I will be monitoring and analyzing the GDP growth effect on the education expenditure in Lebanon focusing on the past decade (2010-2020). I have opted to use a line graph to clearly monitor the fluctuation of GDP growth annually across time in years as well as the Government expenditure on education during the same period (2010-2020). To further emphasize Lebanon’s GDP decline and their mismanagement of financial resources, I further highlight some key metrics mismanaged by the country.

The Lebanese government’s expenditure on education and Lebanon’s GDP growth annually across 2010-2020 are fluctuating, however the steep decline represented from 2019 to 2020 is coupled due to major events such as the Covid-19 and the turbulence in the Lebanese economy mainly, whereby the Lebanese pound lost a significant % of its value to the U.S dollar causing disruption in the Lebanese economy. The government expenditure on education is represented with a decline from 19.44% to 9.90% which is compatible with the steep decline in the Lebanese economy represented in the GDP annual growth of 4.14 % to reach a record low of -21.40% within a period of 1 year (2019 to 2020).

Lebanon experienced low and consistent inflation rates from 2010 to 2018, however the Inflation GDP deflator skyrocketed to reach a maximum of 84.30 % in 2020, a record high. Hence, the average price change in the entire economy shifted affecting the overall price level and cost of living as inflation rose by over 80% from 2019 up until 2020.

This reflects volatility and an upward trend. Some key issues the country faced are:

-Economic Challenges
-Political Instability
-High Public Debt
-Deteriorating financial situation

All contributing to the inflationary pressures.

Given the impact of inflation on the economy and people’s purchasing power, it is crucial for Lebanon to address this issue and invest in education. By investing in education, Lebanon can enhance its human capital, promote innovation, and improve productivity. A well-educated workforce can contribute to economic growth, job creation, and the development of a more resilient and sustainable economy. Therefore, investing in education becomes even more important as Lebanon works towards stabilizing its economy and improving the living standards of its people.

In 2020, Lebanon experienced a net inflow of foreign direct investment (FDI) amounting to 5.12% of its GDP. Although representing a decline across the past decade, this significant influx of foreign investment presents a valuable opportunity for Lebanon to allocate a portion of these funds towards investing in education. By channeling a portion of the FDI into the education sector, Lebanon can enhance its educational infrastructure, improve access to quality education, and develop a skilled workforce. Additionally, investing in education can foster innovation, entrepreneurship, and the creation of a knowledge-based economy, positioning Lebanon as a competitive player in the global market. It is crucial for Lebanon to seize the opportunity presented by FDI inflows and strategically allocate resources towards education to unlock its full potential and secure a prosperous future.

Lebanon has demonstrated a commendable literacy rate, with the youth total literacy rate and adult literacy rate reaching 99.79% and 95.30% respectively in 2020. These figures remained consistently high over the past years, indicating the nation’s commitment to education. The impressive literacy rate emphasizes the importance of investing in and further improving education in Lebanon. By increasing educational investments, the country can continue to enhance literacy levels and equip its youth with the necessary knowledge and skills to thrive in a rapidly evolving world. Education serves as a foundation for social and economic development, and sustained investment in this sector will undoubtedly yield long-term benefits for Lebanon’s future generations.

Analyzing the Net migration rate over rate we notice the trend of the Lebanese diaspora and the potential loss of highly educated individuals often referred to as the “brain drain”. This emphasizes the impact on Lebanon’s human capital and further stresses that educated individuals are leaving the country. The net negative migration rate since 2013 to reach a -115,146 in early 2020 showcases that more people are leaving rather than entering the country.

Lebanon’s control of corruption estimate was -1.16, indicating a significant challenge in combating corruption within the country. Moreover, Lebanon’s control of corruption percentile rank stood at 12.02%, reflecting a relatively low performance. Corruption poses a detrimental impact on various sectors, including education. To address this issue, investing in education becomes crucial as it can help combat corruption and promote transparency. By allocating resources towards education, Lebanon can enhance access to quality education, improve governance within the education system, and foster ethical practices among future generations. Education plays a pivotal role in instilling values of integrity, accountability, and good governance, which can contribute to reducing corruption in the long run. Additionally, investing in education equips individuals with knowledge and skills, empowering them to actively participate in society, advocate for transparent practices, and contribute to building a corruption-free Lebanon.

We clearly see the need for reform strategies that will allow Lebanon to enhance its GDP growth rate in order to invest in education, increase education expenditure, and increase education attainment, which is going to boost its labor force. There are various steps Lebanon can take to improve its currency and GDP growth, which will have an impact on government expenditures on education. Here are three potential strategies:

– Implement economic reforms: The currency problem in Lebanon is mostly the result of economic mismanagement and corruption. To solve this, the government might adopt economic reforms such as reducing the national debt, increasing tax revenues, and enhancing the business environment in order to attract foreign investment. This would help to stabilize the currency and stimulate GDP growth, resulting in additional resources for education investment and spending.

– Invest in infrastructure: Investing in infrastructure projects such as roads, bridges, and transportation systems is another way to raise GDP. This would not only create jobs and stimulate economic growth, but it would also increase educational access by making it easier for students to commute to school.

– Promote entrepreneurship: Encouraging entrepreneurship and small business development can help boost GDP and create jobs. This could be accomplished by initiatives such as extending tax incentives to small firms, providing training and assistance to entrepreneurs, and boosting access to funding. A stronger economy would provide the government with greater resources to invest in education and other social services.

In terms of the impact on government education spending, a stronger economy would provide greater resources for education. This might imply increase school funding, higher teacher salaries, and improved student facilities and resources. It is crucial to highlight, however, that the government’s priorities and policies will ultimately determine how much funding gets allocated to education and how it is spent.

Implementing reforms and investing in infrastructure, among other things, are some measures Lebanon can use to boost GDP, after which it can invest a greater proportion of GDP in education for Lebanon’s future economic growth and social development. The government should prioritize changes that address inefficiencies and disparities in education spending to improve the quality and equality of the school system. In taking the proper steps, Lebanon can rise again and blossom.

References:- The World Bank (2023) World Development Indicators. Available at: https://datacatalog.worldbank.org/search/dataset/0037712 (Accessed: 11 July 2023).