The Economic Collapse

This chapter examines the profound economic collapse that has engulfed Lebanon since October 2019, a crisis exacerbated by the COVID-19 pandemic and the catastrophic Port of Beirut explosion in August 2020. The background of the crisis is explained here, especially with reference to the collapse of the Lebanon currency’s liquidity. The economic crisis was precipitated by a combination of unsustainable public sector debt, a beleaguered banking sector, stagnant economic growth, and political paralysis. Following the civil war’s end in 1990, initial economic recovery was undermined by excessive borrowing to finance reconstruction, leading to a staggering debt-to-GDP ratio of 178% by the end of 2019. Highlighting personal testimonies, such as that of Mohammad Ghannoum, the chapter illustrates the stark realities faced by individuals in a country where inflation has drastically devalued incomes, making them virtually worthless and left hundreds of thousands of people without jobs or homes. In particular, students lost access to education and they became the core of the movement against the government. The chapter explores the historical context of Lebanon’s economic fluctuations, including the Syrian civil war and how it strained resources and heightened socio-economic disparities. The resultant economic downturn led to increased unemployment, rising poverty rates, and a significant decline in living standards, particularly affecting vulnerable populations, including a large number of Syrian refugees. This analysis provides critical insights into the systemic failures that have contributed to Lebanon’s current economic plight, the effect of the collapse on the country’s education system, how Lebanese people’s values and resilience help up (or otherwise). The implications for the nation’s education system and overall societal stability are profound.