Legislative branch: unicameral National Assembly or Majlis Alnuwab (Arabic) or Assemblee Nationale (French) (128 seats; members elected by popular vote on the basis of sectarian proportional representation to serve four-year terms) elections: last held in the summer of 1996 (next to be held NA 2000) election results: percent of vote by party—NA; seats by party—NA (one-half Christian and one-half Muslim)

Judicial branch: four Courts of Cassation (three courts for civil and commercial cases and one court for criminal cases); Constitutional Council (called for in Ta'if Accord) rules on constitutionality of laws; Supreme Council (hears charges against the president and prime minister as needed)

Political parties and leaders: political party activity is organized along largely sectarian lines; numerous political groupings exist, consisting of individual political figures and followers motivated by religious, clan, and economic considerations

International organization participation: ABEDA, ACCT, AFESD, AL,
AMF, CCC, ESCWA, FAO, G-24, G-77, IAEA, IBRD, ICAO, ICC, ICFTU,
ICRM, IDA, IDB, IFAD, IFC, IFRCS, ILO, IMF, IMO, Inmarsat, Intelsat,
Interpol, IOC, ISO (correspondent), ITU, NAM, OAS (observer), OIC,
PCA, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNRWA, UPU, WFTU, WHO, WIPO,
WMO, WToO

Diplomatic representation in the US: chief of mission: Ambassador-designate Farid ABBOUD chancery: 2560 28th Street NW, Washington, DC 20008 consulate(s) general: Detroit, New York, and Los Angeles

Diplomatic representation from the US: chief of mission: Ambassador David SATTERFIELD embassy: Antelias, Beirut mailing address: P. O. Box 70-840, Beirut; PSC 815, Box 2, FPO AE 09836-0002

Flag description: three horizontal bands of red (top), white (double width), and red with a green and brown cedar tree centered in the white band

Economy

Economy—overview: The 1975-91 civil war seriously damaged Lebanon's economic infrastructure, cut national output by half, and all but ended Lebanon's position as a Middle Eastern entrepot and banking hub. Peace has enabled the central government to restore control in Beirut, begin collecting taxes, and regain access to key port and government facilities. Economic recovery has been helped by a financially sound banking system and resilient small- and medium-scale manufacturers, with family remittances, banking services, manufactured and farm exports, and international aid as the main sources of foreign exchange. Lebanon's economy has made impressive gains since the launch of "Horizon 2000," the government's $20 billion reconstruction program in 1993. Real GDP grew 8% in 1994 and 7% in 1995 before Israel's Operation Grapes of Wrath in April 1996 stunted economic activity. During 1992-98, annual inflation fell from more than 100% to 5%, and foreign exchange reserves jumped to more than $6 billion from $1.4 billion. Burgeoning capital inflows have generated foreign payments surpluses, and the Lebanese pound has remained relatively stable. Progress also has been made in rebuilding Lebanon's war-torn physical and financial infrastructure. Solidere, a $2-billion firm, is managing the reconstruction of Beirut's central business district; the stock market reopened in January 1996; and international banks and insurance companies are returning. The government nonetheless faces serious challenges in the economic arena. It has had to fund reconstruction by tapping foreign exchange reserves and boosting borrowing. Reducing the government budget deficit is a major goal of the LAHUD government. The stalled peace process and ongoing violence in southern Lebanon could lead to wider hostilities that would disrupt vital capital inflows. Furthermore, the gap between rich and poor has widened in the 1990's, resulting in grassroots dissatisfaction over the skewed distribution of the reconstruction's benefits and leading the government to shift its focus from rebuilding infrastructure to improving living conditions.

GDP: purchasing power parity—$15.8 billion (1998 est.)