Lebanon

Collapse of the Public Sector: The Political Authority Just Watches

Collapse of the Public Sector: The Political Authority Just Watches

The crisis in public administrations and institutions has manifested, rendering them incapable of operation and suffering from a drain of expertise. These institutions are already bloated, characterized by political patronage and corruption; however, this does not imply that they were devoid of effort or qualified personnel capable of leading them. According to a survey conducted by the Basile Fleyhan Institute, 41.5% of public institutions were unable to adapt, and 62% of general managers indicated that loss of motivation and decreased performance levels are major challenges to public sector change and development. The most significant problem facing the public sector is that the political authority has refrained from correcting employee wages, pushing them towards emigration.

The survey presented yesterday during a discussion session at the Basile Fleyhan Institute entitled "No Option but a Strong State" revealed that 54% of public institutions experienced budget reductions ranging from 10% to 20% in 2021, and only 17% of institutions managed to adjust their work plans to cope with the complexities of the current situation, proposing alternatives aimed at ensuring at least minimal performance levels. However, 41.5% felt they were unable to adapt, while 18.8% stated they were equipped and ready to work remotely. Ultimately, one third of these institutions managed to create additional services in response to the crisis. These figures raise doubts about the methods and approaches traditionally employed by senior management in the public sector. These leaders have fallen into a trap that rendered them entirely subservient to political forces while simultaneously being incapable of operational efficiency.

In analyzing and discussing the impact of the crisis in the context of reinstating the legitimacy of public authority and the associated challenges, there is an idea suggesting that avoiding a complete collapse of public institutions requires securing funding sources. In this context, George Maalouy, the acting Director General of Finance, reiterates the official narrative on the solution, which confines resolution to a "balanced budget, requiring tax reform to enhance revenues." Maalouy is optimistic about the recovery plan on which the government negotiates with the International Monetary Fund, yet he overlooks that tax reform is an incomplete measure unless it is part of a clear and comprehensive vision based on halting the brain drain and correcting wages.

Sami Alouiyah, the Director General of the Litani Authority, raised the idea of "correct management and the necessity of changing the governing mentality toward the public sector and a human approach to its employees." While increased taxes could boost state revenues, they will inevitably impact the most vulnerable layers of society, as they do not touch the wealth of the few. However, they certainly will not rescue the public sector from its decay and fragmentation. It needs a political authority that makes the right decisions and "daring managers who think outside the box and free themselves from certain administrative constraints."

The discussions highlighted the need for a Lebanese state that affirms its presence and implements necessary reforms to better serve citizens, given that support from international donor entities is not intended to replace state operations or to last indefinitely. Regarding reforms, there has been much talk about implementing reform laws and activating the role of oversight bodies, noting that all ministerial statements adopt the idea without actual implementation. The more challenging aspect is reducing the bloated size of the public sector resulting from political hiring.

Since the state cannot function without a judiciary capable of restoring its legitimacy in the eyes of its citizens, some attendees criticized the role of the judiciary. In his remarks, MP George Okies called on the judiciary to "imprison one culprit for the strikes and demands of the judiciary to become legitimate." Okies neglected that lifting political interference from the judiciary and its structures is a gateway to reform, especially concerning appointments in top positions that hold the power to make courageous decisions. Before that, laws encouraging impunity, such as those related to banking secrecy and immunities in exchange for non-application of reform laws, need to be revisited.

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