Municipal Convention for the Local Economic Development
Beirut, April 4, 2006

Introductory Speech of
 

State University of New York at Albany Center for Legislative Development Lebanon Project Director Mahmoud Batlouni

President of the Council of Ministers Fouad Siniora, Sponsor of the Convention on Local Economic Development, represented by His Excellency the Minister of Interior and Municipalities Dr. Ahmad Fatfat,
Your Excellencies the Ministers,
Your Excellencies the Deputies,
Representatives of the donor agencies,
Presidents of the control agencies,
Your Excellencies the governors, public directors, and administrative district managers
Representatives of the syndicates and civic societies,
Presidents of municipal unions and municipalities,
My colleagues,

We are approaching a new municipal era in terms of the achievements being made at the municipal level; a municipal era in which a relationship of partnership is created amongst local government, civil society, and citizens to deal with public affairs; a new era in which municipalities become the initiators of the process of improving the economic, social, and educational situation; a new municipal era has started indeed since municipalities have rebuilt and restructured to become modern, progressive institutions.

Municipalities, as local administrations, were able to move to advanced levels of administrative and financial performance over the past few years as a result of SUNY/CLD's assistance funded by USAID.

We are now witnessing the positive impact on Lebanese municipalities - whether large or small – in terms of both the effective management of administrative and financial procedures and in the essential capacity to utilize modern technology.

SUNY/CLD has fulfilled its promise - in the face of resistance to implementation of organized, legal, and accountable procedures - to work with the municipalities hand in hand to improve their administrative and financial capacities. This is evidenced by the work of regional team members who made more than 15,000 field visits to Lebanese municipalities last year, these visits part of the direct administrative and technical assistance provided to more than 850 municipalities.

The tremendous efforts of the municipalities have paid off.

In one year – between 2003 and 2004 - direct revenues in 663 municipalities increased 35%.

In 2004 in more than 900 municipalities total revenues reached $400 million – and this does not detail the dramatic increases in rental value revenues that have been achieved in recent years in a number of large municipalities including Jounieh, Choueifat, Zahleh, Tripoli, and Beirut.

Municipal administrative expenditures as a percentage of total expenses - including wages and other employee compensation - were less than 45% in 2004, an important indicator to the central government and donors that municipal development prerogatives should be extended given that revenues have increased and are being efficiently managed.

The increase in revenues and the efforts made by the municipalities despite limited capacities have been clearly and positively perceived by the citizens as evidenced in surveys conducted by SUNY/CLD in a number of municipalities.

Before 1998, overall citizen satisfaction with municipal work was less that 10% - by 2003 it increased to more than 40%.

In relation to the economic situation at the national and local levels, a working paper prepared by SUNY/CLD clarifies existing municipal responsibilities, challenges, and capabilities. This paper - in conjunction with ministry policy papers - will be used as the basis for future municipal workshops organized by SUNY/CLD in each governorate focused on suggesting, and later communicating to the proper authorities, improvements in laws impacting municipal work.

In addition, SUNY/CLD has prepared legal samples of municipal decisions and bylaws as a guide for municipalities and municipal unions to use in determining what is needed to establish institutions that can be responsible for the implementation of specific municipal projects.

In reality, I am very proud to take part in realizing these achievements that have made municipal administration an improved one capable of being a role model to other local administrations in the region, a role model that will as well encourage modernization in the central administration

The improvement of municipal work at the administrative, financial, and technical levels opens the door to the new era of effective municipal partnership in economic and social development with the central authority on the one hand and with the donors on the other.

Finally, allow me to thank everyone in the Ministry of Interior and Municipalities, and the governors and administrative district managers for their full cooperation. I offer a special thanks to all employees at SUNY/CLD for their hard work to achieve the objective of building an effective and transparent administration that is accountable to government agencies – and ultimately to citizens.

Mahmoud Batlouni
Beirut, April 4, 2006