The city centre is important to Lebanon's economic revival as the only area of Beirut that can meet the requirements of large international companies. But few companies relocate in recession. Growth rates have fallen from post-war highs of 7 per cent to minus 1 in 1999. International confidence in Lebanon has been undermined by the government's inability to control spending. George Corm, the finance minister, said the government deficit during the first five months of the year was 51.8 per cent of expenditure, compared to a target of 37.3 per cent.
Salaries make up about half of spending.
But staff cuts are politically sensitive because many jobs are allocated according to religion, as political patronage. The state airline has 4,500 staff for nine aircraft. Lebanon's accumulated debt has reached Dollars 21bn - more than 135 per cent of annual gross domestic product and one of the highest levels in the world. In reality, people have made money because of connections with political power. Except for the banking sector, the history of Lebanon is one of sweetheart deals.