LIMS was the first organization to criticize the central bank’s subsidies program (CBSP) when it was still a popular and unquestionable policy. We started our campaign against the program as soon as the CBSP was announced in April 2020, by using intensive media exposure. We gave 54 TV, 20 radio and 106 newspaper and online newspaper interviews on the topic. Those interviews were shared on several news platforms reaching a total of 387 publications. Our media output highlighted the problems related to subsidies, showing that it causes more harm than good. The impact soon showed in media outlets’ content and in the position of some political parties when they finally started connecting fuel smuggling and shortages to subsidies. Progressively, the position of both local public opinion and the international community evolved on the CBSP.
In parallel to the relentless media pressure, we reached out to the minister of economy and trade in June 2020, convinced him to repeal subsidies and worked one-on-one with him on alternatives. In July 2020, the World Bank joined our working group with the ministry, and we were able to take advantage of their extensive international experience on subsidy reforms. Between February to April 2021, LIMS attended a series of 10 meetings organized by the Economic and Social Council, aimed at drafting a consensual subsidy reform proposition. The meetings gathered MPs, ministers, representatives of political parties, members of the business community, academics, and experts. LIMS adopted a hardline at those meetings arguing for the immediate and unconditional repeal of all subsidies. In May 2021, LIMS drafted a policy paper titled “Central Bank’s Subsidies Program: Exit Strategies” and organized a roundtable with key stakeholders on the topic. The roundtable had extensive media coverage.
Then, on August 15, the explosion of a secret fuel tank in Akkar, destined to be smuggled to Syria killed at least 28 people and injured 79. From this point onward, LIMS shifted towards a more frontal approach accusing all political parties, in support of subsides, of covering up for smugglers, and financially benefiting from the CBSP, at the expense of the population. This new line of argument made it very hard to defend maintaining subsidies. Finally, the central bank stepped up, declared that fuel is not reaching the population, despite the high cost of subsidies, and decided to stop funding the program. This action forced the government to adjust fuel prices accordingly.
Lebanon is on the verge of becoming a failed state and the new Venezuela or Zimbabwe; but we believe that we can help the country change course one reform after another. Repealing fuel subsidies saved around $2.14 billion of public spending per year, which is equivalent to $140 every month for each Lebanese household. This amount is 4 times the monthly minimum wage and was spent uselessly on a program that led to social and economic disaster. Our victory and our work would not have been possible, without the support of all our generous donors. Thank you.

However, some politicians have been trying to take advantage of the forensic audit in the central bank, claiming that it will help Lebanon recover stolen money. By doing so, those politicians have a triple aim: (1) use the central bank as a scapegoat to cover their own corruption, (2) replace the current governor of the central bank with their own puppet, and (3) appropriate protestors’ demands on the recovery of stolen assets.
LIMS clarified that auditing the central bank alone is not enough to uncover the nested corruption that has been gripping government institutions for decades. For years, the central bank kept funding the successive governments, but it was in the respective ministries that public funds were wasted. Those ministries were controlled by political leaders among which the ones trying to shift the blame to the central bank. 
LIMS stressed on the importance of submitting all future public contracts to the scrutiny of an independent body in order to prevent future corruption. The new Public Procurement Law actually extends the supervision scope of the newly created Public Procurement Authority (PPA) to entities that were not subject to the Tender Board, but the independence of the PPA remains questionable. As for how to uncover past corruption, LIMS also advocated for the scope of the forensic audit to be larger, so that it covers all public contracts signed by ministries and other public entities. Only in the event of such a comprehensive forensic audit, could corruption channels be exposed, and liable ministers identified. 

LIMS weighed in on the matter, explaining that 2 main factors regulate the exchange rate: (1) the money in circulation and (2) the central bank’s foreign exchange reserves. Stabilizing the exchange rate would require a stop to money creation and a halt of the hemorrhaging of the FX reserves. In fact, now that the optimistic atmosphere that accompanied the government formation has worn off, indicators have gone sour. On the one hand, Lebanon is still printing money to help banks meet their client’s withdrawals from USD denominated accounts. Moreover, the government is aiming to increase the minimum wage from 675,000 to 5 million LBP, which would entail a drastic increase of the money in circulation and subsequent inflation. On the other hand, the Ministry of Energy and Water is determined to continue subsidizing electricity using central bank FX reserves to purchase fuel for the power plants.
Given that the government is limited to a short mandate bounded by parliamentarian elections next May, it is unrealistic to expect Mikati’s cabinet to resolve the multifaceted crisis gripping Lebanon. Nevertheless, LIMS stated that the government is capable of addressing the monetary meltdown by establishing a currency board that stabilizes and strengthens the Lebanese pound. Passing such a monetary reform will have an immediate positive impact on all LBP-earners, who will see an increase in purchasing power, in as little as one month. LIMS went on to say that the ongoing floating exchange rate is not suited for countries like Lebanon, plagued by political instability and social unrest. In the absence of a currency board, the LBP is due to continue its uncapped depreciation trend against the US dollar and there will rein in monetary collapse.

34 participants belonging to 23 different prominent grassroots movements graduated from LLA 301 and started working on the following reforms:
(1) The case for Federalism in Lebanon, (2) A solution to the struggling medical sector, (3) Renewable energy as a solution to the electricity problem in Lebanon, (4) Waste sorting and recycling to end the garbage problem, (5) The legalization of cannabis (6) Improving women and individuals’ ease to do business, and (7) A consensual program for economic reforms.
The workshop included technical sessions, working groups, presentations, feedback, speed exchanges, and a planetary lecture on beneficial ownership in public procurement, along with a graduation ceremony.
Each group is expected to draft a policy brief and present it at LIMS’ annual policy fair to journalists, experts, academics, political activists and NGOs.