Bulletin - American University of Beirut

Sawiris eradicates businesses can enhance
democracy and poverty
Samir Kassir Foundation President
Gisele Khoury
Capitalists go where
there is profit, and that
is not a crime; however,
multinationals have a responsibility
to improve
the living conditions of
ordinary people, said
Naguib Sawiris, Egyptian
business pioneer and
executive chairman
of Orascom Telecom
Holding, during a lecture
held at AUB on June 2,
2010.
Entitled, “The Role of Economic Legends in National
and Regional Politics in the Arab World,” the lecture was
organized by the Samir Kassir Foundation, as part of the
Beirut Spring Festival 2010, an annual ceremony sponsored
by the European Union. During the festival, awards are also
distributed to the best investigative reporter and the best
opinion writer from the Arab region, said Gisele Khoury,
president of the Samir Kassir Foundation. Kassir was a wellknown
Lebanese journalist who was targeted in a fatal car
bomb explosion five years ago.
“Being able to acquire cell phones has given people,
like the North Koreans, the biggest freedom they had ever
[had],” said Sawiris, referring to a trip to North Korea that
revealed to him the role of the private sector in human
development. In 2008, Sawiris launched the first mobile
operator in North Korea.
Sawiris spoke to a large AUB audience, which included
MP Atef Majdalani, MP Nuhad al-Mashnouq, Elias Tawq,
representative of the Lebanese Internal Security, Eddy
Abillamaa, representative of the Lebanese Forces, Egyptian
Ambassador Ahmad Bidawi, Culture Minister Tamam Salam,
as well as AUB faculty and students.
Sawiri highlighted the main obstacles to progress
in the Arab world, namely, poverty, political and religious
fanaticism, and lack of democracy and respect for human
rights. “We are lacking in democracy in the Arab East, and
business companies have a role to play in reviving the
democratic [spirit],” said Sawiris. Orascom Telecom Holding
has achieved some measure of democracy, said Sawiris, and
has indirectly contributed to economic growth.
Sawiris also noted that when his company makes a
profit, many stand to benefit. “I open up opportunities for
my employees, thereby enhancing profitability,” said Sawiris.
Moreover, by enhancing job benefits for employees, for instance,
OTH contributes to enhancing the economy.
Sawiris added that the areas he is most interested in
contributing to, are: poverty eradication, encouraging dialogue
of religions and cultures, and establishing a foundation
for the oppressed.
The Orascom Group is Egypt’s largest private-sector
employer.
Sawiris is currently executive chairman of Weather
Investments and chairman of the board of Wind
Telecommunicazioni SpA
in Italy. Sawiris’ vision
and the bold decisions
he has made have affirmed
OTH’s position on
the telecom world stage.
He started the company
by launching the first
mobile operator in Egypt,
Mobinil. Today, OTH operates
in 12 countries.
Tobacco consumption costs Lebanon more
than $55 million in losses to economy
Researchers at AUB released new, significant data estimating
that Lebanon loses more than $55 million annually due
to smoking-related health problems and the absence of a
comprehensive tobacco control policy, including smoking
bans in closed public spaces.
The data, which was the result of an in-depth study
by AUB researchers, was released for the first time ever to
a huge audience that included several MPs, representatives
Sawiri on main obstacles to Arab world
progress.
from several ministries and a throng of journalists. The
study was presented during a seminar hosted by the Issam
Fares Institute (IFI) for Public Policy and International Affairs
in collaboration with the AUB Tobacco Control Research
Group—a multi-disciplinary group of AUB researchers focused
on studying the effects of tobacco on health.
Entitled “How Much Does Smoking Cost Lebanon An
Estimation of the Economic Impacts of Tobacco Consumption,”
Continued
the seminar took place in College Hall’s Auditorium B1 on
May 4, 2010, and was attended by many, including Provost
Ahmad Dallal and MPs Tammam Slam, Atef Majdalani, and
Walid Al-Khoury, in addition to Mazen Soueid, an adviser for
former Premier Fuad Siniora.
Representatives of the Ministries of Economy, Health
and Finance and a representative from the International
Monetary Fund also attended the seminar.
With Lebanon having one of the highest smoking rates
in the world, and given the current political climate of stalling
and dilly-dallying when it comes to passing tobacco
control policies, this IFI-funded research paper, written by
AUB’s assistant professors Jad Chaaban and Nisreen Salti
as well as researcher Nadia Naamani, has given impetus for
informed decision-making.
Panelist Chaaban summarized the key findings of the
report, showing how current tobacco consumption patterns
lead to a loss of more than $55.4 million every year, excluding
the effects of nargileh smoking, passive smoking,
and other smoking-related diseases. Currently, more than
3,500 Lebanese die annually because of smoking-related
diseases.
In order to tally net revenues and total costs, researchers
took into consideration several stakeholders of the tobacco
sector. These included the 24,000 registered tobacco farmers
(of which 40 percent rely on other non-tobacco sources
of revenue) tobacco-market regulators, tobacco companies,
distributors, the government, and finally consumers.
The study found that local net revenues amount to
$271.3 million annually, while total costs-including direct
and indirect costs- are estimated at $326.7 million annually.
Farouk W. Agha Engineering
Excellence Award established
The American University of Beirut and its Faculty of
Engineering and Architecture have announced the establishment
of the Farouk W. Agha Engineering Excellence
Award. The award will be bestowed annually to a graduating
engineering student majoring in either mechanical or
civil engineering.
In establishing the award, Nahed Agha Salam lauded
her father Abdullatif, “who raised me meticulously,” and her
uncle, Farouk, who made it possible for her to earn a master’s
degree in computer engineering from Imperial College
in London. She went on to explain that both men shared
a deep appreciation for the important role that a university
education—especially at an institution of the “caliber of
AUB”—plays in the development of countries and in an individual’s
life as well. Nahed Salam also dedicated the award
to all civil and mechanical engineers including her sons: Hadi,
Left to right: Provost Ahmad Dallal, IFI Director Khouri, Dr. Rima Nakkash,
and Dr. Jad Chaaban.
Direct costs are due to smoking-related diseases, loss of
productivity or work inefficiency, and environmental degradation
through forest fires or street littering, for example.
Indirect costs are related to pre-mature mortality.
The seminar concluded with several policy recommendations:
higher taxes on tobacco products, bigger health
warnings on tobacco packs, smoking bans in public areas,
bans on tobacco advertising, tax incentives for smoke-free
restaurants, increased research and awareness on the subject,
providing financing facilities and cash to families in
rural areas, and giving no grace period for the new law.
The general mood of the room was all in favor of the
controls, and assistant professor and panelist Rima Nakkash
suggested additional future meetings with supporting
parliamentary members. Rania Baroud, the vice-president
of the Tobacco-Free Initiative, assured policy-makers their
popularity need not be in jeopardy should they pass any
tobacco control laws; in fact such a move may serve them
well because “sixty-five percent of Lebanese people are
non-smokers,” she said.
who graduated with
a BE in mechanical
engineering in 2006,
and Amir, who will
be graduating in June
2010 with a BE in civil
engineering.
From left to right: Walid Katergi, Nahed Agha
Salam, Dean Hajj, Hadi Salam, and Imad
Baalbaki.
Farouk Agha started his college education as an FEA
student at AUB. He was awarded a Fulbright Scholarship to
continue his studies at the University of California, Berkeley.
After graduation, he moved to the Gulf region where he
founded a large contracting firm and an industrial group
there. He is one of the founders of the Center for Lebanese
Studies, which is associated with Oxford University in
London.
14 AUB Bulletin June 2010 AUB Bulletin June 2010 15