Lebanon’s 2019 financial collapse ranks among the worst globally in recent history. Rooted in decades of fiscal mismanagement, entrenched clientelism, and a post-civil war economic model that emphasises speculative financialisation over social welfare, the resultant collapse of the Lebanese pound (LBP)–US$ peg triggered widespread socioeconomic devastation, with hyperinflation, skyrocketing poverty, and the erosion of people’s savings and wages. With more than 70 per cent of the population living in multidimensional poverty, Lebanon’s already fragmented social protection systems were overwhelmed, highlighting the urgent need for systemic reform.
This paper examines the structural causes of the financial collapse, the subsequent impact on Lebanon’s social protection systems, and the limitations of shock-responsive social protection (SRSP) frameworks in such a context. Drawing on participatory workshops, key informant interviews, and multiple strands of academic and policy research, the paper highlights how systemic vulnerabilities and political dysfunction constrained Lebanon’s ability to implement effective SRSP. These vulnerabilities and dysfunctions must therefore be addressed simultaneously alongside more technical social protection policy reform.
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