McKinsey economic plan
to be submitted
New government to be presented with findings
The national economic plan being prepared by McKinsey & Company in cooperation with local experts has been completed, and the President of the Republic has been briefed of its main components.
The plan will be presented to the caretaker Prime Minister before it is submitted to the new Cabinet for approval when it is formed, said Minister of Economy and Trade Raed Khoury.
Khoury said that the study focuses on sectors with high potential for job creation such as agriculture, manufacturing, tourism, and financial services, as well as the knowledge economy and innovation.
McKinsey’s recommendations include enhancing the productivity of small farmers through the adoption of modern technology. They also include a proposal to boost export-oriented agriculture by improving quality standards and the cultivation of high value-added crops.
At the manufacturing level, the country is advised to focus on four industries – food production, pharmaceuticals, prefabricated buildings, and businesses that depend on marketing, such as perfume and cosmetic production.
According to the study, Lebanon must adopt “strategic thinking” in the tourism sector, and must boost the number of visitors from 16 selected European and Arab countries, as well as from regions with a heavy Lebanese diaspora presence, Khoury said.
The financial services sector can be improved by developing the banking sector’s digital channels. The country must be converted into a major destination for asset management and offshore banking services by targeting high net-worth customers, and specialized financial research and study centers must be created.
Other recommendations include transforming Lebanon into a major hub for research and analysis that provides high-value outsourcing services. The report also suggests converting the country into a regional center for innovation in fields such as media and content production.
Proposed short-term and urgent projects include tourism planning from A to Z, the development of two to four new crops, and the launch of new exports. These projects also involve celebrations on the centennial of founding the Lebanese State in 2020. The report also suggests creating a construction technology zone near the Syrian border to tap opportunities in reconstruction projects in Syria and Iraq, and establishing free economic zones for technology and innovation.
Reported by Shikrallah Nakhoul
Date Posted: Jul 05, 2018