Frem presents his economic vision for Lebanon’s revival in the presence of national personalities

The path towards recovery begins with the election of a President for the Republic, along with a comprehensive project

Lebanese MP Neemat Frem called on all officials and concerned personalities to be “aware that any delay in the country’s rescue process will result in blood on our hands and a stain of shame on our foreheads.”

Frem spoke out “because of the hardships we have endured and on behalf of parents who cannot afford to send their children to school, children who have lost the possibility of providing medical assistance to their ill parents, all those who are suffering, all the talented individuals who have migrated, and all those considering leaving the country.”

He added: "Today, we have reached a heartbreaking situation. Who would have thought that the people of Lebanon in the 21^st century, the descendants of the Arab Renaissance and the enlightened generation that witnessed the technological leap in the world, would be living in such tragic conditions?”

“The path towards recovery must begin with the election of a President for the Republic, along with a comprehensive project that will take us back to where we deserve to be,” he continued.

Frem’s words came during a conference held at the Phoenicia hotel in Beirut, for the launching of “The Economic Vision for the Revival of Lebanon.” The event was attended by a crowd of economic, syndical and academic figures, as well as media representatives.

Among the attendees were MPs Elias Bou Saab, Fouad Makhzoumi, Michel Daher, Ghada Ayoub, Imad Al-Hout, Shawky Daccache, Jamil Abboud, Jean Talouzian, Ihab Matar, Amin Sherri, Ahmad Rustom, Farid Al-Khazen, Ghassan Hasbani, Faisal Al-Sayegh, Sajih Attieh, Bilal Hashimeh, Ibrahim Moussawi, Alain Aoun, and Salim Al-Sayegh. Former Minister Fadi Abboud, the president of the Economic and Social Council, heads and members of economic bodies, the head of the General Labor Union, presidents and deans of universities, the heads of the press order and editors’ syndicate, editors-in-chief of news agencies and media outlets, and the National Media Council were also present, as well as representatives of the Chambers of Commerce and Industry and of the merchants' associations in Keserwan, Chouf, and Beirut, and several political, economic, judicial, legal, and civil society figures, intellectuals and experts.

Frem, who resorted to an unprecedented move by using a woman from the world of artificial intelligence to present the event, enumerated and summarized all the reasons that led to the collapse. He explained that it was not the free economy that caused the financial meltdown, “but the non-productive, rentier and unbalanced economy, along with the politicization and mismanagement of state administrations which resulted in yearly deficits and a massive financial gap, within the context of chaotic political performance, arbitrary decisions and rampant corruption.”

Regarding the foundations of the revival plan, Frem announced that “they entail making useful and sometimes painful decisions instead of populist ones -- in addition to committing to the fact that the true leader is the one who works for future generations, not only for the elections -- while ensuring a solid social protection to help the Lebanese put up with the temporary hardships of the comprehensive reform process. This social protection includes issuing the national health card and the individual national protection number for every citizen, merging all funds, strengthening the ration card to ensure purposeful subsidies, and fostering a strong relationship between citizens and their country to encourage compliance with financial duties towards the state.”

As for the pillars of the economic vision, the lawmaker referred to six key pillars with time-bound outcomes that are essential for revival.  “They include the Banking Secrecy law, Capital Controls, financial regulation and loss distribution, the State Asset Investment Fund, achieving financial balance in budgets, and implementing basic laws and procedures,” he declared.

Frem then proceeded to explain each of these points in detail. He emphasized that “the Banking Secrecy law aims to avert corruption and illicit enrichment, combat money laundering and tax evasion, while preserving Lebanon’s differential advantage in the banking sector.

As for the Capital Controls, they are necessary to protect the Lebanese financial system, regulate external transfers, and safeguard depositors’ rights, while the financial regulation and loss distribution ensure liquidity for depositors after deducting the value of interests they have collected over the previous years, and define financial gaps and liabilities, in addition to reconfiguring banks’ capital, merging these banks or creating a Deposit Recovery Fund with determined value.”

Regarding the State Asset Investment Fund, Frem explained that “it would be established for a thirty-year-period with rights to develop and invest in some of the state institutions and natural resources, and to create one or several companies, owned by the Deposit Recovery Fund and international investing institutions, to run the national institutions. These companies will be responsible for operating national institutions and supervising projects under a management contract from the Asset Investment Fund, and their generated profits will be distributed to depositors for the recovery of deposits, to the investors and to the state.”

“The next key point involves achieving financial balance in budgets by fostering a productive environment, attracting capital, adopting the five-year budget principle alongside annual budgets, reaching a consensus on a long-term plan for the Lebanese economy and its development - Lebanon 2030 -- specifying infrastructure projects to enhance competitiveness, and promoting the establishment of public and private industrial cities,” he added. “And the sixth and last point is to approve a set of fundamental laws and procedures, which include the independence of the judiciary and the appointment of first category civil servants in the public administrations, comprehensive administrative reforms and depoliticization of state institutions, digitalization of archives and state institutions, creating new job descriptions, activating oversight institutions, controlling sea and land borders, and finding a radical solution to the Syrian displacement crisis, as well as issuing implementation decrees, establishing regulatory bodies, and making necessary appointments to enforce pending laws.”

Frem concluded: "Can you imagine that in a few years, humans will be facing a technological innovation they created with their own hands, but that is much smarter? What will happen to the planet when, within less than five years, developed countries stop importing a workforce and prefer machines over human beings? Where will Lebanon position itself in this progress? Will we find ourselves confronting two worlds, one experiencing the long-awaited era of productivity, development and technology, and another world where people are miserable, tormented and desperate? We refuse to let our children and grandchildren look back on our generation in the future and consider it cursed for removing them from History, the present, and the horizons of the future in the world of development and technology. Our responsibility can be summarized in two options: either we revive Lebanon – and we are full of hope and ready to be at the heart of the new renaissance era -- or we condemn it to permanent demise.”