Lebanon's graduate crisis   
By  Salam Hafez

The exodus of graduates and soaring unemployment have prompted the Lebanese government to consider a package of incentives aimed at turning the economic crisis around and averting a "brain drain".

Those in the jobs market cite numerous endemic problems: a lack of confidence in local education, restrictive labour laws and the age-old system of favours, referred to as Wasta in Arabic.

Academics say that deep-rooted psychological issues among the Lebanese and a recent history of civil war and conflict are responsible for making many bright graduates decide to leave the country, because there are so few jobs at home.

A degree course in Lebanon could cost students as much as $16,000

According to a study released this month by the ministry of social affairs, titled the 2004 National Survey of Household Living Condition, a fifth of unemployed workers have a bachelor’s degree and 34 per cent have been searching for a job for at least a year.

Economists believe that the war with Israel this summer left about 25,000 without work in the tourist sector alone, Lebanon’s biggest industry.

But many graduates believe that Wasta is the biggest problem.

Trad Hamade, who recently resigned as labour minister over a parliamentary dispute, said that Wasta was poisoning the Lebanese economy.

Hamade said: "Wasta? That’s an old Arab urban legend, and it is a poison in all Arab countries, and we need to get rid of it, as it is a social problem."

Kanaan Samer, 27, who graduated in marketing four years ago and is fluent in English, French and Arabic, said: "Lebanon is about Wasta. Sad to say from the top to bottom it's corruption. People hire on the basis of your religion, sect, creed, family and friends and it is wrong."

Unlike many Lebanese graduates, Samer, who has been unemployed for almost three years but who has an interest in the music industry, said that he earns enough money from his hobby to get by.

" I set up a small recording studio in my bedroom and started recording local bands and solo artists," he said.

Pessimistic about the future, he said: "Everyone is leaving to work abroad, and people are wasting their intelligence if they stay. This will affect the future of Lebanon."

Government plans

The Lebanese government has promised reforms and incentives for the private sector to hire Lebanese graduates, and to repair the fragile economy.

Apart from the tourism industry, government figures show that at least 10,000 more Lebanese have been made unemployed in other sectors since the end of the Israeli bombing.

Hamade, a member of Hezbollah, said: "The [labour] ministry is working on a benefit plan to pay those who have been made unemployed."

The government plans to introduce an unemployment allowance for those who lost their jobs, paying 60 per cent of their previous salary to single workers and 70 per cent to those who have families.

But for many, the problem did not start when Israeli jets bombed Lebanon's infrastructure.

Many graduates say the labour laws have not helped.

Hamade believes that the private sector has a key role to play in creating jobs needed to prevent the brain drain, and says that changes to the tax system and labour laws will improve the situation.

To revitalise the economy, the labour ministry wants to introduce salary caps and a law to make it easier for companies to hire and fire people.

Asked about unemployment, Hamade said it was hovering at about 14 per cent, but analysts believe it to be higher.