Lebanon’s Empty Schools Bode Long-term Damage From Crisis

An empty classroom in a closed public school is seen in Beirut, Lebanon, Thursday, March 2, 2023. (AP Photo/Hussein Malla)
An empty classroom in a closed public school is seen in Beirut, Lebanon, Thursday, March 2, 2023. (AP Photo/Hussein Malla)
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Lebanon’s Empty Schools Bode Long-term Damage From Crisis

An empty classroom in a closed public school is seen in Beirut, Lebanon, Thursday, March 2, 2023. (AP Photo/Hussein Malla)
An empty classroom in a closed public school is seen in Beirut, Lebanon, Thursday, March 2, 2023. (AP Photo/Hussein Malla)

On a recent school day, the Rene Mouawad High School in Beirut was empty, its classrooms dark, just like all of Lebanon’s public schools have been for most of the past three months. Its striking teachers were protesting in front of the Education Ministry, not far away.

About a hundred teachers joined the demonstration outside the ministry, blocking traffic and holding placards demanding pay raises. “We are done with charity,” said Nisreen Chahine, the head of the union for contractor teachers.

“We are not negotiating anymore. They should either rightfully pay us or go home,” The Associated Press quoted Chahine as saying.

The teachers gave speeches demanding officials come out and talk to them. But as usual in these regular protests, no one from the ministry emerged. After several hours, the teachers packed up and went home.

Lebanon’s schools are crumbling under the weight of the country’s economic collapse as the political leadership — which caused the crisis through decades of corruption and mismanagement — balks at taking any measures to resolve it. Since the meltdown began in late 2019, over three-quarters of Lebanon’s 6 million people have been plunged into poverty, their assets evaporating as the currency’s value shrivels and inflation rises at one of the world’s highest rates.

Most of the country’s children have not been in school for months — many since even before teachers, who say they can no longer live on their salaries, went on strike in December. Lebanon was once known for producing a highly skilled, educated work force. But now an entire generation is missing out on schooling, wreaking long-term damage on prospects for the country’s economy and future.

Teachers called their strike because their salaries, in Lebanese pounds, have became too low to cover rent and other basic expenses. The pound has gone from 1,500 to the dollar before the crisis to 100,000 to the dollar currently. Most teachers are now paid the equivalent of about $1 an hour, even after several raises since 2019. Grocery stores and other businesses now usually price their goods in dollars.

Teachers are demanding adjusted salaries, a transportation stipend, and health benefits. The government only offered to partially cover transportation, saying it didn’t have the budget for more. Though schools partially reopened last week after some teachers returned to work, most chose to continue striking.

Even before the crisis, Lebanon’s investment in public schools was limited. In 2020, the government’s spending on education was equivalent only to 1.7% of Lebanon’s GDP, one of the lowest rates in the world, according to the World Bank. The 2022 budget allocated 3.6 trillion Lebanese lira for education — the equivalent of around $90 million at the time the budget was passed in October, less than half the $182 million budget on education from a donor-funded humanitarian program.

Instead, the government has relied for years on private and charity schools to educate children. Humanitarian agencies paid to cover salaries and keep decrepit infrastructure functioning. Two-thirds of Lebanese children once went to private schools, but hundreds of thousands dropped out in recent years because private schools have had to increase tuition to cover soaring costs. Public and private schools struggle to keep lights on as fuel costs mount.

Even before the strike, more than 700,000 children in Lebanon, many of them Syrian refugees, were not in school because of the economic crisis. With the strike, an additional 500,000 joined their ranks, according to UNICEF.

“It means we now see children ages 10, 12, 14 and they are not able to even write their own names or write basic sentences,” Ettie Higgins, UNICEF deputy representative for Lebanon, told the AP. UNICEF said that last week it gave almost $14 million to help more than 1,000 public schools pay staff.

Rana Ghalib, a mother of four, said it makes her anxious to see her children at home when they should be in school. Her 14-year-old son had to repeat the 6th grade because he has fallen behind during previous disruptions.

“The classrooms are basically empty because teachers are demanding their rights and they’re dark because there is no fuel,” Ghalib told the AP.

The international community has been pushing Lebanon’s leaders to carry out wide-ranging reforms in the economy, financial system and governance in order to receive a $3 billion bailout package from the International Monetary Fund and unlock development aid. The political elite, which has run the country since 1990, has stalled — because, critics say, reforms would undermine its grip on power and wealth. Amid political deadlock, there hasn’t been a president for months, and the government only functions in a limited caretaker capacity.

Education, meanwhile, is joining banks, medicine and electricity in the ranks of Lebanon’s failing institutions. That could cause long-term damage: Lebanon has traditionally relied on its educated and skilled diaspora population abroad to send remittances back home to support families, invest and feed dollars into the banking system. The exodus of skilled people skyrocketed during the economic crisis, leaving remittances as Lebanon’s last economic lifeline.

Hussein Cheaito, an economist and nonresident fellow at The Tahrir Institute for Middle East Policy, a Washington-based think tank, says the crippled education system will further “deteriorate the social fabric” of Lebanon and deepen poverty.

“This will have a effect on the longer-term growth of the economy,” he told the AP. “This means there will be less access to jobs in the future … (and) weaken the labor market in general.”

Ghalib, meanwhile, checks on her children, who are watching TV and playing with their cellphones at a time when they would usually be studying. Even her 9-year-old daughter is aware that her future is in jeopardy, she said.

“My youngest daughter tells me, ‘I want to be a doctor, but how can I do that if I’m sitting at home?’” Ghalib said. “I don’t know what to tell her.”



To Get Their Own Cash, People in Gaza Must Pay Middlemen a 40% Cut

A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
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To Get Their Own Cash, People in Gaza Must Pay Middlemen a 40% Cut

A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)

Cash is the lifeblood of the Gaza Strip’s shattered economy, and like all other necessities in this war-torn territory — food, fuel, medicine — it is in extremely short supply.

With nearly every bank branch and ATM inoperable, people have become reliant on an unrestrained network of powerful cash brokers to get money for daily expenses and commissions on those transactions have soared to about 40%.

"The people are crying blood because of this," said Ayman al-Dahdouh, a school director living in Gaza City. "It’s suffocating us, starving us."

At a time of surging inflation, high unemployment and dwindling savings, the scarcity of cash has magnified the financial squeeze on families — some of whom have begun to sell their possessions to buy essential goods.

The cash that is available has even lost some of its luster. Palestinians use the Israeli currency, the shekel, for most transactions. Yet with Israel no longer resupplying the territory with newly printed bank notes, merchants are increasingly reluctant to accept frayed bills.

Gaza’s punishing cash crunch has several root causes, experts say.

To curtail Hamas’ ability to purchase weapons and pay its fighters, Israel stopped allowing cash to enter Gaza at the start of the war. Around the same time, many wealthy families in Gaza withdrew their money from banks and then fled the territory. And rising fears about Gaza’s financial system prompted foreign businesses selling goods into the territory to demand cash payments.

As Gaza’s money supply dwindled and civilians’ desperation mounted, cash brokers' commissions — around 5% at the start of the war — skyrocketed.

Someone needing cash transfers money electronically to a broker and moments later is handed a fraction of that amount in bills. Many brokers openly advertise their services, while others are more secretive. Some grocers and retailers have also begun exchanging cash for their customers.

"If I need $60, I need to transfer $100," said Mohammed Basheer al-Farra, who lives in southern Gaza after being displaced from Khan Younis. "This is the only way we can buy essentials, like flour and sugar. We lose nearly half of our money just to be able to spend it."

In 2024, inflation in Gaza surged by 230%, according to the World Bank. It dropped slightly during the ceasefire that began in January, only to shoot up again after Israel backed out of the truce in March.

Cash touches every aspect of life in Gaza

About 80% of people in Gaza were unemployed at the end of 2024, according to the World Bank, and the figure is likely higher now. Those with jobs are mostly paid by direct deposits into their bank accounts.

But "when you want to buy vegetables, food, water, medication -- if you want to take transportation, or you need a blanket, or anything — you must use cash," al-Dahdouh said.

Shahid Ajjour’s family has been living off of savings for two years after the pharmacy and another business they owned were ruined by the war.

"We had to sell everything just to get cash," said Ajjour, who sold her gold to buy flour and canned beans. The family of eight spends the equivalent of $12 every two days on flour; before the war, that cost less than $4.

Sugar is very expensive, costing the equivalent of $80-$100 per kilogram (2.2 pounds), multiple people said; before the war, that cost less than $2.

Gasoline is about $25 a liter, or roughly $95 a gallon, when paying the lower, cash price.

Bills are worn and unusable

The bills in Gaza are tattered after 21 months of war.

Money is so fragile, it feels as if it is going to melt in your hands, said Mohammed al-Awini, who lives in a tent camp in southern Gaza.

Small business owners said they were under pressure to ask customers for undamaged cash because their suppliers demand pristine bills from them.

Thaeir Suhwayl, a flour merchant in Deir al-Balah, said his suppliers recently demanded he pay them only with brand new 200-shekel ($60) bank notes, which he said are rare. Most civilians pay him with 20-shekel ($6) notes that are often in poor condition.

On a recent visit to the market, Ajjour transferred the shekel equivalent of around $100 to a cash broker and received around $50 in return. But when she tried to buy some household supplies from a merchant, she was turned away because the bills weren’t in good condition.

"So the worth of your $50 is zero in the end," she said.

This problem has given rise to a new business in Gaza: money repair. It costs between 3 and 10 shekels ($1-$3) to mend old bank notes. But even cash repaired with tape or other means is sometimes rejected.

People are at the mercy of cash brokers

After most of the banks closed in the early days of the war, those with large reserves of cash suddenly had immense power.

"People are at their mercy," said Mahmoud Aqel, who has been displaced from his home in southern Gaza. "No one can stop them."

The war makes it impossible to regulate market prices and exchange rates, said Dalia Alazzeh, an expert in finance and accounting at the University of the West of Scotland. "Nobody can physically monitor what’s happening," Alazzeh said.

A year ago, the Palestine Monetary Authority, the equivalent of a central bank for Gaza and the West Bank, sought to ease the crisis by introducing a digital payment system known as Iburaq. It attracted half a million users, or a quarter of the population, according to the World Bank, but was ultimately undermined by merchants insisting on cash.

Israel sought to ramp up financial pressure on Hamas earlier this year by tightening the distribution of humanitarian aid, which it said was routinely siphoned off by militants and then resold.

Experts said it is unclear if the cash brokers’ activities benefit Hamas, as some Israeli analysts claim.

The war has made it more difficult to determine who is behind all sorts of economic activity in the territory, said Omar Shabaan, director of Palthink for Strategic Studies, a Gaza-based think tank.

"It's a dark place now. You don't know who is bringing cigarettes into Gaza," he said, giving just one example. "It's like a mafia."

These same deep-pocketed traders are likely the ones running cash brokerages, and selling basic foodstuffs, he said. "They benefit by imposing these commissions," he said.

Once families run out of cash, they are forced to turn to humanitarian aid.

Al-Farra said that is what prompted him to begin seeking food at an aid distribution center, where it is common for Palestinians to jostle over one other for sacks of flour and boxes of pasta.

"This is the only way I can feed my family," he said.