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Lebanon

ACTIVITY DATA SHEET

PROGRAM: Lebanon
TITLE and NUMBER: Increased Effectiveness of Selected Institutions That Support Democracy,* 268-002
STATUS: Continuing
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: $5,481,000 ESF
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: $7,000,000 ESF
INITIAL OBLIGATION: FY 1994    ESTIMATED COMPLETION DATE: FY 2004

Summary: This special objective contributes to the rehabilitation and reform of local government, the Parliament, and selected regulatory agencies so they can better interact with the central government and carry out Lebanon's development objectives. As part of this assistance, USAID is introducing and reinforcing concepts of transparency, accountability, and effectiveness of government. The beneficiaries are the selected municipalities, the Parliament, and the regulators, as well as a broad range of public servants and the citizens they serve or represent. This assistance is particularly important for municipal governments that, in 1998, were elected in the first local elections since 1963, and lacked the physical means and training to fully exercise their responsibilities. This successful model is also being expanded to municipalities in South Lebanon, some of which are still being formed and are trying to define and carry out their responsibilities after lying dormant during two decades of occupation.

In addition to these activities, USAID began a new series of activities in 1999 aimed at reducing corruption. This program encompasses a four-component initiative to empower key Lebanese stakeholders-local government, media, and civil society-in their anti-corruption efforts. The four components include an anti-corruption media campaign; investigative journalism training; municipal government assistance; and a small grants mechanism.

Key Results: Major results thus far are in the local government component, where 82 Lebanese municipalities now have modern information systems; elected council members are more aware of their powers and responsibilities toward their communities; and these members have the skills and information resources to carry them out. Local demand for this assistance is high and currently exceeds levels previewed in USAID's initial planning. The European Union (EU) and United Nations Development Program (UNDP) are proposing to partner with USAID on municipal activities-the former on providing computers and some software, and the latter on training employees. The new Parliament is giving priority to being more responsive to its constituents and a more effective partner in governing the country. One of its main goals is to pass better laws, pass them faster, and conduct responsible oversight of government budgets and operations. For municipalities and the Parliament to run efficiently, the three key regulatory boards need to modernize and simplify work procedures, define and publicize all rules for executing transactions, and ensure complete transparency. While they have made a good start at this transformation, it is not yet completed. Finally, a major anti-corruption campaign, followed by the creation of a local nongovernmental organization (NGO) with ties to Transparency International, has started to give the public a better understanding of the nature and costs of corruption. Selected journalists are now training to investigate corrupt practices and report on them objectively and accurately. Plans are also underway for local NGOs and private partners to build the kind of constructive interaction that will increase transparency and accountability between the government and its citizens.

Performance and Prospects: The new Lebanese government, which took office in November 2000, has targeted the development of Lebanon's estimated 775 municipalities and the devolution of central authority as key priorities, with legislation now under discussion. Parliamentary leaders appear intent on making legislative procedures open and transparent, and themselves accountable to constituents. There is also increasing awareness and momentum within government and the private sector that corruption must be eliminated. USAID's democracy and governance activities are well positioned to capitalize on these opportunities.

The information provided below is illustrative.

Support to Local Government: The proposed FY 2001 obligation is $4,481,000 ESF. The State University of New York (SUNY) is currently providing 82 municipalities with the training and computer and systems hardware and software necessary to build and restructure the management, human resources, and budgeting capability of local government. While other donors have supported restoration of Lebanon's devastated postwar government, many in the government of Lebanon consider that the USAID-supported activity has set a standard for quick response, sensible problem-solving, educational value for key decision-makers, and systems that can be put to work in key government functions. Proposed funding will initiate a nationwide expansion of this activity, starting with 250 additional municipalities. While emphasis will be on rural clusters, USAID will also extend its urban program from three to twenty municipalities. Activities will also link all municipalities with the central government through governors and district managers.

Support to Parliament: The proposed FY 2001 obligation is $700,000 ESF. SUNY assistance to the Lebanese Parliament will focus on enhancing its legislative oversight capabilities and promoting more open and transparent communication between parliamentarians, their constituencies, and the media. USAID is also exploring possibilities of increasing the legislature's capacity to conduct independent policy and legal analysis, particularly in areas that are highly politicized and of high priority, e.g., privatization and administrative reform.

Support to Regulatory Boards: The proposed FY 2001 obligation is $300,000 ESF. While early USAID support to Lebanon's Government Accounting Office, the Central Inspection Board, and the Civil Service Boards gave them increased legitimacy and autonomy, they still have a key, but as yet unrealized, role in streamlining municipal budgetary and administrative transactions and working with Parliament to target key areas for legal and administrative reform. USAID funding will help to continue building this capacity within those three agencies.

USAID will also implement the final year of the successful Office of Transition Initiatives anti-corruption program, with support to additional municipalities, a greater focus on the municipality of Beirut, and awareness campaigns that stimulate advocacy and debate across a range of NGO, university, private and public entities.

Possible Adjustments to Plans: The rate at and areas in which USAID will be able to expand the local government program depend not just on funding, but on the political will of the government and Parliament to make it happen. In the past, the former Ministry of Municipalities and Rural Affairs did not fully engage in or support the local government program. While this had no adverse impact either on USAID support to roughly 10% of Lebanon's municipalities or the results they achieved, expanding the program nationwide will require Lebanese government approval and involvement. Given the success of this program, the increasing demand generated at the municipal level, and current Lebanese government priorities, USAID is confident that expansion will happen in 2001. USAID also expects the EU and UNDP to engage further in both municipal and parliamentary support, which would enhance coordination and accelerate nationwide expansion. Finally, while USAID has already started activities in several municipalities in South Lebanon, pending elections in the remaining municipalities will play a role in determining when, where, and how the assistance program expands in the South.

Other Donor Programs: Democracy building in Lebanon is a field that has now attracted many donors. The World Bank and UNDP have been supporting administrative reform, but their managers and technicians often turn to the USAID program for technical advice in areas such as civil service performance evaluation, standardization of the government-wide budgeting system, and models of quick problem-solving. Part of the World Bank's $20 million loan for administrative reform will fund a study to improve the current municipal financial system. The NGO Forum (an informal association of local NGOs), jointly funded by the EU and Canada, was established in 1999. USAID assisted the NGO Forum to establish the "Forum for Parliamentary Dialogue," a center with the objective of enhancing local NGO participation in the legislative decision process. The UNDP recently signed a memorandum of understanding with the Lebanese Parliament to deal with legal issues and to provide it with technical assistance, at an estimated cost of $300,000. The EU has expressed their intention to grant the new Ministry of Administrative Development $40 million; their activities will be announced sometime in 2001.

Principal Contractors, Grantees, or Agencies: Most work to date has been performed under a cooperative agreement with the Center for Legislative Development at the State University of New York/Albany (CLD/SUNY). CLD/SUNY will continue to play a key role in this next phase, building on the excellent track record and relationships they have established, though other organizations may be involved in technical aspects of local government. There is also close coordination with the NGOs involved in the rural community development clusters under objective 268-001. Counterparts in this program are the Minister of State for Administrative Development, the Ministry of Finance, the Speaker's Office in the Parliament, and the Ministry of Interior and Municipal Affairs. The anti-corruption effort is working with Information International; Saatchi and Saatchi; the International Center for Journalists; the Lebanese American University; the Lebanese University; and several local NGOs.


* Formerly titled Increased Effectiveness of Democratic Institutions

FY 2002 Performance Table

Lebanon: 268-002

Performance Measures:

Indicator FY97 (Actual) FY98 (Actual) FY99 (Actual) FY00 (Actual) FY00 (Plan) FY01 (Plan) FY02 (Plan)
Indicator 1: Information system is operative NA 30 120 120 100 150 300
Indicator 2: Professional staff provide policy analysis for members and committees as needed NA 0 1 2 2 5 5
Indicator 3: Central / intermediate agencies disseminating information related to government NA0 1 2 2 4 10
Indicator 4: Municipalities have adopted and are using the automated budget system NA 0 1 46 50 100 150
Indicator 5: Central / intermediate agencies disseminating information related to government NA 0 1 2 2 4 10
Indicator 6: Professional staff provide policy analysis for members and committees as needed NA 0 1 2 2 5 5
Indicator 7: Municipalities have adopted and are using the automated budget system NA 0 1 46 50 100 150
Indicator 8: Information system is operative NA 30 120 120 100 150 300

Indicator Information:

Indicator Level (S) or (IR) Unit of Measure Source Indicator Description
Indicator 1: IR Number of beneficiary municipalities Procurement record; system records Indicator reflects the number of municipalities that received technical training and appropriate equipment to enhance their administrative capabilities.
Indicator 2: IR Number of studies Parliament journal, Parliament recordsIndicator reflects results of studies on budget aimed at improving the decision making process of parliamentary committees. Several recommendations are being prepared to modify laws affecting national and municipal budget.
Indicator 3: IR Number of agencies Municipalities/Agencies records; Staff survey, Procurement records; Agencies' annual report. Indicator depicts results of SUNY/CLD work with the Government Accounting Office and the Civil Service Board to coordinate budgetary improvements and to enhance the methods of administrative actions.
Indicator 4: IR Number of municipalities Municipalities' records published in official Gazette; Member survey; Staff survey. Indicator reflects results of work with 46 municipalities that have started using the Automated Budget System.
Indicator 5: IR Number of agencies Municipalities/Agencies records; Staff survey, Procurement records; Agencies' annual report. Indicator depicts results of SUNY/CLD work with the Government Accounting Office and the Civil Service Board to coordinate budgetary improvements and to enhance the methods of administrative actions.
Indicator 6: IR Number of studies Parliament journal, Parliament records Indicator reflects results of studies on budget aimed at improving the decision making process of parliamentary committees. Several recommendations are being prepared to modify laws affecting national and municipal budget.
Indicator 7: IR Number of municipalities Municipalities' records published in official Gazette; Member survey; Staff survey. Indicator reflects results of work with 46 municipalities that have started using the Automated Budget System.
Indicator 8: IR Number of beneficiary municipalities Procurement record; system records Indicator reflects the number of municipalities that received technical training and appropriate equipment to enhance their administrative capabilities.

U.S. Financing

(In thousands of dollars)

  Obligations   Expenditures   Unliquidated  
Through September 30, 1999    0 DA 0 DA 0 DA
0 CSD 0 CSD 0 CSD
2,046 ESF 1,227 ESF 819 ESF
0 SEED 0 SEED 0 SEED
0 FSA 0 FSA 0 FSA
0 DFA 0 DFA 0 DFA
Fiscal Year 2000 0 DA 0 DA  
0 CSD 0 CSD
975 ESF 286 ESF
0 SEED 0 SEED
0 FSA 0 FSA
0 DFA 0 DFA
Through September 30, 2000 0 DA 0 DA 0 DA
0 CSD 0 CSD 0 CSD
3,021 ESF 1,513 ESF 1,508 ESF
0 SEED 0 SEED 0 SEED
0 FSA 0 FSA 0 FSA
0 DFA 0 DFA 0 DFA
Prior Year Unobligated Funds 0 DA  
0 CSD
0 ESF
0 SEED
0 FSA
0 DFA
Planned Fiscal Year 2001 NOA 0 DA  
0 CSD
5,481 ESF
0 SEED
0 FSA
0 DFA
Total Planned Fiscal Year 2001 0 DA  
0 CSD
5,481 ESF
0 SEED
0 FSA
0 DFA
      Future Obligations  Est. Total Cost 
Proposed Fiscal Year 2002 NOA 0 DA 0 DA 0 DA
0 CSD 0 CSD 0 CSD
7,000 ESF 7,000 ESF 22,502 ESF
0 SEED 0 SEED 0 SEED
0 FSA 0 FSA 0 FSA
0 DFA 0 DFA 0 DFA

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Last Updated on: May 29, 2002