After the post-war reconstruction periodthat started in 1990-1992, Lebanon made spectacularimprovements to repair the scars of the wars by investingheavily in public infrastructure, roads, highways, airportsand harbors, communications, commercial estates, and highand middle income housing. The environmental neglect had animpact on the economy and resulted in a degradationamounting to US$ 565 million in 2000 or 3.4 percent of GrossDomestic product (GDP) for local environment and US$ 655million or 3.9 percent when global environment is included.Environment has remained a secondary priority, characterizedby an uncompleted legal and institutional framework as wellas by ineffective policies to address the challenges andpolitical constraints to deliver reforms. These challengesare: 1) regional disparities in poverty levels aresignificant; 2) wastewater connections covered 66 percent ofhouseholds in 2007, but wastewater treatment is laggingbehind; 3) municipal solid waste collection seems to havebeen resolve, whereas disposal remains a persistent issue;and 4) Lebanon's natural heritage is being impacted. Inorder for Lebanon to meet its environmental challenges,changes are needed in the way it manages its social andeconomic development as well as in the way it makes choicesamong competing issues and priorities.