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REPUBLIC OF LEBANON

Content

Salient facts on Lebanon

Paragraphs

  1. Historical background
  2. Domestic political situation
  3. Domestic economic situation
  4. Foreign policy
  5. Government structure
  6. Bilateral relations
  7. Pending Agreements
  8. Trade relations

Annexes

Country Comparison

Salient facts on Lebanon

Country / The Arab Republic of Lebanon
Capital / Beirut
President/Head of State / HE Mr Emile Lahoud
Primke Minister / Mr Fuad Siniora
Form of State / Parliamenatry Republic
Electoral Sytem / Direct Universal Suffrage
National Day / 22 November(1943),Independent day
Population / 3,874,050 Million (2006 est)
Literacy / 93.1% of total population
Ethnic Groups / Arabs 95%, Armenian 4% and other 1%
Religion / Muslim 59,7%(Sunni, Shia, Druze, Isma’ilite, and Alawite), Christian 39%(Greek Orthodox, Maronite Catholic, Syrian Catholic, Roman Catholic, Coptic Orthodox, Arnenian Catholic, Chadean, Assyrian and Protestant Denominations), Other 1.3%
Languages / Arabic(Official), French, English, and Armenia
GDP / %18.83 billion(2004)
GDP Growth / 0.5%(2005 est)
GDP per Capita / $6,200(2005 est)
GDP Composition / Agriculture: 12%, Industry:21%, Services: 67%(2004 est)
Labour Force / 2.6 million.In addition there is about 1 million foreign workers(2001 est)
Inflation / 2, 4%
Unemployment / 18%
External Debt / $26 billion (2005 est)
Public Debt / 182.% of GDP (2005 est)
Currency / Lebanese Pound(LBP)
Land Area / 92 300 sq km
Land Use / 95.% (2001)
Main Trading Partners / Syria 2.4%, UAE 10%, Switzerland 6,7%, Turkey 6,9%,Saudi Arabia 5,3% (2004 est)
Total Exports / $1.783 billion (2004 )
Commodities exported / Authentic, Jewellery, Inorganic Chemicals, Fruits, Tobacco, Construction Minerals, Paper, Electric Power
  1. Historical background

France created Lebanon on 1 September 1920, expanding the Ottoman province of Mount Lebanon, to include the coastal and inland areas of Tripoli, Beirut, Sidon, Tyre and the Bekaa valley. The move was taken essentially to provide the French-speaking Christians of Mount Lebanon with an economically viable state. This led to opposition from Sunni and Shia Muslims, who resented domination by the minority Christians, sowing the seeds for future conflict. Seats in parliament and government appointments were distributed according to religion, with, for example six Christian civil servants for every five Muslims. Opposition to French rule grew, an in 1943 France, weakened by the Second World War, granted Lebanon independence.

At independence, the Maronite Christian President, Bishara Al-Khoury, and the Sunni Prime Minister, Riad al-Sohl, agreed on a more formalised system of power sharing, dividing power between the various religious groups according to their numerical strength. Under the National Pact, as the unwritten agreement was known, the president was to be a Maronite Christian, the Prime Minister a Sunni Muslim and the Speaker of parliament a Shia Muslim. Representation in Parliament and the civil service was shared six to five in favour of the Christians.

Muslims however began increasingly to complain about the domination of the country by Christians, who were now thought to be a minority given differential birthrates. Tensions mounted ultimately opening the way for the start of the civil war in April 1975.

Prior to the recent conflict, Lebanon had made progress toward rebuilding its political institutions since 1991 and the end of the 15-year civil war. Under the Ta'if Accord - the blueprint for national reconciliation - the Lebanese have established a more equitable political system, particularly by giving Muslims a greater say in the political process while institutionalising sectarian divisions in the government. Since the end of the war, the Lebanese have conducted several successful elections.

  1. Domestic political situation

The current conflict in Lebanon began on 12 July 2006. The conflict has killed hundreds of people, mostly Lebanese civilians, damaged infrastructure across Lebanon, displaced more than a million Lebanese and about 300,000 Israelis. UNSC Resolution 1701, adopted on 11 August 2006 put an end to the hostilities. The ceasefire came into effect on 14 August 2006. It however remains an uncertainty whether the ceasefire will hold, given the fact that many issues which led to the eruption of the conflict remain unresolved.

It is absolutely imperative for the UN peacekeeping troops to be deployed as a matter of urgency, to ensure compliance with the cease-fire by both Hezbollah and Israel. Positive changes in Lebanon’s political atmosphere are most likely to be witnessed once issues such as the “Shebaa farms dispute, Israeli occupation and the existence of Hezbollah’s military wing”, are resolved.

  1. Domestic economic situation

The 1975-91 civil war seriously damaged Lebanon's economic infrastructure, cut national output by half, and all but ended Lebanon's position as a Middle Eastern business and banking hub. In the years since, Lebanon rebuilt much of its war-torn physical and financial infrastructure by borrowing mostly from domestic banks. In an attempt to reduce the national debt, the Lebanese Government began an austerity program, reining in Government expenditures, increasing revenue collection, and privatising state enterprises. This unfortunately failed to improve Lebanon’s economic situation. In 2004 the Lebanese Government issued Eurobonds in an effort to manage the maturing debt, and this practice has since continued. However, privatisation of state-owned enterprises had not occurred by the end of 2004, as promised during the Paris II conference. In the aftermath of the assassination of former Prime Minister Al-Hariri on 14 February 2005, Lebanon’s overall external account moved into deficit as the trade deficit increased and the country’s usually reliable capital and non-merchandise inflows slumped.

The recent conflict involving Israel and Lebanon dealt a huge blow to the Lebanese economy. At this stage Lebanon’s economic future looks bleak. It has been reported that the huge task of rebuilding Lebanon's shattered infrastructure will be discussed by 60 countries attending a donors' conference in Sweden at the end of this August 2006. Britain, the US, France, Germany, Norway, Japan and representatives from Arab nations are among those invited to the conference on August 31 in Stockholm, it emerged today. The economy’s future also largely depends on the holding of the very fragile truce between parties at conflict. The latest figures from the Lebanese government claimed reconstruction costs and losses of earnings could amount to USD10bn.

  1. Foreign policy

The foreign policy of Lebanon reflects its geographic location, the composition of its population, and its reliance on commerce and trade. Its geographic location near the centre of the Arab-Israeli dispute has prevented it from striking what, for a pluralistic society, was a very difficult balance. The successful June 2005 Parliamentary elections and the appointment of the independent Government has strengthened Lebanon’s ties with the West, particularly France and the US. The two countries had led the international pressure that was central to forcing Syria’s withdrawal from Lebanon. Tension with Israel remains a course for concern for the latter, Lebanon and the US. An issue that is likely to shape Lebanon’s foreign policy is that of the disarmament of Hizb’Allah, which Lebanon considers to be part political party and part resistance movement. The recent conflict is also likely to shape Lebanon’s foreign policy, especially its relations with the US, Syria and Iran. As a result of Israel attack on Lebanon, the latter is likely to consolidate its relations with the Arab states rather than looking to the West. The fact that the US had allegedly supplied some weapons to Israel in the course of the war may impact negatively on the relations between the US and Lebanon.

  1. Government structure

The President is the Head of State, elected by the National Assembly for a six-year term. On 3 September 2004, the National Assembly extended President Emile Lahoud’s term by three years. Under an unwritten agreement, the President must be a Maronite Christian. The Prime Minister is the Head of Government, chosen by the President after consultation with parliamentary deputies. The Government is then chosen by the Prime Minister, in consultation with the President. Ministers need not be members of the National Assembly, but are responsible to it. The Prime Minister must be a Sunni Muslim. The Parliamentary Speaker must be a Shia Muslim.

  1. Bilateral relations

South Africa enjoys cordial diplomatic relations with the Republic of Lebanon. South Africa's historic relations with Lebanon are due to a sizeable community of South Africans of Lebanese origin (30 000), the first components of which dates back more than a century. South Africa maintained a Consulate-General in Lebanon until 1974, and from then onwards, an Interest Section under the auspices of the Swiss Embassy. In 1979 the last South African official was withdrawn because of the threat posed by the civil war but the Mission continued to function with only one locally recruited staff member until the last of these went on retirement in 1982. The South African Interest Section was never officially "closed", but its functioning was only "suspended". The Lebanese Interest Section of the Swiss Embassy in South Africa continued to function uninterruptedly until full diplomatic relations were established in 1995. On 27 June 1994, Lebanon and South Africa formally re-established full diplomatic relations. Deputy Minister Aziz Pahad visited the Republic of Lebanon during November 1999 accompanied by a business delegation. Prior to the cessation of hostilities in Lebanon in August 2006, Prime Minister Siniora called on the South African representative to Syria to ask that the South African government call for an immediate ceasefire. He also requested that South Africa use its influence to garner support within the African Union. Prime Minister Siniora also sent a letter to President Thabo Mbeki requesting the same. The South African government also funded R800 000 towards a flight for humanitarian supplies donated by Gift of The Givers and the Maronite Church of South Africa. While Lebanon has an Embassy in South Africa with the position of Ambassador vacant, South Africa does not have diplomatic representation in Lebanon.

6.1Pending agreements

  • A Memorandum of Understanding between the Government of the Republic of South Africa as represented by the Department of Foreign Affairs and the Ministry of Foreign Affairs and Emigrants of the Republic of Lebanon.
  • Avoidance of Double Taxation Agreement

6.2Trade relations: South Africa-Lebanon

YEAR / IMPORTS / EXPORTS
2001 / R 631 382 / R 46 123 284
2002 / R 488 866 / R 71 518 328
2003 / R 640 628 / R 47 444 620
2004 / R 6 333 392 / R 40 013 337
2005 (Jan – May) / R 2 764 000 / R 20 848 000
2006 (Jan-May) / R 4333 035 / R 15 535 914

*Source: South African Revenue Service

Note: Main imports from Lebanon between 2001-June 2005 consisted of prepared foodstuffs, pulp, wood and paper products, textiles, precious metals and jewellery, machinery.

Main exports to Lebanon between 2001-June 2005 consisted of machinery, transport equipment, base metals, textiles, plastic products, chemical products, mineral products, prepared foodstuffs.

COUNTRY COMPARISON: SOUTH AFRICA AND LEBANON

SOUTH AFRICA / REPUBLIC OF IRAQ
President / Thabo Mvuyelwa Mbeki (1999) / Emile Lahoud (1998)
Area / 1,219,912 sq km / 10,400 sq km
Land use / 13,500 sq km irrigated (1998) / 1,200 sq km
irrigated (1998 est.)
Population / 44,344,136 (July 2005) / 3,826,018 (July 2005 est.)
Literacy / 86,4% (2003) / 87.4% (2003 est)
Ethnic groups / Black (79%), White (9.6%), Coloured (8.9%)
Indian (2.5%) (2001) / Arabs (95%), Armenian (4%), other 1%
Religion / Christian (68%), Muslim (2%), Hindu (1.5%), Jewish (1%), Traditional & animistic (27,5%) (2001) / Sunni Muslim (59.7%), Christians (39%), other 1.3%
Languages / Afrikaans, English, Ndebele, Pedi, Sotho, Swazi, Tsonga, Tswana, Venda, Xhosa & Zulu / Arabic, French, English, Armenian
GDP / $491,4 billion (2004) / $18.83 billion (2004 est.)
GDP growth / 3,5% (2005) / 4% (2004 est.)
GDP per capita / $11,100 (2004) / $5, 000 (2004 est.)
GDP composition / Agriculture: 3,6%
Industry: 31,2%
Services: 65,2% (2004) / Agriculture: 12% (2000)
Industry: 21%
Services : 67%
Pop. Below poverty line / 50% (2000) / 28% (1999 est)
Inflation / 4,5% (2004) / 2% (2004 est)
Unemployment / 26,2% (2004) / 18% (1997 est)