Attachments
OPERATIONAL CONTEXT
Lebanon is now in its fourth year of a deep economic, political, and social crisis. In April 2023, driven by recordhigh currency depreciation, Lebanon recorded the highest nominal food price inflation rate in the world at 350 percent (YoY), as reported by the World Bank. Since the end of the presidential term on 31 October 2022 without a new president elected, the country faces an institutional vacuum, delaying the implementation of a comprehensive economic recovery plan.
These crises have led to high levels of poverty and food insecurity amongst both Lebanese and refugee communities. The first Integrated Food Security Phase Classification (IPC) analysis in September 2022 projected 1.46 million Lebanese and 800,000 Syrian refugees – 42 percent of the total population – were facing acute food insecurity (IPC Phase 3, Crisis, and Phase 4, Emergency).
Results for the second IPC analysis conducted in May 2023 are expected in the upcoming months.
WFP is at the forefront of the response to Lebanon’s economic and refugee crisis, supporting over 1 million refugees and 800,000 Lebanese nationals to meet their food and other basic needs. In addition, WFP implements cash transfers to an additional 400,000 Lebanese individuals on behalf of the Government’s Emergency Social Safety Net. Together with the World Bank, WFP is a key partner to the Government of Lebanon to strengthen national social safety nets.
SITUATION UPDATE
The cost of the Survival Minimum Expenditure Basket (SMEB) monitored by WFP reached LBP 27.2 million (US$278) for a family of five in April, registering a 10 percent monthly increase and a 350 percent annual increase. The cost of the food basket alone reached LBP 2.7 million (US$29) per person/month, a five percent monthly increase. The increase in the non-food basket was driven primarily due to an increase in rent prices.
HIGHLIGHT: DUAL CURRENCY REDEMPTION
In response to growing operational constraints to disbursing cash assistance in local currency, following four months of discussions with the Government of Lebanon,
WFP and UNHCR re-initiated dual currency disbursements of cash assistance for Syrian refugees for May. Lebanese families receiving cash assistance have been able to redeem in both USD and LBP since September 2021.
As a result, assisted families were able to access their assistance in a quicker, safer, and overall, more dignified manner. Significant reductions in crowding, waiting times, and tensions at redemption points also had positive impacts on the wider community and access to dual currency redemption also benefitted retailers.
On 27 May, at the request of the Prime Minister, the UN agreed to temporarily delay the disbursement of the June assistance cycle to jointly review the impact of the reestablishment of dual currency disbursement in May.