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Community Development Unit Council for Development and Reconstruction Economic and Social Fund for Development (ESFD) Project Community Development Unit Formulation of a Strategy for Social Development in Lebanon Beirut December 2005 LBN/B7-4100/IB/99/0225/S06/0803 Formulation of a Strategy for Social Development in Lebanon Council for Development and Reconstruction Economic and Social Fund for Development (ESFD) Project Table of Contents Abbreviations and Acronyms 1. Executive Summary ………………………………………………………. 1 1.1. Definition of Social Development ……………………… .… 1 1.2. Goal and targets for Social Development ………………………. 1 1.3. Status of Social Development Indicators and Strategy Outline….. 2 1.4. Poverty Mapping, Rural Periphery and Vulnerable Groups………. 3 1.5. Strategy Outline ……………………………………………………… 4 2. Definition of Social Development in Lebanon ………………………… 6 2.1. International Definitions ……………………………………………... 6 2.1.1. The World Bank Concept of Social Development …………. 6 2.1.2. The World Summit Concept of Social Development ………. 6 2.1.3. UNDP Focus on Social Development and Poverty Eradication……………………………………………………………... 7 2.1.4. The European Commission (EC) Concept of Social Development……………………………………………………… 7 2.1.5. New Development Concepts, Goals and Targets ……….. 8 2.2 Historic Context in Lebanon …………………………………………. 9 2.2.1 After Independence: The unfinished transition from a rural economy to a modern competitive economy ……………… 9 2.2.2. Social Consequences after the War ………………………. 10 2.2.3. Postwar Economic and Social Policies …………………… 11 2.3 Definition of Social Development in the Lebanese Context ……... 13 2.3.1. Extensive Traditional Definition ……………………………. 13 2.3.2. Focused and Dynamic Definition of Social Development in the Lebanese Context …………………………………….. 13 2.3.3. Balanced Development ………………………………………. 13 2.4. Summary of Policy components for Social Development……….. 14 3. Goals, Targets and Indicators of Social Development ……………… 16 3.1. Millennium Development Goals ……………………………………. 16 3.2. Human Development Goals ………………………………………… 18 3.3 The Social Development Index (SDI) ……………………………….. 19 3.4. Toward Long-Term Objectives in Social Development ………….. 20 3.4.1. Lost Development Opportunities………………….…………… 20 3.4.2.Vulnerability…………………………………………….…….....…21 3.4.3. Regional Disparities……………………..…………………... ….22 3.4.4. Long-Term Objectives for Social Development……...………..23 4. Poverty Profile and Mapping ……………………………………………… 25 4.1 The Poverty Pocket Concept ………………………………………. 25 4.2. Identification of Poverty Pockets ……………………………..….. 26 4.2.1. Building and Mapping the Expenditure Composite Index………26 4.2.2. The Delphi – Approach………………………………………….....33 4.2.3. Poverty Survey…………………………….………………………..34 LBN/B7-4100/IB/99/0225/S06/0803 i Formulation of a Strategy for Social Development in Lebanon Council for Development and Reconstruction Economic and Social Fund for Development (ESFD) Project Table of Contents (Cont’d) 4.2.4. Rural Periphery…………………………………………………………….41 4.2.5. Conclusion…………..………………………………..…………….43 4.3. Vulnerable Groups and Structures of Employment………………. 44 4.3.1. Small Business Units………………………………..….. 44 4.3.2. Fishermen ……………………………………………………… 46 4.3.3. Craftsmen …………………………………………………….… 47 4.3.4. The Disabled …………………………………………………… 48 4.3.5. Child Labor ……………………………………………………. 50 4.3.6. The Elderly …………………………………………………….. 52 4.3.7. Gender Empowerment ………………………………………. 52 4.4 Summary and Conclusion …………………………………………… 54 5. Social Development Programs and Sector Specific Analysis …….. 56 5.1. Institutional Set-Up …………………………………………………… 56 5.1.1 Public Institutions ……………………………………………… 56 5.1.2. Other Institutions ……………………………………………… 62 5.1.3. Main Social Duties and Programs …………………………. 65 5.1.4. Spending on Social Services ………………………………. 66 5.1.5. Coverage, Outreach, and Conclusion ………………………. 72 5.2. Health Sector …………………………………………………………. 75 5.2.1. Trends in Existing Services ………………………………… 75 5.2.2. Cost and Spending on Health ………………………………. 77 5.2.3. Problems and Gaps …………………………………………. 78 5.3. Education Sector ……………………………………………………… 79 5.3.1. Trends in Existing Services ………………………………… 79 5.3.2. Cost and Spending on Education ………………………….. 80 5.3.3. Problems and Gaps …………………………………………. 81 5.4. Environment ………………………………………………………….. 83 5.4.1. Water and Air Pollution ………………………………………. 83 5.4.2. Soil Pollution, Erosion, Desertification ………………………. 84 5.4.3. Ongoing Projects and Problems ……………………………. 84 5.4.4. Institutional Aspects …………………………………………… 86 5.4.5. Problems and Gaps …………………………………………. 86 5.5. Summary and Conclusion ………………………………….…….. 87 6. Strategy Formulation, Policy Recommendations and Coordination..89 6.1. Summary of Strategic Decisions ……………………………….… 89 6.1.1. Pro-poor Growth Strategy and Economic Balances……….. 89 6.1.2. Institutional and Financial Reforms ………………………... 95 6.2. Co-ordination for Social Development …………………………… 97 6.2.1. Institutional Framework ………………………………………… 97 6.2.2. Funding of Social Development ……………………………….. 99 7. Outlook………………………….………………………………..………..….100 LBN/B7-4100/IB/99/0225/S06/0803 ii Formulation of a Strategy for Social Development in Lebanon Council for Development and Reconstruction Economic and Social Fund for Development (ESFD) Project List of Annexes Annex 1: List of References Annex 2: Status of Indicators in Lebanon Annex 3: Quantitative Survey - List of Villages Surveyed - Quantitative Survey Questionnaire - Sample of a Map used in the Fieldwork Annex 4: Field Work Quantitative Indicators Annex 5: Additional Tables and Figures Annex 6: Description of Selected Projects and Programs Glossary List of Tables Table 1: Summary of Lebanon's Progress towards the MDGs……………… 17 Table 2: Quantitative Indicators Chosen to Form the SDI…………………… 19 Table 3: Social Development Index for Lebanon and Selected MENA Countries…………………………………………………………………………. 20 Table 4: Value of Component Indexes for SDI for Lebanon………………… 20 Table 5: Benchmark Indicators for Lebanon, Turkey, Cyprus and Tunisia……………………………………………………………………………. 21 Table 6: Typology of Risk and Vulnerability in Lebanon……………….…… 22 Table 7: Poverty Line by Age and Gender………………………………….… 35 Table 8: Poverty Composite Index…………………………………………... 37 Table 9: Percentage of Economic Units with less than 5 Employees per Mohafaza………………………………………………………………. 44 Table 10: Percentage of Economic Units with less than 5 Employees per Caza …………………………………………………………….……. 44 Table 11: Size of Economic Units by Surface inside each Mohafaza….……45 Table 12: Number of Economic Units by Urban Centers or Regions………. 45 Table 13: Main Activities of the Central Fund for the Displaced…………… 66 Table 14: Financial Budget Flows Related to Social Activities by Functions - 2004 Budget (million LBP)…………………………….. 68 Table 15: Financial Budget Flows Related to Social Activities by Spending Ministry and Nature of Expenses - 2004 Budget (million LBP)…. 70 Table 16: External Financing (1992-2003)……………………………………. 70 Table 17: Cases of Reported Water-Borne Diseases by Mohafaza (1995- 2000)………………………………………………………………………………. 84 Table 18: World Bank Financed Environmental Projects……………...…….. 85 LBN/B7-4100/IB/99/0225/S06/0803 iii Formulation of a Strategy for Social Development in Lebanon Council for Development and Reconstruction Economic and Social Fund for Development (ESFD) Project List of Figures Figure 1: Components of Social Policies………………………………………15 Figure 2: Public spending on Social Support and Development, Education, Hospitalization and Agriculture Support - 2003…………………… 67 Figure 3: Breakdown of External Funding Secured between 1992 and 2003 by Source of Funds (%)……………………………………………… 71 Figure 4: Breakdown of External Funding Secured between 1992 and 2003 by Sector (million US$)……………………………………………… 71 Figure 5: Sectoral Breakdown of CDR Contracts Signed in 2003 (millions US$)………………………………………………………………………….. 72 Figure 6: Level of Concern and Intervention by categories of Players and Fields of Activities…………………………………………………… 74 Figure 7: Infant & Child Mortality Rates per 1,000 according to Mohafaza 75 Figure 8: Distribution of Institutions Covering Medical Insurance…………. 77 Figure 9: Public Bodies that Spend on the Health Sector………….……… 77 Figure 10: Public Bodies that Spend on the Educational Sector………….…80 Figure 11: Problems Faced in the Health Sector…………………………... 88 Figure 12: Problems Faced in the Educational Sector…………………..… 88 Figure 13: Problems Faced in the Environment Sector………………..……. 88 Figure 14: Linkages between Macroeconomic Constraints and Low Social Achievements: Breaking the Vicious Circle………………………. 90 Figure 15: Institutional Set-Up for the Creation of Social Partnership…… 94 Figure 16: Fiscal Decentralization……………………………………………. 96 Figure 17: How to Structure Regional Investment Funds…………………… 98 LBN/B7-4100/IB/99/0225/S06/0803 iv Formulation of a Strategy for Social Development in Lebanon Council for Development and Reconstruction Economic and Social Fund for Development (ESFD) Project Abbreviations and Acronyms ACSAD Arab Center for Studies in Arid Regions AECI Agencia Española de Cooperación Internacional. AGFUND Arab Gulf Programme for United Nations Development Organizations AMEEN Access to Microfinance and Enhanced Enterprise Niches AOAD Arab Organization for Agricultural Development BDL Banque du Liban BDS Business Development Services BHWIA Baalbeck-Hermel Water and Irrigation Authority CAGR Compounded Annual Growth Rate CAS Central Administration for Statistics CBO Community Based Organization CCA Common Country Assessment CDF Comprehensive Development Framework CDP Community Development Project CDR Council for
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