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Influx of Syrian labour to Lebanon fueled unemployment but lowered economic slowdown

28-1-2014

The Director of the Economic Development and Globalization Division at UN-ESCWA, Dr. Abdullah Dardari, confirmed during a media seminar that was held last week at the UN House, that the influx of Syrian labor into Lebanon has raised unemployment particularly amongst unskilled young laborers, a category which is usually the main victim of unemployment. Nevertheless, this phenomenon also triggered an increase in the average growth rate since it provided local entrepreneurs with cheap labor.  
Dardari, who was speaking during an event was convened by ESCWA to discuss “World Economic Situation and Prospects 2014”, predicted an increase in the GNP from 1.3% in 2013 to 2.4% in 2014, and from 3.2% in 2013 to 3.9% in 2014 in Jordan, stating that these figures need to be considered with caution in view of the side-effects caused by a 25% increase in residents in Lebanon and 15% in Jordan. As for the overall economic and development situation in the region, Dardari concluded that the geo-political stress related to the Syrian situation, will continue to negatively impact the neighboring countries.
Within the same vein, the Minister of Economy and Trade, Nicolas Nahhas, highlighted during the meeting the inability of Lebanon to absorb the influx of labor as Lebanon can only creates 3000 jobs a year whereas 25000 are needed in normal situations.
For her part, Sandra Sino of ESCWA highlighted in more details the negative impact of the Syrian crisis on the GDP and GDP per capita of Lebanon while exacerbating the social, educational, employment and health difficulties, and resulting in an increase in the rent levels for small apartments and in the cost of land transport which affected both exports and imports. She also pointed out to the steep decrease in the numbers of tourists, and revealed that some USD 11 billion of Syrian funds entered Lebanon, but only a mere USD 1 billion was effectively employed in the Lebanese economy.  She called on the government to put in place the appropriate economic policies to avoid disasters, raising serious alarms about the capacity of the country to absorb the increasing number of displaced and expecting unemployment to reach 24% in 2014.
Source: Al-Safir, Al-Nahar, Al-Diyar 25 January 2014

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Some industries leaning towards dismissing 30,000 of the work forces

26-08-2013

The member of the board of directors of the Industrialists Association and president of the “ Industrial Committee of the Regions in the Association” in North Lebanon, Mr. Michel Daher, noted in an interview with As Safir  newspaper that a number of industrial outfits that have been negatively affected by the events in Syria are moving towards dismissing around 30000 jobs or around 21.5% of their work forces which totals 140,000 jobs.  Daher warned of a danger that goes beyond the laying off of current workers and reiterated that the industrial sector is facing major challenges with a freeze on growth and a halt in financial investments in machineries.  This according to Daher will lead to the halting of the industrial development wheel, will also affect production quality, and will raise the level of unemployment rate thus worsening the overall economic conditions in the country.
According to the same article, Syria was actually the recipient of 97% of Lebanon’s industrial exports based on the statistics of the Chamber of Commerce, Industry and Agriculture in Zahleh and the Bekaa.  The crisis situation is now further exacerbated by the halt of land transport as a result of the events in Syria.
For his part, the Ministry of Industry, Freij Sabounjian noted that the decline in export or what is referred to as the closure of certain industries is actually due to the rigidity of some of the industrialists who are not able to adapt and shift demands to other Arab and international markets, while not dismissing the impact of the Syrian crisis. However, he pointed out that many factories and products have actually greatly benefited from the disappearance of Syrian competition thus prompting many industries to step up their production and sales especially within the food industry sector.
Source: Assafir 26 August, 2013

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Launch of the campaign to regularize Syrian businesses in the Bekaa and testimonials of Syrians suffering from oppression in Lebanon

31-07-2013

An Nahar newspaper published an article yesterday covering the launch of the campaign seeking to regularize Syrian businesses in the Bekaa.  The report included highlights of the situation of Syrian businesses as well as testimonials of Syrian holders who shared their dismay with the decision calling for the closure of their businesses and livelihoods.  The report highlights confusion with dates since the memorandum in force at the Shtoura police centre calls for an immediate closure of businesses opened by Syrians since the start of the Syrian crisis because they have entered the country as displaced while giving all other Syrian businesses until the end of August to regularize their situation.  However, and according to a number of Syrians, the implementation of the memorandum was rather chaotic and according to the way it was understood by the law enforcers.  In many cases, businesses enjoying the exact same situation were given different notices and treatments.
The report also shows that troupes pertaining to the economy directorate are strolling the streets and alleys of villages and towns in the Bekaa to document and register all Syrian businesses in a desperate attempt to list all these businesses, as many Lebanese are, according to the report, providing false information.
On a related vein, the Lebanese government has started implementing new and tougher security measures on the border crossings including Masnaa, Aboudieh, and Arida, and which entail thorough verifications of IDs of incoming Syrians, so as to limit the infiltration of terrorist groups and others who are antagonistic to the Lebanese army and security forces.  In addition, entry to Lebanon is now limited to those carrying valid IDs or passports as well as affidavits indicating whether the person is a displaced or a worker in a Lebanese enterprise.
Furthermore, was formally confirmed that the Lebanese authorities have extended the deadline for regularizing the legal situation of Syrian businesses until August 31st instead of the 15th in order to allow business holders to secure needed registrations.
Source: Al-Nahar 31 July 2013
 

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Diverging views towards Syrian business enterprises displaced to the Beqaa

30-07-2013

Outgoing Minister of Social Affairs, Wael Abou Faour stated that there is a need to curb the number of infringements caused by the “illegal economic competition” by the “377 or so non authorized economic establishments set up by Syrians in mid and west Bekaa and in Rashaya. Abou Faour’s statement came during a meeting that was held on last Monday, following a previous meeting held last week, at the Zahleh Serail which was headed by the governor of the Bekaa, Mr. Antoine Suleiman.  The latter gave Syrian small businesses an ultimatum till August 15th to regularize their situation and secure proper authorization otherwise they will risk being closed past that deadline.  The deadline seemingly was subsequently extended until the end of August after consultation with General Security and given the time needed to officially inform those concerned and allow them sufficient time to formalise their situation.  Past that date, any business that will open without proper licensing will be promptly closed with internal security providing back up when needed.

A mapping carried out by the directorate of state security indicated that there is a variety of businesses now set up by Syrians in the regions of middle and west Beqaa including restaurants. bakeries, groceries, clothes shops, street vending in addition to electronics and repairs, small industries, hair salons and other types of businesses most of which tend to be concentrated along the international road to Damascus between Shtoura and Masnaa and in all areas with a high density of Syrian displaced.

It is to be noted that the decision to regularize Syrian businesses was welcomed by heads of municipalities especially since Lebanese businesses have been complaining about the competition caused.  Municipalities also noted the responsibilities of citizens who are renting premises without duly registering the lease contracts with the municipality.

On another matter related to the influx of Syrian labor and its impact on the Lebanese economy, a report by World Vision entitled “Under Pressure” and which addresses the impact of the influx of Syrian labor, indicated that Syrian displaced people are getting into more diversified economic sector with an increase in Syrian women labor.  According to the WV report, the impact is largely felt by the poorer segments of the population either because of increases in prices, economic competition or, according to the report, to the transfer of social assistance and charitable aid (welfare, fuel, education and health) towards poor displaced Syrians.

On the other hand, Al Safir newspaper published a report on Moday, about the emerging Syrian factories in the Bekaa the majority of which, it seems, enjoy a legal status and were set up according to local rules and regulations.  In fact, many of these factory owners are baffled by the current campaigns against Syrian labor which has existed in this country for decades.  According to the same sources, all factories register their Syrian workers.  New coming Syrian workers are a minority compared to their Lebanese counterparts who handle the upper end of the work including marketing.  Holders of small businesses also maintain that their businesses are too small to cause any kind of meaningful competition.  Many noted the current paradox whereby officials in Lebanon call out for foreign investments whilst at the same time verbally attacking Syrian businesses.
Source: Al-Nahar, Al-Safir, Al-Diyar 30 July 2013

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