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Economic liberalisation in Syria has improved the living standards of the population and inflation has decreased from 35% to 12%. Liberalisation began in the late 80's and it is hoped that it will be followed by increased political freedom. The economy has also benefitted from increased oil revenues, the investment law of 1991 and Gulf countries' gratitude and support for Syria's alleigence with the anti-Iraq coalition.

The Maronite Christian Phalange party in Lebanon resents the presence of 40,000 Syrian troops in the area and the political influence exerted by Syria, but other Lebanese have resigned themselves to it. The party, which boycotted elections in protest, have reversed their decision because not to do so would be to commit political suicide. The Lebanese are poor and bread riots overthrew the government in May 1992. There is now no protest about the economic situation, however.

A Delegation from the Conference on Security and Cooperation in Europe has gone to Bosnia-hercegovina to investigate the conditions under which Moslems are being detained. The Serbs claim that there are no more than the two camps visited by the delegation, yet it suspects there are more. According to the Serbs, the inmates are all prisoners of war, but most say they are the victims of ethnic cleansing. In theory they are free to leave, yet they have no homes to go to. If they were to leave then the Serbs would have succeeded in their policy of ethnic cleansing.

In the first elections in Lebanon for 20 years, the pro-Iranian Shia Moslem Hizbollah guerrilla group was transformed to a mainstream political party. There is large support for this group, as it is the only one which opposes the Israeli settlements in the South. People have also been influenced by Iranian investment in the area to provide such facilities as schools and hospitals. Although some ballot boxes have gone missing, which favours the government, the elections are thought by most exept the Maronites, who are loosing support, to be fair.

Pres Elias Hrawi of Syria plans to proceed with elections, despite the demands of Christian groups that they be postponed until Syrian troops comply with the Moslem-Christian peace agreement and withdraw from Beruit and elsewhere. The uncertainty concerning the elections is putting downwards pressure on the Lebanese pound and a cabinet meeting on Aug 19 1992 ended without decision. There are plenty of candidates for the seats, although the registration fee is 10 million Lebanese pounds.

There is a $2.65 billion plan to reconstruct war damaged Beirut led by the Council for development and reconstruction under the presidency of Fadel Shallak. There is opposition to the proposal, however, particularly from the landlords who would have their properties exchanged for shares in a property company. Conversely it is claimed that if no action is taken to rebuild the city, then it will degenerate into a slum and impede economic development in the rest of the country.