According the a Lebanese banking official, this is because Lebanon started to prepare itself for a economic meltdown back in September. ”I saw the crisis coming and I told the commercial banks in 2007 to get out of all international investments related to the international markets”, says Riad Salameh, the governor of Lebanon’s Central Bank.

This success can also be attributed to the Lebanon’s conservative banking system. Banks do not take on too much debt and are required to keep up to 30 % of their assets in cash. They are not allowed to partake in risky bundled debt packages either and weak banks must merge with stronger banks before they get into any fiscal trouble. “You could have thought they had a crystal ball. It was very wise of the Lebanese regulators not to get involved in all these risky international investments that turned out to be the doom of many banking systems,” says Edward Gardner of the International Monetary Fund. Sounds like the rest of the world, including the United States, could take a lesson from Lebanon’s banking system!

Venus Vahedi

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Brad Keenan

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Bridget Russell

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Economists praised the Central Bank’s move, with former Finance Minister Wasef Azar saying the cuts would stimulate borrowing, while the reduction in the reserve requirement would free up $254 million for local banks. Deposits in those banks are estimated at $25.4 billion. The rate cuts were aimed in part at stimulating the country’s battered stock exchange, which is down over 25 percent since the beginning of the year.

That decline has been eclipsed by massive drops of over 60 percent in some of the Arab world’s other key stock exchanges. The oil-rich nations of the Gulf have either cut interest rates or pumped funds into their banking sector to battle the crisis and bolster investor confidence.

But Jordan is shouldering a $7.1 billion foreign debt, and is largely dependent on foreign aid, as well as overseas worker remittances, to keep its economy afloat. It has also been forced to take in tens of thousands of refugees from neighboring Iraq, further straining its economy.

Jordanian finance officials insist the global meltdown has had little immediate effect on the Kingdom, pointing to a continued flow in foreign aid and ample liquidity and hard currency reserves. US economic and military assistance reached $663.5 million this year, while Saudi aid in oil and cash amounted to $500 million.

Kasey Malcoun

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The global financial crisis has not directly affected Israeli banks, but some are beginning to worry about the country’s biggest tycoons as financial markets fail ahead of parliamentary elections.

Israel is largely an export-oriented economy and is bracing for a blow as international demand is expected to drop. Companies across Israel have announced plans to cut workers.

Israel’s economy is dominated by a relatively small group of businessmen, who bought up many state-owned companies during the country’s drive to privatization in the late 1990′s.  The country’s top 14 family run businesses control one-fifth of the market value of the Tel Aviv Stock Exchange. They run the largest cellular operators, food retails, gas stations, banks, etc. However, high debt and real-estate exposure overseas among these families is shaking their investors’ confidence.

Israeli stocks are falling. Most importantly, the corporate bond issues by market capitalizations has fallen 21.4% since the start of the year. The corporate bond market is relatively new in Israel and has attracted big investments from retirement funds. This has made the bond issue a political issue. Israel’s umbrella labor union has threatened to strike if the government doesn’t do something about pension-fund losses. Parliamentary elections are just two months away and the financial market trouble has stolen some of the limelight from the issues of national-security.

One Israeli tycoon, a self-made diamond magnate, has seen shares of his real-estate and energy company fall 87.9%. They reported a loss of about $475 million in the third quarter. He has big investments in the U.S. and Russia and will be selling off some property in New York to pay debts. Other tycoons are in a similar situation.

However, Israel seems to be heading into this crisis comparatively better off than the U.S. or European economies due to tight bank regulations, low government deficits, and strict mortgage terms. But they are scrambling for solutions like the rest of the world.

Israel’s finance ministry announced an 11 billion shekel ($2.75 billion) plan to bolster the economy last week. It calls for 6 billion shekels in guarantees for banks and another 5 billion to create funds that will be invested in corporate bonds and loans for companies. They also proposed a 21 billion shekel plan to boost employment and invest in infrastructure.

Jamie Hughes

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More than 10,000 people lost their jobs in one month, as companies begin to cut their work forces amid the financial uncertainties of the globe. With the global slowdown in full swing, the Turkish economy began to feel the global financial crisis as growth slowed down and the dollar roses sharply. The job losses have been heavy especially in the banking, retail and construction industries ( 8000 in banking, 3000 in retail). The Turkish government, criticized for their lack of foresight in the situation, had long denied the possibility of the global crisis rippling over to Turkey’s economy and is now looking to the IMF for financial support.

Human resource firms have also reported companies implementing cost cutting measures and more conservative training approaches, such as focusing on training existing staff rather than hiring new people. Bursa, Turkey’s 4^th largest city in terms of financial activity, has been hit the hardest, with 5700 employees being laid off in the last month in the textile and automotive sectors. Bursa’s production accounts for 8-9% of Turkey’s total industrial production. The severe distress felt in Bursa will most likely begin to affect other cities soon.

Adam Hazzout

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Turkey is one of the many countries being hit by the global recession. The crisis has no borders and has left no corner of the globe untouched. Many other countries in the Middle East may follow suit in an economic downward spiral.

Olorunbunmi Hambolu

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The agreement has great potential to establish a strong political partnership and an increase in trade and investments between Libya and the EU.

Ferrero-Waldner stated, “This was a long awaited moment since the 2004 EU’s decision to lift the sanctions against Libya and to start a policy of engagement with this country.” She also mentioned the fact that Libya is the last South-Mediterranean country that the EU has not contractual relations with and that it is eager to establish a legal-framework covering all areas of concern.

The objectives of these negotiations is to develop an agreement to develop a political dialogue and cooperation on foreign policy and security issues, a free trade area, and cooperation in areas of concern such as energy, transportation, migration, justice and domestic affairs, environment issues, education and public health. Statements from the negotiation committee also plan on tackling issues dealing with human rights and democracy, and the non-proliferation of weapons of mass destruction.

Roy Dickson

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Syria has made significant steps in recent years, according to their state news service.  They have included the opening of some private banks, reduction of national debt, and deep tax cuts on companies.  They will also soon be opening the Damascus Stock Market.

Another important remark is his call for more representation internationally for developing countries to speak to economic concerns.  This would likely be in response to meetings by countries in the so-called ‘G7,’ who represent only the world’s strongest economies.  Syria’s call for representation probably reflects the feelings of many countries with smaller economies who want advantageous policies enacted.  Dr. al-Hussein’s remarks about lessened state involvement in economies is also a direct slight against most of the G7 countries who have advocated laissez-faire markets, even as Syria seems to be moving towards freer markets.

Joshua Bark

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Yemen’s  Tourism Minister Nabil al-Faqi stated the necessity of Yemen’s participation, particularly in the face of tourism rates significantly declining since the attacks on the US Embassy in Sana’a. Al-Faqi explained Yemen’s hope in forming “tourism alliances” with the British and thereby forming a relationship and connection with the UK.

Yemen’s participation in the conference shows the country’s attempts to extend itself beyond the Middle East and introduce itself within Europe. Yemen’s participation is an example of how the country is attempting to repair and reinvent itself in the face of terrorism and other internal issues. In addition, the conference will discuss Yemen’s internal conditions that have adversely affected tourism. The conference seems to indicate Yemen’s recognition that there are problems that must be dealt with in order for the country to create a positive reputation, especially in the Europe and the United States.

Jenna Hootstein

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