During Lebanon's wars of the 1970's and 1980's, many of its citizens emigrated and became successful business entrepreneurs all over the world. The American Lebanese Chamber of Commerce (ALCC) now is encouraging Lebanese Americans to increase their ties with their homeland and invest in reconstruction projects.
"There is an Arab democracy in the Middle East which has a growing, thriving economy, which the American public should consider when investing overseas," said ALCC Chairman Michael Farah.
The Lebanese American community is as diverse as Lebanon itself, with Shi'ites, Maronites, Sunnis, Orthodox Christians and Druze settling in communities all over the United States, Farah said. Nevertheless, he said that all the expatriates share a highly entrepreneurial spirit and have "similar aspirations of freedom, aspirations of taking advantage of the American opportunity."
The chamber of commerce invited US Ambassador to Lebanon Vincent Battle to speak on a seven-city tour June 14-28, 2003, in Miami, Chicago, Dearborn/Detroit, Boston, New York, New Orleans, and Newport Beach, California.
The primary target audience for his trip was "second and third generation people, many of whom have an emotional and nostalgic tie to Lebanon but have never been to Lebanon at all," Battle said. "So these are Americans I am trying to reach with the aim of information, tourism, ultimately investment."
The American Lebanese Chamber of Commerce, formerly known as the Lebanese Trade and Information Office, is an all-volunteer organization that seeks to foster closer ties between Lebanon and the United States through the exchange of trade, culture, information and tourism.
Businesses that join the chamber receive quarterly updates on investment, development programs and other events happening inside Lebanon, as well as practical advice and expertise on how to invest in the country.
Farah said Battle was invited on the seven-city tour because his status as the highest ranking American stationed in Lebanon would allow him "to give a well-rounded picture of the economic environment, ... tourism, and to promote cultural exchanges." The chamber of commerce and audience members discovered to their delight that Battle was not only fluent in Arabic, but also intimately acquainted with Lebanese history.
"[I]f someone comes up and tells him their name, he'll tell them what village their family is from," remarked Farah. Charbel Wehbi, the consul-general of Lebanon in Los Angeles, described the ambassador's presence as "something really exceptional," in that he gave confidence to potential investors by informing them of how the Lebanese government is trying to facilitate foreign investment.
"When the ambassador of the United States tells them about the positive economic steps taken by the Lebanese authorities, and about the chances and the opportunities in front of them to invest in Lebanon, even at the very small amount, they really take it very seriously and they like it," said Wehbi.
Both the ALCC and Battle presented pros and cons to investment in Lebanon. Farah said the country faces a high debt of $30 billion, and its people lack confidence in the enforcement of governmental regulations, such as copyright laws, and court rulings to resolve business disputes.
But, said Farah, there has already been tremendous investment in the country's infrastructure as the country recovers from war devastation. He pointed out that, unlike some other countries in the Middle East, Americans have no restriction on trade and travel to Lebanon.
In October 2002, the ALCC arranged for 65 Americans, representing various business sectors, to visit Lebanon on a "fact-finding tour," said Farah. Battle said that for 80 percent of the participants, it was the first time they had visited Lebanon and they were "were very impressed by what they saw."
"There were some matches made in terms of business interests and so forth and [my visit] is a follow up to that and in preparation for a bigger visit next year," said Battle. Also, Farah said the chamber of commerce is now organizing a trade show for American businesses to be held in Lebanon September 1-3, 2003.
The trade show, "Made In America," will provide a venue or American and Lebanese business people to exchange ideas and find ways to capitalize on previous successes, he said. So far, 70 US companies have signed up to participate.
Consul General Wehbi said the "Made In America" exhibition is one of several activities that will provide opportunities to promote Lebanese exports to the United States. He related that some Lebanese private sector representatives would also be traveling to Las Vegas in summer 2003 "to study and to try to see what kind of market they can do here in the United States."
Private exchanges between business people and academics are an important component of the Bush administration's Middle East Partnership Initiative (MEPI). Battle said that Lebanon "has participated already in some of the activities funded by MEPI and they have been focused in the early stages on a lot of exchanges."
The ambassador described the ALCC's efforts to encourage private investment and exchanges in Lebanon as "very complementary" to MEPI, adding that one of the program's major goals is to promote of business-to-business relationships, which are critical to economic reform.
"[O]ne of the focus areas of MEPI is economic reform, and so within the context of Lebanon's efforts at economic reform and the US government's partnership with them, in some arenas of economic reform we see the work of private sector exchange as very complementary indeed," said the ambassador.
Battle added that Lebanon is moving toward World Trade Organization (WTO) accession by 2004, another goal of MEPI. He pointed out that eligibility for WTO membership requires economic reforms, such as the strengthening of the country's regulatory framework and a "more robust" privatization of public utilities. "[Q]uite frankly, the Lebanese government has to work really hard on meeting some of these," said Battle.
However, he said that Lebanon has a strong private sector tradition, which he said gives the country an attractive climate for investment. "[R]eally, the private sector in Lebanon is an engine for development and reform in Lebanon in a way that is, I think, much more strongly developed than in other countries where statist practices have been more the norm."
The ambassador said the United States government is working with Lebanese authorities on the WTO accession. He added that the Bush administration currently gives Lebanon $35 million a year, most directed towards the rehabilitation of village infrastructures that were affected or abandoned during the country's conflicts.
"There are certainly things to do, but the tradition of private sector vigor and robustness in Lebanon is a very strong basis on which to work," he concluded. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
