New York Times: Ten years after the end of the war in Lebanon, how do you assess the cohesion and solidness of the Lebanese social fabric among the different communities?

Deputy Prime Minister Issam M. Fares: as you know, Lebanon is as old as history. The name of Lebanon is mentioned 64 times in the bible and it has survived the onslaught of many empires and kingdoms. It emerged in the 20th century as a unique country comprising Christians and Muslims and with a constitution carefully balanced between various religious communities. As you know, by national agreement, the President is a Maronite Christian, the speaker of Parliament is a Shiite Muslim, and the Prime Minister is a Sunni Muslim, and the ministries and various high posts of government are distributed equally between Christians and Muslims.

The war that erupted in 1975 had three aspects to it: (i) a domestic aspect based on the resentment of many Muslims toward what they felt was Christian dominance in the state, and a feeling of insecurity and fear among Christians based on the fact that they are a small minority in a predominantly Muslim environment. (ii) a regional aspect based on the Arab Israeli conflict and its effects on Lebanon especially as a result of the presence of about half a million Palestinians in Lebanon. (iii) an international aspect based on the cold war between the US and Soviet superpowers.
 
Although the Document of National Reconciliation, that was approved by most of the political leadership of Lebanon in 1989 in the Saudi city of Taif, addressed most of the issues that formed the domestic reasons for the war, especially that the executive authority is now in the hands of the Council of Ministers as a collegial body which includes members of all communities, and although the cold war is now indeed over as a result of the collapse of the Soviet Union, the regional aspect—the Arab Israeli conflict—is still ongoing.

I believe that we have taken great strides in rebuilding national cohesion after the war, although full health will not return to Lebanon before we arrive at a global and just solution to the Arab Israeli conflict. And I can assure you that the Lebanese have learned much from the war and that they are all intent that Lebanon regain its full unity, sovereignty, independence, and freedom. Lebanon needs to compensate for its small size and small population, presenting itself its experience as a country where Christians and Muslims meet and interact as a unique model that is of great value to the region and to the world as well.

NYT: Human capital is one of Lebanon’s main assets; what measures are being implemented to stop the brain drain?

H.E. I.M.Fares: it is true that our main resource is our people, and of this we are very proud; and the Lebanese have proven to have an effective presence around the world and an ability to adapt to all societies that they emigrate to. The number of Lebanese—or individuals of Lebanese descent—outside Lebanon is three times the number of those in Lebanon. literacy is very high in Lebanon, and most Lebanese speak more than one language other than Arabic, and they are quick to integrate into their new surroundings. However, we are indeed suffering from a brain drain, as the war pushed many of our youth and intelligentsia to look for opportunities elsewhere. Our universities graduate more than the local labor market can absorb, and many countries, especially the United States, Canada, and Australia attract large numbers of people. Nevertheless, the government is doing all it can to rebuild what was destroyed by the war, to revitalize the economy, and to create job opportunities that could counteract the wave of emigration.

Lebanon is a bridge in the region and a number of important elements of its economy are based on the attractiveness of its universities, hospitals, and hotels, in addition to its historical and natural sites. However, there is no doubt that Arab-Israeli peace, if it is achieved, would be a crucial source of stability and confidence and would help Lebanon fulfill its special role in the region.


NYT: What are the key foundations of the Lebanese economic system?

H.E. I.M.Fares: Our economy is based on two pillars: banking secrecy and a free economy. We consider these two pillars to be constants. And since our government took office we have undertaken a number of measures that express and extend these twin pillars: an Open Skies policy, reform of the Customs regime, and privatization in a number of public sector areas.

NYT: How do you assess the impact of privatization on boosting economic growth?

H.E. I.M.Fares: Privatization will have a very positive effect on economic growth. It will help the state pay off a significant amount of its debt capital, thus reducing service payments, reducing the budget deficit, and allowing interest rates to come down again to levels that will encourage more lending, investment, and growth. In addition, the partially or fully privatized utilities, in the electricity, telecommunications, and water sectors, should end up being run at lower cost and better quality to the consumer and business community, which will also in itself provide a boost for the economy. And the entry into Lebanon of large foreign investors and companies through these privatizations will also create new synergies that will impact positively on Lebanon and its economic role in the region.

NYT: how do you assess the situation in the Middle East at this juncture?

H.E. I.M.Fares: the region faces one of three possibilities: (i) the continuation of the current situation of no peace-no war—a situation that does not favor the stability; (ii) a rash escalation undertaken by Israel that leads to full-scale confrontation between Israel and the Palestinians—and perhaps also between Israel and Syria and Lebanon, as well—which would only complicate the crisis and render it less amenable to solution; or (iii) a return to the negotiating table on the basis of the Madrid Conference principle of Land For Peace.

I sincerely hope that the last scenario wins out over the first two because it is time for the region to know peace after half a century of hatred, crisis, warfare, and loss. And I can also affirm that the Arabs, and especially the Palestinians, the Syrians, and the Lebanese fervently want peace, but only a global and just peace based on international legitimacy and the resolutions of the UN Security Council.

Peace will allow the Arabs to focus on the task of developing their countries and promoting progress and prosperity rather than devoting a large proportion of their resources for arms in order to regain their legitimate rights. Peace will also allow Israel to live within secure and recognized borders as stated in UN Resolution 242, and Israel is gravely mistaken if it continues to insist that security must come before peace.

NYT: How do you assess the future of Palestinian refugees in Lebanon?

H.E. I.M.Fares: The Lebanese position is clear in this regard and enjoys full consensus: Palestinians have an inalienable right to return to their homeland as mentioned in UN Resolution 194, and the Lebanese constitution expressly rejects the mass settlement of Palestinians in Lebanon. The Palestinians themselves reject any form of implantation in Lebanon or anywhere else in their forced Diaspora. Also the social and economic situation in Lebanon does not allow the permanent settlement of Palestinians in Lebanon, as the population density, currently at 550 persons per square kilometer, is already among the highest in the world. The country cannot absorb an additional number at a time when our youth are forced to emigrate to find job opportunities.

NYT: Do you believe that there is the possibility of economic integration among the Arab countries?

H.E. I.M.Fares: Of course we strongly favor this, and Lebanon was one of the first countries to call for the establishment of an Arab common market; however, until today, and because of the absence of real coordination among the Arab countries, very little has been achieved. The political worries that emanate from the Arab-Israeli conflict have overshadowed the efforts of the League of Arab States and have not allowed other issue areas to be given the priority they deserve. While the European community has been able to eradicate most boundaries among the different European countries and to introduce a common currency, the Arab countries, despite their shared culture and history, are still divided by heavy obstacles to the movement of people, capital, information, goods, and services.

NYT: How do you perceive the Lebanese presence in the United States?

H.E. I.M.Fares: The number of Lebanese and their descendants in the US is estimated at around two million, and we are happy that they are participating effectively in American life in its various facets, and some have occupied very high posts in politics, business, and the civil service. We want them to be, first and foremost, good American citizens. Also, we want them to be bridges of friendship and closeness between our two countries. We want them to be loyal and true to the United States that welcomed them and ensured a better future for them and their children, without them forgetting their Lebanese origins and the country of their forebears.

NYT: to what degree have modern technologies been integrated into Lebanon’s transport and telecommunications system?

H.E. I.M.Fares: We have taken great steps recently in completing our infrastructure of highways, roads, water networks, electricity grids, fixed phones, mobiles phones, and data transmission networks. And we have sought to reconstruct to the most contemporary technological standards. Although these infrastructure works cost us more than we could comfortably afford, given our dilapidated finances after the war and the lack of large-scale foreign funding, yet these works were necessary in order to provide for the foreign and Lebanese-émigré investors an attractive investment environment. We hope that developments in the region will allow Lebanon to regain its role as a regional service provider of the first rank.

NYT: What can you tell us about Arab and international aid?

H.E. I.M.Fares: assistance to Lebanon was well below our hopes and expectations. The Arab summit that was held in 1979 committed 2 billion dollars to Lebanon of which only one quarter has been offered so far, and the Arab Fund for Lebanon that was agreed upon after the signing of the Taif Agreement was never even established. Even the commitments of the Arab Foreign Ministers’ Meeting, that was held in Lebanon last year, have not been honored. However, a number of Arab countries have indeed offered grants and loans on a bilateral basis, and a number of international agencies and organizations have also provided help for some much needed projects.


NYT: In addition to your public responsibilities, you have founded a charitable organization, the Fares Foundation, to help the needy and promote development in Lebanon. Can you tell us a bit about its origins and activities?

H.E. I.M.Fares: I have always felt that alongside the state, leading members in the private sector also have a duty to promote human and social development. I set up the Fares Foundation during the difficult years of war in Lebanon in order to devote some of my own resources toward helping those in need and promoting development in the various regions of Lebanon, especially the region of north Lebanon which I belong to. Since the end of the war, the Foundation has redoubled its efforts to promote sustainable development and empower people to play an active and productive role in their social and economic future. The Foundation has active programs in education, public health, and rural development, as well as other fields. It has filled considerable gaps through securing education for thousands of needy students and providing much needed humanitarian aid to large communities, and providing services that the state should normally provide at times when the state was unable to do so. We hope to continue to play our part in these fields.