Publication: The Costs Come before the Benefits: Why Donors Should Invest More in Refugee Autonomy in Uganda
Loading...
Date
2024-01-29
ISSN
Published
2024-01-29
Author(s)
Editor(s)
Abstract
When host countries allow refugees to earn income, two main groups benefit: refugees, who become financially autonomous, and international institutions that can reduce the humanitarian aid that would otherwise be needed to support refugees. Uganda is one of the more progressive countries when it comes to promoting the financial independence of refugees and shifting from humanitarian aid to development ways of working. This note considers how successful refugees in Uganda have been in becoming financially independent and estimates how assistance has been saved due to these efforts at economic inclusion. Using the international poverty line of US$2.15 in 2017 purchasing power parities to proxy the costs of basic needs, the results suggest that the amount of total aid needed was reduced by almost 45 percent. They also show that many refugees live in poverty, implying that the present combination of aid and work is inadequate to assure a decent standard of living. While more assistance is needed in the short run, reductions in development assistance are feasible but require upfront investments in refugee earning capacity to realize them.
Link to Data Set
Citation
“Atamanov, Aziz; Hoogeveen, Johannes; Reese, Benjamin. 2024. The Costs Come before the Benefits: Why Donors Should Invest More in Refugee Autonomy in Uganda. Policy Research Working Papers; 10679. © World Bank. http://hdl.handle.net/10986/40974 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Publication The Asymmetric Bank Distress Amplifier of Recessions(Washington, DC: World Bank, 2025-07-11)One defining feature of financial crises, evident in U.S. and international data, is asymmetric bank distress—concentrated losses on a subset of banks. This paper proposes a model in which shocks to borrowers’ productivity dispersion lead to asymmetric bank losses. The framework exhibits a “bank distress amplifier,” exacerbating economic downturns by causing costly bank failures and raising uncertainty about the solvency of banks, thereby pushing banks to deleverage. Quantitative analysis shows that the bank distress amplifier doubles investment decline and increases the spread by 2.5 times during the Great Recession compared to a standard financial accelerator model. The mechanism helps explain how a seemingly small shock can sometimes trigger a large crisis.Publication From Tailwinds to Headwinds(Washington, DC: World Bank, 2025-07-10)The first quarter of the twenty-first century has been transformative for emerging market and developing economies (EMDEs). These economies now account for about 45 percent of global GDP, up from about 25 percent in 2000, a trend driven by robust collective growth in the three largest EMDEs—China, India, and Brazil (the EM3). Collectively, EMDEs have contributed about 60 percent of annual global growth since 2000, on average, double the share during the 1990s. Their ascendance was powered by swift global trade and financial integration, especially during the first decade of the century. Interdependence among these economies has also increased markedly. Today, nearly half of goods exports from EMDEs go to other EMDEs, compared to one-quarter in 2000. As cross-border linkages have strengthened, business cycles among EMDEs and between EMDEs and advanced economies have become more synchronized, and a distinct EMDE business cycle has emerged. Cross-border business cycle spillovers from the EM3 to other EMDEs are sizable, at about half of the magnitude of spillovers from the largest advanced economies (the United States, the euro area, and Japan). Yet EMDEs confront a host of headwinds at the turn of the second quarter of the century. Progress implementing structural reforms in many of these economies has stalled. Globally, protectionist measures and geopolitical fragmentation have risen sharply. High debt burdens, demographic shifts, and the rising costs of climate change weigh on economic prospects. A successful policy approach to accelerate growth and development should focus on boosting investment and productivity, navigating a difficult external environment, and enhancing macroeconomic stability.Publication Intergenerational Income Mobility around the World(Washington, DC: World Bank, 2025-07-09)This paper introduces a new global database with estimates of intergenerational income mobility for 87 countries, covering 84 percent of the world’s population. This marks a notable expansion of the cross-country evidence base on income mobility, particularly among low- and middle-income countries. The estimates indicate that the negative association between income mobility and inequality (known as the Great Gatsby Curve) continues to hold across this wider range of countries. The database also reveals a positive association between income mobility and national income per capita, suggesting that countries achieve higher levels of intergenerational mobility as they grow richer.Publication The Macroeconomic Implications of Climate Change Impacts and Adaptation Options(Washington, DC: World Bank, 2025-05-29)Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.Publication Global Poverty Revisited Using 2021 PPPs and New Data on Consumption(Washington, DC: World Bank, 2025-06-05)Recent improvements in survey methodologies have increased measured consumption in many low- and lower-middle-income countries that now collect a more comprehensive measure of household consumption. Faced with such methodological changes, countries have frequently revised upward their national poverty lines to make them appropriate for the new measures of consumption. This in turn affects the World Bank’s global poverty lines when they are periodically revised. The international poverty line, which is based on the typical poverty line in low-income countries, increases by around 40 percent to $3.00 when the more recent national poverty lines as well as the 2021 purchasing power parities are incorporated. The net impact of the changes in international prices, the poverty line, and new survey data (including new data for India) is an increase in global extreme poverty by some 125 million people in 2022, and a significant shift of poverty away from South Asia and toward Sub-Saharan Africa. The changes at higher poverty lines, which are more relevant to middle-income countries, are mixed.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Political Economy and Forced Displacement : Guidance and Lessons from Nine Country Case Studies(Washington, DC, 2014-06-17)This report was produced for the Global Program on Forced Displacement and describes why and how to conduct political economy analysis (PEA) of forced displacement. It also illustrates how PEA may contribute to understanding forced displacement crises with nine case studies: Casamance (Senegal), Colombia, Cote dapos;Ivoire, Democratic Republic of Congo, Liberia, the Philippines, Somalia, South Sudan, and Zimbabwe. Forced displacement is understood here as a situation where persons are forced to leave or flee their homes due to conflict, violence, or human rights violations. The key elements of forced displacement PEAs include: i) a review of the historical context and displacement characteristics; ii) durable solutions prospects; iii) environmental, geographic, social, political, and economic drivers, constraints and opportunities; (iv) needs of the displaced and hosts; v) existing policies, government/institutional context, and operations; and vi) recommendations. Recommendations on development policies and programs that result from a PEA characteristically fall into at least four categories, namely: i) improving access to land, housing and property; ii) reestablishment of livelihoods; iii) improving delivery of services; and iv) strengthening accountable and responsible governance. PEAs of forced displacement analyze the contestation and distribution of power and resources along with the development challenges associated with forced displacement crises. By nature of their marginalization and the frequently protracted nature of their exile, the forcibly displaced are especially vulnerable as power and resources are disputed. The purpose of conducting a PEA on forced displacement is to inform policy dialogue and operations so that the interests of vulnerable forcibly displaced populations and their hosts are effectively accommodated in resource allocation decision-making and in poverty alleviation initiatives. From the earliest design phase to dissemination of the results, the PEA is essentially an exercise in effectively collecting relevant data, analyzing these, and then marketing the analysis and its operational implications to the right stakeholders. This report is intended to be an aid in navigating these decision points and activities and to encourage more frequent and better use of political economy analysis in evaluating and addressing forced displacement.Publication Forced Displacement of and Potential Solutions for IDPs and Refugees in the Sahel : Burkina Faso, Chad, Mali, Mauritania and Niger(Washington, DC, 2013-10)The Sahel region has seen the forcible displacement of more than million persons as a result of conflict. Tackling displacement in the Sahel is critical for both poverty alleviation and stabilization, and only a development response will be adequate to the task. A development response to forced displacement in the Sahel requires a regional approach. Such an approach would have the benefits of being able to overcome challenges relating to cross-border movements, obtain commitments by host governments to support the prospects of displaced from neighboring countries, and facilitate common approaches, shared conceptualization and learning. The purpose of this scoping study on forced displacement is to contribute towards the formulation of a regional policy framework for sustainable solutions to displacement and towards the substantiation of a development response. The main challenges for the displaced populations include: i) livelihoods; ii) relations with host communities; iii) cohesion; iv) depletion of services; and v) governance. Measures to be taken to address the needs of these communities are: 1) improving the monitoring of population movement and knowledge on the locations, profiles and needs of the displaced, their host and return communities; 2) ensuring that the displaced and those affected by them can benefit from ongoing wider development investments in the region by designing 'displacement-sensitive' interventions; 3) strengthening services in affected areas through targeted regional investment programs; 4) employment creation and livelihood generation for those displaced; 5) delivering resources for the displaced in such a way that important outcomes are achieved; and 6) exploring the creative use of new technologies to extent information and development benefits to the displaced.Publication Forced Displacement in Europe and Central Asia(World Bank, Washington, DC, 2011-10)This paper describes forced displacement in the Europe and Central Asia Region (ECA) and the vulnerabilities associated with being a displaced person. It analyzes the development challenges of forced displacement particularly protracted displacement in the region and the prospects for durable solutions. Displaced persons face challenges related to recovery of or access to housing and land, employment and livelihoods, access to services and public goods including health, education, and infrastructure, and accountable and responsive governance.Publication The Impacts of Refugees on Neighboring Countries(Washington, DC, 2010-07-29)This brief focuses on the period of displacement and seeks to outline the impact of refugees on neighboring countries, including the developmental implications of forced displacement. The study has two main sections. The first section describes trends in the distribution of refugees in asylum countries. A series of graphs and tables highlights the fact that the largest percentage of refugees is found in countries neighboring their country of origin, most of which are middle-income countries. The second section discusses how neighboring countries that host refugees for protracted periods experience long-term economic, social, political, and environmental impacts. Furthermore, it also shows that in terms of the impacts and the opportunities that the presence of refugees create, there can be winners and losers among both the displaced and their hosts. Finally, this brief presents examples of global experience of development interventions that have focused on mitigating the negative aspects of large-scale and protracted displacement and strengthening the productive capacities of refugees in host countries.Publication Making Refugee Self-Reliance Work: From Aid to Employment in Sub-Saharan Africa(Washington, DC: World Bank, 2025-06-09)"Making Refugee Self-Reliance Work: From Aid to Employment in Sub-Saharan Africa" advocates for the enhancement of refugee self-reliance as a strategic, humane, development approach to refugee assistance. Facilitating refugees’ capacity to support themselves through gainful work not only upholds their dignity and autonomy but also offers socioeconomic benefits to host communities by unlocking opportunities for shared investment and development. The report demonstrates how refugee self-reliance in Sub-Saharan Africa remains elusive and identifies various reasons why this is the case: encampment limits the scope for self-reliance; restrictions on refugees’ right to work hinder self-sufficiency; small allocations of infertile land make even subsistence farming impossible; aid delivery in specific areas contributes to settlement patterns in which skills and economic opportunities do not match; economic development in remote, resource-scarce regions is unsustainable; and dependence on aid shifts funding priorities from long-term development to unproductive care and maintenance models. To overcome these challenges, the report outlines five areas for policy action: 1. Ending restrictive encampment policies 2. Boosting refugees’ economic participation 3. Supporting host communities 4. Reshaping financing and investment models 5. Investing in preparedness. Success requires committed leadership from host governments, as well as coordinated engagement and sustained support from humanitarian organizations and development partners.
Users also downloaded
Showing related downloaded files
Publication Ten Steps to a Results-Based Monitoring and Evaluation System : A Handbook for Development Practitioners(Washington, DC: World Bank, 2004)An effective state is essential to achieving socio-economic and sustainable development. With the advent of globalization, there are growing pressures on governments and organizations around the world to be more responsive to the demands of internal and external stakeholders for good governance, accountability and transparency, greater development effectiveness, and delivery of tangible results. Governments, parliaments, citizens, the private sector, Non-governmental Organizations (NGOs), civil society, international organizations, and donors are among the stakeholders interested in better performance. As demands for greater accountability and real results have increased, there is an attendant need for enhanced results-based monitoring and evaluation of policies, programs, and projects. This handbook provides a comprehensive ten-step model that will help guide development practitioners through the process of designing and building a results-based monitoring and evaluation system. These steps begin with a 'readiness assessment' and take the practitioner through the design, management, and importantly, the sustainability of such systems. The handbook describes each step in detail, the tasks needed to complete each one, and the tools available to help along the way.Publication Africa's Future, Africa's Challenge : Early Childhood Care and Development in Sub-Saharan Africa(Washington, DC : World Bank, 2008)This book seeks to achieve a balance, describing challenges that are being faced as well as developments that are underway. It seeks a balance in terms of the voices heard, including not just voices of the North commenting on the South, but voices from the South, and in concert with the North. It seeks to provide the voices of specialists and generalists, of those from international and local organizations, from academia and the field. It seeks a diversity of views and values. Such diversity and complexity are the reality of Sub-Saharan Africa (SSA) today. The major focus of this book is on SSA from the Sahel south. Approximately 130 million children between birth and age 6 live in SSA. Every year 27 million children are born, and every year 4.7 million children under age 5 die. Rates of birth and of child deaths are consistently higher in SSA than in any other part of the world; the under-5 mortality rate of 163 per 1,000 is twice that of the rest of the developing world and 30 times that of industrialized countries (UNICEF 2006). Of the children who are born, 65 percent will experience poverty, 14 million will be orphans affected by HIV/AIDS directly and within their families and one-third will experience exclusion because of their gender or ethnicity.Publication World Development Report 1984(New York: Oxford University Press, 1984)Long-term needs and sustained effort are underlying themes in this year's report. As with most of its predecessors, it is divided into two parts. The first looks at economic performance, past and prospective. The second part is this year devoted to population - the causes and consequences of rapid population growth, its link to development, why it has slowed down in some developing countries. The two parts mirror each other: economic policy and performance in the next decade will matter for population growth in the developing countries for several decades beyond. Population policy and change in the rest of this century will set the terms for the whole of development strategy in the next. In both cases, policy changes will not yield immediate benefits, but delay will reduce the room for maneuver that policy makers will have in years to come.Publication Tanzania(World Bank, Washington, DC, 2015-06)This study aims to achieve a better understanding of the agricultural risk and risk management situation in Tanzania with a view to identifying key solutions to reduce current gross domestic product (GDP) growth volatility. For the purpose of this assessment, risk is defined as the probability that an uncertain event will occur that can potentially produce losses to participants along the supply chain. Persistence of unmanaged risks in agriculture is a cause of great economic losses for farmers and other actors along the supply chains (for example, traders, processors, and exporters), affecting export earnings and food security. The agricultural sector risk assessment is a straightforward methodology based on a three-phase sequential process. Phase analyzes the chronological occurrence of inter-seasonal agricultural risks with a view to identify and prioritize the risks that are the drivers of agricultural GDP volatility. This report contains the findings and recommendations of the first phase and includes the identification, analysis, and prioritization of major risks facing the agricultural sector in Tanzania, as well as recommendations regarding key solutions. Chapter one gives introduction and context. Chapter two contains an overview of the agricultural sector and its performance, as well as a discussion of key agro-climatic, weather, and policy restrictions and opportunities. Chapter three includes an assessment of major risks (that is, production, market, and enabling environment risks) facing key export and food crops. Chapter four presents an estimate of historical losses due to realized production risks and a correlation of such losses with production volatility. Chapter five provides insights into the exposure to risks by different stakeholders and their actual capacities, vulnerabilities, and potential to manage agricultural risks. Chapter six presents a risk prioritization by different supply chains and discusses the possible solutions, as well as specific recommendations for the agricultural sector development program (ASDP).Publication World Development Report 2017(Washington, DC: World Bank, 2017-01-30)Why are carefully designed, sensible policies too often not adopted or implemented? When they are, why do they often fail to generate development outcomes such as security, growth, and equity? And why do some bad policies endure? This book addresses these fundamental questions, which are at the heart of development. Policy making and policy implementation do not occur in a vacuum. Rather, they take place in complex political and social settings, in which individuals and groups with unequal power interact within changing rules as they pursue conflicting interests. The process of these interactions is what this Report calls governance, and the space in which these interactions take place, the policy arena. The capacity of actors to commit and their willingness to cooperate and coordinate to achieve socially desirable goals are what matter for effectiveness. However, who bargains, who is excluded, and what barriers block entry to the policy arena determine the selection and implementation of policies and, consequently, their impact on development outcomes. Exclusion, capture, and clientelism are manifestations of power asymmetries that lead to failures to achieve security, growth, and equity. The distribution of power in society is partly determined by history. Yet, there is room for positive change. This Report reveals that governance can mitigate, even overcome, power asymmetries to bring about more effective policy interventions that achieve sustainable improvements in security, growth, and equity. This happens by shifting the incentives of those with power, reshaping their preferences in favor of good outcomes, and taking into account the interests of previously excluded participants. These changes can come about through bargains among elites and greater citizen engagement, as well as by international actors supporting rules that strengthen coalitions for reform.