Urban Greater Beirut: Household Economy Analysis (HEA) Baseline of Low-Income Neighbourhoods

Save the Children conducted an HEA baseline in early 2020 for its project locations in metropolitan Beirut. The aims of the study was to better understand wealth and socio-economic dynamics, inform thresholds for ‘cash plus’ programming, and support livelihoods projects modelling for poor and very poor wealth groups. The focus of the work was the ‘host population’, including Lebanese and Palestinian refugees (PRL). Many assessments of Syrian refugees have been conducted in recent years and, therefore, this population was not included in this HEA baseline study.

The results show that the impact of Lebanon’s economic crisis on very poor, poor, and middle-income households in urban Greater Beirut are severe. When this is combined with COVID-19 containment measures, it is clear that the impact of COVID-19 will exacerbate an already struggling economy and will have many months of aftereffects as businesses struggle to remain viable following periods of closure due to the health crisis. When modelling this scenario, the analysis showed that very poor, poor, and even middle-income Lebanese households will likely see a monthly survival deficit between LBP 592,688 – LBP 650,176 ($395-$433 at the official bank rate). Unemployment levels will continue to worsen with the COVID-19 pandemic, and poverty among Lebanese will further exacerbate tensions with refugee communities given the increasing needs and vulnerabilities of both groups. Negative coping mechanisms, notably an increase in child labour, is an expected response by the poorest and most vulnerable families, putting children, women, people with disabilities, and other marginalised groups at the highest risk.