Keynote Address by H.E. Prime Minister Fuad Siniora at The International Arab Banking Summit IABS 2006 ‘Euro-Arab Partnership Dialogue
Distinguished Guests,
Ladies and Gentlemen,
It gives me great pleasure to be with you today and share with this distinguished gathering some of our thoughts and preoccupations in Lebanon and our region. This meeting is extremely well-timed, as it comes at a moment of major developments in my country, and coincides with important milestones in Lebanese-EU relations.
Allow me to start by thanking His Excellency Prime Minister Romano Prodi for being with us today. My wholehearted thanks also go to my friends at the Union of Arab Banks for inviting me to speak today and for the efforts extended to put together this prestigious "International Arab Banking Summit 2006”.
As all of you are aware, the Arab World is a dynamic, ever changing and often turbulent part of the world, which harbors vast natural resources and possesses phenomenal economic potential. Clearly, in the midst of continuous change and occasional turbulence, in addition to significant needs in so many countries and regions and substantial financial resources in other regions, great opportunities arise. Such opportunities become even more significant when one considers the continuous need of investors to diversify their investment possibilities. This is especially true in light of the recent challenges confronting the world, be they in the economic, political or security areas. The only way for countries to confront these challenges is through strengthened mutual understanding and enhanced cooperation and collaboration. Our meeting here today is an affirmation of this need, and I am certain that the topics and discussions to be raised will contribute to more awareness between decision makers in both Europe and the Arab World.
Today, one of the main challenges facing policymakers in the Arab world is the need to reduce the currently high level of unemployment and create sufficient jobs to absorb their rapidly growing populations. Meeting this challenge is neither simple, nor can it be postponed. Indeed, a high concentration of unemployment among the youth can have serious social and political consequences, feeding into extremist and fanatic behavior at the expense of moderation and openness.
Faced with these challenges, policy makers in our region have no choice but to embark on broad-based reforms. It is imperative today to focus all our efforts to reform and modernize the Arab world. Structural reforms are needed to upgrade existing economic structures, to best integrate into the world economy, and to meet the challenges and opportunities arising from the current world economic situation. There is great awareness within the Arab world today of the economic benefits derived from increased openness and economic modernization. Financial, economic and trade integration will not only benefit capital-rich countries searching for promising investment opportunities in and outside the region, but also less developed countries who could widely benefit from job creation and growth generated by such investments. The intermediation needed for such investment and capital flows to take place will itself create great opportunities for the financial and banking sectors. Arab banks are particularly well-placed to play that role and benefit from it. Naturally, efficient intermediation requires that the laws, regulations, institutional environment and investment climate be more conducive and welcoming, including the development of capital, financial and labor markets. Only reform will allow the Arab world to witness a surge in economic activity befitting its size, wealth and capital.
Ladies and Gentlemen,
The major challenge before us today is to successfully implement our plans for institutional and economic reform.
The Lebanese government has made significant progress in elaborating a comprehensive socio-economic reform program.
The reform plan aims to allow the Lebanese economy to gradually rise to its potential.
To enhance the investment environment and raise the economy’s productivity and competitiveness, we are in the process of reviewing and amending laws and regulations governing economic activity.
We have also embarked on a large-scale privatization program. The program aims at removing state monopolies and attracting foreign investment, while using the privatization proceeds to ease public debt burden.
Ladies and Gentlemen,
Reducing the very high debt stock remains a major challenge. An important element in the multi-pronged approach to deal with the debt problem is containing the fiscal deficits.
Fiscal adjustment, privatization and higher growth should lead to a steady reduction in the debt/GDP ratio over the next five years.
The Government of Lebanon, therefore, is seeking the support of its friends in the international community.
Our efforts are geared today towards holding an international conference for the support of Lebanon within the next few months. We count on the support of the international community, and expect the European Union, & the Arab countries, along with other friends of Lebanon, to play an important role in the success of the planned Conference and in strongly supporting our reform efforts in general.
Ladies and Gentlemen,
In today’s world no country is an island, and policy plans, economic and otherwise, cannot be oblivious to the many effects and influences of what happens elsewhere. Our success in fully restoring our democratic institutions and building a strong economy that will meet the aspirations of the people, especially the young, can provide a powerful example for a region that is in dire need of hope and inspiring examples.
It is my conviction that the international community, and the European Union in particular, can play a positive role in our region. It is our joint responsibility to help the people of the region fulfill their aspirations, and help them achieve progress towards building more prosperous societies. Last November, we celebrated the tenth anniversary of the Barcelona process. Lebanon remains committed to its principles of economic prosperity, peace and cultural interaction for our region.
Let us work together to make the advent of lasting peace in the region a reality; a result of our shared and determined political will to build a region of dialogue and prosperity.
The Lebanese who marched through the streets of Beirut in March of 2005, carried a common message: we want change; we want to be proactive in achieving change through democratic and peaceful means. As a beacon for tolerance and moderation, Lebanon is capable of playing a key role in a mutually beneficial dialogue and partnership with Europe. We know that the only thing necessary for the triumph of extremism and despair is for good and capable men and women to do nothing. The responsibility of change lies with all of us, particularly those who hold key positions. We in Lebanon are prepared to do our part, for we believe that the opportunities are greater than the challenges ahead. We want to work together to make our neighborhood a peaceful and prosperous one, thereby making it a better place for all of us and for the future generations to come.
Traditionally, Lebanon has been considered as a bridge between east and west. I like to think of it more as a beacon for the Arab world. We want it to be a beacon ushering the victory of tolerance over prejudice, of democracy over oppression, of hope over desperation, and of prosperity over deprivation and backwardness. For Lebanon can be much more than just a small country. If our transition and reforms succeed, it could be a unique model, one that illustrates that it is possible to live united in our differences, richer and stronger because of our diversity. Lebanon can become an example to the region and to the world. We will do our best to succeed. All our efforts and expertise are channeled in that direction. And we count on your help and support to do so.
Thank you.
Tuesday June 27th, 2006
Rome, Italy
Prime Minister Fuad Siniora