Remittances and Post-Conflict Development in Lebanon
Remittances and Post-Conflict Development in Lebanon

Author(s): Michal Onderčo
Subject(s): National Economy, Migration Studies
Published by: AMO – Asociace pro mezinárodní otázky
Keywords: Lebanon development 2009; Remittances; diaspora;
Summary/Abstract: After the Taif Agreement signed in late 1989, the reconstruction of Lebanon started. Although large amounts of money were spent on the reconstructing the country, large portion of the population would not have survived unless the income from remittances entered the country. Remittances form up to 15% of the country’s GDP nowadays. Their origin is mainly in the Western developed countries but remittances from the African countries are present too. Lebanon is an ideal country for a large amount of remittances to come, thanks to its large and loyal diaspora and relatively stable economic situation in the country. The remittances have helped the country to avoid a balance of payments crisis during the post-war period, but failed to impact the investment in the country. The government relying on remittances has not made necessary reforms. Attempts to tap systematically into migrant’s sources via diaspora bonds were unsuccessful. Therefore, although remittances did not contribute to the investment, they helped the country’s population to sustain itself. In macroeconomic terms, constant inflow of hard currency helped the government to sustain Lebanon’s economy.

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