SDG 1: No Poverty
LAU is making significant strides toward achieving SDG 1 (No Poverty) through a comprehensive approach that addresses the multifaceted nature of poverty, including access to basic needs, social well-being, and equal opportunities. By leveraging quality education and civic engagement, LAU actively contributes to poverty reduction and promotes inclusive prosperity.
Key initiatives include:
Financial Accessibility: LAU demonstrates its dedication to breaking financial barriers through diverse financial aid programs.
Emergency Financial Aid Fund: Established to support students during crises such as Lebanon’s economic challenges, the COVID-19 pandemic, and the Beirut explosion, this fund ensures continued access to education during times of hardship.
Scholarships for Financial Need: Efforts to raise funds for 250 partial scholarships underscore LAU’s commitment to supporting financially disadvantaged students in accessing quality education.
Empowerment Beyond Financial Aid: Programs like Outreach, Leadership & Empowerment (OLE) and Community Service & Engagement (CSE) equip students with life skills, foster leadership, and encourage active community involvement, contributing to personal and societal growth.
Through these initiatives, LAU aligns its mission with SDG 1, tackling poverty and enhancing well-being across communities.
Additionally, LAU provides significant assistance to the local community in supporting the start-up of financially and socially sustainable businesses through relevant education, mentorship programs, training workshops, and access to university facilities.
The Fouad Makhzoumi Innovation Center (FMIC) is an all-inclusive incubation hub that empowers stakeholders to transform ideas into sustainable ventures. FMIC supports entrepreneurs at every stage of development, from raising awareness and defining target markets to securing investor meetings and scaling businesses. Its dynamic programs connect participants with cross-industry expertise to address evolving market demands effectively.
The SPARK Program, a university-based startup accelerator, extends tailored support to students, faculty, researchers, staff, and alumni. It offers mentorship, training workshops, investment opportunities up to $10,000, and access to a robust community of mentors and clients. This comprehensive support helps entrepreneurs validate solutions, adopt customer-centric approaches, and create scalable, impactful businesses.
The university also demonstrates its commitment to social innovation through initiatives like the MEPI-TLP-funded “Towards the End of Period Poverty” project. In collaboration with the Industrial Hub at LAU, a multidisciplinary student team developed a machine to produce affordable sanitary pads. The Arab Institute for Women (AiW) contributed to this effort by hosting awareness sessions, aiding material production, and organizing a panel discussion, showcasing how innovation can address critical social issues.
Further, the Academy of Continuing Education (ACE) provides specialized certifications and diplomas, such as the Professional Real Estate Brokerage program in partnership with the Real Estate Syndicate of Lebanon (REAL). This program equips participants with skills in real estate laws, marketing, property management, and advanced technologies like AI and AR/VR, enabling them to create sustainable businesses in challenging economic conditions.
Additionally, the university’s Outreach & Civic Engagement (OCE) department fosters entrepreneurial and leadership skills through programs like the Tomorrow’s Leaders Scholarship Program and the University Scholarship Program (USP). These initiatives incorporate Individual Development Plans (IDPs) and Community Service Projects (CSPs) that teach essential skills such as project management, budgeting, and team-building, often leading to impactful community ventures.
The Outreach, Leadership & Empowerment (OLE) program further supports entrepreneurship by offering workshops, mentorship, and skills training. Participants gain access to local and international networks, enhancing their personal and professional growth while contributing to sustainable business objectives.
Through these initiatives, the university actively empowers individuals and communities, creating businesses that are both financially viable and socially impactful.
Need-Based Financial Aid
At LAU, we believe that all eligible students deserve an excellent education, regardless of financial limitations. LAU allocated a generous budget, possibly the highest in the region, for financial aid and scholarships for the upcoming academic year. LAU is committed to helping you fund your education regardless of your nationality, race, gender, religion or ethnicity.
We encourage you to apply for financial aid as early as possible.
Financial Aid is a package composed of the following elements:
LAU Grants
LAU provides the following grants:
LAU Grants: Awarded to students showing an element of need in accordance with specific need categories.
Hardship Grants: Awarded to students with extreme need. The grant may cover up to 100% of the students’ tuition.
Triplets Grant: This is an additional percentage that may be given to triplets demonstrating financial need and enrolled simultaneously at LAU.
Program Grants: Awarded to students majoring in programs requiring special promotional support in line with university enrollment goals.
Special Grants: These grants are awarded to selected students according to special agreements approved and signed by the LAU President and external donors or organizations. Applications, if required, are to be filled in the initial stage only.
Donors’ Grants
These grants are created through the generous donations of LAU benefactors.
- LIFE Annual Scholarship:
- Scholarship amount: To be determined by the donor
- Eligibility: Open to Lebanese students with high academic standing demonstrating financial need and enrolled in one of the following majors: Business (excluding marketing), Economics, Engineering, Computer Science, Bioinformatics, or Mathematics
- Selection process: recipients will be selected by the donor.
- Duration of grant: renewed until graduation if eligibility is maintained
- Application: Apply for this grant through LIFE
- Tomooh/PepsiCo Scholarship
- Scholarship Amount: To be determined by donor
- Eligibility: Students demonstrating financial need. Open for all majors
- Selection process: recipients will be selected by donor
- Duration of grant: renewed upon the discretion of the donor
- Application: Apply for the Tomooh/PepsiCo Scholarship
- Deadline: Passed
- The Alexis & Anne-Marie Habib Scholarship
- Scholarship Amount: To be determined by donor
- Eligibility: Open to Lebanese students with high academic standing demonstrating financial need. Open for all majors
- Selection process: recipients will be selected by donor
- Duration of grant: renewed upon the discretion of the donor
- Application: Apply to Habib Foundation Scholarship
- The Centre of Lebanese Studies Scholarship
- Scholarship Amount: Full or partial coverage as determined by donor
- Eligibility: Open to students normally living in Lebanon with high academic standing demonstrating financial need. Only for Social Science & Humanities Majors
- Academic Level: Undergraduate students in their final year or accepted to a Master’s program at LAU
- Selection process: recipients will be selected by donor
- Duration of grant: 1 year
- Application: Apply for the Center of Lebanese Studies Scholarship
- KANIA COLLECTIVE Annual Scholarship
- Scholarship amount: To be determined by donor
- Eligibility: Open to Lebanese students who have completed at least 66% of their program demonstrating financial need to complete their studies.
- Selection process: recipients will be selected by the donor.
- Duration of grant: Until graduation if eligibility is maintained.
- Application: Apply for this grant through KANIA COLLECTIVE
Educational Loans
LAU is the only educational institution in Lebanon to offer educational loans as an additional financial support for its students.
The educational loan helps plan the financing of up to 10% of tuition fees. It carries zero interest while the student is registered at LAU, and a minimal interest rate (usually half the market rate) after he/she graduates, with a grace period of 9 years.
The loan does not replace financial aid; it is in addition to the financial aid package that students receive.
- Current students can find out more about educational loans on the portal.
- New students can find out more about the educational loan as part of their financial aid application.
US Federal Aid
US Federal Aid: are fixed-rate student loans from the US Department of Education for undergraduate and graduate students attending university at least half-time. Subsidized, Unsubsidized, and PLUS loans can be granted to students from the United States of America who choose to study at LAU. View the details of the US Federal Aid.
Emergency Financial Aid Fund
First there was a devastating political and economic crisis in Lebanon. Students rose to the occasion by demonstrating their exceptional civic duty and commitment to bettering the country, participating in peaceful demonstrations.
Next, there was a global COVID-19 pandemic. Students quickly adapted, switching to online learning and continuing their much-needed education – their only hope for a solid future in this uncertain and unpredictable world.
Then – when we thought it could not get any worse – a devastating explosion rocked our capital, taking the lives of 200+ people, and injuring around 6,500 others. It has also left hundreds of thousands homeless. Students mobilized, setting up aid tents in the areas most affected, and volunteered to help those on the ground.
While our Lebanese American University (LAU) students make us proud by proving their immense resilience and perseverance in times of tremendous difficulty, we know the reality is that they are hurting and are in need of help.
Students’ parents have lost their homes, jobs, been laid off, or found themselves grappling with a salary that no longer meets their most basic needs as a result of a collapsing national currency. In fact, more than 70 percent of our 8,500 students now have demonstrated new financial need. Many have even considered dropping out of LAU.
Losing a generation of youth isn’t an option, nor will LAU fall short on its motto of not yielding. Keeping LAU students enrolled is of utmost importance to the institution, Lebanon, and the world if we want to see any prosperity and peace in the future.
The graph below highlights the steep decline in the tuition-paying ability of families in recent years. This does not reflect today’s situation among students, which is much worse.
As a result, the institution went to extraordinary measures to strip its operating budget, dip into its endowment, defer capital projects, implement a hiring freeze, halt salary increases, and launch an Emergency Financial Aid Fund. In the academic year 2020–2021, LAU provided more than $72 million in financial aid and scholarships to support its students. The need for the current academic year is higher.
LAU has stretched itself to its absolute limit. Yet, with a new academic year right around the corner, and growing need among our students, we cannot give up on our youth. We need your support to continue to provide students with crucial financial aid so they can enjoy the education they dream of and deserve.
Be our students’ and our nation’s hero. Make a gift now.
What Our Goal Represents
With so much at stake, we aim to raise funds for 250 partial scholarships. Each partial scholarship represents $10,000 — covering, on average, half of a student’s annual tuition. This vital support would go to those most deserving, with demonstrated financial need and who are at risk of dropping out of LAU, even despite previously received help.
There are hundreds of LAU students with their education, and future, at risk. Making a gift of any amount will help us give these students a chance. Whether it’s a donation of $10 (LL 15,000) or $100 (LL 150,000), we will put it to use towards our scholarship goal. Your donation, whatever its size, will make a major difference in our students’ lives.
Outreach, Leadership & Empowerment (OLE)
The Outreach, Leadership & Empowerment (OLE) at LAU aims at fostering holistic student empowerment. Through specific leadership and outreach programs, OLE aims to equip students with essential skills, promoting resilience and inclusive leadership. It fosters a diverse and inclusive campus environment and provides opportunities for personal and professional growth. It encourages students to broaden their horizons both within and outside Lebanon through leadership training, skills development, and volunteering opportunities.
OLE prepares students for their future roles as global citizens and ethical leaders. Its main objective is to have students equipped with needed skills and tools to thrive both personally and professionally.
How will OLE transform my experience?
- You will be exposed to like-minded people in Lebanon and beyond.
- You will develop essential soft skills such as leadership, communication, conflict-resolution, team-work and resilience.
- You will grow your life-knowledge beyond academics, through volunteerism, local and international conferences, as well as seminars and training.
- You will benefit from OLE’s 10+ years of experience in offering unique programs and opportunities that will match your interests and challenge your give
Community Service & Engagement (CSE)
The Community Service & Engagement (CSE) at LAU aims to provide LAU students and student recipients of USAID scholarship grants with the tools, opportunities, and guidance needed to not only excel academically but also become active, compassionate, and socially responsible leaders within their communities and the world at large.
CSE serves as the driving force behind fostering a culture of community engagement throughout the LAU community. We provide innovative and immersive programming that encourages LAU students to explore the diverse landscapes of their nation while contributing to meaningful causes. This experiential learning is not just an addendum; it’s a vital facet of the LAU academic journey.
Join us in shaping compassionate pioneers dedicated to making a profound impact in their communities. Discover how CSE at LAU transforms students into engaged citizens, equipping them with the skills and empathy needed to build a better tomorrow.
How will CSE transform my experience?
- Aptitude Development: Participating in CSE programs allows you to hone your core competencies through practical experiences, workshops, and interactions with mentors, empowering you to become a more effective and influential changemaker.
- Community Impact: CSE offers chances to engage in community service and public service initiatives, enabling you to make a positive impact on society and develop a sense of social responsibility that goes beyond the classroom.
- Personal Growth: Beyond academic excellence, CSE promotes personal growth by encouraging self-discovery, resilience, and adaptability, preparing you to face challenges and seize opportunities with confidence.
ACE Graduates a New Batch of Real Estate Professionals
Life-long learners from various age groups, education, and professional backgrounds advanced their legal, business, and marketing skills in real estate brokerage.
In the midst of the country’s economic crisis, the real estate sector stands as a reliable refuge for depositors seeking to protect their savings. This sector’s enduring strength is attributed not solely to the collaborative dedication of its professionals but also to the high-caliber skills and expertise they employ to facilitate transactions and preserve investments.
In line with imparting relevant and up-to-date knowledge and skills to the community, the Academy of Continuing Education (ACE) at LAU, in partnership with the Real Estate Syndicate of Lebanon (REAL), celebrated the graduation of its fourth cohort from the Professional Real Estate Brokerage program in a ceremony at Gulbenkian Theater, Beirut campus, on October 17.
Choosing LAU as their destination for personal and professional growth, 35 life-long learners from various age groups, education, and professional backgrounds advanced their legal, business, and marketing skills in real estate brokerage.
LAU President Michel E. Mawad commended the graduates’ decision to acquire a specialized certificate instead of plunging into the job market. “Your joining this sector at such a critical juncture will undoubtedly have its positive effect and contribute to its regaining its known level of vitality,” he said.
During the event, ACE Director George Obeid seized the opportunity to unveil an extensive real estate brokerage diploma program as an extension of the existing certificate, developed in partnership with REAL and under the sponsorship of the Minister of Economy and Trade Amin Salam.
The diploma will cover 135 effective teaching hours and will encompass the latest marketing techniques, including artificial intelligence (AI) and artificial and virtual reality (AR and VR), in addition to a comprehensive coverage of real estate building and construction laws, economics, valuation, and property management.
Students and brokers have the flexibility to choose between the certificate or diploma programs to match their individual needs and scheduling preferences, noting that membership in REAL is exclusively available to brokers who successfully complete the certificate program.
As a fundamental mission of ACE, Obeid emphasized the significance of ongoing education and “investment in education as key to the sustainable development of the economy.”
The program will be the first of its kind in the Middle East, and its importance, according to Walid Moussa, president of the International Real Estate Federation and of REAL, lies in the “need to improve real estate laws, regulate real estate professions, and protect consumers.” The certificate is intended for all people who want to work in the real estate sector in Lebanon and abroad and for employees of the private and public sectors.
Minister Salam praised the joint efforts of the syndicate and LAU in regulating frameworks of the real estate industry and highlighted the pivotal role they play “in unlocking the sector’s full potential and ensuring substantial investments.”
Commenting on his experience at LAU, Charbel Kallas, a fourth cohort graduate, member of REAL, and an owner of a real estate company, said: “This program has offered me the professional development and skill enhancement I have consistently pursued.”
Graduate Seroj Serop, a NIIAR Real Estate employee with eight years of experience expressed his profound appreciation for the program.
“While I had practical experience in the field, this program provided me with valuable knowledge needed to complement my hands-on expertise,” he said.
Volunteerism, Networking, and Civic Engagement
Volunteer Teachers Program with MMKN NGO
In partnership with MMKN NGO since 2011, CSE has been instrumental in guiding LAU students to offer essential academic reinforcement to Grade 8 and 9 public school students. Our dedicated volunteers focus on scientific subjects and mathematics, working closely with schools and MMKN to ensure tailored support. Together, we continue our commitment to enhancing the educational journey of these young learners, fostering a brighter future.
Corporate Visits Series (CVS)
Corporate Visits Series (CVS) within CSE provide an enriching journey, offering the opportunity to explore a wide range of institutions and delve into their distinct work environments and civic responsibilities. You’ll gain invaluable insights into prominent companies, firms, and factories spanning various industries, offering a glimpse into potential future career cultures. This experience will also deepen your understanding of the pivotal role played by non-state actors in shaping our world. CVS serve as your gateway to a world of knowledge, service, and personal growth.
Al Makassed MOU
The Outreach & Civic Engagement Department at LAU signed an MAU with Al Makassed Philanthropic Association which consists of the below:
- 6 Reinforcement sessions for Grade 9 conducted at Omar Bin Khattab Makassed School during March 2019, tackling different subjects (Math, English, chemistry…)
- Psychometric Analysis Workshop for 43 high rank educators and administrators of Al Makassed Philanthropic Association, on Saturday April 13, 2019 at LAU Beirut Campus. The next step is to be divided into 2 groups according to their personality type, based on their personality type:
- Leading with Emotional Intelligence workshop
- Situational Team Leadership
- USP Community Service projects at Al Makassed Semipublic Schools during AY 2019/2020
- “Plant a Smile” event at the Pediatrics Department of Al Makassed Hospital will take place on July 2, 2019
- LAU Leadership and Civic Engagement Certification
The USAID Higher Education Scholarship Program
CSE takes the helm of LAU’s transformative USAID Higher Education Scholarship Program (HES). This groundbreaking initiative opens the doors of higher education to academically gifted yet financially underprivileged students, both Lebanese and Non-Lebanese (Refugee/Displaced), hailing from diverse backgrounds. We believe in empowering dreams and creating opportunities. Discover more about our mission.
Food Security Is Not an Impossibility
Lebanon-specific research and panel discussion called for meaningful interventions that can mitigate food waste generation and its repercussions.
According to a report by the United Nations Environment Programme (UNEP) and the World Resources Institute (WRI), one-third of all food produced worldwide is either wasted or lost every year, and 61 percent of this waste happens in households. In parallel, more than 800 million people suffer from hunger globally, while enough food is produced to feed two billion people.
In Lebanon, the gravity of the issue has been exacerbated by the multifaceted socioeconomic crisis and power outages, as more households struggle with food insecurity.
Well before the onset of the crisis, LAU Associate Professor of Food Science Hussein F. Hassan, LAU Associate Professor of Nutrition Lama Mattar, Professor of Food Science at the American University of Beirut (AUB) Mohamad G. Abiad, and Associate Professor of Applied Economics at AUB Ali Chalak had been actively researching and publishing at length about drivers of food waste generation and its impact on the environment, economy and food security, at both the household and hospitality levels in the country.
Most recently, they found that an estimated 1,620 tons of food are wasted by people dining out in Beirut alone every year– “an alarming rate, as Lebanon highly depends on food imports and has limited resources for increased food production to sustain food and nutrition security.”
This staggering figure also produces the equivalent of 4,110 tons of carbon dioxide and contributes to the country’s solid waste-management crisis, as food waste from restaurants alone in Beirut amounts to 0.15 percent of Lebanon’s total organic waste, yearly.
Their research findings and proposed solutions were presented at a panel discussion jointly organized by LAU and AUB on September 29, International Awareness Day for Food Loss and Waste. Titled Combatting Food Waste for Improved Food Security in Lebanon, the event brought together Director General of the Lebanese Ministry of Economy and Trade Mohamad Abou Haidar, International Specialist-Resource Efficiency and Sustainable Consumption and Production at UNEP Regional Office for West Asia Paolo Marengo, as well as Dr. Hassan and Dr. Abiad. The discussion was moderated by Dr. Mattar.
In the hospitality sector, people tended to generate more food waste when dining out, said Dr. Abiad. “For a table of four, about half a kilogram of food is wasted per meal – the equivalent of the average food wasted at home in an entire day,” he explained.
Other factors contributed to more waste generation, according to Dr. Abiad, such as the types of cuisine and service. “At restaurants that serve mezze, where people order and share several dishes, the average food wasted is 34 kilograms per day, and that rate goes further up when it comes to open buffets,” he said.
On that score, Dr. Abou Haidar spoke about a draft law that was successfully passed in the Lebanese parliament in June 2020, which offers incentives to the hospitality sector in exchange for adopting measures that limit food waste, such as donating the surplus to food banks. The law has yet to be implemented.
Until then, combatting food waste remains an individual pursuit, starting at the level of households, which account for 61 percent of the total food wasted in Lebanon, per a UNEP report, as Dr. Hassan pointed out. In comparison, 26 percent and 13 percent of food waste are generated from the hospitality sector and supermarkets, respectively.
Apart from cultural drivers, such as generosity and topping up dishes when serving them at home, Dr. Hassan named two additional factors that have recently contributed to generating more food waste: the power and fuel crises, which have resulted in food preservation and transportation challenges.
On the household level, other variables, such as employment, education level, number of members in the household, and income directly influence the food waste volume, according to another study done by the LAU-AUB team. “Rural households in Lebanon, where food is typically shared with relatives and neighbors, wasted less food than their urban counterparts,” said Dr. Hassan, adding that the level of religiosity and guilt feelings about wasting food also seemed to be driving factors.
Ultimately, the panelists agreed that the best approach to combat food waste is by spreading awareness of its economic, environmental and social impact to influence behavioral change. In this regard, Marengo spoke about the UNEP’s Recipe for Change Campaign aimed at maximizing the visibility of the rampant global food waste problem by engaging leading chefs from the region to convey the messages to a wide audience and specifically the youth.
A nationwide competition will also be organized in 2023 in collaboration between LAU and the Ministry of Economy and Trade. It will call on university students to create and produce short awareness videos on combatting food waste.
In his closing remarks, Dr. Hassan described Lebanon’s current crisis as “a golden opportunity for us to address food waste and to change our attitudes and behaviors.” He gave practical tips such as logging food waste, meal planning, following recipes accurately, avoiding impulsive buying or shopping for food when hungry, checking for expiry and best-before dates, and sharing and donating surplus food.
The Lebanese Government’s Financial Recovery Plan Explained
LAU hosts Deputy Prime Minister Saade Chami for a timely interactive discussion on the economic recovery program that aims to resolve, rather than manage, Lebanon’s financial crisis.
In an attempt to shed some light on Lebanon’s ongoing negotiations with the International Monetary Fund (IMF) to tackle the country’s financial and socioeconomic meltdown, LAU’s Institute for Social Justice and Conflict Resolution (ISJCR), in partnership with LIFE Lebanon and the Middle East Institute (MEI), hosted an interactive fireside chat with the Lebanese Deputy Prime Minister Saade Chami who is leading the Lebanese negotiating team.
The two-hour event, held on July 13 on Beirut campus, was an opportunity for the general public to get some clarity on recent developments in the negotiations and voice their concerns. The discussion was driven by questions from online participants, interactive polls, and a Q&A that reflected public sentiment on core social, financial and economic issues.
In a candid and open conversation moderated by World Bank advisor Ronnie Hammad, Chami detailed the pending hurdles and the steps needed to resolve – rather than perpetually manage – Lebanon’s debilitating crisis.
“Every single person in this room, and following online, has been impacted one way or another by the ongoing economic meltdown,” noted Assistant Professor of Political Science and International Affairs and ISJCR Director Fadi Nicholas Nassar in his opening remarks. The discussion, he added, fell in line with the institute’s and LAU’s shared vision of “fostering a space that brings together decision makers, academics and the broader public, while encouraging meaningful—even if critical—dialogue on national policy issues.”
Since the recovery plan was never fully communicated to the public, the purpose of the event, stated Hammad, was to “have a collective understanding of the problem that we are facing, get some details about the recovery plan, and understand the implications of the plan on the vulnerable and what it may mean for us.”
Fielding questions as they were received online, Chami addressed issues that have mystified the Lebanese, from the sudden onset of the economic crisis – a crisis, which, he clarified, had actually been simmering since 2011 but was managed with financial engineering to buy time – to the measures needed for recovery, and whether there was any hope of redressing the situation with some compensation to depositors.
Ensuring macroeconomic stability, he explained in response to one question, was a prerequisite to economic stability, and should be implemented regardless of the negotiations with the IMF. This entails fighting corruption in governance, reducing poverty, unifying the Dollar-to-Lebanese Pound exchange rate, reaching fiscal sustainability to reduce debt, and conducting state-owned enterprise reforms, starting with the notorious power sector.
Here, he added, time was of the essence, as the country’s deficiency currently stood at $72 billion, having risen from an estimated $69 billion in October 2021.
On the suggestion of using state assets to pay off bank depositors, Chami clarified that “Lebanon’s assets, such as gold, should be off the table, as we cannot deprive the budget of these resources – which ultimately are shared with future generations – to compensate a few thousand depositors.” Even if we were to consider this option, the value of the state assets, as it currently stands, “would require 60 years to plug the gap in the financial system.”
Nor can we count on oil and gas revenues, he stated, as “at the moment, we do not have full clarity over the value of Lebanon’s oil and gas, and whether it even exists. It is out of the question.”
So, who should bear the brunt of the bank losses?
Chami called for “respecting the hierarchy of claims,” which starts with looking into the commercial banks’ capital. Based on the internationally acknowledged Bank Resolution Law, he said, existing shareholders and some of the depositors can take part in securing recapitalization for the banks. Ultimately, this will decide the fate of the banks – whether they will survive, merge with other banks or cease to exist.
Diplomats, bankers, business owners, risk strategists, academics and students in attendance probed Chami on the role of the government in managing the crisis, and raised a number of points such as accountability, regaining confidence in public institutions and the banks, and the likelihood of economic growth, among other topics.
Positive developments, such as moving in the direction of lifting banking secrecy, would pave the way to transparency and accountability, he explained. In this regard, a forensic audit of the Central Bank could set a precedent for auditing other governmental institutions.
To questions regarding the impact of capital controls on economic growth and the insufficiency of IMF funds to cover the shortfall, he explained that fresh money was not subject to capital controls and that the IMF deal is not meant to make up for the deficit but to inspire confidence in foreign investments.
“A deal with the IMF is key,” he contended, which is why it was developed with the collaboration of multiple stakeholders, including bankers, labor union representatives, financiers and economists.
“We are hoping that the political establishment understands the severity of the economic situation, and accepts the reforms in parliament,” added Chami, acknowledging the persistence of public mistrust in the government – “an expected result of years-long economic mismanagement and misguided policies.” That said, he was adamant that there was hope for a deal with the IMF, citing “no major objection by any of the political parties.”
“The country can be put on the right path in a matter of a few months,” he reiterated, confident that once the needed reforms are met, “we can begin to get us out of the crisis within five years.”