The Foreign Affairs and Expatriates Committee held a session on Thursday, focused on the findings of a recent World Bank report on the economic and financial repercussions of the Syrian war and the ensuing displacement on Lebanon. The document was presented by World Bank Country Director for the Middle East Department Jean-Christophe Carret.
It revealed that the war and subsequent displacement have resulted in a decrease in GDP growth, investment, imports and exports.
"The report, divided into two parts — financial and economic — notes that the war and subsequent displacement have resulted in a decrease in GDP growth to 3% annually during the period from 2011 to 2017. The cost is approximately $31 billion during the first seven years of the war, averaging $5 billion annually borne by Lebanon due to the war-induced displacement," the chairman of the Committee, MP Fadi Alameh, said following the session.
Moreover, the cost of hosting Syrian migrants is estimated at $1,000 per person per year. Comparatively, "the cost borne by Lebanon is slightly higher than Jordan's (which also hosts Syrian migrants) due to its ongoing economic crisis and distinct approach to managing the refugee crisis," he noted.
Alameh pointed out that "Lebanon incurs an additional cost of around $1.5 billion annually to cover this hosting burden."
The study underscored the extensive economic toll on Lebanon, noting a 20% reduction in investment from 2011 to 2017. Imports and exports were also significantly affected, dropping by 35% and 45%, respectively. This economic downturn was further exacerbated by a 20% decline in capital investments and deposits, reflecting a broader economic strain.
"On the economic front, the study indicated that Lebanon faced unfair competition in its labor market and commercial sectors, primarily due to the establishment of unregistered companies. This situation has created direct competition with Lebanese citizens," Alameh added.
The displacement crisis has also strained Lebanon's health, education, infrastructure, municipal services, and environmental sectors. According to the report, without the displacement crisis, Lebanon's public debt to GDP ratio would be around 142%, compared to the current 172%, marking a 30% increase due to the displacement.
In his closing remarks, MP Alameh emphasized the importance of ongoing collaboration with the World Bank, suggesting that the report serves as a crucial tool for Lebanon to present its case to the international community.
He mentioned the necessity of creating a comprehensive summary of the document to shed light on the multifaceted issues Lebanon faces. He pointed out that the actual cost of hosting migrants exceeds the estimated $1,000 per person per year, considering additional factors such as the subsidies provided to them.
The committee also agreed on the importance of seeking sustainable solutions in Syria to incentivize the return of migrants, ensuring they receive the necessary assistance in their home country. This approach aims to alleviate the long-term economic burden on Lebanon while addressing the humanitarian needs of the displaced population.
It revealed that the war and subsequent displacement have resulted in a decrease in GDP growth, investment, imports and exports.
"The report, divided into two parts — financial and economic — notes that the war and subsequent displacement have resulted in a decrease in GDP growth to 3% annually during the period from 2011 to 2017. The cost is approximately $31 billion during the first seven years of the war, averaging $5 billion annually borne by Lebanon due to the war-induced displacement," the chairman of the Committee, MP Fadi Alameh, said following the session.
Moreover, the cost of hosting Syrian migrants is estimated at $1,000 per person per year. Comparatively, "the cost borne by Lebanon is slightly higher than Jordan's (which also hosts Syrian migrants) due to its ongoing economic crisis and distinct approach to managing the refugee crisis," he noted.
Alameh pointed out that "Lebanon incurs an additional cost of around $1.5 billion annually to cover this hosting burden."
The study underscored the extensive economic toll on Lebanon, noting a 20% reduction in investment from 2011 to 2017. Imports and exports were also significantly affected, dropping by 35% and 45%, respectively. This economic downturn was further exacerbated by a 20% decline in capital investments and deposits, reflecting a broader economic strain.
"On the economic front, the study indicated that Lebanon faced unfair competition in its labor market and commercial sectors, primarily due to the establishment of unregistered companies. This situation has created direct competition with Lebanese citizens," Alameh added.
The displacement crisis has also strained Lebanon's health, education, infrastructure, municipal services, and environmental sectors. According to the report, without the displacement crisis, Lebanon's public debt to GDP ratio would be around 142%, compared to the current 172%, marking a 30% increase due to the displacement.
In his closing remarks, MP Alameh emphasized the importance of ongoing collaboration with the World Bank, suggesting that the report serves as a crucial tool for Lebanon to present its case to the international community.
He mentioned the necessity of creating a comprehensive summary of the document to shed light on the multifaceted issues Lebanon faces. He pointed out that the actual cost of hosting migrants exceeds the estimated $1,000 per person per year, considering additional factors such as the subsidies provided to them.
The committee also agreed on the importance of seeking sustainable solutions in Syria to incentivize the return of migrants, ensuring they receive the necessary assistance in their home country. This approach aims to alleviate the long-term economic burden on Lebanon while addressing the humanitarian needs of the displaced population.
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