BEIRUT - Traditional development aid isn’t sufficient to meet the needs of most countries, it has long been said, but now action is being taken to move beyond such aid delivery. Through the European External Investment Plan, a comprehensive program for sustainable economic development conceived two years ago, the European Union is investing in the public and private sectors throughout Africa and the MENA region, including Lebanon.

Areas of interest include transportation, renewable energy, waste management, water and health, with specific emphasis on innovative small businesses.

During a conference in Beirut, the European Union unveiled Tuesday their ambitious EIP, which is designed to boost investments and support more inclusive and sustainable development in the European Neighborhood and Africa.

“The External Investment Plan is more than just another of the European Union financing instruments. The presentation of it here in Beirut today is a very strong signal of the confidence that the EU has in the potential of this country,” EU Ambassador Christina Lassen said in her opening remarks.

“Moreover, it proves that we stand side by side with Lebanon on its path to sustainable economic growth, and finally that we support the efforts to respond to the demands of Lebanese citizens for economic opportunities and the creation of jobs,” she added.

Michael Koehler, neighborhood south director at the European Commission, also gave his views on the EU efforts.

“This brings together private money and the public sector. The underlying rational is better interaction between public and private funding,” Koehler said.

“How does it mesh with Lebanon’s requirements? It needs to be part of a toolbox for sectoral reform. The private sector is the pillar of the economy,” he said.

The EIP was proposed by EU President Jean-Claude Juncker in September 2016, and then adopted in 2017, with the goal of improving sustainable development, jobs and growth, and tackling the root causes of migration.

This includes offering technical assistance, for which 90 million euros ($111.4 million) is set aside, and encouraging a favorable investment climate. The goal by 2020 is to mobilize 44 billion euros in private and public investment for sustainable development in 16 countries in the MENA region and 52 in sub-Saharan Africa.

There is 1.5 billion euros in guarantees for the program. The Bill and Melinda Gates Foundation is among those that have pledged support.

A “one-stop shop” approach through a single online portal is meant as a user-friendly tool for people to access the program.

With the project still in its early stages, organizers said that individual country allocations have yet to be determined, so it is not yet known how much would reach Lebanon. So far, there have been 26 proposals submitted from participating countries.

Flavia Palanza, director for neighboring countries at the European Investment Bank, noted that all project proposals would be rigorously evaluated by a board of directors before any final approval.

But like many other projects with high aims, the program will have to prove itself every step of the way, in a country where endemic corruption and broken promises have long been the norm, and where emigration is often seen as the best way for one’s talent to be fairly rewarded.

Some audience members voiced skepticism over talk of mobilizing renewable energy programs in Lebanon, worried it could create unfair competition in the sector.

Others expressed similar concerns over how such a large-scale program could be equitably done in a country consistently ranked among the highest in the region for corruption.

“There’s a disconnect between great words and what’s happening on the ground,” said Maroun Chamas, CEO of the business incubator Berytech, sitting on an afternoon panel of small and medium enterprise experts. “Lebanon has been in a stalemate for the past 10 to 20 years. If serious reforms are not implemented, we will see Lebanon going backward,” he said.


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