PRESS RELEASES
Remarks by
Ambassador Feltman
ADIL/ALC Cooperative Agreement Signing Ceremony
Wednesday, October 6, 2004
12 October 2004
I am delighted to be here with you today to witness the signing
of a cooperative agreement between two forward-looking and dynamic
partners-Lebanon's ADIL and the Alliance Law Group from America.
Your shared goal of creating a legal and regulatory infrastructure
to promote the development of the information and communications
technology industry in Lebanon is one the United States government
supports and applauds.
I am proud to witness Mr. Issa and Mr. Blakeley as they sign this
agreement today because I know that their putting ink on paper is
not just symbolic. In fact, this agreement only formalizes the cooperation
that has been taking place since the year 2000. And, although I
am witnessing as U.S. Ambassador this signing with great pride,
I've got to tell you that the real beauty of this agreement is that
this isn't a government agreement. Rather, this cooperative agreement
strengthens the linkages between two groups of knowledgeable professionals-from
the United States and Lebanon-who have a shared goal: to see the
realization of Lebanon's potential as a dynamic player in the world
of information and communications technology.
As you all well know, connectivity is indispensable to the success
of any business venture: Access to effective communications, to
information technology and to the Internet, is the highway by which
businesses can reach their destination. Unfortunately, in Lebanon,
there are a great many potholes and bumps in the road, and the Government
of Lebanon has not risen to the challenges before it.
The cost of doing business in Lebanon-particularly in services
and the industrial sector-is among the highest in the world. Cellular
communications and wireless Internet aren't business luxuries but
rather necessary components of success in commerce and trade. Yet
in Lebanon, the costs of these technologies are prohibitively high:
$700 to install an ISDN telephone line and cellular costs at no
less than $36 per month, make it significantly more expensive to
do business in Lebanon than in neighboring countries. Telecommunications
costs in Syria, for example, are 60 percent lower than Lebanon.
Disappointingly, Lebanon was one of only a handful of countries
in the region that registered negative growth in connectivity in
2003-despite the fact that Lebanon had been a pioneer in the use
of information communications technology in the 1990s. Yet the Government
of Lebanon had failed to invest in modern and affordable infrastructure,
an important step if Lebanon hopes to position itself as a regional
business center. These obstacles-real speed bumps in Lebanon's development-have
meant that the focus of growth in ICT has shifted instead to Jordan,
the United Arab Emirates and Egypt.
I know that ADIL has lobbied the Government of Lebanon, since 1998,
to adopt legislation to promote the conditions for a technology-friendly
business environment in Lebanon. Yet despite ADIL's success in raising
awareness of structural shortcomings in Lebanon's legal system,
ICT policies continue to lag. The telecom privatization and liberalization
law, passed in July 2002, has yet to be implemented. In the absence
of a telecom regulator, nothing is being done to regulate and develop
the telecommunications market-a huge waste of business potential.
And Lebanon's legislation hasn't made it into the electronic age.
Parliament has failed to adopt an electronic signature law despite
having a draft in its hands since early 2000.
Despite private sector efforts, I'm saddened to conclude, that
Lebanon's national technology strategy is not up to the challenges
the country faces. I know this is not through lack of commitment
from any of you here today. I deeply admire the work of the business
community and associations such as ADIL, who have so resolutely
worked in partnership to motivate the government to adopt and implement
such a strategy-a strategy from which all sectors of Lebanese society
will reap benefit.
The United States stands ready to help. A USAID-funded survey-the
first comprehensive survey of the industry in Lebanon-confirmed
the emergence of the ICT industry as a significant, vibrant and
productive industry sector. More importantly, the report also highlighted
where attention is needed-factors I mentioned to you already today.
Another USAID initiative aims at bridging the digital divide in
rural Lebanon. To this end, USAID has established a number of PiPOP
centers. PCA Internet Points of Presence are Internet centers located
in rural areas. In partnership with SRI International and the Professional
Computer Association (PCA), USAID has established 14 centers in
different geographical locations across Lebanon, including Magdouche,
Moukhtara, Baalbeck, Niha, Jezzine and Hasbaya.
I'm also very proud of our Smart Bus project: USAID partners Mercy
Corps and Microsoft have teamed up to offer computer-training sessions
inside a mobile electronic library, the Smart Bus. The bus-in essence
a mobile computer center-tours villages throughout Lebanon. With
state-of-the-art computers, servers, training equipment and Internet
connectivity, the bus serves to introduce the rural population to
the benefits of the information age, providing access to the Internet
as well as training sessions on basic computer applications.
With the Smart Bus moving down the information highway, all of
us need to think about how we are going to ensure Lebanon gets into
the right lane to arrive at economic and business success. Working
together we need to ensure that the Government of Lebanon flattens
out the speed bumps of red tape and corruption and fills in the
potholes of an ineffectual judicial system. Easy access onramps,
rural byways and good signage will help, too. And you gotta have
the highway patrol-the laws and enforcement of international property
protection.
The signing today of the cooperative agreement between ADIL and
the Alliance Law Group is a testament to the commitment by many
in the private sector to helping Lebanon arrive at its destination.
Now government leadership is needed. With new political will and
your leadership, there should be no barriers to Lebanon's success.
The U.S. is rooting for you enthusiastically. Congratulations on
your cooperative agreement.
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