Background

For many years, Lebanon has been a leading recipient of remittances, both in absolute and relative terms. Averaging above $6 billion and equal to 16% of GDP during the past decade, remittance inflows played a key- if not leading role- in Lebanon’s economy. These inflows constituted an essential part of the country’s social safety net, accounting on average for over 40% of the income of the families that receive them. However, the recent economic and financial crisis- that started to escalate as of fall 2019- adversely affected the level of remittances transferred to Lebanon, given the loss of confidence in the Lebanese banking and monetary system and the economic uncertainties that started to emerge as of then. Also, the spread of COVID-19 pandemic and the resulting global economic crisis largely affected the transfers of workers worldwide. The World Bank estimated that remittances to low-and-middle-income countries are expected to fall by around 14 percent between 2019 and 2021, according to the latest estimates published in the World Bank’s Migration and Development Brief.[1]

These developments are likely to affect the world and Lebanon’s ability to meet Sustainable Development Goal (SDG) indicators, namely, increasing the volume of remittances as a percentage of gross domestic product (GDP) (SDG indicator 17.3.2).

The role that remittances play in the economy is controversial, mainly in terms to their contribution to the broader macro-economic, monetary, and fiscal framework as well as the social wellbeing of households and labor supply. Notably, remittances play key role in public sector funding, productive sector investment, household consumption, exchange rate stabilization, balance of payment and others. 

With the current devaluation of the Lebanese currency, soaring inflation and multiple exchange rate regimes, remittances sent from emigrants abroad become an important consumption smoothing mechanism for the recipient households, enabling the latter to partially weather the severe implications of the crisis and providing a social safety net, compensating for the absence of a government-driven support. However, given the protracted nature of the Lebanese economic crisis, there are great uncertainties regarding the continuous flow of these remittances, their use, and their potential contribution to economic recovery.  

[1] The World Bank, Phase II: COVID-19 Crisis through a Migration Lens Migration and Development Brief 33 October 2020

Duties and Responsibilities

For many years, Lebanon has been a leading recipient of remittances, both in absolute and relative terms. Averaging above $6 billion and equal to 16% of GDP during the past decade, remittance inflows played a key- if not leading role- in Lebanon’s economy. These inflows constituted an essential part of the country’s social safety net, accounting on average for over 40% of the income of the families that receive them. However, the recent economic and financial crisis- that started to escalate as of fall 2019- adversely affected the level of remittances transferred to Lebanon, given the loss of confidence in the Lebanese banking and monetary system and the economic uncertainties that started to emerge as of then. Also, the spread of COVID-19 pandemic and the resulting global economic crisis largely affected the transfers of workers worldwide. The World Bank estimated that remittances to low-and-middle-income countries are expected to fall by around 14 percent between 2019 and 2021, according to the latest estimates published in the World Bank’s Migration and Development Brief.[1]

These developments are likely to affect the world and Lebanon’s ability to meet Sustainable Development Goal (SDG) indicators, namely, increasing the volume of remittances as a percentage of gross domestic product (GDP) (SDG indicator 17.3.2).

The role that remittances play in the economy is controversial, mainly in terms to their contribution to the broader macro-economic, monetary, and fiscal framework as well as the social wellbeing of households and labor supply. Notably, remittances play key role in public sector funding, productive sector investment, household consumption, exchange rate stabilization, balance of payment and others. 

With the current devaluation of the Lebanese currency, soaring inflation and multiple exchange rate regimes, remittances sent from emigrants abroad become an important consumption smoothing mechanism for the recipient households, enabling the latter to partially weather the severe implications of the crisis and providing a social safety net, compensating for the absence of a government-driven support. However, given the protracted nature of the Lebanese economic crisis, there are great uncertainties regarding the continuous flow of these remittances, their use, and their potential contribution to economic recovery.  

[1] The World Bank, Phase II: COVID-19 Crisis through a Migration Lens Migration and Development Brief 33 October 2020

Competencies

Proficiency in English and Arabic languages. French is an asset

Required Skills and Experience

I. Academic Qualifications:

Education:

• University Degree in Economics, Development Economics, Finance, or any related field (business, etc)
• Master’s degree in economics or higher in any related field is preferred

 II. Years of experience:

• 10 to 15 years of overall experience in quantitative and qualitative research in Lebanon and preferably in the region.
• 4 to 6 years of relevant experience in financial research and quantitative analysis covering macro-economy, labor, migration, income, and others.

III. Technical experience:

The consultant will need to have the following experience:

• A proven understanding of the Lebanese economy, context and of the Lebanese financial and economic crisis. 
• Experience and familiarity with financial flows, FDIs, remittances, balance of payment.
• Experience in convening high level interviews and meetings
• Experience in moderating round table discussions

IIV. Mandatory requirements:

• Computing proficiency with competency in the use of Microsoft (Excel, Word, PowerPoint, etc.) and video conferencing. Excellent communication and writing skills in both English and Arabic.

Proven high-quality report writing skills.