The Development Debates on Poverty in the Arab Region
5 Video-conferencing Sessions, March 5th - April 2nd, 2002, Beirut

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Session 1: Poverty in Lebanon

Tuesday March 5, 2002

Background Paper: The Phenomenon of Poverty in Lebanon: its limits, determinants and relation to economic policies during the reconstruction period
Dr. Kamal Hamdan

National Debate

The national debate during the first session focused on indicators and determinants in the diagnosis of poverty in Lebanon. The national discussion, gathering public officials, NGO leaders, private sector actors and researchers, revolved around issues raised during earlier regional and national presentations concerning international and national factors contributing to the growing pauperization in the Arab world.

In trying to characterize and quantify poverty in Lebanon, the participants stressed first of all on the lack of data available and/or accessible, and the absence of specific micro-data necessary for achieving the qualitative jump needed in assessing its nature and extent. On that issue, a participant introduced a new governmental program for national social statistics and the possibilities of involving local and private actors in its elaboration. The assembly welcomed such initiative.

Moreover, the discussants agreed that poverty in Lebanon had its specificities and could not be assessed just in terms of standardized international definitions. The different approaches used to determine poverty, such as the widely used "poverty line" or the "minimum basic needs" methods, although useful, may not reflect some of the realities of the Lebanese scene. In trying to identify those specificities, several factors were put forth:

· The Lebanese civil war and the estimated 25 billion $ national loss it generated;

· The nature of reconstruction policies adopted during the 90's and the exclusive focus on economic policies to the detriment of investing in social and human resources that could have provided better social safety nets and stronger foundations for sustainable development;

· Several other factors contributing to the Lebanese "social safety net" were identified, such as Diaspora's support to their families, extended family solidarity, very active confessional social institutions…;

· Lack of transparency, widespread corruption and weak governance, have all contributed to increasing impoverishment.

Another major subject raised was the need to approach poverty as a persistent and structural phenomenon.Thus the inadequacy perceived between most local short-term micro-level interventions and the long-term solution needed to eradicate poverty. National strategies and integrated programs were considered necessary for achieving such a goal. And although social expenditure percentage in the Lebanese annual budget grew in absolute terms (more access to health coverage, better access to education…), it was considered by most as inefficient, fragmented and lacking an "integrating vector" that could make them converge into a coherent and effective national strategy.

It was argued that current unemployment figures (10-12%) do not reflect the level of poverty in Lebanon. The notion of "working poor" (1/3 of the population) was considered a more appropriate indicator of the situation in that it revealed the "relativity" of poverty in terms of growing inequalities and the increasing difference between low average wages and increasing living costs in Lebanon.

Another aspect that was considered important in the perception and assessment of poverty was the "psychological" factor, where for many Lebanese demonstration effects and modes of consumption led to an immoderate pursuit of distinction signs and luxury appearance, in spite of a real trend of impoverishment of the middle and lower classes.

The discussants also pointed to the specificities of small countries in dealing with economic and social policies for poverty eradication. It was agreed that not enough studies were made on the subject.

Furthermore, the participants discussed some of the negative effects of globalization and liberalization on the poor, and on their inherent capacity to produce poverty in the absence of countervailing policies. The discussion revealed a growing concern regarding the economic crisis that the country is currently witnessing, and its increased vulnerability that exposes primarily the poorest fractions in society.

In that sense, foreign investment in high interest treasury bills and speculative real estate rather than in the productive economy was considered dangerous and ineffective in terms of contributing to real economic growth and thus job-creation and poverty alleviation.

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