The Government of Lebanon current reformagenda includes a number of proposals to expand reformefforts, as well as to introduce effective and efficientsector policies and expenditure programs. The draft programalso includes key proposals to improve Lebanon'sbusiness environment. This program needs to be agreed,articulated and supported by adequate resources. The speedand strength of this process are critical for avoiding asevere deterioration in public finances and returning theLebanese economy to a path of growth. This report sets outan overall framework starting, in Section I, with adiscussion of the prevailing macro/fiscal challenges and thecomplexities added to it by the hostilities. Section IIpresents the elements of a reform program to promoterecovery and sustainable growth. Section III discusses therole of donors in providing financial and technicalassistance in support of the Government's program.Section IV reiterates the importance of building consensusaround the reform agenda. The report is based on detailedtechnical analysis of economic, social and infrastructuresectors in terms of the impact of the hostilities andpriorities for reform over the next several years.