Steadfast Despite Fluctuations
How a Lebanese charity manages to help those in need amidst economic and social chaos.
Lebanon used to be called “The Switzerland of the Middle East”, but its financial collapse since 2019 is a cautionary tale against economic mismanagement and unbridled debt accumulation. In 2021, government debt was estimated to be 495% of gross domestic product, and hyperinflation lead to an accelerated impoverishment of the Lebanese people as the currency lost over 98% of its value in less than 4 years¹, while the value of wages failed to keep up².
While domestic food price inflation remains high around the world with many countries experiencing double-digit inflation³, Lebanon records the highest nominal food price inflation rate, placing the country ahead of Zimbabwe, formerly the inflation “champion”³.
Lebanon's only reliable export, currently, seems to be its human capital. While the Lebanese that can leave the country most often do, many from the surrounding region, particularly Syria, are flooding in. Instability in the entire region has led to massive population displacements and a seemingly never ending influx of refugees. According to a UN report, by the end of 2022, the Middle East and North Africa hosted 2.4 million refugees, 12.6 million internally displaced people (IDPs), 251,800 asylum seekers and 370,300 stateless persons⁴.
With a population of just under 5.5 million, Lebanon is now home to approximately 3.9 million people in need of humanitarian assistance, including 2.1 million Lebanese nationals, and 1.5 million Syrian refugees⁵.
The same UN report shows a continuous deterioration in the living situation of Syrians in Lebanon amid the deepening economic and financial crisis. With the exponential rise in prices of essential goods and services, 9 out of 10 refugee families need support to meet their basic needs, with over two-thirds not having the economic capacity to afford the minimum needed to survive.
LSESD serves the Middle East and North Africa region by providing support in three key areas of social development:
Addressing the basic needs of vulnerable families, especially refugees and those affected by the violence in neighboring countries, in a manner that preserves their dignity and allows them to hope for a better future.
Providing educational support, thus reducing the future vulnerabilities of younger generations.
Training socially responsible Arab Christian leaders who take an active role in society.
Despite the growing instability in the region LSESD continues serving some of the most vulnerable groups through education and community development.
But as banks shut down operations and the economy resorted to using only cash, in a currency that was almost worthless, LSESD found itself struggling to fund its work while also maintaining some level of security. Paying bills in Lebanon often means moving around with carpet bags filled with cash, because the highest denominated bill (100,000 lira) is worth less than 10 USD.
TrustBridge offered the solution, by enabling LSESD to keep assets in their Charity Fund in Switzerland in major currencies (USD, Euro, GBP), and only convert them to lira and draw them down just in time to pay bills. This avoids both security issues and devaluation of funds due to currency instability.
For charities and NGOs operating in unstable economic settings, a Charity Fund can be a great way to manage currency risk and receive donation support from outside sources so that operations can continue.
To learn more about the Charity Fund, please visit our website here.
The Lebanese Society for Educational and Social Development is one of the many organizations supported by TrustBridge and its donors. If you would like to become a donor to LSESD, you can do so directly by clicking on this link.
Learn more about LSESD at https://www.lsesd.org/