UNIDO+-+LEBANON

Name: Ian Wiles Country: Lebanon Committee: UNIDO High School: Arundel Date: 1/30/2014

Topic #1: Incorporating Clean Energy in the Process of Industrialization

UNIDO (The United Nations Industrial Development Organization) is a UN organ that focuses on the discussion of industry-related issues mostly within less-developed countries. This topic, as it relates to UNIDO, is about how a country can improve its economic status through industrialization while at the same time keep the quality of the environment in mind. Lebanon is a country with a struggling economy, and further economic development is essential to increase stability within its borders. The establishment of clean energy regulations would be difficult, as Lebanon suffers from high levels of corruption, red tape, and weak intellectual property rights.

The goals of UNIDO as they relate to the topic are the balancing between economic stimulation and development, and the protection of the environment through the introduction of clean energy regulations. Generally speaking, the more industrialization a country experiences, the worse its environmental factors become. Pollution, the destruction of wildlife, and water contamination are direct possibilities resulting from the emissions of factories and the expansion of businesses. However, heavy-handed environmental legislation can reduce the total economic output of a country, damaging its real GDP. For Lebanon, a country whose government collapsed in early 2011, bringing total economic growth down to 1-2% a year, this balancing act between economic improvement and environmental protection is an extremely delicate situation.

Lebanon has experienced economic issues for many years. From 1975 to 1990, Lebanon was embroiled in a bloody civil war which caused its real GDP to be cut in half. In an attempt to recover from this depression, the Lebanese government began to heavily borrow from domestic banks, resulting in a massive budgetary deficit. And, as previously stated, a governmental collapse in early 2011 caused real GDP growth to drop to 1-2% in 2011-2012. As a country facing enormous economic challenges, Lebanon will most likely disregard its environment as it attempts to rebuild itself, physically and financially.

In order to improve its economic conditions and protect the environment at the same time, the Lebanese government could offer tax incentives to businesses and corporations whose pollution emissions are below a set standard. This would increase real GDP in Lebanon, and help to restore its environment. Tax breaks would be a welcome surprise to Lebanese business owners, as most taxes are generally very high in Lebanon, likely a side-effect of corruption within the government. The only issues that may arise from this plan would most likely come from Lebanon being highly influenced by Syria, which may complicate the introduction of a change in industry regulations.

I would very much like to discuss and debate these ideas as well as others, as the balance between economic improvement and environmental protection is a constant issue in almost every country.

Name: Ian Wiles Country: Lebanon Committee: UNIDO High School: Arundel Date: 1/30/2014

Topic #2: Reevaluating the Washington Consensus: Guidelines for the Role of the Public and Private Sectors in Development

Boiled down to the basics, this topic is about Conservatism versus Liberalism in terms of what is most effective for an economy to thrive. Both systems have met with success in countries around the world, but what system will be most beneficial when applied to Lebanon?

Unregulated Free-markets (Conservatism) involve the encouragement of competition and the discouragement of regulation. An "invisible hand" guides the economy: meaning that through competition and the laws of supply and demand, a free-market will correct any flaws or issues that may arise; there's no need for excessive government involvement. From the Conservative point of view, all that a government needs to do to ensure positive economic growth is to provide infrastructure, a legal system, and property rights. Consumers will, among themselves, make for the best regulators of their own economic ways and means. Economic Liberalism involves the idea that consumers should and must be regulated and supported by their government to ensure equality and overall economic success. Consumers will, on their own, manipulate and take advantage of each other, damaging the overall health of civil society and the economy. From a Liberal point of view, government involvement is essential to the health of an economy: the poor need assistance to make ends meet, and the wealthy can afford to contribute more to society in order to provide for increased economic equality among citizens. In favor of the Liberal point of view, the best example of the dangers of an under-regulated free market is the 2008 economic crisis, the cause of which, very basically, was the greedy taking advantage of the ignorant, offering credit and loans to those who couldn't possibly afford them, and then handing off those "toxic assets" to another, unaware that this practice would eventually lead to the near-collapse of almost every major economy in the world.

Lebanon is a country whose economy is plagued by high taxes, a byzantine customs system, excessive red-tape, tariffs, and high levels of corruption. While it technically has a free-market economy and a strong laissez-faire commercial tradition, Lebanon's economy is clearly in need of reform. Lebanon's economic growth grinded to a near-halt back in 2011 when its government collapsed, bringing real GDP growth to only 1-2% a year.

In order to fix Lebanon's ailing economy and improve its free-market system, taxes should be lowered, and a committee should be formed with members from both UNIDO and the Lebanese government to form a think-tank that would be tasked with finding ways to reduce corruption, and improve legislation and customs regarding foreign investment into the Lebanese economy. While these reforms wouldn't instantly provide stimulation to Lebanon's economy, they would provide a more solid foundation for natural growth to occur.

I think that this is a great topic for discussion, and I would be eager to hear about possible solutions from the other delegates, as well as those with views that lie on the opposite end of the political spectrum.