The case of Palestinian refugees in Lebanon

This is part one of four short reviews from a consolidated article by Oussama Baher, investigating the lack of financial and social inclusion for Palestinian refugees in Lebanon and advocating that the rewards for financial inclusion of refugees outweigh the disadvantages any government may fear.

Source: Insamer.com

Refugees desperately fleeing from conflicts or marginalisation face challenges of another nature in their host country. These might be differences in language, culture and traditions, religion, ethnicities, for example. Such problems create a barrier of inclusion against refugees, inflicting their vulnerability even further.

The Gaza war in October 2023 reminded the world about one of the most complicated conflicts in modern history, the Palestinian crisis. The recent war is only a chapter in a long-term series of conflicts for Palestinians that date back to the 1940s. This multi-generational struggle is inflicted not only by Israel as their main adversary, but also by neighbouring nations that consider themselves friends to Palestinians. For example, since the beginning of the crisis, a good proportion of Palestinians chose Lebanon as a refuge as an alternative to internal displacement following the 1947-49 Palestine war.

Having a more diverse and liberal society might be a driver for more financial inclusion but this may not always be the case. Lebanon is a clear example where political and economic constraints result in lack of financial inclusion despite the progressive and democratic culture there. Refugees are often portrayed as a threat to culture, resources and a burden on public finances. They become marginalised and used for various political agendas.

Lebanon chooses not to provide permanent residence entitlements or citizenship to Palestinian refugees in the hope they could return one day to Palestine, as they believe they have been unlawfully exiled of their homeland. Lebanese politicians claim that Palestinians should not be included in the Lebanese societies as this might lead to the loss of Palestinian identity, and by doing so, they could use refugees as a bargaining chip to seek more aid from the international community.

In addition, Palestinian refugees’ are only allowed to work in selected professions. These are often labour-intensive jobs within the infrastructure, manufacturing and agriculture sectors. These professions have been expanded over the years which was seen as a move in the right direction. However, they are still required to obtain a work permit in order to benefit from a partial social security (Unlike a Lebanese citizen, they are still not permitted access to family allowance, sickness or maternity funds even under a full-time employment with tax payments).

Up until the present day, Palestinians are still considered a deprived community in the Lebanese system despite sharing the same language and religion with a good proportion of the host population, and similar traditions to some extent. They are still stateless, mostly living in refugee camps and not permitted to work in most professions, with 80% of them living under the poverty line. Evidence shows that such high levels of deprivation leads to inequality and high crime rates. If Lebanese citizens want things fixed on their own doorstep first before they help anyone else, they need to see that ignoring the Palestinian community is against their interests.

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Financial inclusion: why does it matter?

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Struggle of Palestinian refugees for finance in Lebanon: A wasted opportunity in a win-win situation