Lebanon is currently in the throes of its worst economic and financial crisis to date. The severe devaluation of the Lebanese Lira, exacerbated by the popular uprising of October 17, the Covid-19 pandemic, and the Beirut Blast of August 4, 2020, has caused an unprecedented strain on Lebanon’s education sector. The xx Consulting firm has produced an exhaustive Baseline Report on the matter, with the main findings summarized hereafter.
xx has articulated their research around five key points: outlining the size of the different student segments, analyzing the effects of the crisis on the costs of education and the distribution of students, defining existing financial support channels and primary recipients, ascertaining existing donation sources and the profile of potential contributors, and identifying the segments that are most vital for Lebanon’s future economic development.
Undergraduates constitute the bulk of Lebanon’s student body, followed by secondary students. The latter have been notedly transitioning from private to public learning institutions. Lebanon’s public education sector is under heavy stress, with the Lebanese Public University boasting nearly 40% of all undergraduates in Lebanon. Only 12% of undergraduates are enrolled in private tier 1 establishments (such as the American University of Beirut, the Lebanese American University, or the Saint-Joseph University). At the graduate level, the number of tier 1 attendees increases to 20%.
This shift towards the public sector and the relatively modest weight of tier 1 private universities can be justified by the skyrocketing costs tied to education. The severe devaluation of the Lebanese Lira and tier 1 universities’ tendencies to denominate tuition fees in USD have made education less expensive for USD earners while exacerbating the costs for those with no access to fresh dollars. Students enrolled in public institutions or private institutions with tuition fees denominated in LBP have not been spared by the crisis either, as they must cover increasingly expensive additional costs, such as textbooks, stationary, transportation, or online learning tools. Students learning abroad have had to face the additional hindrance of severe money transfer constraints.
Generally, Lebanese students could rely on a number of support channels, ranging from university scholarships to contributions from foundations or bi-lateral and multi-lateral agencies. However, the bulk of scholarships are concentrated in the private tier 1 universities, which, aside from being the most expensive institutions in Lebanon, also have a restricted number of students. The Lebanese Public University, on the other hand, offers little to no financial aid whatsoever. Furthermore, scholarships, which are usually distributed according to merit, follow a highly selective process, and do not take into account “second tier” performers or students with unrealized potential due to socio-economic backgrounds. However, using fresh dollars can significantly reduce the cost of supporting students in Lebanon, which is why multiple associations such as APJ are shifting their attention from Lebanese students abroad to those pursuing higher education locally.
Lebanese students can also count on donations from corporations or high net worth individuals seeking to give back to their home country, leverage the wealth stuck in Lebanese banks, or use the concept of fresh dollars to support more with less. Some have also resorted to crowdsourcing. However, crowdsourcing, which often relies on emergency and shock, cannot constitute a reliable source of funding on its own, and should instead be paired with other traditional support channels, and a matching framework.
With somewhat limited sources of funding, it is of the utmost importance to identify the segments that are most likely to contribute to Lebanon’s economic future. XX has found that undergraduate students in Lebanon have the highest potential to do so, particularly those specializing in STEM, creative industries, finance, marketing, agriculture, pharma, and hospitality. Additionally, it is vital to alleviate the socio-economic risks of students in the public university being forced to drop out due to financial strain.
All in all, XX has found that undergraduates in Lebanese universities constitute the largest student segment, and are primarily concentrated in the public university. However, students in both private and public institutions have suffered from the economic crisis. Those in private tier 1 universities have had to face a sudden increase in tuitions fees due to the devaluation of the lira, while those enrolled in the Lebanese Public University struggle to meet the rapidly escalating costs of additional expenses. Existing support channels focus the brunt of their attention on private tier 1 universities and top-performers, and are now shifting their efforts towards students in Lebanon, thus diminishing coverage for those studying abroad. The public university, middle achievers, and those with unrealized potential benefit from little to no support. Donations, from corporations and wealthy individuals seeking to leverage their wealth and contribute to their home country, should be invested in undergraduates in Lebanon specializing in certain fields of study, as they exhibit the highest potential of contributing to Lebanon’s economy. However, it is also important to ensure that students, particularly those in the public university, do not drop out of tertiary education, as it would entail a number negative socio-economic repercussions.