activities. Since 1997, 23 grants have benefited more than 10,000 beneficiaries.
Key Results: This objective is making a major contribution to reconstruction and economic recovery of Lebanon in areas where USAID has sufficient resources and comparative advantage over the government or other donors. Few donors were actively engaged in rural development when USAID began this program. Today, given USAID's demonstrated success and impact, along with ever-increasing demands and opportunities in rural areas, other donors and the government are beginning to replicate USAID activities. The European Union (EU), World Bank, and United Nations Development Program (UNDP), for example, are prepared to invest $60 million in community-based programs modeled on USAID's village cluster approach. This principle of replication applies to all activities, including economic policy and structural reform, though the most significant impact is expected in resources going to rural community and municipality support.
Performance and Prospects:
The information provided below is illustrative.
Rural Development Clusters: The expected FY 2001 obligation is $13.32 million ESF. USAID funding will help restore normal life to rural areas. Local communities have been actively involved in planning and implementing activities that support economic revitalization. The program has earned a reputation for being able to react quickly, as in the case of the de-occupation of the "Jezzine Pocket." Within two weeks of the Israeli withdrawal, USAID had formed committees and initiated 15 activities; 58 are now completed. No other donors working in rural Lebanon can match this level of coverage, responsiveness, and impact. USAID funds also will be used to expand the program from 31 clusters comprising 251 rural communities and 600,000 beneficiaries to 42 clusters encompassing approximately 430 communities and 850,000 beneficiaries. The program will continue focusing on small-scale infrastructure and income generation activities.
Dairy Improvement: The FY 2001 obligation of $500,000 will allow USAID to partner with the American University of Beirut's (AUB) Agricultural Extension Service to support a USDA GSM-103 program that to date has imported over 4,000 cows to upgrade the quality and productivity of Lebanon's milk supply. FY 2001 funds will be used for technical assistance in the areas of animal health, production, and marketing that will increase incomes of some 1,200 farmers and continue developing and expanding 58 new private sector dairy production facilities.
WTO Accession: The proposed FY 2001 obligation is $2.2 million ESF. The impending submission of the foreign trade regime memorandum has generated significant momentum for WTO accession in both the public and private sectors. USAID plans to assist the Government of Lebanon (GOL) with the revamping of laws, policies, regulation, and procedures necessary for a 2002 accession.
Microfinance: The microfinance program has provided nearly 22,000 loans since 1997, targeting primarily women in single-income families. In FY 2001 USAID will obligate $2.5 million ESF, doubling current coverage and enabling a significant start-up in new rural clusters. The program will also continue diversifying its products and services to meet ever-changing market demands.
Economic Policy Reform: The proposed FY 2001 obligation is $800,000 ESF. These activities have helped focus and invigorate the private sector, particularly in the tourism, services, and agribusiness sectors. USAID's proposed FY 2001 funding will broaden the impact of these current strategies and initiate two others, information technology and media, that have high market demand and growth potential.
Support to American Educational Institutions: The proposed FY 2001 obligation is $3.1 million ESF. These funds will help provide scholarships and other core and program support to AUB, the Lebanese American University (LAU), the American Community School, and the International College. Of this total, USAID plans to obligate $500,000 to LAU's Center for Scientific Research and Development.
Small Grants Program: USAID proposes to provide local NGOs with $500,000 from FY 2001 appropriated funds for a variety of small-scale social and economic activities that complement rural cluster activities.
Possible Adjustments to Plans: Three factors could significantly influence these plans. One is the government's commitment to real and immediate structural reform in ways that decrease public debt, increase government efficiency, stimulate growth, and send positive signals to the investment community. A second is the region's commitment to peace, stability, and security, especially in South Lebanon and the West Bekaa. The fact that Lebanon has not yet secured or fully calmed its borders is already dampening the impact that USAID's Rural Community Development Cluster program could have in the south, particularly in the former security zone. The third is the degree to which the World Bank, the UNDP, and the EU succeed in negotiating assistance frameworks with the GOL that would channel approximately $60 million of grant and loan resources to NGOs for rural community development activities, modeled on USAID's successful village cluster program. Putting these frameworks in place would broaden collaboration, program impact, and public-private partnerships.
Other Donor Programs: Virtually all of the major donors are involved in reconstruction and economic recovery, with the World Bank, the EU, and the Islamic Development Bank having the largest multilateral programs. Italy, Saudi Arabia, and France lead bilateral programs in resources, though most support is in trade finance in the form of loans. Loans generally 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, mainly through government agencies. USAID is engaged in formal and informal cooperation with these donors and international NGOs, and is jointly funding activities where feasible. A donor coordination committee and several subcommittees meet regularly. There are new working groups addressing rural and municipal development, demining, and the effects of the Israeli withdrawal from South Lebanon. Donor funding levels for FY 2001 are for the most part still under discussion.
Principal Contractors, Grantees, or Agencies: USAID implements activities through U.S. and local organizations. The Rural Community Development Clusters activity is implemented by five U.S. NGOs: Mercy Corps International; Young Men's Christian Association; Catholic Near East Welfare Agency; Cooperative Housing Foundation (CHF); and Creative Associates International, Inc. The microfinance program is implemented by Save The Children/Majmoua, CHF, and the Makhzoumi Foundation. The economic policy reform activity is implemented by PwC, Stanford Research Institute, and Lebanese American University (LAU); the MidClear activity by PwC, Metametrics, and Baton Rouge International; the WTO activity by PwC and The Services Group; and the dairy and scientific research activities by AUB and LAU, respectively.
FY 2002 Performance Table
Lebanon: 268-001
Performance Measures:
Indicator FY97 (Actual) FY98 (Actual) FY99 (Actual) FY00 (Actual) FY00 (Plan) FY01 (Plan) FY02 (Plan) Indicator 1: Number of informal sector loans delivered - total transactions NA 9,871 13,154 22101 17,300 33798 45162 Indicator 2: Families accessing new and/or improved social infrastructure NA 27,866 28387 44391 25365 24470 16078 Indicator 3: Incremental number of hectares irrigated; cultivated; improved; or accessed NA 7838 6625 4533 5735 5520 4537 Indicator 4: Number of informal sector loans delivered - loans out NA 3,963 2,709 5880 7800 11850 16692 Indicator 5: Number of informal sector loans delivered - loans out NA 3,963 2,709 5880 7800 11850 16692 Indicator 6: Milk produced from USDA cows NA 8,190,000 17,173,520 19940900 21,621,000 28167000 33657000 Indicator 7: Incremental number of hectares irrigated; cultivated; improved; or accessed NA 7838 6625 4533 5735 5520 4537 Indicator 8: Families accessing new and/or improved social infrastructure NA 27,866 28387 44391 25365 24470 16078 Indicator 9: Number of informal sector loans delivered - total transactions NA 9,871 13,154 22811 17,300 33798 45162 Indicator 10: Milk produced from USDA cows NA 8,190,000 17,173,520 19940900 21,621,000 28167000 33657000 Indicator Information:
Indicator Level (S) or (IR) Unit of Measure Source Indicator Description Indicator 1: IR Number of loans provided to low income entrepreneurs. NGOs and banks Indicator measures the total number of loans issued (total transactions). Indicator 2: IR Number of beneficiary families who are using new schools and health centers or consuming piped clean water to their houses. NGO's shared reporting system Indicator reflects the results of activities affecting the social environment in rural villages: construction or rehabilitation of health/community centers, potable water systems & sewage networks, protected and cleaner roads ... For the purpose of giving a fair picture of the progress of work and performance, the number of beneficiary families has been inflated. In some cases, it does exceed the number of inhabitants in the village. Benefits may accrue on the same family more than once. Thus, families benefiting twice or more from different activities, are counted twice or more. Data is based on the cumulative number of families affected by the diverse activities under social infrastructure. However, when mission reports on the number of families revitalized, under indicator 1.1, the result will reflect the number of families which is equal to the number of inhabitants. Indicator 3: IR Hectares NGO's shared reporting system Indicator reflects the results of a set of activities aimed at improving production in hectares of land under cultivation, or accessing new lands for cultivation through installation or rehabilitation of irrigation networks, opening/improving agricultural roads, and building terraces. Indicator 4: IR Number of loans provided to low income entrepreneurs. NGOs and banks Indicator measures the total number of beneficiaries (active clients) at the end of the reporting period (loans outstanding). Indicator 5: IR Number of loans provided to low income entrepreneurs. NGOs and banks Indicator measures the total number of beneficiaries (active clients) at the end of the reporting period (loans outstanding). Indicator 6: IR Total volume of milk per year (liters) Ministry of agriculture records & reports of project coordinator. Average production of USDA cows is estimated at 20 liters of milk per day. Calendar year for cows production is estimated at 350 days. Indicator reflects the production of 3269 cows and the incremental production of 5,000 cows over 2000 - 2003. Indicator 7: IR Hectares NGO's shared reporting system Indicator reflects the results of a set of activities aimed at improving production in hectares of land under cultivation, or accessing new lands for cultivation through installation or rehabilitation of irrigation networks, opening/improving agricultural roads, and building terraces. Indicator 8: IR Number of beneficiary families who are using new schools and health centers or consuming piped clean water to their houses. NGO's shared reporting system Indicator reflects the results of activities affecting the social environment in rural villages: construction or rehabilitation of health/community centers, potable water systems & sewage networks, protected and cleaner roads ... For the purpose of giving a fair picture of the progress of work and performance, the number of beneficiary families has been inflated. In some cases, it does exceed the number of inhabitants in the village. Benefits may accrue on the same family more than once. Thus, families benefiting twice or more from different activities, are counted twice or more. Data is based on the cumulative number of families affected by the diverse activities under social infrastructure. However, when mission reports on the number of families revitalized, under indicator 1.1, the result will reflect the number of families which is equal to the number of inhabitants. Indicator 9: IR Number of loans provided to low income entrepreneurs. NGOs and banks Indicator measures the total number of loans issued (total transactions). Indicator 10: IR Total volume of milk per year (liters) Ministry of agriculture records & reports of project coordinator. Average production of USDA cows is estimated at 20 liters of milk per day. Calendar year for cows production is estimated at 350 days. Indicator reflects the production of 3269 cows and the incremental production of 5,000 cows over 2000 - 2003. U.S. Financing
(In thousands of dollars)
Obligations Expenditures Unliquidated Through September 30, 1999 500 DA 0 DA 500 DA 0 CSD 0 CSD 0 CSD 3,676 ESF 1,269 ESF 2,407 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Fiscal Year 2000 DA 0 DA 0 CSD 0 CSD 0 ESF 2,407 ESF 0 SEED 0 SEED 0 FSA 0 FSA 0 DFA 0 DFA Through September 30, 2000 500 DA 0 DA 500 DA 0 CSD 0 CSD 0 CSD 3,676 ESF 3,676 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Prior Year Unobligated Funds 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Planned Fiscal Year 2001 NOA 0 DA 0 CSD 6,478 ESF 0 SEED 0 FSA 0 DFA Total Planned Fiscal Year 2001 0 DA 0 CSD 6,478 ESF 0 SEED 0 FSA 0 DFA Future Obligations Est. Total Cost Proposed Fiscal Year 2002 NOA 0 DA 0 DA 500 DA 0 CSD 0 CSD 0 CSD 5,000 ESF 6,000 ESF 21,154 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA
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Last Updated on: May 29, 2002 |
