Quantifying Turbulence: Introducing a Multi-crises Impact Index for Lebanon

Abstract

This paper provides an in-depth analysis of Lebanon’s severe economic crisis, a situation aggravated by the collapse of Banque du Liban’s financial strategies, delayed reforms by the government, the COVID-19 pandemic, and the devastating Beirut Port explosion. These events have precipitated a sharp decline in disposable income, soaring inflation rates, and an alarming increase in unemployment and multidimensional poverty. Central to this study is a comprehensive field survey that examines eighteen coping mechanisms adopted by workers in various economic sectors of Lebanon. From this survey, we introduce a new index designed to systematically categorize and evaluate these coping strategies across four critical dimensions of well-being: nutrition, healthcare, education, and financial issues. We use this index to quantify and understand the extent to which workers have relied on these coping mechanisms, offering novel insights into the socio-economic repercussions of the crisis.