85% of Lebanese People Suffer from Multidimensional Poverty

Lebanese protest against the crippling economic crisis in January. (Al-Markazia)
Lebanese protest against the crippling economic crisis in January. (Al-Markazia)
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85% of Lebanese People Suffer from Multidimensional Poverty

Lebanese protest against the crippling economic crisis in January. (Al-Markazia)
Lebanese protest against the crippling economic crisis in January. (Al-Markazia)

Rabih, a father of three, lamented that the economic crisis in Lebanon now means that he can no longer feed his children enough. He also has to support his sick mother, saying providing her with medical care is his top priority.

“We can no longer afford hospital treatment. We can barely afford to buy medicine without being humiliated in the process,” he told Asharq Al-Awsat.

Mirielle, another parent of three, said the situation had grown more dire in the past three years.

“Our lives have completely changed, especially when it comes to food. We are now trying to save everywhere and only buy essentials,” she added.

“My children’s lives now revolve around school and home. We no longer go out to restaurants or buy new clothes,” she said. “We have cut out everything from our lives. All I care about is my children. Just like everyone their age, they don’t know the joys of life.”

Eliane, who is expecting a baby, said she feels like she is headed towards the unknown.

Just like many around her, her living conditions and finances have been upended by the crisis.

“I am worried, not only about the price of milk and medicine, going to the hospital, and providing my child’s needs, but about whether medicine will actually be available,” she remarked.

“I’m not sure that my income and that of my husband will be enough for the next month given that the exchange rate to the dollar continues to rise and we are still being paid in Lebanese pounds,” she added.

Hassan revealed that his finances have become so dire that he was unable to enroll his children at school this year.

“School has become a luxury. I can longer provide basic food to my family and I have a sick child, whose medicine I cannot secure,” he added.

These are just samples of the reality endured by Lebanese families that have been edging closer towards poverty and have to live daily humiliation to secure their most basic needs and a semblance of a dignified life for their children.

The Ministry of Social Affairs has been working on an aid program, but the beneficiaries will be the neediest families, not all Lebanese who are suffering the pain of the current collapse.

The ministry has adopted two programs to help the neediest families.

The first had been in place for 11 years and benefitted 36,000 families only. After the coronavirus pandemic, it was expanded to cover 75,000 families. The families receive a monthly stipend in US dollars that varies according to the size of the family and helps them purchase their basic needs.

The second program, “Aman”, was adopted in January 2021. The International Bank had pledged to provide a loan to finance a ration card that would be part of the program on condition that Lebanese authorities implement much-needed reforms. The reforms were never carried out and the loan has remained on hold.

Had the reforms been made and the card introduced, the program would have covered a greater number of citizens, including those suffering from deep poverty and those who have lost their purchasing power.

At the moment, Aman benefits 150,000 of the poorest Lebanese families. They receive a monthly stipend in dollars and the goal is to eventually reach out to 225,000 families, or around 906,000 people.

The Ministry of Social Affairs has not carried out an accurate survey on the poverty in Lebanon since 2016, years before the crisis.

In March 2022, the government released the first indicator on multidimensional poverty that covered aspects such as education, health and financial stability. It found that in 2019, before the financial meltdown, 53.1 percent of the people lived in multidimensional poverty.

Policy and Research Specialist at Information International, Mohammad Chamseddine said statistics from late 2022 revealed the rich only accounted for 5 percent of the population in Lebanon and the middle class made up 40 percent - a drop from 70 percent in 2021. People above the poverty line made up 30 percent of the population, while 25 percent lived in poverty.

“It is evident that the social classes in Lebanon have changed. The level of poverty had risen from 25 to 55 percent and will likely grow in 2023 if the current collapse continues,” he said, citing the increase in the dollar exchange rate.

In remarks to Asharq Al-Awsat, he explained that there are different types of poverty. There is the regular poverty, which makes up 55 percent of cases in Lebanon, where the citizen can no longer meet their basic food needs.

There is multidimensional poverty, which is adopted by ESCWA and the International Bank, and it accounts for 85 percent of cases in Lebanon. Any citizen who does not have any savings is considered poor, according to multidimensional poverty.

Chamseddine revealed that the majority of the poor, or 73 percent, are located in the North and northern Bekaa regions, 43 percent in the Akkar region, 30 percent in the Bekaa, 15 percent in Mount Lebanon, 10 percent in the South and 2 percent in Beirut.



What Happens When Russian Gas to Europe Via Ukraine Stops?

A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
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What Happens When Russian Gas to Europe Via Ukraine Stops?

A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo

Austria's energy company OMV was informed by Gazprom that the Russian gas producer would halt deliveries of natural gas via Ukraine to OMV from 0500 GMT on Nov. 16 following OMV winning an arbitration case. Supplies of Russian gas to Europe via Ukraine may completely stop from Jan. 1 2025 after the current five-year deal expires as Kyiv has refused to negotiate the new terms of the transit with Moscow during the war.
Here is what happens if Russian gas transit via Ukraine is completely turned off and who will be affected most, according to Reuters.
HOW BIG ARE THE VOLUMES?
Russian gas supplies to Europe via Ukraine are relatively small. Russia shipped about 15 billion cubic meters (bcm) of gas via Ukraine in 2023 - only 8% of peak Russian gas flows to Europe via various routes in 2018-2019.
Russia spent half a century building its European gas market share, which at its peak stood at 35%.
Moscow lost its share to rivals such as Norway, the United States and Qatar since the invasion of Ukraine in 2022, prompting the EU to cut its dependence on Russian gas.
EU gas prices rallied in 2022 to record highs after the loss of Russian supplies. The rally won't be repeated given modest volumes and a small number of customers for the remaining volumes, according to EU officials and traders.
UKRAINIAN ROUTE
The Soviet-era Urengoy-Pomary-Uzhgorod pipeline brings gas from Siberia via the town of Sudzha - now under control of Ukrainian military forces - in Russia's Kursk region. It then flows through Ukraine to Slovakia.
In Slovakia, the gas pipeline splits into branches going to the Czech Republic and Austria.
Austria still receives most of its gas via Ukraine, while Russia accounts for around two-thirds of Hungary's gas imports.
Slovakia takes around 3 bcm from energy giant Gazprom per year, also about two-thirds of its needs.
Czech Republic almost completely cut gas imports from the east last year, but has started taking gas from Russia in 2024.
Most other Russian gas routes to Europe are shut including Yamal-Europe via Belarus and Nord Stream under the Baltic.
The only other operational Russian gas pipeline route to Europe is the Blue Stream and TurkStream to Türkiye under the Black Sea. Türkiye sends some Russian gas volumes onward to Europe including to Hungary.
WHY DOES THE UKRAINIAN ROUTE STILL WORK?
While remaining Russian gas transit volumes are small, the issue remains a dilemma for the EU. Many EU members such as France and Germany have said they would not buy Russian gas anymore but the stance of Slovakia, Hungary and Austria, which have closer ties to Moscow, challenges the EU common approach.
The countries, who still receive Russian gas, argue it is the most economic fuel and also blame neighboring EU countries for imposing high transit fees for alternative supplies.
Ukraine still earns $0.8-$1 billion in transit fees from Russian gas transit. Russia earns over $3 billion on sales via Ukraine based on an average gas price of $200 per 1,000 cubic meters, according to Reuters calculations.
Russia's gas pipeline export monopoly Gazprom plunged to a net loss of $7 billion in 2023, its first annual loss since 1999, because of the loss EU's gas markets.
Russia has said it would be ready to extend the transit deal but Kyiv has repeatedly said it won't do it.
Another option is for Gazprom to supply some of the gas via another route, for example via TurkStream, Bulgaria, Serbia or Hungary. However, capacity via these routes is limited.
The EU and Ukraine have also asked Azerbaijan to facilitate discussions with Russia regarding the gas transit deal, an Azeri presidential advisor told Reuters, who declined to give further details.