Lebanese discord unlikely to deter donors

Beirut: Lebanon hopes to reap billions of dollars in aid from foreign donors meeting in Paris this week, despite political rifts at home that could abort reform plans.

Prime Minister Fouad Siniora wants the "Paris 3" conference on Thursday to deliver money to rescue his debt-laden country's finances, support reforms and help Lebanon recover from last year's war between Israel and Hezbollah.

But an opposition call for a general strike tomorrow aimed at choking normal life, including the port and airport, may dramatise Lebanon's internal conflicts ahead of the conference.

Siniora will probably get substantial pledges, given the strong support he enjoys from the United States, France and Saudi Arabia - all keen to prevent Lebanon falling under the sway of Hezbollah and its regional allies, Syria and Iran. Such political motives stir the ire of Siniora's critics.

"This is a government that is evidently so intensively supported by the Western powers that it is not looked upon as a real expression of the will of the Lebanese people," former finance minister Georges Corm said.

Foreign powers should "stop kidnapping Lebanon's domestic problems and manipulating them in the confrontation between Iran and the US, and the war on terrorism", he added. Any new aid will supplement $900 million (about Dh3.3 billion) that donors pledged in August for postwar reconstruction, as well as $1.5 billion (about Dh5.5 billion) deposited with the central bank by Saudi Arabia and Kuwait during the conflict to keep the Lebanese pound stable.

Siniora has not released any aid target, but local economist Marwan Iskander cited a figure of $7 billion (about Dh25.6 billion) - $2 billion (about Dh7.34 billion) upfront as budget support, the rest tied to progress on reforms.

Such linkage might not please Hezbollah, whose leader Hassan Nasrallah says foreign assistance is welcome only if it has no strings. He has declared the government reform plan will "sink Lebanon into more debt, taxes, duties and corruption".