A new research initiative tackling socioeconomic disparities

Economic growth does not necessarily translate into better living conditions or equal opportunities. Egypt, for example, has witnessed considerable economic growth and investment in infrastructure in recent years, yet income inequality and other socioeconomic disparities have continued to rise. This shows that economic progress is not just about how much a country grows, but also about how that growth benefits its people.

Recognizing the need to better understand these challenges, the Department of Economics at the Adnan Kassar School of Business at the Lebanese American University (LAU) launched MARSAD, a data-driven research observatory dedicated to examining socioeconomic disparities in the Arab Mashreq. Focusing on three interconnected areas: poverty, inequality and economic development. The observatory aims to strengthen research in the region, address existing gaps in socioeconomic data and bridge the divide between academic findings and policymaking.

The launch brought together distinguished economists and researchers, including Dr. Ragui Assaad, Professor and Freeman Chair for International Economic Policy at the University of Minnesota, and Dr. Francisco Ferreira, Amartya Sen Professor of Inequality Studies at the London School of Economics. During his keynote address, Ferreira presented his paper, "Is Income Inequality Rising Everywhere?", highlighting the persistence of inequality across countries. He argued that while there is suggestive evidence of convergence in relative inequality between countries, absolute inequality continues to rise in almost all cases. He further stressed that inequality remains too high and has serious implications for fairness, opportunities and democracy.

Connecting Research with Decision-Making

Although research on poverty, inequality and economic development already exists across the Arab Mashreq, one of the main challenges lies in connecting academic findings with economic realities and policymaking.

During his interview with The Beiruter, LAU Professor of Economics and Associate Dean Dr. Ali Fakih explained that one of the main motivations behind establishing MARSAD was the gap between social analysis, economic realities and policymaking. "Decisions are not necessarily made arbitrarily, but they are often not supported by data or research evidence," he said, based on his own experience working with policymakers.

Through MARSAD, LAU hopes to help bridge this gap by bringing researchers together with stakeholders involved in public affairs. MARSAD ‘s objective is to ensure that academic research can be useful to policymakers and contribute to addressing the region's economic and social challenges.

The LAU professor pointed out that MARSAD's approach will rely on research evidence instead of purely descriptive analysis. By examining the economic relationships between the factors influencing poverty, inequality and development through statistical models and advanced research methodologies, the observatory hopes to produce findings that can support more informed decisions.

Looking at Poverty and Inequality Differently

According to Dr. Fakih, poverty, inequality and economic development cannot be studied separately, as each one affects the others. Inequality, for instance, is not limited to differences in salaries or income but also includes unequal access to healthcare and other essential services.

He stressed that poverty should also be understood in a broader sense, instead of the inability to afford food. It involves different forms of deprivation and the opportunities people have access to. Studying these three areas together can help researchers understand the reasons behind economic disparities and the challenges facing development in the region.

To support this research, MARSAD was developed in collaboration with economists from the University of Ottawa, including Professor Paul Makdissi, whose expertise lies in measuring inequality and developing statistical indicators. The collaboration also allows researchers to exchange knowledge through academic visits, seminars and lectures.

He shared that the original plan was to establish two observatories, one for the Arab Mashreq and another for the Arab Maghreb. However, after facing delays and some obstacles, the team decided to launch the Mashreq observatory first.

Lebanon will be a particular focus, as most of MARSAD's founding members are Lebanese. As he recalled, the team wants to balance its local focus with its wider regional ambitions: "We are trying to strike a fair and balanced approach between focusing on Lebanon, whose realities we know very well, and the wider Arab Mashreq, where we intend to conduct research."

Preparing the Next Generation of Researchers

In parallel with its research activities, MARSAD also aims to support young economists and researchers who are beginning their academic careers. Through its Junior Fellows Program, the observatory plans to offer postgraduate students and early-career researchers training and mentorship opportunities.

Professor Fakih explained that the program is still being developed, with plans to organize workshops involving international experts in fields such as poverty and inequality, in collaboration with international organizations based in Lebanon.

Looking ahead, MARSAD also plans to expand its network of fellows and strengthen its research activities. One of the challenges the team hopes to address is the lack of reliable data in certain countries, such as Syria, where limited available information makes it difficult to begin research on socioeconomic disparities. Dr. Fakih said that the observatory's next steps will focus on collecting and organizing data before moving forward with research projects whose topics have already been identified. The team has also established a timeline and key performance indicators to guide its work.

In the long term, he hopes MARSAD will become a regional reference for researchers, policymakers and others interested in socioeconomic issues. Its success will depend on its ability to provide reliable research and offer practical proposals for addressing the region's economic challenges.

At a time when the Arab Mashreq is facing serious economic and social challenges, MARSAD also shows how Lebanese universities and researchers can contribute to the region. By taking the initiative to study these issues and find ways to address them, they are helping bring attention to problems that often need more research and discussion, while working towards a better future for the region.