In its latest Lebanon Economic Monitor report, titled “Turning the Tide?”, the World Bank outlined a one-year policy action plan aimed at supporting the new government’s reform agenda.  The plan centers on three core pillars: restoring macroeconomic and financial stability, rebuilding public trust in state institutions, and investing in human capital while expanding economic opportunities.  The global institution said it drew on “two decades of policy dialogue, technical assistance, and World Bank-financed projects,” to draft a plan in line with priorities evoked in the ministerial statement. According to the World Bank, its plan could be implemented “within the government’s short tenure.”  The ministerial statement — presented on Feb. 25 — had identified four main priorities: put an end to the financial and economic deterioration and identify growth drivers, to strengthen social security, to combat waste and corruption, and to prepare a law ensuring fair parliamentary elections.  1- Macroeconomic stability: A prerequisite: “Without macroeconomic and financial stability, structural reforms cannot take root, public services cannot be restored, and economic recovery cannot be sustained,” the World Bank stressed. “This should be the government’s most urgent priority.” To ensure monetary stabilization, the plan calls for establishing a new and credible exchange rate and monetary framework. It also called upon the adoption of a public debt restructuring strategy.  On the banking sector front, it reaffirmed the need to ratify the banking sector reform law in parliament while stressing that the execution of the strategy requires “an independent audit and valuation of banks and proper implementation of the banking secrecy law.”  In line with the Financial Action Task Force (FATF)’s recommendations, the World Bank called for the amendment of Anti-Money Laundering and Combating the Financing of Terrorism (CFT) laws.  2- Restoring trust: “Governance reforms include adopting a revised public accounting law, launching civil service restructuring, and enhancing transparency through digital systems and public oversight bodies,” the report outlines. A series of measures is further proposed like the implementation of merit-based civil service reform, enhancing transparency and strengthening anti-corruption and public oversight.  It also emphasized long-needed reforms to the electricity, water, transport and telecom sectors.  3- Building human capacity: The World Bank also warned that Lebanon’s “human capital” is suffering the effects of an eroded quality of education, a healthcare system in crisis, and a fragile social safety net.  To remedy this loss, the institution proposes the establishment of temporary learning structures and school rehabilitation, upgrades to the infrastructure and capacities of public hospitals, and allocating parts of government budget to the World Bank Emergency Social Safety net project (ESSN)-AMAN program – which disburses cash transfers to 150,000 extremely poor Lebanese households.  To foster the private sector, the World Bank called for implementing a new and effective Competition Law, improving the business environment through the establishment of a Business Environment Reform Committee and enhancing investment policies.  (ICE BEIRUT)

Fonte notizia: L'Orient Today