Measuring Economic and Financial Literacy and Capability Experience of Lebanon

Transcription

1 Measuring Economic and Financial Literacy and Capability Experience of Lebanon Institut des Finances Basil Fuleihan Nairobi, 30 January 2013

2 Outline I. Country and Background Information II. National Survey III. Next Steps 2/14

3 Country Information 3/14

4 3. Background Information Lebanon Parliamentary Democracy since 1943 Small country km2 Conflict zone Small population - 4,259 million GDP Growth: 2% in 2012 High middle income : GDP/Capita15,500 USD Highly indebted country: Debt/GDP 137% Large informal sector: 34% Reference CIA World Fact Book; IMF World Economic Outlook October 2012; World Bank Data /14

5 Background Information.3 Lebanon 90% 86% 74% Adult Literacy Rate 88% 89% Literacy Indicators Lebanon 66% Adulte Female Literacy Rate Education Indicators Lebanon 52% MENA 43.40% 50% Labor Force Participation MENA 75% 21.10% 26% Female Labor Force Participation 64% Parliamentary Democracy since 1943 Small country km2 Conflict zone Small population - 4,259 million GDP Growth: 2% in 2012 High middle income : GDP/Capita15,500 USD Highly indebted country: Debt/GDP 137% Large informal sector: 34% No Natural Resources, labor intensive Low female participation to the labor force :21.1% Literacy rate: 90% 27% Primary School Enrollement Tertiary School Enrollement Secondary School Enrollement Reference Economic and Financial Literacy in Lebanon: Diagnostic Report, ECE April /14

6 Background Information.3 Lebanon Loan Account Penetration GDP Growth: 2% in 2012 High middle income : GDP/Capita15,500 USD Highly indebted country: Debt/GDP 137% Large informal sector: 34% No Natural Resources, labor intensive Low female participation to the labor force :21.1% Literacy rate: 90% Banking sector, backbone of economy commercial banks per 1000km2 High loan account penetration: 520 Lebanese over 1,000 have a loan account Reference Economic and Financial Literacy in Lebanon: Diagnostic Report, ECE April /14

7 Background Information.3 Lebanon Consumer Protection GDP Growth: 2% in 2012 High middle income : GDP/Capita15,500 USD Highly indebted country: Debt/GDP 137% Large informal sector: 34% No Natural Resources, labor intensive Low female participation to the labor force :21.1% Literacy rate: 90% Banking sector, backbone of economy commercial banks per 1000km2 High loan account penetration: 520 Lebanese over 1,000 have a loan account Consumer Protection for financial services in Lebanon ranks very low Reference Economic and Financial Literacy in Lebanon: Diagnostic Report, ECE April /14

8 3. Background Information Educational Sector 37% Of children are educated in public schools 1,393 Public schools across Lebanon 30% is the drop out rate between primary and elementary levels 1997 Civic education and economics introduced to the curriculum citizenship and social cohesion not promoted 15% Teachers have received some training impact never been evaluated 3.7% Of GDP allocated for expenditure on public education in 2007 (wages and salaries) less than average 2009 Capacity building program for economics teachers in secondary public schools Reference ANNEX IITO AGREEMENT N ENPII2009/ /14

9 3. Background Information Economic and Financial Education Clear interest in economic and financial education An alliance between main actors: May 2010 Joining the INFE network October 2010 Beirut OECD & Banque du Liban International Conference on Financial Education: Building Financially Empowered Individuals 2011 Lebanon as the only MENA country selected as pilot for the Financial Literacy Measurement / Russia Trust Fund Reference Economic and Financial Literacy in Lebanon: Diagnostic Report, ECE April /14

10 National Survey 10/14

11 5. Methodology Questionnaire Design Modules 1: Day to Day Money Management 2: Planning Ahead 3: Choosing Appropriate Products 4: Financial Knowledge Financial Knowledge: 1. Calculations and Percentages 2. Simple and Compounded Interests 3. Inflation and Time Value of Money 4. Risk Diversification and Return 5. Exchange rates Public Finance: 1. Taxes 2. Budget 3. Debt 4. Retirement Programs 5. Consumer Protection 5: Public Finance

12 5. Methodology Sample Selection The sample size for this survey was 1200 households all over Lebanon excluding Palestinian Camps and gathering. The statistical unit for the purposes of this study is the individual in the household who is above 18 years of age. HH distribution in CAS 2004 Sample distribution Beirut 101, % 139 Mount Lebanon 371, % 506 Northern 162, % 221 Lebanon Bekaa 102, % 140 Southern 89, % 122 Lebanon Nabatieh 52, % 72 Lebanon 879, % 1200 Step 1: Distribution by Governorate (2004 data) Step 2: Distribution by Cluster (2004 data) Step 3: Distribution by Caza (1997 data) Step 4: Distribution by CF (1997 data)

13 5. Methodology Sampling Methodology In the absence of a standard sampling base in Lebanon, a specific sampling methodology was designed Survey conducted by the Consultation and Research Institute Nationally representative 1200 Households 18 years + Probability Sampling Customized questionnaire عربي Language Arabic Face to face interviews Data collection: May August 2012

14 6. Process Steps of the National Survey Plan Questionnaire Development by Trust Fund September 2011 Customization and Translation to Arabic October 2011 Training of supervisors October 2011 Pre-test (10 to 15 households) October 2011 Pilot Test (100 households), Data entry and cleaning December 2011 Training for supervisors and enumerators May 2012 Field Work, data entry and cleaning May June 2012 Issuance of descriptive results August 2012

15 7. Sample Description The total sample size for this survey was 1,214 households, amounting to a total of 4,863 members. The household size was 4.01 in The gender distribution in the sample showed that a slight majority of females live in Lebanon than males. 71% of the population is between the ages of 15 and 64. Reference Economic and Financial Literacy in Lebanon: Quantitative Analysis, ECE December 2012

16 7. Sample Description Reference Economic and Financial Literacy in Lebanon: Quantitative Analysis, ECE December

17 8. Some Key Results Money Management Women seem to be as likely as men to be in charge of the decision making: 32% of the male respondents and 31% of the female respondents claimed to be responsible for short-term financial decisions. 52.6% of respondents set up budget for using their money; Only 45.2% end up with a surplus of money after paying for food and necessities; 17.5% claim to save them for expected expenses; 37% appear to suffer from insufficient money for essentials; 28% of which borrow to cover insufficiencies;

18 8. Some Key Results Money Management Planning for the Old Age 71% of respondents claim they have not taken any measure to cover for the future 20% have not yet set out thought of any strategies to plan for their old age; 63% are taking some step to plan for the future of their children; 53.4% claim to save money for the future 53.4% 16% intend to work beyond retirement age 26% of surveyed above 60 are/will rely on family members

19 8. Some Key Results Financial Tools

20 8. Some Key Results Financial Literacy

21 9. Difficulties and Lessons Learnt Challenges Absence of national statistical data Customized sampling methodology Localization of survey and translation Training and more training Tight deadlines Exogenous hinders (security, political ) Lessons Learnt Adaptation of Intl good practices Customized to country needs Quality above all Participatory approach Testing of results Link to culture of democratic governance Structural, legal and political reforms needed

22 10. Complementing Survey Results Expert Group Meetings Policy Papers Financial Education in Schools Banking and other Financial Services Pensions and Social Protection Policy Citizenship, Good Governance and Accountability Financial Inclusion and Gender Consumer Protection 22

23 Next Steps 23/14

24 11. Short Term Strategy Improve access to information and financial intermediation Support the development of financial markets Raise awareness Facilitate citizens access to information - Educational tools Consumer Protection Governance and Accountabil ity Coordination and Mobilization Education Improve teachers capacity development program Update existing curricula Support evidence-based policy reform, esp. social protection policy Pensions Improve access to information and financial intermediation Improve coordination of current initiatives Empower target groups Banking and Financial Services Financial Inclusion Wit the Private sector and NGOs : Empower women with skills, knowledge, tools and networking opportunities Facilitate SMEs access to finance

25 Example of Current Initiatives Teachers Programs Women and Youth

26 11. Long Term Vision Evidence-based Policy-Making / Structural Reforms Second survey Capacity building of various target groups Lebanon as a pilot for MENA countries Improved financial well-being of the Lebanese population

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