Lebanon’s Economic Collapse and Its Impact on Refugees and Humanitarian Aid 

Context Lebanon is currently experiencing one of the most severe economic collapses in modern history, marked by a dramatic GDP decline, hyperinflation, currency devaluation, and rising unemployment. Structural weaknesses, compounded by political instability, the COVID-19 pandemic, and the 2020 Beirut port explosion, have further destabilized the country. These economic challenges have created a dire humanitarian situation for over 1.5 million Syrian refugees, Palestinian refugees, and internally displaced populations (IDPs). The growing displacement crisis, exacerbated by ongoing military confrontations and internal conflicts, has stretched Lebanon’s already fragile public service delivery systems and aid infrastructure to the breaking point. 

Problem Statement Lebanon’s economic collapse has significantly disrupted humanitarian aid programs, diminishing both international and domestic funding and reducing operational capacity. Aid agencies face severe challenges in meeting the escalating needs of refugees and IDPs, resulting in critical service gaps in food, healthcare, and shelter. Vulnerabilities among displaced populations have worsened, with many falling deeper into poverty and experiencing heightened social and economic marginalization. This case study investigates the systemic impact of Lebanon’s economic crisis on humanitarian aid programs and explores the broader implications for refugee well-being and regional stability. 

Literature Review: 

1. Economic Collapse: Studies by the World Bank and Fragile States Index emphasize Lebanon’s structural vulnerabilities and highlight key economic indicators such as GDP contraction, triple-digit inflation, and skyrocketing unemployment. 

○ Source: World Bank, Lebanon Overview (2024); Fragile States Index (2024). 

2. Humanitarian Aid Challenges: Donor fatigue, funding shortages, and operational disruptions are widely documented by UNHCR and WFP reports. Service gaps in food distribution, healthcare, and education are evident, with over 90% of Syrian refugees relying on aid to survive. 

○ Source: UNHCR (2024); WFP (2024). 

3. Refugee Vulnerabilities: Academic and policy literature highlights worsening poverty, food insecurity, and anti-refugee sentiment among displaced populations. Studies explore the cyclical nature of displacement between Lebanon and Syria and its sociopolitical implications. 

○ Source: TIMEP (2024); Juan Cole (2024). 

4. Policy and Governance Issues: Analyses by Chatham House and other think tanks reveal governance failures and the lack of effective coordination mechanisms among international and local stakeholders. 

○ Source: Chatham House (2017). Sabreena Shukul, Nicole Harris Lauren Reeves, Serene Chan 

Analytical Framework This case study employs a multi-dimensional analytical framework combining: 

● Economic Analysis: Evaluation of key economic indicators to assess the systemic factors driving the collapse. 

● Humanitarian Impact Assessment: Examination of operational disruptions, funding trends, and service delivery gaps. 

● Social Vulnerability Analysis: Focus on the lived experiences of refugees and IDPs, including poverty, health, and education metrics. 

● Policy Critique: Analysis of institutional failures and gaps in governance to identify barriers to effective aid delivery. 

This approach will provide a comprehensive understanding of how Lebanon’s economic crisis intersects with humanitarian challenges, offering insights into addressing both immediate needs and long-term systemic issues.